Do you have a corporate credit card? Do you fear that the transaction you make using your corporate credit card might affect your credit score? Therefore, the truth is that corporate credit card usage can affect the personal credit of an individual.
But the extent to which your credit is being affected negatively depends on the type of card your company has provided you with or provide to your employees being the company’s owner. Thus, to know more about this topic, you need to follow this article thoroughly.
The corporate credit card is a different type of card in contrast to the personal credit card. This type of credit card is particularly meant for organizations with millions of dollars in their annual revenue.
This card is provided to the organisation’s employees to make any transaction required for the organization or book travel tickets for business purposes. Furthermore, this type of credit card also provides the employer to control and track business expenses.
However, corporate credit cards have a negative impact on personal credit. But the extent of negative impact on your credit depends primarily on the type of card you use for your business. The best way to remain safe from this negative impact is to use the free credit card by Bajaj Finserv; thus, if you want to know if the corporate credit card affects your credit and the extent of the negative impact, you need to follow this article.
Negative Impact of Corporate Credit Card On Personal Credit
How Corporate Credit Card Negatively Affects Personal Credit
There are several different ways in which a corporate credit card affects personal credit. But people often do not realize this direct impact on their credit. Usually, the small organization owners issue the credit cards in their name, thereby putting their credit score at risk as the credit-issuing company reviews their credit score before issuing the credit card. Consequently, any transaction that takes place using the corporate credit card will be reported to the credit bureau, and this will be reported as higher credit utilization.
To increase the credit score, it requires that the individual should have minimum dependence on the credit card. But too much utilization of the corporate credit card by the organisation’s employees will cause your credit to decrease. In a similar situation, if the company adds the employee’s name as the authorized credit card user, then the same will also negatively affect their credit card scores.
Similarly, if you are an organisation employee and have a corporate credit card, you do not use it too much. Then also, there are chances that your credit will negatively impact your boss or employer who has poor repayment history and carry forward a heavy balance from month to month. But chances of a negative impact on the personal credit, in this case, are less severe than the other cases.
How To Know If Corporate Credit Card Is Affecting Your Credit
If you want to know whether the corporate credit card usage is affecting your credit, you should regularly check your credit score report from month to month. Apart from this, another way to check the impact of the corporate credit card on your credit is to check whether the inquiry was made while opening the credit card or if the credit card comprises your name. Therefore, if there was no inquiry made while opening the credit card and your name is not present on the credit card, it will unlikely have any negative impact on your credit score.
Ways To Reduce The Negative Impact Of Corporate Credit Card on Personal Credit
If you want to reduce the negative impact of the corporate credit card on your credit score, then the below discussed ways will tend to be fruitful for you:
- Push your company to use a free credit card instead. With the free credit card by Bajaj Finserv, one does not have to worry about personal liability, and you can easily avail industry first benefits and some other attractive cashback on your monthly purchase.
- Pay your corporate credit card bills in time
- Prefer not to use the corporate credit card unless it becomes highly essential so that your credit card utilization will be low
Thus, the above is how the corporate credit card affects the personal credit score of an individual. Along with discussing how it impacts the personal score and how to check it, we have also discussed how to reduce the negative impact. You can follow the above-discussed ways to reduce the negative impact of the corporate credit card on your credit.
The Bajaj Finserv RBL Bank Super Card is an excellent corporate credit card for every type of business. It is not only a normal credit card, but it is more than that. It has powers of 4 different cards in one card. This feature-rich credit score comes with several amazing perks like annual savings up to Rs.55,000, up to 20,000 reward points upon joining, interest-free atm cash withdrawal for 50 days, interest-free emergency loan for 90 days, etc. Furthermore, users of this card can easily convert the total amount in convenient EMI options through the EMI Network.