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CHAPTER ONE:What nobody ever told you about business credit
If you’re like 92% of small business owners, growing your business is damaging yourpersonal credit score. This happens every time you:
Using your personal credit to apply for business loans, leases, or credit lines hurts you intwo ways.1) It damages your personal credit score. That makes it harder (and moreexpensive) to get loans, leases, and credit lines.2) It keeps you from building a
-- which isthe key to growing your business in the long run.In Chapter Two, we’ll discuss this second consequence: failing to build a business credit
According to our studies, the typical entrepreneur has 10+ credit inquiries per year. Howabout you? Every time you apply for credit using your social security number, another inquiry showsup on your personal credit report and lowers your score. But that’s not all.Every time you’re declined, and every time you accumulate debt, your score drops again,making it harder and harder to get home loans, car loans, equity lines, and credit cards.And if you’re approved at all…
You’ll be treated as a subprime borrower – stung by above-market interest rates.
accounts at his local bank, along with three business loans/lines of credit.When he needed a loan for his son’s college tuition, they declined him.Why? His business loans were in his personal name, so they were reported to hispersonal credit report.Because of his business debt, and too much credit in revolving accounts, the