3 Big Differences between Personal Credit Scores and Business Credit Scores

There are many differences between personal and business credit scores.

One fundamental difference between consumer and business scores is the time frame the scores gauge someone’s risk of default over.

A business credit score is a mathematical model that is used to depict a business’s risk of going 90 days late on an account within the next 12 months.

A consumer credit score is a mathematical model that is used to depict a consumer’s risk of going 90 days late on an account within the next 24 months.

Another big difference between consumer and business credit scores is what the score actually represents.

A consumer credit score reflects an individual’s likelihood of defaulting on an obligation.

A business credit score reflects the business’s likelihood of defaulting on an obligation, not the business owner’s.

The business credit score is based on how the business obligations are being paid, not how the business owners pays their personal obligations.

Another major difference between business and consumer credit scores is the score range.

Consumer FICO scores range from 350-850 with 850 being the best score you can obtain. Business credit scores typically range from 0-100 with 100 being the best score you can obtain.

There are three of many major differences between consumer and business credit scoring. 

As a Certified Life Coach and Therapist, Ramona Christine offers professional services to help you build the required points of credibility for small business financing and credit.  There is no need to keep your business ideas on hold because of concerns around financing.  Financing is accessible and within just a short period of time.

After taking advantage of the knowledge shared in this article series, Ramona Christine, was able to secure funding for her business within 45 days; literally, a $20,000 revolving line of credit.  That sure did supersede the $3,000.00 personal credit card limits that she had been working with on the consumer side of things.  The relief was tremendous after doing it the hard way (the wrong way) for so many years.  Funding her own business ventures with personal credit and income made it that much more difficult to break free from the vicious cycle of personal credit deficiency, not to mention the risk of “piercing the corporate veil”.

Personal credit cards were maxed out, consumer credit utilization was high, her personal credit score was low, and the amount needed to fund business expenses just wasn’t there.  It was a vicious cycle of chasing balances and cash before finally liberating herself through some research and implementing the vital information shared in this series of articles.  Gaining access to business credit and financing was exactly the remedy needed to obtain a second wave of financial power referred to as Business Credit.

By taking advantage of Ramona Christine as your Business Credit Coach, she will give you, yes, give you immediate access to 2/10 of the bank required points at no additional cost, a valued savings of $750.00.  A professional internet presence is a vital credibility point that gets you that much closer to small business funding.

1. First, you will be set up with a professional website domain and professional email account (i.e. www.yourbusinessdomain.com and you@yourbusinessdomain.com)
2. Second, you will receive website hosting for your professional website for the duration of your Business Coaching relationship.  This means that while important work is being done to meet the other 8 credibility points, your professional reputation is already spanning across the world wide web like wildfire.

If you are anxious to get started and learn more about business credit and financing, you are invited to visit: Embrace(D) for Success (https://www.embracedforsuccess.com) to discover more.  You may also learn more about the professional services provided by Ramona Christine.  As always, Ramona Christine, is also quick to respond to e-mail inquiries received at ready2b@embracedforsuccess.com.

Building business credit streamlines you into opportunities un-imagined.  Imagine the growth that is possible with business funding at your disposal!

If you feel that you may already be in a position to access small business financing, apply with Kabbage today to receive an immediate response to your application.  Invest in yourself!  May you continue to grow in prosperity and success!