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Business vs. Personal Credit

Mark Cappel
UpdatedDec 1, 2009

If I apply for credit for my business, does that apply to my personal credit?

If I applied for credit under my business name and used my EIN number instead of my social security number, can the company put that against my personal credit?

I cannot answer your question accurately because you did not include enough information in your message. You did not mention how your business is organized. If your business is a properly organized and operated corporation then you have limited liability for the debts the corporation incurs. If your business is a sole proprietorship or partnership then you have liability for the debts the business incurs regardless of what information you provided the lender when applied for the loan.

You use the phrase "can the company put that against my personal credit" which leads me to believe you are asking if the payment history on the business loan or credit card will be reflected on your personal credit history. Again, this depends on how your business is organized. If your business is a corporation then the corporation has its own credit history that is separate from the employees, owners, and directors. After all, IBM's or GM's creditworthiness is not reflected in the credit scores of those companys' employees, to pick two examples.

To learn more about how credit scores are determined, see FICO Score Calculation.

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BBill, Dec, 2009
The facts in your case are crucial. If you signed an agreement with the credit card company then you are liable for the debt. However, if the employer is the signatory and you are merely an authorized user, then you have no liability despite what the creditor claims. The first thing you should do is determine your liability. Take all of the documents you can find regarding the creation of the account and bring them to an attorney in your state who has experience in consumer law. Ask the human resources person at the corporation for copies of the documents regarding the creation of the credit card account created in your name. The attorney will give you his or her opinion on your liability in this situation. The second thing you should do is ignore the legal opinions of collection agents. The advice they give is usually inaccurate or incomplete, and is always self-serving.
JJames Minnich, Dec, 2009
BillI work for a corporation that gave me a credit card with the Companys name then my name as the user for company purchases. The company is now in trouble and has not paid any of their card debt, the card company is calling me and telling me that I'm responsible for the debt. Can they come after me for this debt or affect my personal credit standings