Business owners often think that they don’t need business credit. This can be false and might be quite dangerous, depending on the business. As your business grows, so does the related risk of your operations in a lot of cases. That means that if you’re using your personal credit for your business, then you may be exposing yourself to personal liability if your business runs into difficulties down the road.
Using your personal credit may also be risky when partners, lenders, and suppliers look into your company, as each time they pull your credit report, your personal credit score can take a hit. There are often minimal, if any, negative effects to your D&B® scores and ratings when someone pulls your business credit report.
In most cases, both you and your business can be better off if you separate your business credit from your personal credit. Learn more about the benefits of separating business and personal credit by watching this video:
Click here to watch the next video in the series: Do Small Businesses Really Need Business Credit?
Interested in monitoring changes to the scores and ratings in your business credit file? Start using CreditSignal today.
Photo Credit: torbakhopper, Flickr