Posts Tagged Personal Credit Cards
Personal Liability on Business Credit Cards
If the business does not meet these criteria, the business credit card issuers will use the credit history of the principal making the business credit card application as their basis for evaluating credit risk.
Do note that most business credit card issuers will not approve your application for a business credit card unless you agree to the personal liability provision. This essentially makes a business credit card the same as a personal credit card from a personal liability point of view. Hence, whenever your business fails to repay the business credit cards, the issuer may invoke the personal liability agreement in order to collect payment from the business credit card principal.
Because of this personal liability provision on your business credit card application, your personal credit reports will also contain a record of your business credit card history. You will therefore damage your personal credit score if you make late payments on your business credit cards. If your business accumulates a big debt, it will inflate your personal debt burden and cause you to appear overextended.
The personal liability agreement, however, is not always cast in concrete. If you can show that you diligently make your regular payments, you should be able to convince the issuer of business credit cards to remove the provision after a few years. It would really be up to the issuers whether they decide to grant you your request or not. Nonetheless, you could always try to negotiate with them. Whatever the case may be, endeavor to have the business establish its own credit history. This will eventually allow you to separate your small business credit card from your personal credit records.
You must be aware that since business credit cards are not intended to be used by consumers, the consumer protections applicable to personal credit card are not necessarily present in business credit cards. When making use of personal credit cards, the law grants you the right to dispute billing errors on your account within the specified period of time. Within this period, the card issuer cannot mark the disputed amount delinquent or cancel the card. This particular right of the consumer is not applicable to the holders of business credit cards.
When you receive ordered merchandise in poor condition, you cannot dispute the charges and in case the vendor refuses to cooperate, request the business credit card company to intervene on your behalf – as they do in the case of personal credit cards. With business credit cards, you are largely on your own.
So, should you carry a small business credit card rather than a personal credit card? The answer is: Yes. Once your business has established its track record, you can separate personal and business finances. That will work well – both for you and your business.
Marvin
I have 16 credit cards. Is that bad?
I have 16 credit cards, however, 2 of them are Business Cards (so they aren’t even reported to my consume credit report, but instead to a Dunn and Bradstreet credit report?)
I have 14 personal credit cards.. 2 of them are Store Credit Cards. 12 of them are visa/mastercard/amex/discover. Okay, all of them are paid off and have a $0 balance on them, except for 3 of them. And the LOWEST credit limit I have on 1 card — It’s a $500 credit limit. The rest are 1k+. I am scared this will hurt my credit score, but I’ve NEVER been late on any card, never gone over the credit limit on any of them. 2 of them I plan on paying off completely. The last one, I pay about 20 dollars more than the minimum payment they ask for.
Is this hurting my credit? Even though I pay them all on time, never missed a payment, never gone over my limit, etc?
Robert
If a company has already issued me a company credit card, can the card be taken away if I claim bankruptcy?
I have had the company credit card for approximately 10 years, paid the card off monthly, but recently got cut back on my job with a large reduction in pay, which will not allow me to make my personal credit card payments. If I claim bankruptcy on my personal credit cards, will my company be notified, and will they take away my company-backed credit card. It does not show on my credit report.
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Can I remove a bad mark on my credit report that came from a joint account?
When I was fifteen, my mother gave me a credit card in my name that was connected to her credit account, to be used for emergencies. I used the card responsibly and she never had a problem with it.
Without my knowledge, she built up $10,000 worth of debt, and then closed the account without paying it off. This now shows up as a bad mark on my credit report, even though I did not make the charges, never made payments, never signed consent, and did not have any connection between the card and my bank accounts. All the charges in question were made before I was 18. I have paid off all my personal credit cards on time and would have great credit if it weren’t for this debt.
Is there any way to have this removed from my report? Would a letter to the credit reporters be effective? I hate to sound ungrateful to my mother, but I’m worried this will hurt me when I take out loans in the future. Thanks!
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Will my business credit cards activity affect my personal credit history and FICO score?
I am a self employed photographer and own my own photography business. I have several personal credit cards and several business credit cards I use for business expenses. As I am preparing to buy a home I recently requested my credit reports and FICO scores from all three credit bureaus. I did not see my business credit cards showing up on any of the 3 credit reports. Why is this as I thought my “business” cards were just regular credit cards with the name of my business on them? Since I do have substantial balances on these cards from my business expenses will this effect my FICO score even though these business cards do not show up on my credit reports?
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