Where’s credit due? Business owner credit reporting

Credit reporting issues have caught my attention twice in the last few days. Just today an article in Business Week reports on a Capitol One practice of reporting all small business loans to consumer credit bureaus. Typically business loans would not impact the credit report of the business owner unless the business was delinquent on the loan. Now, for Capitol One borrowers at least, current and performing business loans will end up on the owner’s personal report as well.


How that might impact your personal credit score is beyond me, but it seems that you as a business owner ought to know this is happening and monitor it to understand its implications for you. Yes, I know we all are reminded to monitor our personal scores, but I suspect you, like me, do a spotty job of it (business owners tend to have a better pulse on their business credit).


In fact, a client of mine who has done quite well for himself in the financial services industry had his own shoemaker’s children’s moment last week. A routine utility company account application turned up serious errors in both my client’s and his wife’s credit reports. The errors will be corrected but the situation was embarrassing both personally and professionally for a credit industry insider.


With credit as tight as it is, it seems all of us in business need to be more diligent about understanding, monitoring and correcting, if necessary, the credit industry’s view of us.


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