A little off topic, but I figured someone here might know. My company wants to issue me a corporate Amex card. The card will be in my name, but obviously will be backed by the company. HR sent me a note saying they needed my social security number to order it. I’m going to be applying for a mortgage in a few weeks and am a little anal about my credit score. Will the issuing of the corporate card hit my credit? My first inclination is no because it is backed by the company so it really isn’t my credit. On second thought, however, they do need my ss# and HR said everybody gets their own indivisual credit limit and it varies from person to person so it would seem like there is some check into their personal credit. Any thoughts on the impact this will have on my credit for the mortgage? I’ve been preparing for this mortgage for a year, not taking out any loans or opening new cards, keeping card balances low, etc. I’d hate to mess it up right before by getting this card.
I know other large companies that issue AMEX and the credit is under the individual. I recall someone leaving the company, turned in his AMEX which had a balance, and the company didn’t pay it. He called the company some 2 years later b/c it’s impacting his credit when applying for a home loan. If the card is in your name, I would assume it’s on your credit. ------------------------------------------ I think credit scores are f’d up. I have heard of balances of
Yeah, credit scores are really hindering me lately. I’ve got a great score that I’ve been building to prepare for a mortgage. Now all of a sudden the lease is up on my car, so I need to get a new one which will show up as a new loan on my report, and the company wants to give me a card that will show up as a new line of credit. Both are very legitimate actions that are well within my ability to repay, but both would knock down my credit score before getting a mortgage. It makes no sense. The new car I’ll be getting will have a lower monthly payment than the one I have now. This makes it easier for me to pay a mortgage. Getting the car, however, requires getting a new lease, and thus a loan, and will lower my credit score and make my mortgage rate go up. Some logic.
FWIW, most if not all of the 3 reporting agencies support what-if tools when you purchase your credit score, showing what would happen to your score if you undertook certain positive (pay off a credit card) or negative (open a new LOC) actions. Not sure if taking on a car lease is included, but might be worth the $10 to try it out.
Corporate amex card will affect your credit. Any amount will hinder your credit score in a similar fashion- doesn’t matter if you have $1 or $10,000 unpaid.
not an answer your question… but something interesting that i learned when researching auto loans and credit scores a few months ago. there is something called an auto enhanced score that auto lenders use instead of the normal FICO credit scores. apparently its your score based solely on your auto loan history. i think i read it on myfico.com or a similar site. they had some tips on there so check it out before you sign your new lease.
not sure if it helps but in the UK your Corp Amex impacts your credit score as takezn out in your name, they do not recognise at all that its company backed, its only the fees which are cheaper for companies
This might be a bit off-topic but just reading this makes me wonder how many companies run credit checks for hiring purposes and actually use it in making a decision.
as far as running credit checks, you can be sure that many big name firms do it, as far as making hiring decision based on it, I would doubt it, unless you have something out of the orinary on your credit history
Maybe things are different up here in Canada but I’m pretty sure that my Corporate Amex doesn’t impact my credit score. I ran a report from Equifax a few months ago just to see that everything is cool and it didn’t mention anywhere on there about my corporate card? I wonder if it varies from company to company?
Well, I talked with our CFO a few days ago and she assured me that it won’t impact my credit. She took this up with Amex when we opened the account. She said they do a soft hit on your credit, similar to the ones when you get the pre-apporved credit card offers in the mail. After that the balances and activity do not show up on the individual’s credit report. I took a chance and had them order it. I just hope she is right and it doesn’t end up screwing my score right before I apply for a mortgage.
jrumph Wrote: ------------------------------------------------------- > Well, I talked with our CFO a few days ago and she > assured me that it won’t impact my credit. She > took this up with Amex when we opened the account. > She said they do a soft hit on your credit, > similar to the ones when you get the pre-apporved > credit card offers in the mail. After that the > balances and activity do not show up on the > individual’s credit report. > > I took a chance and had them order it. I just > hope she is right and it doesn’t end up screwing > my score right before I apply for a mortgage. I *THINK* that this is correct: I don’t recall seeing my corporate card on my credit report the last time I looked.
http://corp.americanexpress.com/GCS/Intl/australia/Docs/aus_il.pdf Declaration by Applicant I, the Corporate Card applicant, hereby apply to you (American Express Australia Limited), for an American Express® Corporate Card. If issued to me, I agree to use that Corporate Card for business purposes and to comply with the conditions that accompany the Corporate Card. I certify that the information given in support of my application is true and correct. I acknowledge that you will verify the information with my employer and other sources. I also authorise you to confirm and exchange credit information concerning my financial affairs as described more fully below. I acknowledge that I will be solely liable for all charges I make with the Corporate Card. ------------------------------------------------------------------- if this is the application you filled out, last sentence sounds like you are liable…
What makes me nervous is that I didn’t fill out anything. HR asked for my SS# and that was that.
jrumph Wrote: ------------------------------------------------------- > What makes me nervous is that I didn’t fill out > anything. HR asked for my SS# and that was that. given this, I would think it is on your corporate credit. The SS# is probably for security reasons, ie you lose your card.
Jrumph - I was actually in the same situation 2 year ago. With the corp card and with the car. The corp card does go under your name, and you are liable, but it shouldn’t affect your credit score. I was still a little weirded out b/c it was my first house and I wanted everything to go smoothly so I waited to get the corp card until I bought my house, which was a few months later. My boss was cool with it. On the car note… I didn’t have a lease run out shortly before buying the house, but I did have a car on it’s last leg and we desperately needed a new one. It was so beat to hell that we had to stop on the way to sign the papers for the house b/c it was overheating so badly (which it did regularly). So we bought the house, and then went right out and bought a new car!
Haha, thanks Bodymore. Its nice to know that I’m not the only one with terrible luck when it comes to timing big ticket purchases with credit. Bodymore Wrote: ------------------------------------------------------- > Jrumph - > > I was actually in the same situation 2 year ago. > With the corp card and with the car. > > The corp card does go under your name, and you are > liable, but it shouldn’t affect your credit score. > I was still a little weirded out b/c it was my > first house and I wanted everything to go smoothly > so I waited to get the corp card until I bought my > house, which was a few months later. My boss was > cool with it. > > On the car note… I didn’t have a lease run out > shortly before buying the house, but I did have a > car on it’s last leg and we desperately needed a > new one. It was so beat to hell that we had to > stop on the way to sign the papers for the house > b/c it was overheating so badly (which it did > regularly). > > So we bought the house, and then went right out > and bought a new car!
I’ve had a corporate amex for three years…it has never shown up once as a revolving account on my credit report.