06/06/2023
3 Big Differences between Personal Credit Scores and Business Credit Scores
There are many differences between personal and business credit scores. One 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 depicting 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 depicting a consumer’s risk of going 90 days late on an account within the next 24 months. Another big difference is what the score represents. A consumer credit score reflects a person’s chance of defaulting on an obligation.13©️2020 Credit Suite, all rights reserved. No reproduction or use of any portion of the content or work or the entire work is permitted without the express written permission and authorization of the publisher. However the publisher of these materials routinely grants authorization for reproduction or use of this work, in whole or in part. If you would like to use any portion of this material in a book, article, e-zine, newsletter, radio, or television broadcast, podcast or in any other seminar teleconference or other events or publications please email or call the distributor of this guide. Articles for Posting A business credit score reflects the business’s chance of defaulting on an obligation, not the business owner’s The business credit score comes from how business obligations are being paid, not how the business owners pay their personal obligations. Another major difference between business and consumer credit scores is the score range. Consumer FICO scores range from 350 – 850. 850 is the best score you can get. Business credit scores often range from 0 – 100. 100 is the top score you can get. Those are three of many major differences between consumer and business.
