Does my personal credit score affect my business credit? This is actually an amazing question
that I get asked all the time when it comes to business credit because so many people do not
know how business credit and personal credit are affected by each other. Well, I know exactly how
it works and I'm going to share with you all the secrets so you don't miss out. Let's go.
So, let's talk about business credit versus personal credit. As you may know, when it comes
to personal credit, there are 3 credit bureaus. We have Transunion, Equifax and Experian. And all of
those 3 credit bureaus will report your personal credit and your personal trade lines. For example,
if you have an auto loan, personal credit cards, a mortgage, and even your student loans. They
will all report on your personal credit report as trade lines. The bad thing about personal credit
though when it comes to business credit is that if you use your personal credit too much you could
really lower your credit score. I remember when I was getting into building my business. I started
using my personal credit cards to pay for Google ads, Facebook ads, and a lot of my marketing. And
as soon as I started doing that, I started pushing my balances really close to my limits on my credit
cards. And my credit score dropped by 200 points. That is when I made the decision that I was really
going to get serious about business credit and I did. When it comes to business credit,
we are playing a much bigger and better ball game. Business credit is much different from personal
credit. Although there are still 3 credit bureaus --Equifax business, Experian business, there's
also Dun and Bradstreet. Those are the 3 credit reporting agencies for business credit. And all of
the trade lines on your business credit will not report on your personal credit. This is awesome
for business because you can actually start to use your credit without your personal credit score
being affected. I started getting business credit cards and then I was able to start using those
credit cards the same way for google ads, Facebook ads and marketing. And instead of my credit score
dropping like it did the first time when I use my personal credit cards, I literally started
getting a much higher business credit score and they gave me more credit in my business's name.
In fact, I now have millions of dollars of business funding in my business's name. I have
even bought houses and cars in my business's name and none of that reports on my personal
credit report. It is absolutely phenomenal and it has changed my business and my life forever. Let
me tell you how you can do it. So, like I said, don't be like me and start using your personal
credit cards for your business. It's a very big mistake. You literally can build business credit
way faster than you could ever build personal credit. So, the first thing that you want to do
when it comes to building business credit is you have to set up a business. I know. Simple, right?
And literally, you can set up your business in just a day depending on what state you're in.
The first thing that you're going to need of course is a name for your business
and a license or registration with the secretary of state. You can get an LLC, a C Corp an S Corp,
whatever you decide. Additionally, you'll need an EIN number. It stands for employer identification
number. This will replace your social security number going forward as you get credit in your
business's name. Again, completely life-changing. You want to make sure you have a professional
website for your business, a professional phone number, not your cell phone or anything like that,
and a professional email. Doing these things will allow lenders for businesses to lend to
your business. They want to make sure that you have these things in place because honestly,
most people do not. If you don't put these things in place, they won't think that
you're a real business and you may start to get denied for business credit cards. If you do so,
you can literally start to get business credit without them checking your personal credit
altogether. Next, you want to start getting business trade lines on your business credit
report. As I stated earlier, Dun & Bradstreet is the number one credit reporting agencies
for businesses. Yes, we have Experian business and Equifax business but Dun and Bradstreet is
the largest business credit reporting agency and they've been around the longest. So, most people
use them when they're pulling business credit reports. So, you want to go to Dun and Bradstreet
and make sure you get a free dun and Bradstreet & Number. This is different from your EIN number.
I know it's an extra step but it's actually pretty easy to do and it's completely free.
You go to dnb.com, you put in your business's profile, you wait for them to send you a code,
you go back you put the code in, and boom, you have a business credit profile and you can start
putting trade lines and getting credit in your business's name. And Dun and Bradstreet were
reported and then you will have a Dun and Bradstreet credit report. Another amazing
thing that I need you to know about credit reports and Dun and Bradstreet in specifics
they have a scoring system just like your personal credit does. I know you've heard in the personal
credit score world, you want like a 720 score or better, or even at least a 660 credit score.
Well, those are FICO scores. Those are what we use in the personal credit world. But in the business
credit world, they have a Paydex score for you're Dun and Bradstreet that is a scoring system that
goes 0 to one 100. 0 being the worst, 100 being perfect. Pretty much an 80 or better score
is awesome business credit. You can start to do almost anything if you have a few tradelines on
your Dun and Bradstreet and an 80 Paydex score and it's pretty easy to start getting trade lines.
Next, we want to talk about getting trade lines because that's super easy. There are 3 companies
that you can use right now without checking your personal credit to start getting tradelines on
your business credit report. It's called vendor credit. I made an entire video that'll teach you
all about it but there's three companies that I absolutely love --one is Uline, one is Grainger,
one is Quill. Again, I'll put a link below in the description box and make sure you watch
that entire video so you can learn how to build business credit fast. After you get vendor credit,
we usually move on to store credit and then next we will get business credit cards and we call
those cash credit. This is the amazing thing about business credit. You really can start to build it
without actually ever using your personal credit score. You literally can go through those steps.
Yes, it will take you a little bit longer but it actually can get done in just a few months if
you follow the process clearly. And as a bonus, I just had to share this. If you actually have great
personal credit, you literally can start getting business credit pretty quickly. As long as you
have a business already set up the way that I've said where they can check to make sure you have a
professional website, a professional email, etc, etc; you literally can start to go get business
credit and business credit cards immediately. What they will do is check your personal credit.
But if you have a great personal credit score and you have a business, they will lend to you
and give you business credit cards based on the personal credit cards that you already have.
I literally have had students that have taken their credit cards like Capital one and gotten a
Capital one business credit card just by applying and telling them that they now have a business
and using the steps that I've outlined. So, if you have good personal credit, use it. You can
start getting business credit right now. So, there you have it. You can literally get business credit
without affecting your personal credit score and you don't have to let it affect your personal
credit. Now, you want to keep your personal credit score intact as I've shared before. And I've made
an entire playlist just for you all about this to educate you. I want to make sure you have all of
the resources, all of the knowledge, and all of the tools that you need to be successful. I make
all of this content for free just for you. Please watch all my videos, like this video, subscribe to
my channel, and click that little notification bell. This is Noelle. Yo your success.