My question is whether Business Lines of Credit (for an LLC) typcially (or ever) show up on an individual’s credit report and, therefore, impact an individual’s credit score. My understanding is that it should NOT show up on an individual’s credit report - However, I spoke with a rep from AmEx about their’s, and she mentioned that she has heard from some (but not all) people that it HAS shown up on their personal reports.
I don’t need the credit right now, but am trying to follow the advice of “borrowing when you don’t need to”. However, if it’s going to negatively impact my personal credit score, I might reconsider.
Thanks for any help.
Unless your LLC is well established and has good independent income, you are very likely to have have to personally guarantee (co-sign) for any loans given to the LLC. I would think there would be a good chance that would show up on your credit report.
“Borrowing when you don’t need it” does not mean to go out and borrow money you don’t need. It’s just pointing out that when you are desperate and broke, the banks won’t give you any money.
When you are financially strong is a good time to establish lines of credit without taking any money out. I believe that even with no money actually taken out, the entire LOC limit will show up as borrowed money on your credit report.