Personal credit vs business credit

Two separate systems

Most owners don't know their business can build its own credit profile. That changes how funding works.

Personal credit (FICO) follows you. Business credit (D&B PAYDEX, Experian Business, Equifax Business) follows your business. Build both and you unlock funding that doesn't risk your personal finances.

Start early. Business credit takes months to build and lenders check it the moment you apply.

Key points

• Personal credit follows you. Every card, mortgage, auto loan, and personal guarantee. Tied to your SSN.
• Business credit follows the business. Tied to your EIN and D-U-N-S number. A separate profile lenders can check.
• Separate profiles protect you. Strong business credit = no personal guarantees on loans. Your personal assets stay safe if the business fails.
• Most lenders check both. First 2 to 3 years, lenders look at personal credit too. After that, business credit becomes primary.

Start building both now

6 months from needing funding? Start today. Business credit takes 60 to 90 days to generate a score, 6 to 12 months to hit the threshold most lenders want.