What is the difference between Personal and Business Credit?

By Rochelle N. Belnap, The Arizona Credit Law Group, PLLC

Did you know that there are credit bureaus dedicated to business credit reports and scores?  They are not the same as the credit bureaus that maintain information about your personal credit. So, how do you obtain credit for your business?

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These days, companies who are extending your business credit want the owners to personally guarantee the debt.  That usually involves pulling your personal credit report.  You typically need a 680 FICO credit score to qualify for a business credit card or a business loan.  The higher the credit line or loan amount, the higher your personal credit score needs to be.

What if you don’t have any credit or your credit is not good enough to qualify?  Then it’s time to re-establish good credit. You need personal credit, which means secured credit cards, lines of credit, installment loans (like cars), and a mortgage are all ways to build good credit.  You also need to have perfect payment history- meaning you don’t pay anything late, ever.

If you look at your credit report and everything on there is a collection, charge off, judgment, lien, or late, then you need to address those issues.  Tip: You probably don’t need “credit repair” for this, you need debt resolution so consult with someone who can actually help you.

Thanks for reading and Good Luck!


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My firm has 3 goals – be cost effective & efficient, make complicated things simple, and change the way people think about attorneys. We do this by offering flat rates with payment plans, educating our clients, and by encouraging everyone to ask us questions to better understand what we do & why we do it. I am a credit attorney and I love helping people with debt and credit legal issues.

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