Galina wrote to me through the GetOutOfDebt.org site and asked the following question. If you have a credit or debt question you’d like to ask just use the online form. I’m happy to help you totally for free.
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“Dear Steve,
I’m current on my bills and so far have the job. I have most of my credit card debt on business account ( still don’t know how I’ve got them). They are not on any my credit reports( I’ve checked it)
The worst scenario I loose the job and can’t pay the debt if it would be reported on my credit report. And if there is a way negotiating with credit companies on lowering your interest rate or payment( esp one just raise my interest I definitely don’t want pay) without any action effecting your credit score and before the worst scenario happens
Galina”
The Answer:
Dear Galina,
Your question is very interesting. But I’m afraid it does not give me enough information to answer properly. It is unclear if this credit card is issued by a business that you work for or if you are an individual business person and have applied for credit card in your own business name.
If you are an employee of a company that has issued you a business card it may not appear in your name since the company would be liable for the debt. However as an employee you would have signed an agreement stating that you are ultimately responsible for the debt on a business card. The employer could then come after you for the debt.
If you are in individual business and that you have applied for a business card and it does not appear on your credit report, that does not necessarily mean that you are not personally responsible for that debt. It really depends on the agreement that you signed, and what it said, to get the card.
If you were to lose your job all sorts of bad things can happen. You might not be able to repay the card. In that case you might fall behind on the card and your interest rates may be raised. The key here is really your ability to repay an obligation that you incurred.
Maybe you can post some additional details about this card in the comments section to this question so I could drive you with a more targeted answer.
