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Credit Report & Scores

Does My Company Credit Card Affect My Credit Score?

Dear Experian,

The company I work for issues me a company credit card in my name. It shows up on my Experian credit report. Why? Does it affect my credit score?

-CCC

Dear CCC,

If you agreed to be personally responsible for payments on your employer's credit card, or corporate account, the account may appear on your personal credit report, even if your employer reimburses you for the charges.

The same is true for business owners who cosign for a company credit card or loan in their company's name. Any time you personally guarantee an account, the account may appear on your credit report as well as the business credit report.

How Will a Company Credit Card Affect My Credit Score?

Any account that appears on your credit report will likely have some impact on your credit scores. Whether that impact is positive or negative depends on both the payment history of the account and balance on the account.

The two most important factors in credit scores are whether all payments are made on time and your utilization rate. An account that is never late and has a relatively low balance-to-limit ratio, or utilization rate, will likely have a positive effect on your credit history.

Disputing Incorrect Information

Different companies may have varying policies when issuing a company credit card in an employee's name. If you believe the account is appearing on your credit report in error, you should do two things:

  • Speak to both your employer and credit card company to find out what the terms of the account are and whether you are contractually responsible.
  • Dispute the information with Experian. The fastest and easiest way to dispute the account is online through our Dispute Center. Be specific when explaining why you believe the account should not appear on your report. Experian will contact the lender and ask them to verify the information.

Thank you for asking,
Jennifer White, Consumer Education Specialist

This question came from a recent Periscope session we hosted.

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