{"id":8522,"date":"2022-01-25T08:31:30","date_gmt":"2022-01-25T07:31:30","guid":{"rendered":"https:\/\/businessfinancenews.com\/?p=8522"},"modified":"2023-08-24T16:19:05","modified_gmt":"2023-08-24T15:19:05","slug":"does-corporate-card-affect-credit-score","status":"publish","type":"post","link":"https:\/\/businessfinancenews.com\/credit\/does-corporate-card-affect-credit-score\/","title":{"rendered":"Does Corporate Card Affect Credit Score"},"content":{"rendered":"\n
Credit scores have become an incredibly popular personal finance topic in recent years. The rise of sites like Credit Karma, Credit Sesame, Quizzle and the reporting of credit scores with credit cards have made a once complicated topic more accessible to the public. But one element of credit scoring still confusing plenty of people: does my corporate card affect my credit score?<\/p>\n\n\n\n
Unfortunately, the answer isn\u2019t exactly a definitive yes or no. The answer is: it depends.<\/p>\n\n\n\n
Receiving a corporate card doesn\u2019t always mean you applied and will get a ding on your credit report. Some companies make new employees (or those receiving a company card) an authorized user. This means you didn\u2019t fill out an application to receive a card. You are given a supplementary card that is tied to your employer\u2019s line of credit. Any damage you do will impact his or her credit report (so behave properly). This would be more common for small businesses instead of large corporations.<\/p>\n\n\n\n
Other companies may require you to fill out the application and run a credit check in order to receive the card. Or if a credit card magically appears on your desk, review the papers you signed during your company orientation. You likely authorized the company to get you a corporate card.<\/p>\n\n\n\n
Don\u2019t panic if a credit inquiry goes on your report. Applying for a credit card usually only impacts your credit score by about 10 points and those 10 points tend to rebound relatively quickly.<\/p>\n\n\n\n
If you are the one applying for the card, at a credit inquiry is likely to be on your credit report and potentially the monthly activity. Often the positive monthly activity is not reported, but if it is, then it can help improve your credit score (assuming you behave responsibly). However, when you leave the company and the card gets closed \u2013 you will see a drop in your available credit and thus an increase in utilization. You\u2019ll eventually also lose that healthy history off your report, so be sure your corporate card it isn\u2019t your only credit card.<\/p>\n\n\n\n
It doesn\u2019t matter if you\u2019re responsible for making monthly payments or your company handles the bill; if your payments are late then your credit report will get hit. Typically, the payments need to be 60 to 90 days overdue in order to get reported to the credit bureaus. But keep in mind that you\u2019re going to be the one feeling the pain if the payments don\u2019t get made.<\/p>\n\n\n\n
Don\u2019t be passive about your corporate card. Be sure to log in each month and check that your company is making payments.<\/p>\n\n\n\n
The easiest way to find out how your corporate credit card impacts your credit is to pull your credit reports.<\/p>\n\n\n\n
See if it gets reported to the credit bureaus on a monthly basis or if there was even an inquiry for you to get the card. If you filled out the application for the card \u2013 there might be a credit inquiry and a small hit on your credit report. If your company just gave you a supplementary card, it\u2019s unlikely to pop up on your credit report.<\/p>\n\n\n\n
But keep this mind: in most cases any negative information will show up on your<\/em> credit report. Make sure those bills are paid.<\/p>\n\n\n\n It\u2019s easier to have a company credit card that automates your expenses to some degree. You may not have to keep track of every receipt or fill out reimbursement paperwork on a monthly basis. However, you are putting your faith in your company\u2019s system. If your company is late making a payment, then the derogatory mark can show up on your credit report and impact your credit.<\/p>\n\n\n\n You could have the option of asking your company if you can use a personal credit card and just get reimbursed monthly. This puts you in control of ensuring the bill is paid on time and enables you to earn rewards and miles on the company dime. But there are some downsides to this method.<\/p>\n\n\n\n We want to recommend to you some featured articles related to credit management, credit score, and debt settlement.<\/p>\n\n\n\n We study which are the credit scoring models available<\/a>, the differences between chapter 7 and chapter 13 for bankruptcy<\/a>, an analysis of the application of chapter 12<\/a>, what is APR and how it is calculated<\/a>, options available when you cannot pay your debt<\/a>, and the debt snowflake method<\/a>.<\/p>\n\n\n\n We have reviews of Accredited Debt Relief<\/a> and Pacific Debt<\/a>.<\/p>\n\n\n\n We discuss debt consolidation vs credit counseling<\/a>, secured vs unsecured debt<\/a>, and being sued by the debt collector<\/a>.<\/p>\n\n\n\n We analyze if having a corporate card can affect credit score<\/a>, how to settle credit card debt<\/a>, and we discuss if your credit score has an influence on car insurance<\/a>. We also deal with a strange line item “national credit cards airlines”<\/a>.<\/p>\n\n\n\n About student loans, what happens if you do not pay your student loan<\/a>, and how do student loans affect credit score<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":" Does My Corporate Card Affect Credit Score Credit scores have become an incredibly popular personal finance topic in recent years. The rise of sites like Credit Karma, Credit Sesame, Quizzle and the reporting of credit scores with credit cards have made a once complicated topic more accessible to the public. But one element of credit … Read more<\/a><\/p>\n","protected":false},"author":10,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_kad_blocks_custom_css":"","_kad_blocks_head_custom_js":"","_kad_blocks_body_custom_js":"","_kad_blocks_footer_custom_js":"","_kad_post_transparent":"","_kad_post_title":"","_kad_post_layout":"","_kad_post_sidebar_id":"","_kad_post_content_style":"","_kad_post_vertical_padding":"","_kad_post_feature":"","_kad_post_feature_position":"","_kad_post_header":false,"_kad_post_footer":false,"footnotes":""},"categories":[44],"tags":[],"yoast_head":"\nYour Options<\/h3>\n\n\n\n
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