At O1ne Mortgage, we prioritize educating our clients about financial matters, including how company credit cards can impact your credit score. Understanding these impacts can help you make informed decisions and maintain a healthy credit profile. If you have any mortgage service needs, feel free to call us at 213-732-3074.

Does a Company Credit Card Affect My Credit Score?

Whether a company credit card affects your credit score depends on several factors, including the type of card and your role within the company. Here are three common scenarios:

1. You’re a Business Owner with a Company Card

If you’re a business owner, including freelancers and gig workers, you might open a small business credit card to separate personal and business expenses. Applying for this card could lead to a hard inquiry, which might temporarily lower your credit score. Additionally, some credit card issuers report business credit card information to consumer credit bureaus, which could affect your scores.

2. You’re an Authorized User on a Business Card Account

If you work for a small business, the owner or manager might give you an employee credit card tied to their small business credit card account or add you as an authorized user. If the credit card issuer reports the account to consumer credit bureaus, it may appear on your credit report.

3. You Have a Corporate Card from a Large Employer

Large companies often provide corporate credit cards for business expenses. Even if the card has your name on it, the account typically won’t be reported to credit bureaus under your name, so it won’t affect your credit scores.

Do Company Cards Show Up on My Credit Report?

Business credit cards may appear on consumer credit reports, depending on the credit card issuer’s policies. If the issuer reports business cards to consumer bureaus, the card might show up on your credit report if you’re the primary cardholder, an authorized user, or have an employee card from a small business credit card account.

Many issuers don’t report small business credit cards to consumer bureaus as long as payments are made on time. However, they may report negative information, such as late payments, which could hurt your credit. You can call the card issuer to ask about its reporting policies.

What if the Company Uses a Personal Credit Card?

Some business owners use a personal credit card for their business, especially if they run a sole proprietorship. In this case, the card will affect your credit the same as any other personal credit card. For example, a high balance relative to the credit limit could hurt your scores. Similarly, if your employer adds you as an authorized user on their personal card, it will likely appear on your credit report and might help or hurt your credit depending on how the primary cardholder manages the account.

Was My Credit Checked When I Got My Company Card?

Credit card issuers generally check at least one of your credit reports and scores when you apply for a business credit card. This credit check can result in a hard inquiry, which might temporarily lower your credit scores. However, issuers generally don’t check your credit report when you’re added as an authorized user or receive an employee card, as you’re not personally responsible for the debt.

How Can I Avoid Negative Impacts to My Credit?

To prevent a business credit card from hurting your credit, ensure you don’t fall 30 or more days behind on any payments. If you’ve been added to someone else’s credit card and the account is hurting your credit, you may be able to remove it from your credit reports by contacting the credit card issuer or filing a dispute with each credit bureau directly.

Monitor Your Credit for Changes

Many factors can affect your credit score, including personal credit cards and loans. Regularly monitoring your credit can help you stay informed about the factors that are helping or hurting your scores. If you’re looking for a credit card of your own, consider offers based on your unique credit profile.

For any mortgage service needs, contact O1ne Mortgage at 213-732-3074. Our team of experts is here to help you navigate your financial journey with confidence.