Corporate Credit Cards - How They Impact Personal Credit Score

To determine whether your corporate credit card will impact your personal credit score, you'll first want to ask yourself:  what kind of corporate card is it? Are you working for a large corporation that gives credit cards to its employees? If so, then in many cases the card will not show up on your personal credit report, and will not directly affect your credit score. Often when you sign up for a credit card like this, the credit card company will check your credit. Inquiries can temporarily lower your credit score, so even in that case, your corporate card might affect your credit, albeit temporarily. If you are a small business owner and have a small business corporate card, then it's very likely that your corporate card will have a substantial effect on your credit. It will appear as a “trade line” on your credit report, and balances, delinquencies, and payment history will all be incorporated into your credit score.

However, it might only show up on your credit report if you are significantly late on payments. For example, American Express will report payments that are 6 months or so late on the individual employee’s credit report. They are tolerant of shorter delays because they are aware that companies have different ways of accounting for and paying this sort of debt. The employee may have to submit charges for payment, or pay them and get reimbursed.

Review the documents that you signed when you got the credit card. If you agreed to be liable for that debt, it’s more likely to be reported on your credit report.

In any case, you should not assume that you can get away with acting irresponsibly with a corporate credit card, even if it does not affect your credit score. You will be liable to your employer to repay whatever charges that you made in violation of company policies governing credit card usage. In some cases the credit card company could also be able to sue you for unpaid debts, especially if your employer became insolvent and the charge was not business related.

In order to find out if your corporate card is currently affecting your credit, you should check your credit report. You can get a free copy of your credit report at annualcreditreport.com. If you believe your corporate credit report is adversely affecting your credit, you should contact an attorney who specializes in consumer credit immediately.