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Does a corporate credit card build credit?

Many credit cards require you to have a good credit score — and corporate cards can help.
Find out how corporate cards can help build your credit.

Can a corporate credit card build credit?

If you’re an authorized user of a corporate credit card with a large company, using the card is unlikely to have much effect on your personal credit. This is because the balance and payment information of a corporate credit card is reported under the business and not the individual holders.

Different corporate credit cards will have different terms. Some cards will only make a business responsible for repaying charges. Others will have joint liability with all authorized holders. In this instance, corporate credit card activity could appear on a user’s report if a debt becomes delinquent.

If you’re the primary account holder of a small business credit card, then the effects will be similar to a personal credit card. You’re offering a personal guarantee of repayment on all debts on that credit card. The issuer will carry out credit checks before approval and report payment information to the major credit bureaus.

Authorized users of small business credit cards could also see their credit affected by its activity. If the credit account is managed responsibly, then all named holders could see improvements to their credit. Conversely, poor management can negatively impact all cardholders’ credit histories and scores.

Will I have to undergo a credit check for a corporate credit card?

When you apply as the primary account holder of a small business credit card, you are personally agreeing to repay the loan amount. The issuer will run checks on your personal creditworthiness before approving your application. Authorized holders of a small business credit card will not have to undergo credit checks.

Employees that are authorized to hold and use a corporate credit card may have their credit history checked by the issuer. This hard credit check can have a small negative impact on your credit score. However, the effects will only be temporary.

Type of credit cardType of holderCredit check required?
Small business credit cardPrimary account holderYes
Small business credit cardAuthorized userNo
Corporate credit cardAuthorized userPossibly

How can I use a corporate credit card to improve my credit?

Responsible management of corporate and small business credit cards is beneficial to all users. As with any credit card, you should be paying bills in a timely manner and carrying over no debt into the following month.

Regular examination of credit card statements is also important to identify unauthorized charges, which could indicate fraudulent activity. If you notice anything suspicious, make sure you report it immediately.

Ready to learn more?
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What is a business credit score?
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How can I improve a business credit score?
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What is a credit limit?
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Who is liable for a corporate credit card?
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© 2019 Brex Inc. “Brex” and the Brex logo are registered trademarks.

The Brex Mastercard® Corporate Credit Card is issued by Emigrant Bank, Member FDIC. Terms and conditions apply. See the Brex Platform Agreement for details.

Brex Inc. provides a corporate card. Brex Treasury LLC is an affiliated SEC-registered broker-dealer and member of FINRA and SIPC that provides Brex Cash, a program that allows customers to sweep uninvested cash balances into certain money market mutual funds. Investing in securities products involves risk, including possible loss of principal. Neither Brex Inc. nor any of its affiliates is a bank. Please see brex.com/cash for important legal disclosures.