The purpose of this paper is to investigate whether the board member's political connection is associated with corporation's credit risk and cost of debt capital. Using Taiwanese listed firms for year 1995 to 2010, we find that if the boards have the political connection, they will suffer from higher credit risk and higher cost of debt capital, especially for the board members who serve as government officials and elected representatives. Accordingly, politically connected firms are determined to be higher credit risks and are charged higher interest rates by lenders than non-connected firms.