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Corporate credit card: Never use it for these 5 things


Use your corporate credit card carefully

Used judiciously, a corporate credit card can be a great help in achieving your career objectives and harvesting personal benefits. Used badly, it can be the cause of your career collapse, or maybe a plunge of few steps at the minimum.

A corporate credit card is different from your personal credit card. They are also not the same as small business credit cards. Corporations sometimes give their workers corporate credit cards to be used for expenses pertaining to the business, usually related to travel. The cards are often registered in the corporation’s name, and can also bear the individual cardholder’s name.

To stay on the safe side, use your corporate credit card judiciously and never charge your personal purchases to it, especially be careful about the following 5 things:

Using your card in bar: Bar owners would love to begin a tab on your credit card. Be careful. If you even mistakenly use your corporate credit card to pay for a drink, it can be a major career blunder. Always use cash when you find yourself in a bar. Don’t even use your personal credit card. Running a tab on your personal or corporate credit card would make it easy for you to buy more drinks, but would come with huge charge and career decline.

Tuition fees and loans: Never use your corporate credit card to pay tuition fees of your children or your outstanding loans. If you do so, you will find yourself in a huge career dilemma besides a debt because credit card interests compound and your employer is going to recover each penny from you.

ATM withdrawal: Your corporate credit card might appear like your personal debit or credit card. However, the truth is that it isn’t your personal card and it will never be. Remember, credit card companies place huge APRs on ATM withdrawals. So, the next time you find yourself at an ATM with your corporate credit card to withdraw $20 to buy a drink, hold yourself back. You’ll find only suffering coupled with cash at the ATM.

Tax payments: Even though the IRS has made it quite convenient to use credit cards for tax payments, but there are some solid reasons as to why you should not use even your personal credit card for it, let alone a corporate credit card. The first reason is that the payment processing company would charge a fee of 1.88 percent to 2.35 percent on the credit card. Second, go for the IRS payment plan instead of a corporate credit card payment because the IRS will offer you competitive interest rate (currently 3 percent), which is way better than the interest rate of your personal credit card.

Personal items and luxuries: Using your corporate credit card to buy anything related to your personally, including luxuries, can come back to bite you and your career. You’ll be required to pay every penny of the amount you spent along with the interest to your employer. If you can’t afford a large display television or the cosmetic facelift, you should never put it on your corporate credit card. Large purchases are good to put on your personal credit cards only when you are sure that you can payoff the credit card bill on time. But, never use a corporate credit card for any kind of personal shopping.

So, the next time you commit one of these blunders with your corporate credit card, never complain that we didn’t tell you.

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