Does My Company Credit Card Affect My Credit Score? - Experian (2024)

Does a Company Credit Card Affect My Credit Score?

There are three common scenarios where you might have a business credit card, and these circ*mstances can dictate if and how the credit card might affect your credit scores.

• You're a business owner with a company card. Business owners, including freelancers and gig workers, may want to open a small business credit card to separate their personal and business expenses. Applying for the card might lead to a hard inquiry, which could hurt your credit score. Additionally, credit card issuers might report business credit card information to the consumer credit bureaus, which could affect your scores.
• You're an authorized user on a business card account. If you work for a small business, the owner or your manager might give you an employee credit card tied to their small business credit card account, or add you as an authorized user to their card. If the credit card issuer reports the account to the consumer credit bureaus, it may report it to the bureaus under your name as well.
• You have a corporate card from a large employer. Large companies will likely have corporate credit cards, and they might give you a corporate credit card for your business expenses. Even if the card has your name on it, the account won't be reported to the credit bureaus under your name. As a result, it won't affect your credit scores.

In short, a business credit card might affect your credit scores if it's your account or you work for a small company. It generally won't if you have an employee card connected to a corporate credit card account. But what really matters is if—and what—the card issuer reports to the credit bureaus.

Do Company Cards Show Up on My Credit Report?

Business credit cards sometimes show up in consumer credit reports, but it depends on the credit card issuer's policies.

• If the credit card issuer reports business cards to the consumer bureaus, the card may appear in 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 credit card issuers don't report small business credit cards to the consumer credit bureaus as long as the payments are made on time. They may still report the card to commercial credit bureaus, which create business credit reports.
• Some credit card issuers report negative information from small business cards to the consumer credit bureaus, such as late payments, which could hurt your credit.
• You can call the card issuer to ask about its policies.

The credit bureaus' policies may also affect what appears in your credit reports. For example, Experian doesn't include missed payments from authorized user accounts in your credit report.

So a late payment from an employee card wouldn't hurt your scores if your employer misses a payment. However, if it's your own company's credit card, the late payment could still hurt your credit.

What if the Company Uses a Personal Credit Card?

Some business owners use a personal credit card for their business. It may be a legitimate option if they run a sole proprietorship, as there isn't a legal distinction between the business and the business owner.

If you're the business owner, the card will affect your credit the same as any other personal credit card. For example, if the card has a high balance relative to its credit limit, a high credit utilization ratio could hurt your scores.

Similarly, if your employer adds you as an authorized user on their personal card, it will likely appear in 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. If you're applying for a personal card or a small business card, the credit check can result in a hard inquiry—a record of the credit check. Hard inquiries can stay in your credit reports for up to two years, and they might hurt your credit scores.

Card issuers generally don't check your credit report when you're added as an authorized user or receive an employee card. In either case, the primary cardholder or company is responsible for repaying the account's balance. Because you're not personally responsible for any of the debt, the card issuer doesn't need to assess your creditworthiness.

How Can I Avoid Negative Impacts to My Credit?

You can keep your business credit card from hurting your credit by making sure you don't fall 30 or more days behind on any of your credit card 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. Try contacting the credit card issuer and ask them to remove you as an authorized user and stop reporting the account to the credit bureaus. Or, you have the right to file a dispute with each of the credit bureaus directly.

Monitor Your Credit for Changes

Many factors can affect your credit score, including your personal credit cards and loans. You can monitor your credit for free with Experian and get insights on the factors that are helping or hurting your credit scores the most. If you're looking for a credit card of your own, Experian can also show your credit card offers based on your unique credit profile.