Q: Just a quick question. My husband and I are expanding our business and we have business credit. We want to know if business credit like personal credit. If we have a 25,000 limit should we only do 12,500 or can we do more with business credit?
A: I assume your first concern is that maxxing out your business credit line will hurt your business credit score in the way that maxxing out a personal credit card will hurt your FICO score. However, the two are calculated much differently. At the same time you should double check to make sure your business line of credit isn't reported on your personal credit rating. In the member's area, we show you which business credit cards are advantageous that way.
Obviously, any time you can avoid debt it's good to do so. Depending on your capital needs, you may want to consider whether leasing can help you achieve your goals without taking on additional debt. In addition, you may want to line up additional credit before you take on more debt. It's always best to build credit before you really need it.
Good luck in your business!
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2 comments:
I also use business credit card but for small businesses and satisfy with it very much. I can control expenses of my company and use some benefits.
If you want to build your business credit, make sure you pick a reliable company that can do all the necessary things required to establish the business credit you want. Make sure all the necessary documents are filed and everything is in place. It's hard to do everything on your own, and getting many different people to do all the little things is probably not a very good idea. So pick a well know company that has the experience and connections. United Business Credit is that company. Not only can they have all the work done for you, but they will make sure your business credit and you personal credit stay the way they are, apart! Why risk your name and your assets when you can keep business strictly business.
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