Got approved for a corporate Amex...but what does this mean?

[Anonymous]

Well I was recently approved for a Corporate Amex on 10-13-2008.  Yea me!  I guess.  I'm sure this is a good thing.  Can anyone elaborate on what this means and what to do if you ever change jobs.  How to go about closing the account or switch the information to your own personal info. 

My current scores are:  EQ: 653 TU: 677 EX: 664

[Watchmann]

The card account belongs to your employer, not you.  When you leave your job the card does not go with you.  And most corporate cards do not count in your FICO score, or even show up on your CR.  This is because the company is responsible for the account, although if it becomes deficient because of your actions you are the owner of last resort and your CR can eventually suffer, although by that time you have been fired from your job for misuse of the card.

[cobra19]

Watchmann is correct - the card is not yours, it belongs to your employer. If you leave your current job, the card does not go with you.  You cannot switch the card over to yourself. However, since the monthly statements go your home address, you can use the card for non-business items - just make 100% certain you PIF.

Only thing I might disagree with, is how the card reports. My corporate AMEX account does report to all 3 bureaus. That's a good thing.  

[Watchmann]

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@cobra19 wrote:

However, since the monthly statements go your home address, you can use the card for non-business items - just make 100% certain you PIF.

Only thing I might disagree with, is how the card reports. My corporate AMEX account does report to all 3 bureaus. That's a good thing.  

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No, that is not correct ..... whether or not you can use the card for personal expenses is 100% the discretion of your employer.  It has nothing to do with where the bill goes to.  Most companies no longer allow personal use of a company issued card.  It is very poor policy as it makes control of business expenses very difficult to control for audit perposes (Sarbanes-Oxley and all that).  Companies that still allow that are really behind the curve.

Since your company seems to allow personal use, that is the reason it reports to the CRA's under your name.  My company prohibits personal use, and the info does not report to my CR.  There is no reason for charges to report to my account if they are all business expenses.  The company is responsible for them.  If I screw up the company will deal with me directly.  In our company, deliberate use of a Company Card for personal use will almost always result in termination.  We get a few of these each year. 

When in doubt consult your employer, not the card issuer.

Message Edited by Watchmann on 10-24-2008 09:15 AM

[Anonymous]

What Watchman said is correct. My company recently gave us department administrators Corporate AMEX's instead of petty cash. They have not reported on any of our credit files. The bill goes straight to the accounting office, and we had a training session on what we could and could not use the card for.

[Uniqua]

The company I work for allows personal usage of our corporate AmEx cards. However, you are 100% responsible for those personal charges. All client/firm related expenses are reimbursed by the firm. Our corporate AmEx cards ARE reported to the CRBs.

[Anonymous]

So, the card reports for some of you, but not for others of us.... INTERESTING! I wonder who makes that decision? AMEX or the Corporation?

[MattH]

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@Anonymous wrote:

What Watchman said is correct. My company recently gave us department administrators Corporate AMEX's instead of petty cash. They have not reported on any of our credit files. The bill goes straight to the accounting office, and we had a training session on what we could and could not use the card for.

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Yep, my company does it the same way: charges on my Corporate AMEX card automatically appear in our expense-account system, and I could get fired if I used it for non-work-related purchases.  We recently had a mandatory training session on these policies including various examples of inappropriate charges.  Unlike my personal AMEX Gold, my Corporate Card has never appeared in my credit history.