Do business credit cards affect personal credit?

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small biz guy
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Do business credit cards affect personal credit?

Postby small biz guy » Mon Jan 24, 2011 6:05 pm

If you get a business credit card under your Social Security as a sole proprietor will it affect your personal credit? I am worried about the high balance that I anticipate carrying on my new biz card. I am unsure yet the exact amount but I am anticipating using 50% to 70% of the credit limit. Will that affect my credit score? What about other bad things like late payments or the unthinkable, a default?


jeffysdad
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Postby jeffysdad » Mon Jan 24, 2011 7:49 pm

I'm afraid I don't know the answer to your question, but I have had experience as a cardholder employee of a small business, a sole proprietorship.

The card was a Visa or MC, I forget which, and was paid directly by my employer. It had my name on it and when I checked my credit reports, the account was always there as one of my own. It had a high credit limit and I can only think that this helped my credit score. However, I've since opted to not have a card on my employer's account. This is mainly because I want to collect the rewards for spending myself, but I also am concerned that should there ever be problems on the employer account it would affect me, too.

Years later, my employer's address still shows up on my credit reports as a past address of my own, even though I obviously never lived there.
American Express: Blue Cash Preferred (groceries, 6%; gas, department store, 3%); Gold Delta SkyMiles (Delta Air Lines, 2 miles/dollar, free checked bag).
US Bank: Cash+ (utilities, phone, internet, restaurant, 5%; drugstores, 2%).
FIA Card Services: Fidelity Amex (everything, 2%); Fidelity Visa (everything, 1.5%).
Chase: Freedom (rotating, 5%); Amazon (Amazon.com, 3%); PriorityClub (IHG hotels, 5 points/dollar); Sapphire (not in use).

*All cards are registered with PriorityClub IDine program for 8 points/dollar at participating restaurants.

Mapleton
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Postby Mapleton » Fri Jan 28, 2011 2:11 am

If your business card is entirely registered in the name of your business and your social security number and personal address is not listed it should not effect your personal credit.

If you are not incorporated and use your own credit as collateral on your credit card, yes it would probably effect your credit.



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