Who offers the best corporate credit cards?

In general, it would appear that American Express offers the most choices among the best corporate credit cards, at least according to an article in Fox Business. Still, determining which company offers the best corporate credit cards really depends on what you are looking for in a corporate card. There is a variety of benefits available from different cards.

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A corporation should choose the credit card with the best interest rates and fees that provide rewards that are appropriate and beneficial for their business. Many corporations spend a lot of money on business travel. In these cases, a card with airline miles rewards is appropriate.

Capital One offers a particularly nice card for this, the Capital One Venture for Business Card, which allows the points accumulated to be used on any airline, as opposed to other cards that only allow the rewards to be redeemed with a specific airline. Other popular rewards are cash rewards, and both American Express and Capital One offer several variations on this.

Corporate Credit Cards Can Affect Your Personal Credit Score

It would seem logical that activity on a corporate card would not affect your credit rating, since the company is ultimately responsible for payment, but that is not always the case. According to an article on CNN Money, each credit card company sets their own rules on this issue.

It is best to be sure if your corporate card will show up on your credit rating by either asking them about their policy or by checking your credit report for activity from that card company.

Even companies that often do not normally report corporate credit activity on a personal credit report, like American Express, would probably report you individually to the three credit bureaus if you were more than six months delinquent your payments. The reason for the credit card company reporting you personally to the credit bureaus is that delinquencies are often the result of questionable expenses or late expense reports, both of which would be the responsibility of the employee.

Managing Employees’ Expenses

There are several options for corporations to manage employees’ work-related expenses besides corporate credit cards. There is the traditional method of having the employee make purchases and then be reimbursed. This is not always ideal because some employee record keeping can be spotty at best. In addition, some employees simply do not have the available cash or credit to purchase work-related items, even if they will be reimbursed a month or even a few weeks later.

One solution gaining popularity for corporations is the issuance of prepaid credit cards to its employees who have expenses. This allows the company to control how much money is spent, since they can directly control the balance on the card. The downside to this approach is that prepaid credit cards often come with hefty fees, especially if they are re-loadable.

Benefits of Giving Some Employees Corporate Credit Cards

From an accounting standpoint, it is often easier for a company to keep track of credit card statements than dozens of individual invoices. Reimbursing employees for individual invoices increases the possibility of an invoice being lost or, in some cases, falsified. A credit card can alert a company if too many purchases are made or too much money is charged in a short period so an employee could be reined in if their spending on a particular project or trip is getting out of hand.

Most credit cards for businesses offer some type of rewards these days, whether a card gives cash back, airline miles, or discounts toward regular purchases, these benefits can help the bottom line of a business.

Interest Rates for Corporate Credit Cards

In general, normal rates are comparable between corporate credit cards and personal credit cards. Personal credit cards usually range from about 10% to about 19% APR, while the top corporate cards range from 13 to 15%. There is wider fluctuation in the personal card ranges of interest rate because there is so much variance in individual credit ratings, which affects what type of rate one can qualify for.

In terms of promotional rates, both corporate and personal credit cards may offer them.

Promotional rates these days are usually in the range of six months of zero percent interest on purchases and balance transfers, and they appear to be similar for corporate and private cards.

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