Why Business Credit Is Separate From Personal Credit
Business credit and personal credit are tracked by completely different systems. While personal credit is scored by FICO (300-850), business credit is tracked by Dun & Bradstreet (PAYDEX 0-100), Experian Business, and Equifax Business. Building strong business credit allows you to qualify for larger amounts, protect your personal credit, and access better terms.
Key Takeaway: You don't need an existing business or revenue to start building business credit. With the right structure, you can go from zero to a strong business credit profile in 6-12 months.
Step 1: Set Up Your Business Entity Properly
Before you can build business credit, your business needs to look legitimate to credit agencies and lenders:
- Register your LLC or Corporation with your state's Secretary of State
- Get an EIN (Employer Identification Number) from the IRS - it's free and takes 5 minutes online
- Open a business bank account in your business name using your EIN
- Get a dedicated business phone number listed in your business name
- Set up a professional business website and email address
- Get a business address - a virtual office works if you're home-based
Step 2: Get Your DUNS Number
A DUNS number from Dun & Bradstreet is your business credit identity. It's free and required for most business credit applications. Apply at dnb.com - approval takes 1-2 weeks.
Once you have your DUNS number, your business credit file is created and ready to build.
Step 3: Start With Net-30 Trade Accounts
Net-30 vendors extend credit and give you 30 days to pay. Most importantly, they report your payments to business credit bureaus. Start with these easy-approval vendors:
- Uline - Shipping and packaging supplies
- Quill - Office supplies
- Grainger - Industrial supplies
- Strategic Network Solutions - Computer supplies
- Crown Office Supplies - Office products
Open 3-5 trade accounts, make small purchases, and pay before the due date every time. This builds your PAYDEX score rapidly.
Step 4: Apply for Business Credit Cards
After 60-90 days of positive trade account history, apply for business credit cards. These cards use your personal credit for approval but build your business credit profile:
- Chase Ink Business Unlimited - $0 annual fee, reports to business bureaus
- American Express Blue Business Cash - Easy approval, 2% cash back
- Capital One Spark Cash - High limits, reports to D&B
Step 5: Graduate to Business-Only Credit
After 6-12 months of building, you can qualify for credit based on your business credit alone - no personal guarantee required:
- Business lines of credit from banks and online lenders
- Equipment financing based on business credit
- SBA loans with favorable terms
- Corporate credit cards with no personal liability
Business Credit Score Breakdown
Dun & Bradstreet PAYDEX Score (0-100)
- 80-100: Excellent - early payments
- 70-79: Good - on-time payments
- 50-69: Fair - some late payments
- Below 50: Poor - significant late payments
Experian Business Score (1-100)
Based on payment history, credit utilization, company size, and industry risk.
Equifax Business Score (101-992)
Considers payment history, credit utilization, and public records.
Common Mistakes That Kill Business Credit
- Mixing personal and business expenses - keep them completely separate
- Missing payments - even one late payment damages your PAYDEX score significantly
- Applying for too much credit too fast - space applications 30+ days apart
- Not monitoring your business credit - check quarterly at minimum
- Using personal credit cards for business - this builds personal credit, not business credit
The Rrova Business Credit Accelerator
Building business credit from scratch takes time, but our specialists can accelerate the entire process. We handle entity setup, vendor accounts, strategic applications, and ongoing monitoring so you can focus on growing your business.
Most of our clients go from zero business credit to $50K-$200K in available funding within 6-12 months. Complete our intake form or book a free strategy call to get your business credit journey started.
