Business debts typically do not show up on your personal credit reports, because they aren’t personal debts.
This is good news, since if those commercial debts did appear on your personal credit reports, they could lower your personal credit score and blow up your debt-to-income (DTI) ratio.
Does a business account affect personal credit?
Line between business and personal can blur
Data from that account will affect your length of credit history, credit utilization and payment history, among other factors. If you pay on time and stay well under your limit: The account may improve both your personal and business credit scores.
Are you personally liable for business debts?
Generally, shareholders are not personally liable for the debts of the corporation. Creditors can only collect on their debts by going after the assets of the corporation. Shareholders will usually only be on the hook if they cosigned or personally guaranteed the corporation’s debts.
Can my personal debt affect my limited company?
The answer is sometimes yes, they can. Sole traders and individual members of a partnership are personally responsible for any business debts, but if you own a limited company then the limited liability status of your company means that any business debts are limited to the company and not the directors.
Are you personally liable for a business credit card?
And there is good reason for that: most small business credit cards come with a personal liability. If the business fails and is unable to pay its debts, you will likely still be personally liable for any charges that are made on your card. But in most other cases, you will be personally liable.