I work for a Fortune 500 company. They are REQUIRING that apply for a corporate AMEX card (which will hit my credit report and requires my social security #), but I would prefer not to open a new one. I am told I have ‘no choice in the matter’.
Is there a law that you can reference me to that prohibits a company from forcing/requiring an employee from doing this to its employees?
Thanks!
Usually, these particular accounts are provided to the company. You are listed as the co-signer, so if you decide not to do your expense accounts they can subtract the amount owed directly from your check.
Also, I think you should read more on your credit report and how it works. Goto annualcreditreport.com, and you will find some useful information.
Did you also know that closing your credit card accounts has a negative impact on your credit rating? Did you also know that if the balance on your cards are at 30% of the available limit, that it will negatively impact your scores?
You might want to research the credit reporting act as well. It’s some useful information.
Honestly, you probably don’t have a choice in the matter.
When doing business travel, companies have a system for “how” they reimburse.
If your companies system revolves around a corporate AmEx card, you’re pretty much stuck getting it if you want to be reimbursed.
I would call the AmEx corporate customer service dept and let them know your situation and that you’d like to, when you discontinue the card, have it removed from your report. If they agree, get it in writing.
Can’t see how it would particularly hurt your credit though, if (as I assume) your employer will just be paying it off in full whenever there’s a balance – having it should merely reduce your utilization and add a tradeline with consistent payment.
The only concern I’d have is that if your current creditors see you now have “more” credit, they may REDUCE your credit limit, which has been a common activity of late.
You can always find another job. Seriously.
The scenario is this:
1. You get the card, they pay the fee.
2. You use the card, submit the expenses for reimbursement and if you aren’t reimbursed by the time the bill is due, *you* have to cover the bill or it’s *your* credit history that takes the hit. You still can’t use the card for personal purchases as the company has the right (remember they paid the fee) to run volume reports and you really don’t need your in-town trips to Hooters printing out on their reports….
3. I was on a system like this many years ago. I traveled weekly, so I budgeted having $4k+ tied up in payments at any given time. (I turned in my receipts weekly, but due to the number of reviews involved–my admin, my manager, travel, expense department–it could be a month before I got paid back.) I lost use of my money and figured it cost me $10 a month in lost interest, but I refused to risk *my* credit history.
4. Many of my coworkers either refused to front the money or simply weren’t in the position to do so. (Many also waited until the last minute to submit expense reports and then didn’t get paid yet another 2 weeks.) Their credit histories suffered and they paid extra to get their houses, their cars and on their remaining credit cards. Worse, AMEX would hit them with invisible credit limits…and AMEX was the pits if your card number got stolen.
5. More employers are checking your credit history before they hire you. Yet another reason to not screw this up.
6. If you happen to sign up for AMEX frequent point program, be warned. The day you leave your company, your points will evaporate. When you complain that you had the equivalent of $500 in gift cards earned, AMEX will offer either a $20 program fee rebate or ask if you want to sign up for another card and transfer the points over. (I will never again voluntarily apply for an AMEX card.)
Most companies that do this issue you the card as a way to pay for the travelling expenses that will be incurred by your job. This way they can pay for them with the corporate card rather than having you pay and having to reemburse you.