3 Big Differences, Personal Credit And Business Credit Scores

There are many differences between personal and business credit scores. In this article, we will take a look at three of them in a little more detail.

Time Frame

One fundamental difference between consumer and business scores is the time frame that the scores gauge someone’s risk of defaulting.

A business credit score is a mathematical model depicting a business’s risk of going 90 days late on an account within the next 12 months. A consumer credit score is a mathematical model describing a consumer’s risk of going 90 days late on an account within the next 24 months.

What The Score Represents

A consumer credit score reflects a person’s chance of defaulting on an obligation. A business credit score reflects the business’s chance of defaulting on an obligation, not the business owner’s. The business credit score comes from how business obligations are being paid, not how the business owners pay their personal obligations.

Credit Score Range

Another major difference between business and consumer credit scores is the score range.

Consumer FICO scores range from 350 – 850. 850 is the best score you can get. Business credit scores often range from 0 – 100. 100 is the top score you can get.

While there are more differences that can be explored, those are three of many major differences between consumer and business credit scoring.