How is personal and business credit different?
Personal credit is based on your social security number, 7-10 year credit history, a combination of payment patterns and balance to limit ratio’s on revolving credit.
Business credit is based on a companies EIN # ( a business social security number), it’s payment history, and financials. One of the biggest differences is with business credit the late payments that occur affect the credit more depending on how high the debt is in comparison with the other open accounts. If the late payments are made with a vendor that has a $20,000 debt owed and there are other vendors with higher debt owed the score will be affected less. If a business was late with a vendor that showed the highest debt on the credit report the scores would plummet. The payment history is dependent on dollar value of the debt for each vendor. The higher the debt of the vendor the heavier the dip in score if a late payment occurs.
About Tracy Becker
Visit Our Main Website For Credit Repair Help
For over two decades, I have owned and operated a Credit Education and
Restoration Company. We can increase Fico Scores by hundreds of points and
our fee is billed based on success. I enjoy Public Speaking across the
Country where I work with all kinds of Professionals, helping them find
solutions to Credit Problems. I have Expertise in both personal and
business credit. I've worked with thousands of people leading them into
better credit and ultimately, financial health and more opportunity. I
educate Bankers, Realtor's, CPA's, and Finance Experts on Credit from A-Z.
I'm also publishing my second book "Credit Score Power". Lastly, I've been
interviewed on national Television and Radio as a Credit Expert. Feel free
to contact me if you have any credit questions or clients who wish to
increase their credit score.
Read all the great things our clients have to say about us! Click here...