Hi All, When I have read the T&Cs of previous employer corporate cards it hasn't been much of an issue though I'm less sure with what I have been provided with for a new corporate card application. Any ideas/actual experience of impact on credit history / serviceability? Large company - not that worried about them ultimately paying their bills but they have had administrative issues where payments were not made for 3 months. ---- Collection, use and disclosure of credit information American Express may obtain both consumer and commercial credit reports about you from credit reporting bodies for uses permitted by the Privacy Act. This includes: • assessing your credit worthiness; • assessing this application; • collecting overdue payments; and • American Express’ internal management purposes relating to the provision or management of your account. We may also disclose personal information to credit reporting bodies as permitted by the Privacy Act, including: • that you have applied for a Card and the credit limit; • that American Express is a credit provider to you, including the type of credit, account opening and closing dates and credit limit; • 24 months repayment history on your Card Account; • default information relating to payments that are at least 60 days overdue (and advice that overdue payments have been paid in full); • that you have committed a serious credit infringement; and • that you have made a request to correct your personal information. ----
Amex charge card. Which actually makes me slightly more concerned because if a payment is missed it goes overdue quickly.
I don't know what the current bank policy is - but back when I had corporate charge cards (a long time ago), they had no impact on serviceability because they needed to be paid in full each month - so you couldn't carry a credit balance.
That was what I understood as well. It was all of the credit reporting in the terms and conditions that had me thinking. I am liable for any charges except business charges for which the company has not reimbursed me. (That double negative is in the terms and conditions) The card could have corporate liability terms but instead it has shifted that to the employee including liability for unauthorised charges per the conditions. Basically it would be convenient if it did impact my credit record as I don't want to sign up to it!
Rolf - I also expect such - do you think there will be an impact (in a post APRA world) of the corporate card on my serviceability?
objectively if the liability rests with the card holder, and not the employer, well yes - good compliance deems you get to hold the baby ta rolf
a former employer, a major US financier insisted on Amex charge cards - i had to complete the forms and agree to the standard T&C's as you've indicated. there is absolutely not bearing on your individual credit file nor serviceability with other financiers. however, whilst above is my own experience this was never tested in a default scenario... ultimately my understanding is there would be no recourse against the individual card holder unless it was unauthorised eg: strippers, atm withdrawals or other non legitimate business activity.
Did you have to disclose any income @bunkai? Chances are, when the card is 'swept' at the end of the month, it will debt the employers account not yours and any dishonors will be at the companys expense...not yours. I have one too with my employer and It hasn't appeared on my credit search
Generally I've found if the employer provides a letter stating the card is requirement as a part of your employment, it's use is only for work related purposes and that payments are made by the business - that the lender will disregard from servicing calculations. In terms of late payment - if a credit hit is on your file which happens in many cases, then this can flow through to your file should default occur.
