Does personal credit score affect business credit? Well, I'm sure you heard that they
are tied to each other in some way. But not in the way that most people think.
I'm going to tell you exactly how it affects it and how it doesn't. Let's go.
I'm going to share with you some secret ways to get business credit without affecting your
personal credit score. I'm going to tell you the exact steps to setting up business credit and
getting business funding fast. And I'm going to share with you my dirty little secret to get over
$100,000 in business funding in weeks, not years. So, there are some major differences between
personal credit and business credit. When it comes to personal credit, we have 3 major credit bureaus
we have Equifax, Experian, and Transunion. And when it comes to personal credit many things will
affect your personal credit scores. You have trade lines such as your student loans, your auto loans,
mortgages, and your personal credit cards if you have any. But the difference is
as you use your personal credit your credit score will be affected up and down
especially when it comes to personal credit cards. I literally made the mistake when I started my
business of not building my business credit fast. I didn't build my business credit really at all
and I relied on my personal credit to pay for my ads and my marketing. When I started to do that I
literally lost 200 points on my personal credit score. This is because as you start to use your
personal credit cards and you put the balances close to the limits, your credit score will tank.
Trust me on this one. Even if you're making the payments on time. Because in the personal
credit world, they are looking and judging you on your debt ratio and your credit utilization. So,
for example, if you have a personal credit card and you have a 1,000-dollar limit. You
have $1,000 that you can use and you use $800 of that. Although you have not gone to the limit,
you've used 80% of what is available to you and that is going to affect your personal credit score
drastically. Now, let's flip this to the business side. If you have a business credit card for
example and they give you $1,000 and let me tell you a tidbit right here, usually you'll get way
higher limits on business credit cards than you will on personal credit cards. But let's just use
the same example. Say, you had a business credit card with $1,000 and you used $800 of it but you
still made those payments on time the same way that you did in the personal credit world, you are
not going to just tank your score. In fact, one of them is not going to report on your personal
credit at all. And on the business credit side, they're actually going to reward you for making
the payments on time because it is showing that you are managing your debt well. In the business
credit world, you are rewarded for managing your debt well and making those payments on time.
So, now let's talk about inquiries. Inquiries on your personal credit score are major and affect
your credit score drastically. Way much more differently than they do in the business credit
world. Let me give you an example. On the personal credit world, you will get inquiries. Meaning,
anytime someone checks your credit they will put an inquiry on your personal credit report.
And inquiries can really start to hurt your credit score, your personal credit score, and
in some cases your business credit score if you are going after getting new business credit cards.
You want to monitor how many inquiries that you have. There are some business credit cards that
literally don't want you to have more than 5 hard inquiries for credit cards in the last 24 months.
The secret we call the 5/24 rule. However you can get past this if you don't always have to use your
personal credit when you are being qualified to get business credit cards. Let me tell you
some secrets on that. You can get business credit without getting inquiries on your personal credit.
Let me share with you how. So, let me quickly tell you there are 3 separate credit bureaus
for business credit. Like I said, in the personal world, you have Equifax, Transunion, and Experian.
And in the business credit world, you have 3 bureaus as well. You have Experian business,
Equifax business and Dun and Bradstreet. All 3 are awesome and they do not report on your
personal credit. They're separate bureaus. And they are only going to report your business debts.
So, when it comes to getting business credit without having them check your personal credit,
let me tell you an amazing secret called vendor credit. And this is how you can start to build
trade lines on your business credit report without those increase on your personal credit report. The
first one that I recommend is Uline, ULINE. It's an amazing company business to business where they
will give you vendor credit to your business. And they usually lend to startups and in many cases,
I have students that get invoices for 30, 60, and 90 days even with their new business. And again,
they don't check your personal credit report because you don't give them your social security
number. This is the easy way to know if they're actually checking your personal credit. If they
do not take your full social security number, they are not checking your personal credit.
So, if you put in your EIN number, you will know they are not checking your personal credit score.
The second company is Grainger (GRAINGER). And the last one is Quill (QUILL). I have ordered from all
3 of these companies because i actually like the products that they have and I'm able to buy things
for my business. But the great thing about them and why i recommend them to myself my students
and even you guys is because they report to the Dun and Bradstreet credit reporting agency. You
want to start getting business trade lines. That way when people pull the business credit report,
they do not have to check your personal credit at all. The faster you can build business credit
especially with Dun and Bradstreet, the faster you will get away from people checking your personal
credit all together. This way they pull only the business credit report, you give them only
the company's EIN number, and you move forward. This is how I'm able to buy homes cars and all
different types of assets in my business's name. I know you guys see some of the awesome stuff
that I have. Please know literally even my cars are in my business's name. This is the power of
business credit. So, now you get it. I've given you all the secrets and some amazing ways so you
can start building your business credit profile quickly and get away from the personal credit card
game altogether. A business needs business credit and a smart business can get millions of dollars
in business credit funding if they work on their business credit. It's probably more important than
even working on your personal credit. I literally have millions of dollars for my business and I am
secure, well-capitalized, and able to grow my business faster than most people could ever
imagine. Make sure you watch all of my videos. Make sure you smash that like button, subscribe
to my channel, and click that little notification bell so you do not miss any of this content that
i am bringing to you every single weekday. I want to make sure you have all of the tools, all of the
resources, and all of the knowledge that you need to be successful. This is Noelle. To your success.