Page 12 - Everything You Need To Know About Personal and Business Credit by Adrean Yancy

Everything You Need To Know Abour Personal & Business Credit

Legal Protection: Consumer credit laws give personal credit score accounts more

protection than business credit score accounts. Consumer credit laws enable you to
challenge any incorrect data and discrepancies in your personal credit score report and
have them removed. There are no such laws for commercial credit; that is, you can
only challenge discrepancies noted in your business credit score report or incorrect
data. Still, the agency is not obligated to respond.

Rating Agency: There are three major personal credit report agencies: Equifax,
Experian, and TransUnion. The most commonly used business credit reporting service
is Dun & Bradstreet.

Loan Capacity: While a personal loan is usually maxed at $30,000, a business account
loan code goes as much as millions of dollars. So, to maximize your business loan
capacity, you need to build your business capacity.

Transferability: While you can always transfer your business credit reports, your

personal credit report stays with you forever. This means that the business report
stays with the business regardless of the change of ownership.

It is important to note that Equifax and Experian both operate business reporting
services. This means while you update your personal credit report, you can also
operate your business report service with them. However, you must ensure it is
separated from your personal report service.

Also, it is equally important to mention that if you operate more than one business,
you can have a separate business reporting service as long as you have a separate EIN
for each business.

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