The Power of Credit – Why Your Personal Credit Score Matters for Business Success!
Many entrepreneurs believe personal credit and business credit are separate, but the truth is, your personal credit score plays a huge role in your ability to secure funding and build business credit. At Living Made Easy, we help entrepreneurs—just like our client Skinny Joey Merlino—navigate the credit world and position themselves for success.
Why Personal Credit Impacts Business Credit?
When starting a business, lenders don’t have a track record of your company’s financial stability. Instead, they evaluate your personal credit score to determine:
✅ Loan approvals – A high credit score (700+) boosts your chances of getting business loans.
✅ Interest rates – A lower score means higher interest rates on business funding.
✅ Business creditworthiness – Many business credit bureaus (Dun & Bradstreet, Experian Business) check your personal credit before issuing a business credit file.
How to Improve Your Personal Credit for Business Success
• Monitor Your Credit Reports – Use sites like MyFreeCreditScoreNow.com to check your score.
• Pay Off Debt – Reduce credit utilization below 30% to increase your credit score.
• Make On-Time Payments – Late payments can drop your score by 100+ points!
• Dispute Negative Items – Work with experts (like us at Living Made Easy) to remove inaccurate accounts.
Transitioning to Business Credit
Once your personal credit is strong, take these steps to build business credit:
✅ Register Your Business Properly – Set up an LLC, EIN, and DUNS Number.
✅ Open a Business Bank Account – Keep business and personal finances separate.
✅ Apply for Business Credit Cards – Choose cards that report to business credit bureaus.
Final Thoughts
Your personal credit is the foundation of your business success. If you want to get business credit and funding, start improving your personal credit today. Need help? Living Made Easy is here to guide you!