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Generally, a corporate credit card doesn’t affect your personal credit score. This is because the business entity assumes responsibility for the card, not the card user.
Nonetheless, if you’re using one, it’s a good idea to understand how a corporate credit card works to ensure the responsible handling of the card. Even though it’s not tied to your personal credit, prudent use of the card ensures you’ll avoid financial and professional complications.
A corporate credit card is a financial tool issued under a business's name to cover work-related expenses. Unlike small business cards, issuers tailor these cards for larger corporations with several employees.
Corporate credit cards aren't linked to an individual but to a business entity. This separation means that, in general, the business is responsible for any debts accrued, not the individual cardholder.
Larger companies often issue corporate cards to employees for work-related expenses. This streamlines expense reporting and ensures company-wide spending remains consistent and easy to track.
Like many credit cards, corporate cards can come with rewards such as cash back or travel benefits. These rewards often relate to everyday business expenses, like travel or office supplies.
Understanding corporate credit cards' mechanics and benefits can help businesses and employees make the most of this financial tool, ensuring you handle company expenses efficiently and transparently.
Typically, a corporate credit card doesn't influence your personal credit score. When you use a corporate card, in most cases, the card's activity doesn't appear on your personal credit report. This is because the liability for the card often rests with the business.
However, there are exceptional cases when a corporate credit card can hurt an individual's credit score.
Suppose the company fails to pay the card's bill, and there was a personal guarantee when opening the account. In that case, the card issuer might come after the guarantor (often the business owner or a company executive) to recover the owed amount. This action could have ramifications for that individual's personal credit.
Similarly, if you're given a corporate card by your employer and misuse it, you might be held personally responsible for the charges. In such cases, you might be required to cover the costs of unauthorized expenses. Although this might not directly impact your credit score, it could significantly strain your finances.
If your company entrusts you with a corporate credit card, it's important to use it responsibly. To ensure effective financial management and demonstrate accountability, here are some practical guidelines to follow:
While it might be tempting to think of a corporate card as being limitless, it's essential to be aware of your specific card's credit limit. Using it judiciously not only prevents any unwanted declined transactions but also reflects responsible financial behavior.
Always ensure you're using the corporate card for company expenses only. Mixing personal and business spending can muddle account records and may lead to complications during audits.
Keep your receipts or any other relevant documentation when using your corporate card. This practice ensures transparency and simplifies the reconciliation process at the end of the month.
Make it a habit to go over your card statement periodically. It's a proactive step to identify and rectify discrepancies or unauthorized transactions.
Corporate cards often come with added benefits like discounts or rewards. You can leverage these to the company's advantage by being aware of them.
Although corporate credit cards don’t usually hurt your credit score, using the card responsibly is still recommended. Since your employer is liable for the card, you must follow their rules and guidelines to avoid complications down the road. This proactive approach ensures smooth financial operations within the company and safeguards your financial reputation.
If you’re using a corporate credit card, you may have questions about how the card can impact your personal credit score. We responded to some commonly asked questions to help you understand the topic.
Generally, a corporate credit card does not directly affect your personal credit. However, if you’re using a company credit card for your work-related expenses, you’ll be able to maintain a low credit utilization on your personal credit card.
In most cases, no. The card's activity usually doesn't appear on your personal credit report. As the primary account owner, the company holds the responsibility for its balance.
We recommend keeping your personal and business expenses separate, following company rules and regularly reviewing your card activity. Taking a proactive approach prevents potential issues and safeguards your financial and professional standing when using your corporate credit card.
About Grace Pilling
Grace Pilling was the Senior Content Manager for Credit Cards at MoneyGeek. She previously led personal finance teams at Bankrate, CreditCards.com and MoneyUnder30.
Pilling has a bachelor's degree in English from Western Sydney University and a diploma in book editing, proofreading and publishing. She is focused on empowering readers to make informed financial choices that support their best lives, not a company’s bottom line.
