Do You Know Which Corporate Credit Cards Report Only To Your Business Credit Files?

Are you tired of your company debts showing up on your personal credit reports?

You may have had good intentions opening up that corporate mastercard for your business only to find out the hard way that the $5,000 equipment purchase you recently put on your card now shows up on your personal credit files.

What's worse is your credit score also took a dive because the new debt just negatively impacted your personal debt to credit limit ratios too!

Sound familiar?

Now don't feel too bad because you're in a lot of company as many business owners fall into the same trap. It's a trap that leads you to believe that the credit card your opening for your business is a corporate credit card when in fact it's nothing more than a glorified personal credit card.

If a credit card issuer is advertising a business credit card then why would all the debts your company incurs on that card report to your personal credit reports?

This a great question to ask because there are business credit bureaus like Dun and Bradstreet, Small Business Equifax, and Corporate Experian that are in the business of collecting information, payment history, and public data on businesses and compiling that information in what we know as business credit reports.

So why wouldn't a credit card issuer report your business credit card payments to a business credit bureau?

First, you need to know that not all business credit cards have your best interest at heart. Sure you may be enticed by all the travel perks, bonus rewards, and low introductory rate offers you see but the real catch is in the fine print.

While there's no shortage of corporate credit cards to choose from you should be more concerned with how the card you're planning to obtain handles its credit reporting.

Did you know that out of the 500 business credit cards that are available to small business owners like you only 70 report to your business credit reports?

Using corporate credit cards that only report to your business credit reports will not only help you build a strong company credit profile but also prevents you from damaging your personal credit scores too!

Now I'm a big advocate for establishing a creditworthy business that can stand on its own but the only way to accomplish this is by selecting cards that will in fact build your company's credit.

For example, the corporate capital one business platinum card reports to the major business credit bureaus but the bad part is it also reports to your personal credit files too.

Keep in mind though there other cards that will report to your business credit reports and only in the event of default will it report to your personal credit files.

Finally, there are corporate credit cards and even corporate gas credit cards that report only to your business credit reports and do not require a personal credit check or guarantee.

So the key is identifying the credit reporting guidelines you are willing to accept for your business.

Don't fall into the trap of obtaining corporate credit cards that hurt your personal credit unless that's a risk you're willing to accept.

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