Q: Is there is a way for one to tell whether or not one is personally liable for a business credit card?
A: If the card is in your name along with a company name and the credit card statements are addressed to the company, that c-o-u-l-d be an indication that the account is in the company name alone. But that still wouldn’t answer the question of whether there’s a personal guaranty underlying it.
The best way to check is just to call the credit card company and ask. And see if it will provide you with a copy of the initial credit agreement that you signed. In the future, make sure you keep a copy of all credit card applications so that you know for sure.
This entry was posted on Thursday, November 5th, 2009 at 5:39 am and is filed under Basic Training, Contracts, Financing, Running Your Company. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.One Response to “Basic Training: Verifying Your Credit Card Status: Personal or Corporate?”
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November 7th, 2009 at 12:30 pm
From personal experience, I can safely say that nearly every credit card guarantee has legal language in the fine print putting a personal guarantee on the card. Those companies are pretty smart about locking up their money. For sure, American Express always has a personal guarantee, and if employees use a Company Card, they are most likely offering up a personal guarantee also. The easy credit of the last years are coming back to bite many small biz owners, who used easy access to credit cards to finance a small biz venture, only to be crushed by the recession.