3 Types of Credit Rich People Use (You Only Know 1)
Good day readers! I've got a lot to get off my chest today about people and their garbage credit takes, their horrible use of credit. Most people think credit is just a score, and that's honestly consumer thinking.
Wealthy people use credit as a weapon. It's literally a tool that comes in three forms: personal, business, and corporate credit.
If you've never heard of corporate credit before and you don't understand how to use business credit, I pray that you at least understand personal credit. If you don't, that's exactly why I'm here today.
Here's my crazy take: if you want to be like everybody else, do what everybody else does. But isn't everybody else broke and poor? They are. So don't listen to what everybody else tells you about credit because they're broke and poor.
Let me teach you what wealthy people actually do with the three types of credit.
Personal Credit: The Foundation (But Also the Leash)
What is it? When you're born, you get a Social Security number. Once you turn 18, you automatically get a FICO score that reports to credit bureaus like Equifax and TransUnion.
How it works: You open lines of credit (credit cards, loans, auto loans, mortgages) and pay them back on time. Your credit history—every late payment, every on-time payment, every little detail—stays on your report forever.
Credit score range: 300-850 (good credit is 750+)
Interest rates you'll typically see:
Credit cards: 25%+
Loans: 15-20%
Mortgages: 6-8%
Auto loans: 8-12%
The problem: You're personally guaranteeing everything. If you don't pay, they come after YOU. Plus, all those little details matter—your history, how many accounts you have, how long you've had credit. It's complex and restrictive.
Personal credit is literally a leash. It keeps you tied to the same system everyone else uses, which is why everyone else stays broke.
Business Credit: The Door to Better Rates
What is it? Once you create an LLC and get an EIN (Employer Identification Number), you can set up a D&B (Dun & Bradstreet) number. This gives you a separate credit score for your business.
Key difference: You're NOT personally guaranteeing this debt. It's based on your business, not you personally.
Credit score range: Still 300-850 (good score is still 750+)
Better interest rates:
Business loans: 7-12%
Business credit cards: 10-15%
Business auto loans: 6-10%
Business real estate: 6-10%
The catch: Business credit still reports to the same credit bureaus as personal credit. So if you have bad personal credit, it still affects your business credit applications because your EIN is attached to your Social Security number.
But here's the strategy: Even if your personal and business credit scores are equivalent, always use business credit for business expenses because you get better interest rates. Many people use their business credit card for personal things and just pay it off with their personal accounts to get those better rates.
Corporate Credit: The Entire Kingdom
This is where things get revolutionary. Corporate credit is what separates wealthy people from everyone else.
What is it? Corporate credit uses something called a Paydex score. You have to specifically request this—you don't get it automatically.
The game-changer: Corporate credit reports to the BUSINESS side of credit bureaus, not the consumer side. This means your personal credit history has ZERO weight on your corporate credit.
Credit score range: 0-100 (75-85 is considered excellent)
Incredible interest rates:
Corporate loans: 5-8%
Corporate credit cards: 7-10%
Corporate real estate: 1-3%
Corporate auto: 3-6%
Plus tons of 0% offers for 6-12 months
How it works differently: Corporate credit is based SOLELY on your ability to borrow and pay back. That's it. Not your history, not all the little details, not how many accounts you have.
Here's the mind-blowing part: To get more credit, you borrow more money.
If you prove you can borrow and pay back $10,000, they'll give you more credit. If you prove you can handle $1 million over five years, they'll open up a $1 million line of credit for you.
Real-World Example: The $440,000 Transformation
I have a client who started with absolutely horrible personal credit—about a 540 score. I helped her start an affiliate relationship with my company that pays her 1099 income, so she could open an LLC for that income.
We set her up with business and corporate credit. Her corporate credit score is already up to 50, which means based on her business performance, she could potentially work up to having $100,000+ in total lines of credit available.
Because she had this new credit system, she was able to take massive negotiations and settlements on her personal debt—knocking off 52% of her personal credit debt. Did it tank her personal credit score? Yes, from 540 to 510.
Does she care? Absolutely not. She's using her corporate credit for everything now—home purchases, furniture, gas, all of it. She pays it right back and continues building her score.
Once she hits a 75 corporate credit score, we'll move any remaining personal debt to her corporate credit lines at much lower interest rates.
This is someone who never wanted to be a business owner. She's not running a business—she just owns an LLC and uses it strategically for corporate credit.
The Who, What, When, Where, and How
WHO Should Use Each Type?
Personal Credit: Everyone with good credit scores who don't have LLCs yet. If you have bad credit, you need guidance to build it up properly.
Business Credit: People with LLCs who need funding NOW. If you need equipment, tools, marketing budget, or startup capital immediately, business credit can potentially get you $300,000 in lines of credit where personal credit might only get you $20,000.
Corporate Credit: Anyone with ANY desire to build wealth. Period. If you want to buy a house at 1% interest instead of 8%, you need corporate credit.
WHEN to Set These Up?
Personal Credit: ASAP. Start as early as possible with good mentors and guidance.
Business Credit: Age 21+. Set up an LLC and start building business credit even if it's just a side income source.
Corporate Credit: If you want to build wealth, set this up at 18+. The sooner you start, the sooner you can access those incredible interest rates.
WHERE to Find These?
Personal Credit: Everywhere. Banks, lenders, anywhere that offers personal guarantees.
Business Credit: Banks with business accounts, business loan investors, private equity funds.
Corporate Credit: This is the tricky one. You need to specifically find institutions that offer corporate accounts and report to business credit bureaus. Most people need assistance from companies that have access to these specialized lenders.
Book Your Own Free Consultation for Corporate Credit Assistance Here →
The Strategy That Changes Everything
Here's how to use all three strategically:
Get an LLC and start doing SOMETHING to generate income—even something small and boring
Book a meeting with me about starting an Affiliate Partnership for generating 1099 Income
Build your corporate credit to a 75 score
Move all your personal and business lines of credit to your corporate credit for lower interest rates
Use corporate credit for emergencies and major purchases
Save massive amounts on interest and redirect that money to building wealth
Why This Matters for Wealth Building
Let me be blunt: Wealth accumulation isn't just about acquiring money—it's about keeping what you've got.
If you're choosing a 5% mortgage when you could get a 1-2% mortgage through corporate credit, you're just throwing money away. You might as well go gamble it in the stock market.
Corporate credit can get you a house for 1% interest or less. Personal credit might get you 8% or worse. Which one allows you to keep more money to do more things with?
That's a no-brainer.
The Bottom Line
Personal credit is a leash. It keeps you tied to the same system everyone else uses.
Business credit is the door to better opportunities and rates.
Corporate credit is the entire kingdom that can completely change your life.
Most people don't even know corporate credit exists because the wealthy don't want you to know. They want you stuck using personal credit with terrible rates while they access 1% real estate loans and 0% credit lines.
Which one are you building right now? If you're stuck at just personal credit, you're playing by everyone else's broke rules.
Stop listening to broke people about money. Stop doing what everyone else does if you don't want to end up like everyone else—serving snacks at Sam's Club at 85 because their 401k ran out.
Start using the same strategies wealthy people use. The tools are available. The question is: will you use them?
This article is an excerpt from my podcast, The Success Blueprint, which airs live Monday, Wednesday, and Friday mornings at 8 AM CDT on my YouTube channel or here on LinkedIn. Follow Charming I. for updates on the live podcast. Want to dive deeper into building responsibility-driven success? Check out our resources at reforgedhq.com and discover how to create your own success blueprint based on responsibility, not motivation.
