Gaining notoriety on the corporate ladder? Climbing up and tackling phases one after another? No matter what industry you are part of, never underestimate the power of a corporate credit card. There are certainly a series of elements that can match your new lifestyle – both personal and professional. Believe it or not, these cards can help you achieve your career goals in a more efficient manner, but they also work on reaping personal perks. On the other hand, just like all types of credit cards, they also pose some risks. Use them in the wrong way and you risk facing a corporate fall. This is the last thing you want. No matter what situation you are in or what your status is, try to be responsible.
Understanding what this type of credit card can do for you
Corporate credit cards represent a distinct category in this field. They do not belong to those classic silver, gold, platinum, black or just average credit cards. They have nothing to do with personal credit cards, but they are far from small business cards too. These solutions are normally offered by companies to their workers. The respective cards are used to pay approved expenses related to business operations. Most commonly, they are used for traveling, whether it comes to getting gas, a plane ticket or accommodation. A corporate credit card is always issued in the name of the company. However, the card holder’s name will be displayed on it. In fact, card holders are usually verified by retailers.
Corporate credit cards are not given by every issuer though. Of course, small business and personal cards are given by every provider, but corporate credit cards have some requirements. For example, these accounts are established after a long and solid relationship with the bank. Negotiating deals separately is common too. Anyhow, in such a relationship, the company is analyzed just like an average individual. The credit is double checked in small details. The credit card APR may also be influenced by the credit. Normally, this aspect is less relevant for companies.
Disclosing the common types of corporate credit cards
This card may fall in two different categories – company and individual payment. An individual payment corporate credit card becomes the employee’s responsibility. Basically, the employee must submit expense reports and papers according to the company rules and terms. At the same time, the employee must pay the issuer themselves. On a different note, company payment cards may come with a lower credit card APR, yet the employer is responsible for these charges. Employees who use these cards for personal charges or unapproved expenses may need to support the charges. For example, there might be problems if the employee uses the corporate credit card issued for gas to buy a pair of shoes.
Just like regular credit cards, corporate alternatives imply comparing issuers and checking some elements upfront:
- Interest rate
- Company needs and spending habits
- Credit limits
- Penalties and fees
- Rewards programs
- Balance computation methods