Can derogatory business credit card accounts show up on my personal credit report?
Jan, 2010 in Business Credit ReportI have a business credit card account that is about to be sent to a collection agency. Once this is done, I am worried they will try to apply this to my personal credit reports.
If your a sole proprietorship or have fewer than 20 employee’s there is a serious chance that your personal credit will be affected.
Bankkruptcy depends on how your business was structured. If you were structured as a DBA you you might be on the hook. If you structured as a LLC then your personal assets are safe.
The most important thing you can do is pay off the debt any way you can to avoid any more problems. You can always contact the credit card & try to make a payment plan. Most of the time they would rather just get their money.
If the credit card has a personal guarantee (most do) then it will affect your personal CR.