Personal Credit Score vs. Business Credit Score: What Is the Difference?

Two separate credit files

Your personal file is tied to your Social Security number. Your business file is tied to your company's EIN or business identifiers and is built by different bureaus.

Personal credit reports are kept by the three major consumer bureaus. They record credit cards, mortgages, auto loans and other personal debts. Business credit reports are kept by commercial bureaus, including Dun & Bradstreet, Experian Business and Equifax Business. They record trade lines with suppliers, business loans, and payment behavior.

The two files are not merged, but they are linked in practice. When you sign a personal guarantee on a business loan, your personal credit and the debt are connected. A sole proprietor with no separate business identity may have almost no business credit file at all. See understanding business credit score ranges for details on how each commercial bureau scores.

How the scales and factors differ

Personal scores generally range from 300 to 850. Business scores use different scales that vary by bureau, and payment history is central to both.

Because each business bureau uses its own model, you can have different results at each one. Check your reports instead of relying on a single number.

Which one funders look at

For small businesses, funders usually weigh the owner's personal score heavily, then review revenue and bank statements. Business credit matters more as a company grows.

Newer and smaller businesses rarely have a deep commercial credit file, so funders lean on the owner's personal credit, time in business and cash flow. Larger and older companies with many trade lines are judged more on business credit.

At ROI Funder, 500+ FICO is considered, along with 6+ months in business and $20,000+ monthly revenue. Bank statements often matter more than a score alone. A modest score with strong, steady deposits can still be reviewed. Read credit requirements for a business loan for what lenders compare, and business loan requirements for the full list.

How applying affects each score

A soft credit pull does not affect your score. A hard inquiry may lower a personal score slightly, and some business lenders report only to commercial bureaus.

Hard inquiries can cause a small, temporary dip in a personal score. Many applications within a short time can add up. See how hard inquiries work for specifics. ROI Funder uses a soft credit pull to apply, so there is no impact on your credit score.

Business loans that you repay on time may be reported to commercial bureaus and help your business file. Some are not reported at all. Ask any provider whether and where they report payments, because reporting is what helps you build business credit.

How to strengthen your personal score

Pay every bill on time, keep card balances low relative to limits, avoid unnecessary new accounts and review your reports for errors.

1. Pay on time. Payment history is the biggest factor. Set up autopay for at least the minimum.
2. Lower utilization. Keep balances well under your limits.
3. Hold older accounts. Length of history helps.
4. Limit new applications. Space out credit requests.
5. Dispute errors. You can get free reports from the official annual credit report site and dispute inaccuracies.

More ideas appear in 7 ways to boost your credit score. Improvement takes months, not days, so start before you need the financing.

How to build your business score

Set up your company properly, open a business bank account, get a D-U-N-S number, use vendors that report, and pay early or on time every time.

A practical sequence:

• Form the business entity and get an EIN. See business tax ID numbers.
• Use a separate business bank account and phone number.
• Request a D-U-N-S number. Learn how it helps.
• Open trade accounts with suppliers that report to commercial bureaus.
• Pay invoices on time or early and keep balances modest.
• Check your business reports for errors every few months.

For the full playbook, read how to build business credit. If you need capital while you build, ask how an offer reports. Even a modest, well-handled account adds history.