Business Reporting

When reporting credit obligations that involve a business, it’s important to correctly identify who is contractually liable. There are two distinct reporting paths depending on whether the consumer or the business is the primary borrower.

Consumer with a Business Account

In this case, the consumer is contractually liable for the account (e.g., joint borrower OR co-maker or guarantor).

• The consumer is reported as the primary borrower, and the business is reported as the secondary party.
• The account type is a business credit card. Business information (name, EIN, address) must be included; otherwise, the account cannot be created.
• Statements and payment activity are reported as with any consumer credit account.

Business with a Credit Product

The business itself is the primary obligor (e.g., a commercial credit card or installment loan).

• The business is created and reported as the primary borrower, with its EIN, legal name, and business address.
• A consumer (e.g., owner or guarantor) may be added as a secondary borrower.
• The account type is typically a credit card or installment account (not a “business credit card” type).
• Payment and balance reporting follows the same structure as consumer accounts.

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Why This Matters

Accurate designation of the primary and secondary borrower ensures compliance with bureau reporting requirements and helps both consumers and businesses build the correct type of credit history. Misreporting could lead to errors in tradeline creation, compliance issues, or failed submissions.