Credit Score vs. Business Credit Score

Last week’s blog post on credit scores just looked at how personal credit cards affect your credit score. Not only are business credit cards huge assets to earning a bunch of points, they have less penalties on your personal credits core and allow you to sign-up for more credit cards in the eyes of banks.

1. On-time payments - This is still #1 and important to do. Missing payments on a business credit card still dings your credit score since the underlying accounts is still tied to you social security number.

2. Utilization - Business credit cards don’t report utilization, meaning you can technically max out your credit limit and it wouldn’t ding your credit score at all. This has been helpful for me as I open Chase Ink Business Cards and utilize the 0% APR promotion for 12 months.

3. Credit History - The age of your business credit history could be important for your business endeavors, but for most small business owners, the age doesn’t matter. This means cancelling business credit cards will likely have little or no impact to your credit score.

4. Credit Mix - I’m not actually sure whether a credit mix looks like personal and business cards separately, but again, it’s such a low factor it doesn’t really matter.

5. Credit Checks - You still get a ding for a hard pull when applying for business credit cards, but again, it’s a low factor anyways.

6. Available Credit - Individual banks might look at your available credit to determine how much they can lend you, but it likely has little to no impact to your credits core itself.

What’s In our Wallets (Newsletter Exclusive)

Our lineup for this week is below. See our rationale here just for newsletter subscribers like you.

Matthew: Citi AAdvantage Platinum Select | World of Hyatt Business | American Express Gold

Sarah: Chase Ink Business Unlimited (Sarah’s) | Capital One Venture X

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About WuhooPoints

WuhooPoints focuses on the credit card consultation side of Wuhoo Group. Here we help with both the accrual of points and perks and the use of points for free travel.

About Wuhoo Group

Wuhoo Group was founded in 2022 to accent people’s lives with bespoke events and free luxury travel. We are based out of Northern Virginia and are always down to help brainstorm and develop fun ideas into plans.