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Personal Credit Reports Now Reflect Business Loans |
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| Personal Credit Reports Now Reflect Business Loans |
| Tuesday, September 08,2009 05:56 AM |
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As technology advances, it's likely that info about your business repayment history could influence your personal credit score.
Traditionally, business loans were considered separate from business owners' personal credit reports. But that has been changing as technology makes cross-reporting more feasible, says Jordan Peterson, senior vice-president for business banking at PNC Financial Services Group.
"In the past, banks didn't have technology to report business-loan data back to the credit bureaus," Peterson says, but automation has become more common over the last decade. "There are business bureau repositories built by companies like D&B that many banks belong to now. They report business loan repayment history, and other members of that repository can look at it as long as they supply data to it."
In other words, if your bank supplies information to a business data bureau that is used as a resource by the credit bureaus, it's likely that information about your business repayment history could indeed influence your personal credit score. The practice applies primarily to small, privately held companies and startups whose owners are likely to be asked for personal guarantees to obtain credit. That means not only self-employed people, but also owners of smaller LLCs and S-corporations as well.
Read the rest at http://www.businessweek.com/smallbiz/content/sep2009/sb2009094_080304.htm
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