Corporate Credit Cards - Does it Affect Your Credit?
Most of us know that how we use our personal credit cards affects our credit rating. But what if you use a corporate credit card? Could that be a potential problem to your credit?
When accountant Troy Merkel travels for business, he packs his corporate credit card too.
“It’s easier to track, it’s all on one bill, and the company sees what expenses are related to our travel,” corporate credit card holder Troy Merkel said.
He pays the bill and gets reimbursed by his company. He keeps a close eye on the due date because he almost got burned at an old job when the bill went unpaid and the lender came after him.
“And they informed me that this is linked to your credit, so it’s important that you get the card reimbursed and the payment made,” Merkel said.
With corporate cards, sometimes you pay the bill, other times, the company does.
Either way, if your name is on the card, your credit is likely attached.
“If it’s paid on time, it can positively impact your credit. But if it’s paid late, it can have a negative impact on your credit score,” TransUnion’s Lucy Duni said.
Lucy Duni with the credit bureau Transunion says many employees don’t realize when the corporate card is overdue, their personal credit score may take a nose dive.
And it’s not just your credit you have to worry about… late payments can mean costly late fees that you might be responsible for and your personal cards can be affected.
“If you miss a payment, the impact could be a bump in the interest rate,” Duni said.
If your company is responsible for paying directly, it’s a good idea to know the terms and conditions that come with the card.
It should spell out who is liable for the payments and if your credit will be impacted.
July 8th, 2008 at 10:51 am