Business owners often think that their personal credit does not have anything to do with their business credit. Any business credit is built upon what personal credit the owners have. New businesses do not immediately have credit for lenders to refer to when deciding what amount of credit liability that they are willing to extend. Lenders will rely on the personal credit information from all owners as one of their main criteria.
All business owners should obtain at least one copy of their personal credit report before applying for any loan. It is wise for all consumers to do this at least once per year. Credit reporting agencies have become more accurate over the past 10 years in their reporting results, but mistakes do happen all too often. Any mistake that you find should be addressed immediately with the credit reporting agency as well as the company that reported the incorrect information. It can take up to 30 days to clear up errors on your credit report, so time is of the essence if you are in need of a loan.
The three main personal credit agencies you should contact in order to get your credit report are: Trans Union, Experian and Equifax.
It is equally important that established business owners review a copy of their business credit report before submitting a credit application. Companies rely on business credit reports to make critical credit decisions as well. Dun and Bradstreet Inc. (D&B) is a recommended place to obtain a copy of your report.
So the answer to the question is….both count equally. It is important to always keep youself and your company in good credit standing.
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