![]() No matter how long your business has been around, and how much information is available for others to know, lenders will also look at your personal financial history and your credit score. Remember, your personal credit should remain separate from business credit in a dissociated business bank account.įor business owners, personal credit is important, and maintaining a good personal credit score should always be top of mind. You'll have one profile with each of these major bureaus. Three major credit bureaus curate the credit history that you build over time: Your personal credit line is connected to you by your Social Security Number (SSN). Bills like credit card payments, car loans, mortgages, student loans, and more all have a “due by” date, and when someone pays their bill on time, it increases their credit standing. Personal credit is what an individual builds by showing they’re trustworthy and responsible by paying their bills in full and on time. There’s a lot to keep in mind, as you find the right business loan and understand whether your personal credit will take a hit in the process. ![]() To many lenders, your credit score reflects how well you handle money and if you’re responsible and trustworthy enough to be lent the loan you need to make your business a success. Many lenders-especially financial institutions-review personal credit scores as part of their decision on whether to grant a loan. ![]() As an entrepreneur or a small business owner, it’s in your best interest to be aware that your personal credit can affect your ability to secure a business loan or other types of financing.
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