Differences Between Personal Credit Scores and Business Credit Scores.
- The Business Credit Score is a mathematical model used to portray a business’s risk of going ninety days late on an account within the next 12 months. A personal credit score is a mathematical model that’s used to portray a consumer’s risk of going ninety days late on account within twenty four months. There are several variations between personal and business credit scores. One elementary distinction between client and business scores is the time-frame the scores gauge someone’s risk of default.
- Another massive distinction between personal and business credit scores is what the score truly represents. A personal credit score reflects an individual’s chance of defaulting on an obligation. While a business credit score reflects the business’s chance of defaulting on an obligation, not the business owner’s. The business credit score relies on however the business obligations are being paid, not however the business owners pays their personal obligations. Learn more about “Building Business Credit” here. 3. Another major distinction between business and personal credit scores is range of the scores. Consumer FICO scores vary from 350-850 with 850 being the highest score you’ll acquire. Business credit scores generally vary from 0-100 with a hundred being highest score you’ll acquire. You can learn more about the factors that affect Business Credit in our blog post “Five Factors That Affect Your Business Credit” here.
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