“You should differentiate your personal credit from your business credit.”

— Entrepreneur Magazine

Contaminating your credit

When people marry, they vow to share their lives. For some goodhearted but financially naive couples, this means sharing personal credit.

Unfortunately, for the small business owner, adding your spouse to your credit could also contaminate your business credit file. You see, when you initiate joint credit, your spouse’s credit history becomes part of your credit file. If your spouse misses a payment, the delinquency affects your credit.

The matter is complicated further if you haven’t taken steps to separate your personal credit from your company’s corporate credit. Credit file contamination created by a spouse’s credit history could easily keep you from achieving your business goals – because it will prevent you from securing the financing necessary to grow your company.

The System for Protecting Your Personal Assets

To avoid credit file contamination, keep your credit history completely separate from your spouse’s history. If your spouse ruins his or her credit, then you’ll still have a good credit history to support your family, as well as your business.

If you need help incorporating or building good business credit, click here for a complimentary business credit consultation and to obtain our free e-Book, "Unlimited Business Financing – Without a Personal Guarantee” – a step-by-step process for building a business credit asset.