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Do Business Loans Affect Personal Credit?

Posted onJune 20/2016By

The bottom line is that there’s no law to stop information about business loans from showing up on your personal credit report. If you’re a guarantor for a business loan, chances are that info will rear its head on your personal credit report. If you use any personal credit cards for your business, that will also reflect on your credit score as can using your home’s equity to fund your business. So, what does this mean? For one thing – even if you’re making payments on time, the debt you’re carrying for the business may result in a lower personal credit score for you! Keeping business debt off personal credit scores The most obvious way of doing that is not using personal credit to fund business. To completely separate business from personal finances, the first step would be to make the business its own legal entity where you’re not liable…

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