Company Credit Card Questions

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We had several readers write in with questions about corporate credit cards. How does a company credit card affect your credit score? Who owes the money on a corporate card? What happens if your company credit card is stolen? Read on…

I have a serious question. We had thought a company credit card was lost and used by a stranger. The owner called and put a fraud alert out and the credit card company is going to investigate. She later found out that it was her brother making the charges – not for company purposes, but she doesn’t want any legal action taken against him. How should she go about retracting her decision and just making her brother pay her back?

Lindsey

Lindsey,

As painful as it might be, the best option is to discuss the situation with her employer. If she intends to be responsible for the debt even if her brother does not pay her back, this is the best route.

She would not have to rat her brother out – she could simply tell her boss that she got to the bottom of it, and that it was someone she knew that made the charges without her permission. Now that she does know, she intends to correct the situation.

Honestly really is the best policy here. Otherwise, if the credit card company does find out that it was her brother making the charges, he will have to defend himself in court, not to the owner of the business.

I am about to start a new job where I will get a company credit card. My understanding is it will have my name on it and I will submit for reimbursement each month.

If I submit for reimbursement too late, and I don’t pay the card on time- they do not reimburse for late fees. So who’s credit is on the cc? Mine or theirs or both?

I have perfect credit right now, but I might be foreclosing on my house in a couple of months. I don’t want to jeopardize my company credit card or lose my new job because of my foreclosure or the credit hit I will take. Help! Will a foreclosure affect my new job?

J P

J.P.,

There is a simple way to know whether or not this card is affecting your personal credit score. Check your credit report. If the card is listed on your credit report, then it affects your credit score. If it is not listed, then it does not affect your credit score.

Now, this is a new job, and a new credit card, so it may not be showing up on your credit report yet. (It can take up to a month for new accounts to start showing up on your credit reports. The credit bureau’s just don’t update that often.)

There is another way to know whether or not a corporate card is affecting your credit rating though. You can ask your boss, HR, or your accounting department the following question:

Am I a personal guarantor on this company card?

Or, in other words, did you use my social security number to obtain this card? If you are a personal guarantor, it means that you are liable for the debt if the company does not pay it. That’s an important question to know the answer to, so don’t be afraid to ask.

Now, as for your possible foreclosure hurting your job – It is a possibility that your credit report will be pulled before they issue you a card. The bank is most likely making their decision based off of the company’s credit information, and not yours. I say most likely because I do not know which credit card you will be using, or any of the other details, so the best I can do is guess.

Just take a quick trip to HR if you can, and ask them these questions. You do not have to mention your foreclosure. Just tell them you have excellent credit, and you were wondering how this company credit card is going to effect that. Will it show up as a line of credit for you, on your credit report, or not?

I do have to say that most likely yes, your credit report will be pulled. If you have a foreclosure at the time, it could impact your job. It’s also very likely that this corporate card will be listed on your credit report, and theirs. It honestly just depends on the bank that is issuing the credit cards. The only way to find out is to check your credit report, or ask someone at your company. Failing that, you could ask the credit card company once you have the card.

Thanks for your question.

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2 Responses to “Company Credit Card Questions”

  1. Bob Says:

    Let say I have a balance of $2415 on my credit card which charges 15.79% per annum. I intend to pay $68.78 a month until the balance is paid off.

    1) What is the effective monthly rate of interest that I am paying?
    2) How long will it take me to pay off the entire balance?
    3) What is the total dollar amount I will repay?
    4) How much of my total repayment (in dollars) will go to servicing interest on my balance?

  2. Sue Says:

    My question….My husband’s employer has given him a credit card with his name on it for hotels and expenses. The credit card is in the employers name but has added my husband’s name to it. Would we be responsible for any of the credit card debt?

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