New Delhi, Aug. 4 -- If you run a small business or are self-employed, it is very important to know the difference between your personal and business credit scores. Each of these two identities of finance serves different purposes and can affect long-term financial planning, borrowing, and reputation.

Your personal credit score is a three-digit number that typically ranges from 300 to 900, and is a measure of your creditworthiness. It is based on:

CRIF High Mark, Equifax, Experian, and CIBIL update these reports. Lenders rely on this score to make decisions on personal credit products such as personal loans, credit cards, and so on.

The company credit score of your registered business entity is a reflection of how financially secure it...