The credit score matters when we want more benefits, new cards, or an increase in our credit limit. Because of this, it is essential to be informed about situations or actions that could affect our score.
Before initiating any procedure to acquire a new card, you can study how this could affect or benefit your credit score, as would be the case with company credit cards.
Can corporate credit cards affect my credit score?
Not really. Financial institutions check your credit score to approve your card application but once approved, the card activity will be reported only on the company’s credit. This way, you don’t have to worry about affecting your score.
How do I know if my credit score is being affected by the company credit card?
Although the company credit card does not affect your credit, it can affect the company’s credit. To check whether it is being affected, you can check it through your credit report.
However, it would be best if you kept in mind that by making payments outside the period, you may see a reduction in your score on your report.
What advantages can I get by acquiring a corporate credit card?
There are many advantages. Primarily, you will be able to access a corporate line of credit. In addition, they offer many benefits because corporate cards usually have high limits, so you can earn rewards on every purchase you make.
As an employer, you will be able to issue corporate cards to your employees, making it easier for you to pay them.
You will also be able to access various premium accounting services, through which you will be able to budget and track expenses, which could greatly benefit your company.
What should I consider before applying for a corporate credit card?
Before applying for any card, you must first research the requirements. In the case of a company credit card, you must have a company with high annual revenues to be approved.
In addition, you must be prepared to have a financial audit performed, demonstrating that the company’s revenues and expenses can justify the corporate line of credit you are applying for.
Because of this, the approval process can be a lengthy payment. Finally, your business must have a high credit score for approval.
However, it would be best if you did not worry about your credit score, as most lenders often do not consider it. After that, you can acquire your corporate credit card by calling the card issuer.
Company credit cards vs. Business credit cards
Both cards are useful for business people. However, they are used in different ways. In the case of corporate credit cards, these are used for multi-million dollar companies with many employees, through which they are given access to a corporate credit account. They do not require a personal guarantee.
On the other hand, commercial credit cards are mainly used by companies with revenues of less than 1 million dollars per year.
They are used mainly by company owners for their personal needs or the benefit of their employees. These types of cards do require a personal guarantee. However, they offer many rewards on business expenses and help you increase your business credit score.