We all know about personal credit scores. The higher your score, the better your financial standing. Lenders look at your credit score before offering you a loan — or line of credit — and many employers check your score before hiring you.
But did you know your business has its own credit score?
At Kerndt Brothers Bank, we believe knowledge is power. So we want you to know as much as possible about your business credit score.
Personal and business credit scores differ in several important ways.
Unlike a personal credit score, your company credit score includes just your business transactions. Unlike your own individual report, your business credit score is not protected by the Fair Credit Reporting Act (FCRA). That means anyone can pull your report at any time for any reason.
Finally, unlike your personal score, your business score can be corrupted with data and reporting errors. For example, if your business name is the same or similar to other companies in your area, people may be accessing the wrong credit report. Your credit score might be mixed up with another business credit score. If someone is trying to do business with you and they receive false information, you may lose out on important relationships and transactions and never know why.
At Kerndt Brothers Bank, we encourage you to periodically monitor your business credit score, correct any mistakes, and keep your business and personal scores separate. The last suggestion is especially important. If ever your business were to suffer losses, you wouldn’t want them to wipe out your personal finances. Keep your business accounts and your personal accounts segregated for your own financial protection and peace of mind.
Be aware of what can adversely affect your business credit score, including:
- Making late payments
- Having your ID stolen
- Abusing lines of credit
- Filing for bankruptcy
- Defaulting on a loan
We’re here to help you with all your business needs. Kerndt Brothers Bank offers personal and business loans as well as individual and commercial banking accounts. We’re happy to answer any questions you may have. Let us tailor financing to meet all your needs, now and into the future.Follow me on Google+