Many small business owners tap their personal credit when first starting their businesses or during downturns. However, your business can also have its own — completely separate — credit profile. Building business credit can help save you money and grow your company. But for many small business owners, personal credit can still be a major factor in qualifying for business financing.
Your personal credit depends on your credit reports from the major consumer credit bureaus — Equifax, Experian and TransUnion. Your creditors, such as lenders and credit card issuers, report your account information to the credit bureaus. Then, your FICO® Scores are based on those credit reports.