Are business credit cards in your name totally separate than your personal in terms of your credit score.?

In other words, if I pay off all my personal credit card debt with my business credit cards, will I have like a super high personal credit score like in the 800's? And if it is separate, then shouldn't I have a separate score for my business credit, or will they just look at my personal score to decide what interest rate to give me? A business credit card representative had told me one time that my business credit card has nothing to do with my personal credit score. Is that really true? Thanks for all your answers. First of all, thanks for your answers, but to Jon B, my business is indeed a corporation. The credit cards are under my name though. My credit score as of right now is already pretty good. (720-730) I have a credit history of about 10 years now with excellent payment history, so with that information, do you think that if I transfer all my balances to my business cards, it will boost my personal credit score to at least 760?

Public Comments

1. In my opinion I would say that it is seperate in credit report terms. I've had a couple of companies and come to think of it, I never saw my business credit cards, credit lines, or SBA loans show up on it! I never thought of this before. Good idea! Anthony (www.small-business-startup-advisor.com)
2. No
3. Generally, if you are a small business, you are the personal guarantor behind those credit cards and they do reflect on your personal credit. (you'd have to check your credit bureau to see) On the other hand, if you are talking about corporate cards - where the corporation is the account owner, and you are just an authorized user, then your plan is more correct. Just by paying off your debt however, your score doesn't just pop up to 800. A highly weighted factor in scoring is time in the credit bureau, so no debt, but short credit history won't have as high of a score as someone in with longer history and paid off debt.
4. A true business credit card is a line of credit that is taken in the name of the business, under the business' credit. Activity, whether good or bad, is reflected on your business' credit report through D&B and other financial institutions, and the liability for any debts incurred and bills owed is with the business. However, some companies out there offer "business" credit cards which they require a person guarantee for. These institutions will often ask for a personal guarantee, and will almost always ask for a social security number from the person applying for the card. If this is the case, the credit card is not a business credit card, but is simply a personal credit card which is used for the business. The business is not liable for bills and debts - you are. When applying for a credit card for your business, watch out for areas asking for your SSN (and not your TaxID or EIN) and be wary of any credit card that asks for a personal guarantee. By ensuring that your credit card is in the name of your business, you can help to build your business' credit, while avoiding creating problems with your own. Many companies offer a list of credit cards that are issued under the business name only. Those lists typically run $300-$900, depending on the quality of the information inquiring. I would suggest starting your search online via google or yahoo. Search for "strong business credit" (just like that in quotes) to find services that sell the information. Good luck, Ilya Bodner Small Business Owner Initial Underwriting Group