The Difference Between Consumer and Business Credit Scores!

3 Big Differences between Personal Credit Scores and Business Credit Scores  There are many differences between personal and business credit scores.

The 1st fundamental difference between consumer and business scores is the time frame the scores gauge someone’s risk of default over.  A business credit score is a mathematical model that is used to depict a business’s risk of going 90 days late on an account within the next 12 months.  A consumer credit score is a mathematical model that is used to depict a consumer’s risk of going 90 days late on an account within the next 24 months.

Second is what the score actually represent.  A consumer credit score reflects an individual’s likelihood of defaulting on an obligation. A business credit score reflects the business’s likelihood of defaulting on an obligation, not the business owner’s.  The business credit score is based on how the business obligations are being paid only, and contains no information about how the business owner pays their personal obligations.

Last, and this is this is big. is the scoring range. Consumer FICO scores range from 350-850 with 850 being the best score you can obtain. Active Business Credit scores typically range from 65-89 with a special category of 90-100 being the best score you can obtain.  The tip of the iceberg for the many differences between consumer and business credit scoring.

To learn how easily you can get a business credit rating and business credit, call Mike C 804-426-6058.

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