Business Credit Benefits

Key Differences Between Personal and Business Credit Scores

Personal and business credit scores serve different purposes and operate under distinct scoring models.

Here are three major differences:

1. Time Frame of Risk Assessment

• A business credit score predicts the likelihood of a business going 90 days late on an account within the next 12 months.
• A consumer credit score assesses a person’s risk of going 90 days late on an account within the next 24 months.

2. What the Score Represents

• A consumer credit score reflects an individual’s risk of default on personal obligations.
• A business credit score measures the company’s risk of default, independent of the business owner’s personal finances. It is based on how the business meets its financial obligations—not how the owner handles personal credit.

3. Score Ranges

• Personal (FICO) credit scores range from 350 to 850, with 850 being the highest.
• Business credit scores typically range from 0 to 100, with 100 being the best.