I have 2 business credit cards that do not report on my personal credit. I just noticed when I applied for a mortgage and they were not on my credit reports. It helped me alot actually because the monthly payment was not considered in the loan application. They do not show up because they are business accounts?Just curious-what happens if I default on them(just saying)will that go against my business only and not personal credit? thanks for any input.
Business credit cards are almost personal credit cards in disguise (as I like to call it). Most of them are personally guaranteed. If you signed up using your business FEIN number (without giving your personal SSN), you're fine. However, chances are that it's personally guaranteed. Typically, it won't show up on your credit report until you become delinquent. So don't fall behind on your account, because you run the risk of it appearing on your credit!
Business credit is like your cell phone bill, if you pay it on time it will not show on your personal credit report unless you become delinquent on that account. Business credit cards won't be counted against your DTI (debt to income ratio) when you are apply for your home loan since it is not on your personal credit. Thanks! Heather with BoostMyScore.NET
