Business Credit Scores Versus Consumer Credit Scores… What You Should Know

QA+Get+the+Most+from+Your+Business+Credit+Card_406b9565-1b00-4f1a-8a62-0c8902a3fcaf-prv

 

Business credit scores are based only on whether the business pays its bills on time. As a result, a business owner can obtain credit much faster using their business credit profile versus their personal credit profile.

Personal credit scores are based on five factors: Payment History – 35%, Utilization – 30%, Length of Credit History – 15%, Accumulation of New Credit – 10%, and Credit Mix – 10%.

Paydex Score are based on Payment History:

  • Expect payment may come early – 100
  • Payment is prompt – 80
  • Payment comes 14 days beyond terms – 70
  • Payment comes 21 days beyond terms – 60
  • Payment comes 30 days beyond terms – 50
  • Payment comes 60 days beyond terms – 40
  • Payment comes 90 days beyond terms – 30
  • Payment comes 120 days beyond terms – 20

Consumer credit scores are made up of five factors and take years of well disciplined borrowing to get really good scores. Business credit scores are mostly based on payment history only, so as long as you pay bills as agreed you will have an excellent score.

And it only takes 2-3 reported accounts for you to establish a score, and most vendors have your account reported to the business reporting agencies in 30-90 days.

This means you can build a business credit profile and have an excellent credit score in a VERY short time period.

Click Here to learn more about business credit.

Share this Post: Facebook Twitter Pinterest Google Plus StumbleUpon Reddit RSS Email

Related Posts

Leave a Comment

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>