Can Business Loan affect your Personal Credit Score
                     Can Business Loan affect your 
Personal Credit Score?
Converting an idea into a business can seem 
intimidating. If you have no prior experience, you 
will face a lot of issues and problems. In such a 
situation, you will need financial support to turn 
your ideas into reality. Entrepreneurship is not 
built in one day and needs a lot of capital. In such a 
situation, a business loan will help you meet all 
your business expenses and give support to grow 
and expand. 
Which types of business can affect your 
personal credit score? 
• A sole proprietorship business means, it only has 
one owner. In such a case, your personal credit 
score is the same as your business loan credit 
score. It is one person and your credit score is 
the same for whatever loan you take. 
• If your credit score is low, you will have an issue 
in applying for a personal and business loan. 
However, if you are unable to pay off your 
business loan on time, your credit score gets 
affected too.
Partnership
In partnership, it is more like two 
owners being the partners in your 
business. In such a business, your 
credit score is important to 
determine if you will get a loan or 
not. If you are not being able to pay 
back your business loan on time, it 
will affect your credit score.
Wrapping up
• Apply for small business 
loan and expand your 
business. You need to take 
care of your business loan so 
that you even get a good 
personal credit score.
How does CIBIL work?
• Offering glimpses of a credit profile, 
the CIBIL score is a three-digit 
numeric summary of a consumer’s 
credit history. A company or an 
individual is offered a score in the 
range of 300-900. Your chances of 
getting a loan approval rise as your 
CIBIL score inches closer to 900.
Maintain a Good CIBIL
As mentioned above, the credit score that is maintained and offered by TransUnion 
CIBIL is called CIBIL Score. Repayment history plays an influential role when it 
comes to calculating your credit score. And, any late payment of loan EMIs or 
credit card dues can pull your credit score down by 100 or more points.
Clix Capital Services Pvt. Ltd.
Address: 
901b, 9th Floor, Two Horizon Centre, DLF Phase V
Gurgaon, Haryana, India – 122002
Phone Number: 1800 200 9898
Website: https://www.clix.capital/check-credit-score/