Just as you should not mix your personal life with your professional life, don’t let business credit get in the way of your personal credit.
Your business credit should be totally independent from your personal credit. Your personal credit is yours alone to keep. It should not reflect the expenses and debts incurred by your business as these will negatively affect your personal credit score.
Some entrepreneurs do not realize the importance of having separate credit for business. Having separate business credit protects you from losing your personal assets should your business suffer a setback.
Fixing your credit and getting your financial situation back on track is never an impossible goal. By adding aged tradelines to your current credit file, you will swiftly rebuild your credit score and effectively improve your credit history.
An aged tradeline is another term for a seasoned line of credit. A tradeline is considered to be aged or seasoned if it has been opened for at least the last two years, and active since the time of its opening.
Your credit or FICO score is highly dependent on the number, length of history and status of your aged tradelines.
Liability: A corporation exists as a separate legal entity from your personal life. Any debts or lawsuits are incurred by the company, not the owner. Any business with potential for lawsuits should consult with a lawyer and consider incorporation. Incorporating will offer an added layer of protection but it is still adviseable to obtain business liability insurance. The bad debts will often be the responsibility of the corporation. In the case of bank financing, more and more banks require business owners to sign a personal guarantee; making your personal assets collectible on a defaulted loan. Consider your options before signing.
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There's no such thing as an "overnight credit repair". That said no one works faster the GCS. On average, our clients start to see results in as little as 30 days.
Put your credit score on the fast track to recovery. Call Ryan Carruthers at GCS to get started.
