Three Types of Credit You May Not Know You Have

Every commercial enterprise has 3 types of credit: the Consumer Credit of the commercial enterprise proprietor, Bank Credit, and Business Credit.

Most business owners are familiar with their consumer credit. This is credit score that reviews to the customer credit score reporting corporations TransUnion, Equifax, and Experian. Scores variety from 350-850, and credit is related to the owner’s Social Security Number.

Most business owners don’t know that banks have their personal inner scoring gadget for agencies. This scoring gadget is called bank credit score, or a financial institution rating.
This rating is primarily based on the way you manipulate your commercial enterprise bank account. Having $10,000 or greater for your financial institution account will give you an amazing bank credit score score.

A business also has its very own credit profile, referred to as business credit. Business credit score reports to the business credit reporting companies, Dun & Bradstreet, Equifax, and Experian. Scores usually variety from zero-100, and credit score is connected to the commercial enterprise EIN number, not the proprietor’s SSN wide variety.

Business credit score gives a number of advantages. For one, it has no hyperlink to client credit, so no non-public credit test is required, and accounts don’t document to the client organizations.

No private guarantee is needed in most cases, so you won’t be in my view answerable for your business debts. Also, credit score limits are 10-a hundred instances better than with patron credit.

With consumer credit score, just because you have an SSN would not imply you have got an established credit profile.