question about credit ratings and corporations?
If you are a member of a corporation, and the building the corporation owns gets forclosed on, does it affect your personal credit rating?
If you are a member of a corporation, and the building the corporation owns gets forclosed on, does it affect your personal credit rating?
Go with the flow
Favorite Answer
Not one bit.
Why would it. None of the information is showing up on your credit reports.
Check them once a year for free at
Annual Credit Report.com https://www.annualcreditreport.com/cra/index.jsp
You'll notice that nothing having to do with a corporation is on your reports
Henry W
A corporation is a separate legal entity. It can sue and be sued. If the corporation goes bankrupt, creditors cannot go after the assets of the shareholders. So, if the building owned by the corporation get foreclosed, it could affect the credit rating of the corporation; if, however, you as a shareholder of the corporation guaranteed the mortgage for the building, then you could be held liable for the debt. If you defraud on the loan, it could hurt your credit rating.
Anonymous
A corporation is a separate legal entity
It will still affect your credit profile