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Does use of a corporate credit card affect your credit score?

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As a credit card holder you might have already noticed that the way you use your personal credit card has an impact on your overall credit score. However, what you might not have noticed is that the use of a corporate credit card also has a significant impact on it. Having privilege of access to the corporate credit card has many benefits such as expense tracking.

Improper Use of a Corporate Credit Card

With these many benefits, it becomes increasingly important to make sure that the corporate credit card is used with great responsibility. As is with a personal credit card, the corporate credit card also has a credit history which affects the person whose name it bears.

The use of a corporate credit card is not limited to just one employee and it may be the case that the company pays the credit statement. Either ways, what matters here is not the debt that is to be paid but the card holder’s credit history. Improper use of a corporate credit card can lead to a damaging credit history which affects the card holder only.

Proper Use of a Corporate Credit Card

On the other hand, if the use of a corporate credit card is proper then the card holder’s credit score can be improved. If you’ve been given access to the use of a corporate credit card then you must also keep in mind that it can affect your credit score depending upon how it is used.

If the company misses a payment or pays the debt after due date it will have a negative impact on the card holder’s credit score. This is the reason why employees whose names are listed on the corporate credit card sometimes end up having to pay off the debt. Lastly, when you are signed up on the company’s credit card you will want to keep track of how your personal credit card’s history varies.

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