Can these credit card companies report our corp. credit experience against me personally;i.e., on my personal credit report…which is currently in the “excellent” range?
Answer Dear Ann: Thank you for your question. Based on the information you have provided, the answer is yes, your creditors can opt to report personally guaranteed debts to the credit reporting agencies who are responsible for rating your credit score. That said, they usually only opt to after a debt is delinquent. This typically is done to add additional pressure to pay. If this does occur your debt to income may increase which may further impair credit. If you are in arrears, a broad assumption would be that the decline in business has caused financial distress, and you are unable to make payments as agreed. It is legitimate, and many creditors today are offering “hardship” type programs. You should inquire regarding what is available given your unique circumstance. If you livelihood is the business, than you should not worry more about preserving an “excellent” credit score for now. Find a way to pay off debt, reduce interest to make payments more affordable or negotiate on balances
