Do small business loans affect personal credit?

+1 vote
asked Nov 15, 2017 in Credit by fel123 (220 points)
Do small business loans affect personal credit?

1 Answer

0 votes
answered Nov 21, 2017 by Jerim (280 points)
If you take out the business loan in your name then yes the business loan will affect your personal credit score.

If you never miss a payment and the loan stays in good standing then your credit rating should go up. If you default on the loan then the credit score and rating will go down and you could potentially lose any personal belongings.

If you start a business make sure you incorporate it as an LLC limited liability company so they won't come after personal assets such as your car and house if your business goes under.

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