Guaranteed Corporate Cards

[Jb1210a]

Another random question here, I was just issued a corporate card by my company for expenses from traveling and I had a question.

Does having a card such as this affect my credit score/report in any way? Obviously the balance will be paid in full and on time each month, so I figured that if it was going to affect me, that it would be in a positive manner.

[kork13]

It depends on how your employer has the card setup. Normally, however, I believe they do NOT reflect on your credit. The cards are typically opened on the credit of the company (not the individual's). That said, if it does not get paid properly, it probably CAN come back to reflect negatively on your credit -- screwed up how that works, huh?

As I said, not every corporate card works like that, but that's how it's been with most of the ones that I've seen/had.

[Jb1210a]

I was reading the same thing, I just wanted to double check here that it's how it works. I'm not worried about it negatively affecting me, just sort of hoping for it to positively affect me, lol.

[cooliemae]

Originally Posted by kork13

It depends on how your employer has the card setup. Normally, however, I believe they do NOT reflect on your credit. The cards are typically opened on the credit of the company (not the individual's). That said, if it does not get paid properly, it probably CAN come back to reflect negatively on your credit -- screwed up how that works, huh?

As I said, not every corporate card works like that, but that's how it's been with most of the ones that I've seen/had.

This is how the federal travel card system works. The government's choice of banks (currently US Bank) issues the employee a card for travel expenses. It used to be that the the government would then reimburse the cardholder, which in turn would pay the credit card bill. All great in theory, but the gov't is notoriously slow in paying, which meant the cardholder was still on the hook for the money or face the credit hit. However, the gov't has updated their policy recently and now the reimbursement is made directly to US Bank and is alot quicker.

[disneysteve]

Be very careful with company cards. I've heard this discussed on the Dave Ramsey show more than once when an unsuspecting employee got screwed because the company didn't pay the bill on time. If you signed any type of agreement to get the card, you are probably liable for the charges. I would avoid that type of arrangement at all costs. I would also avoid any arrangement to charge on the card, pay the bill and get reimbursed later. As cooliemae mentions, if the reimbursement is slow in coming, you are responsible for paying that bill when it comes.

[Jb1210a]

They pay the bill directly as soon as the expenses are approved. I have a strict expense list to follow, but I plan on talking directly with my manager about what's covered and what isn't.

[disneysteve]

Originally Posted by Jb1210a

They pay the bill directly as soon as the expenses are approved. I have a strict expense list to follow, but I plan on talking directly with my manager about what's covered and what isn't.

Also find out what your liability is on the account. If you are personally liable for the bill if it doesn't get paid, get rid of it.

[JoshuaHeckathorn]

Originally Posted by Jb1210a

I was reading the same thing, I just wanted to double check here that it's how it works. I'm not worried about it negatively affecting me, just sort of hoping for it to positively affect me, lol.

That would be nice, but it doesn't work that way. Don't expect anything to show up on your personal credit reports unless it's a negative mark, which should never happen if your company will pay directly and you track the card closely.

If your corporate card accrues rewards points (Amex for example), you should be able to use them for your own enjoyment too. That's a nice perk to have, especially if your position requires a lot of travel and you rack up major points on airfare, hotels, rental cars, and food.