Paying your business credit cards on time doesn’t impact your personal credit score at all, but start missing payments, and your personal score will likely go down. This is also true for your employees.
Lifehacker.com recently posted some advice for business card users whether you’re a business owner or an employee using a company card:
“Every month you’ll see each of your personal credit cards updated across your credit reports, including the balance at the time the creditor sent the information to each CRA [credit reporting agency] and the state of your payments (on-time, etc.). For business cards, however, on-time payments won’t post on your credit report at all. But if you’re delinquent, expect the creditor to report that to each CRA.”
For small business owners, the impact of personal credit on the ability to get a small business loan never goes away and making late payments on your business credit cards also hurts your business credit rating—and may even cause your interest rate to go up.