A recent Fox Business News report relayed that, despite the luxury of having a company credit card, using one can lead to a ruined credit score.
While the prominent thought when using a company credit card is that the company is responsible for the payments, a recent survey discovered this isn't always the case. The survey, conducted by RPMG Research, revealed that one third of companies actually made the employees liable for their payments. Without knowing this fact, employees might not pay their monthly balances and thus, suffer from lowered credit scores.
Furthermore, for cards that have joint liability between the employee and company, the worker's credit report will be affected if any missed payments or delinquencies take place.
"It will impact your score no differently than if you were late on one of your own accounts," Barry Paperno, a consumer affairs manager, told the news source.
Consumers who have legitimate missed payment marks on their report may still be able to get them removed and their credit scores restored if they can prove the items were not reported in compliance with federal mandates. This process may be confusing, which is why some consumers will turn to a credit lawyer to help them investigate and dispute the marks.