Credit is the oxygen of business growth. Yet many ownersmisunderstand how personal and business credit affect funding opportunities. Worse, myths spread online make matters worse.
Myth 1: “If I Pay It Off, My Score Immediately Jumps”
Payment helps, but credit reporting cycles take time. Inaccuracies and lingering delinquencies may still drag your score.
Myth 2: “Business Credit Doesn’t Matter”
Lenders look at both. A strong business credit file can unlock lines of credit and higher limits without putting your personal assets at risk.
Myth 3: “I Can Just Dispute Everything and Start Fresh”
False disputes may give a temporary boost, but bureaus catch on. Worse, it can flag you as dishonest to underwriters.
What You Should Do Instead
- Audit both personal and business credit reports.
- Correct factual errors under FCRA guidelines.
- Build trade lines and vendor relationships that report positive history.
- Keep utilization under 30%.
PAC Consulting works with owners across the U.S. to clean reports the right way and build lasting credit profiles lenders respect. Reach out if you’re preparing to fund your next project.