Can a Business Credit Card Affect My Personal Credit Score?

Reader Question: Can a business credit card affect your personal credit score?

There are two answers to this question -- yes and no.

If you are the owner of the business and have applied for a credit card to use for business purposes, the issuing card company will pull your personal credit report. They use this as a factor when making a decision to extend credit to your business. This means that the payment history for the card will be reported on your personal credit.

If you work for a company who has issued you a credit card to use for business expenses, the company's principals (owners) will be responsible for the credit and payment history for your card. Some companies will ask employees to apply directly for their cards, even though they are for business purposes. This will show up as an inquiry on your report -- which, by itself, is not necessarily a big deal. But it's something you should be aware of.

Here are some tidbits I gathered from the Internet:

• "Moreover, your small-business credit card will be noted on your personal credit reports. (Meaning those provided by Experian, Transunion and Equifax.) A few late payments could seriously damage your personal credit score..." -Source: SmartMoney.com
• "Misuse of a corporate credit card can also show up on a credit history, potentially damaging the credit of the employee whose name appears on the card." -Source: CreditCards.com
• If you're a sole proprietor or a business owner with fewer than 20 employees, your personal and business credit scores are closely linked in the eyes of banks and other potential lenders. -Source: Entrepreneur.com

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