How Business Credit Cards Affect Your Credit Score

A business credit card, whether your employer gives you one or you apply for one yourself, can impact your credit score, as you might imagine. But only negatively.

Frugal Travel Guy explains:

Every month you'll see each of your personal credit cards updated across your credit reports, including the balance at the time the creditor sent the information to each CRA and the state of your payments (on-time, etc.). For business cards, however, on-time payments won't post on your credit report at all. But if you're delinquent, expect the creditor to report that to each CRA.

Having business cards will not help your credit, but they can harm it. If you're paying your bills on time with your business credit cards, you can expect to see nothing on your credit reports. But if you're not paying on-time, expect to see negative marks posted on your credit report while your credit score drops.

This can also be true if your employer gives you a card in your name and misses payments, as the card will also go on your credit history, NerdWallet notes. So make sure you trust your employer before signing for that credit card.

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