Like consumers, most businesses have their own credit reports, which are then used to calculate business credit scores. But while consumer credit data carries significant weight, directly affecting everything from the insurance premiums you pay to the cost of buying a home, business credit is neither as complete nor as heavily relied upon.
Two particular limiting factors are largely responsible for this dynamic. For starters, most lending activity takes place at the personal level. Business loans are relatively hard to come by, at least compared to consumer auto loans and mortgages, and all credit cards – even those branded for business use report account information to the primary accountholder’s personal credit reports each month. It’s thus clear that business credit reports don’t contain much that isn’t already in your more-widely-used personal reports.