While they are both credit solutions and loan products, personal and business credit has a lot of differences:

  • Personal credit is the availed loan product used to finance personal expenses. Business credit, however, is availed for financing your business expenses.
  • Personal credit scores determine your capacity to repay personal loans as determined by your paying of household utility bills, repayment of personal loans, etc. Business credit scores have a lot of determiners and are governed by business regulation committees as well as business credit bureaus.
  • Personal credits offer loan products like student loans, car loans, credit cards, and even payday loans. Business credits, though, have wider financing products and are determined on your application for the specific financing solution.
  • Business credits determine the financial history of your business and see how capable you are as a business owner in managing your operations and management expenses while personal credits have lesser implications and obligations compared to business credits.
  • Personal credit score has a low of 300 and a high of 850. The business credit score can go as high as 900. This is dependent on the scoring system of the two governing credit bureaus in Canada: Equifax and TransUnion. Some determinants are credit information, commercial delinquency scores, and payment index.

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