What are Business Credit Scores
Personal credit scores are rated from 300 to 850. A score of 680 or more is considered high or excellent. Business credit scores are on a scale from 0 to 100, with 75 as the acceptable rate. The scores are calculated according to several factors, such as payment behavior, amount of available credit, number of inquiries made, and depth or length of time that the business has been acquiring credit. The website myfico.com offers comprehensive information on the factors that affect business credit.
A common mistake among business owners is applying for business credit using personal credit information. While this is technically allowed, it puts them at risk of pulling down their personal credit ratings. By earning a good business credit score, entrepreneurs can easily separate their personal and business accounts.