- Register Your Business
- Establish Your Business as a Corporation
- Business Credit vs. Personal Credit Calculations
Can You Get Business Credit Without Using Personal Credit?
Not everyone knows that personal credit and business credit are not linked. Therefore, if you have poor personal credit and want to start a business, you may be able to get business credit without using your personal credit history. Establishing credit for a business isn’t a complex process, although it will require planning and foresight.
How to Separate Your Business Credit from Your Personal Credit
The extra capacity of more credit than you could obtain as a consumer is beneficial. It is easily achievable when you decide to separate your business credit profile from the history of your credit score.
Top Seven Ways to Separate Business and Personal Credit:
- Start a business checking account and other bank accounts.
- Register Your Business as a Legal Entity.
A business credit card is a great way to build business credit without using personal credit. You need to have a good business credit score to get a business credit card, but there are options available for those with bad credit. A business credit card helps you track business expenses, get rewarded, and build credit. Pay Your Bills on Time Paying your bills on time is crucial for building business credit. Late payments can negatively impact your business credit score, and lenders may be reluctant to lend to you.
Working with vendors that report to credit bureaus is a great way to build business credit.