Business Late Pays

Marshall's worried about his credit score, because his company doesn't reimburse him quickly on his credit card payments.

QUESTION: Marshall’s company forces him to use a credit card for overseas travel. By the time the reimbursement trickles down to him, he’s overdue on his credit card payment. Does that affect his credit score? Dave has some sobering news for him.

ANSWER: Sure it affects your credit bureau score; it’s in your name! It’s not the company credit card, it’s yours. If it’s their credit card, you wouldn’t have to run an expense reimbursement. Talk to them about furnishing you a credit card since they can’t seem to pay their bill to you on time.

Then, if you’re going to continue to work for these people who are using your credit and misusing your credit and abusing you, then you need to get a debit card and do all this on a cash basis. Because one of these days, they’re not going to pay you and you’re going to be in debt and have to admit it. I think this is a very dangerous and bad practice by you and this company.

Be very careful; companies that don’t do accounting very well eventually fail.