Does My Credit Matter?
When considering personal versus business loans, one thing that matters either way if your credit. Your credit is always important, but in the case of personal loans versus business loans, it could be your personal credit, or the business credit, or both that matters. It all depends on the type of loan you are requesting and how your business is set up.
For a personal loan, only your credit matters. For a business like an S corp, only the credit of the business matters. If you are simply self-employed or have an LLC, your credit, along with the business credit may matter. What is important to know is that you want to keep your credit in the best possible shape that you can. Your credit not only impacts your ability to get a loan, but it also has much deeper implications.
When considering personal versus business loans, you must remember that a personal loan directly impacts your own credit and if the business does not do well, you are still responsible for repayment. If you do not repay, it directly impacts your credit and your ability to do other things, like get a house. This is important to keep in mind when you are thinking about personal versus business loans.