Do Corporate Cards Affect My Credit Score?

Corporate credit cards offer a way for employees of your business to make business purchases quickly and easily. Many business owners automatically issue corporate cards to employees during the onboarding process, but others only issue these cards to various employees in specific departments. Likewise, you may automatically issue corporate cards when an employee or team will be going out of town for business and then suspend the use of these cards upon return.

The Benefits of Corporate Credit Cards

One of the nice things about allowing your employees to use corporate cards is that it gives them the ability to make purchases for the business without needing to seek reimbursement later. It also allows your business to track expenses more easily through online access and online activity review.

These cards can also be used when traveling or when taking customers, leads, and prospects out for lunch or dinner. This alleviates the need to worry about paying upfront for these expenses and then having to submit receipts.

How Corporate Credit Cards Affect Personal Credit

In some cases, a corporate credit card will not affect your credit score. This is usually the case when you are simply provided with the card to use with the company’s authorization. This is different than being listed as an authorized user.

If you are listed as an authorized user of a card, this means that your name and credit history may be associated with the use of the card. Even though the company is still the entity listed as the card owner and is therefore responsible for making payments, your name is linked directly to the card. If your employer fails to make payments, this may reflect poorly on your credit score.

Also, if the card is issued to the company in your name, the card activity may reflect on your credit score. Some corporate cards are issued as a batch whereby the account belongs to the employer, but each card is individually issued. In this scenario, your credit score may be affected.

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