1

Is the card issued to the company with the employee as an authorized user or does the employee have to qualify for the card?

Follow up

If an employee declared/declares bankruptcy and part of his debt was to the bank that issues the cards for his company, is he still able to obtain or keep the company card?

Note: The assumption here is that the company card is used only for legitimate business expenses and the employee does not use the card for anything else.

  • 1
    When I worked at UTC, the company credit card was issued directly to me. My travel required that I had the card, so there wasn't really a qualification other than being an employee who went on business travel. – Peter K. Mar 13 '18 at 21:34
  • Location is important. – mhoran_psprep Mar 14 '18 at 10:28
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    I have personally had both company-backed and company-affiliated-self-qualified, so the answer to the first question is "both are possible, ask your employer" – user662852 Mar 14 '18 at 14:29
4

Independent of the detail process of travel expenses (which differs from company to company), the company normally owns the ultimate responsibility for the debt accumulated on the corporate card.
Therefore, your personal situation is not taken into account; you also don’t get a better credit rating from having that card.

  • When you find out your credit is better than the company you work for (e.g. when the company credit card is declined) it's time to look for a new job. – Rupert Morrish Mar 14 '18 at 0:43
0

Is the card issued to the company with the employee as an authorized user or does the employee have to qualify for the card?

The company qualifies for the card. Individual credit scores are not checked. The company can request the card to be cancelled at any point in time. The obligation of payment is with the company. This is the reason that card issues banks are not worried about scores of individuals. From a risk point of view corporate cards are less at risk of default.

If an employee declared/declares bankruptcy and part of his debt was to the bank that issues the cards for his company, is he still able to obtain or keep the company card?

In theory yes. As explained the individual's status has not direct bearing on it.

In reality, most organization need an employee to declare significant events. So if you inform your company [or they get to know]; the company may request card to be cancelled. This would be in line with most company policies that the chances are high that an individual may use the corporate card for personal purposes.

Most companies have a policy to strictly not allowing personal use of company card. The reason being if you swipe a amount for personal transaction on company card, the company is liable to pay to card issuing bank even if you don't pay the company.

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