To a layman, a personal credit card and a corporate credit card may seem the same. However, while mostly these two cards function similarly, there are some significant differences between the two. A closer study will tell you that the credit reporting processes of these two cards are reasonably different. Now, let’s have a quick look at the differences between these two financial instruments.
What is a corporate credit card?
If you are not from a financial background, you will probably be a little overwhelmed at the mention of a corporate card. Established companies issue these cards for their employees. This card allows the corporate employees to pay their professional costs.
From hotel bills to airplane tickets, a corporate card covers a varied range of business expenses. Also, depending on the employee designation and the offers, some corporate cards come with multiple perks including access to airline lounges and discounts on bills.
Some Of The Benefits Of Corporate Cards
A corporate credit card brings a plethora of benefits to both employers and employees. It makes managing expenses an easy task. However, this is not the only advantage of a corporate card. The takeaways of corporate cards are listed below for a better understanding –
Cash Rebate – This is probably the most significant benefit of corporate credit cards. Users get a yearly cash rebate on their purchases. However, the amount of cash rebate may differ depending on the purchase type and the card issuer.
Expense Error Reduction – Corporate credit cards are designed to provide accurate expense reports. When done manually, people often end up making errors.
Employee Satisfaction – Last, yet, by no means the least, corporate cards bring employee satisfaction. By issuing a corporate credit card, employers can earn employee loyalty by making the high-end employees happy.
How to use a corporate card?
Corporate cards are used to pay for business expenses. Thus, employees can use this card to pay hotel bills, book spaces for corporate events, and buy airplane tickets.
Quick corporate card facts to remember
- Financial institutions issue corporate credit cards to the established companies
- Those who receive these cards need to learn the policies and use them accordingly
- Based on the type of card, the employer or the employee make the payment
What is a credit card?
Unlike corporate cards, you can use a credit card for all your personal needs. These cards get issue by financial institutions, and each card comes with a predetermined credit limit. You can use this credit limit to pay for all your purchases. Therefore, to purchase with a credit card, you don’t need to use cash or cheque. The credit limit of these cards depends on the monthly income and the credit score of the applicants.
Those who are searching for a reliable financial institution for a credit card, can apply for Bajaj Finserv RBL Bank SuperCard. This card is design to improve purchasing power. However, the biggest benefit of Bajaj Finserv RBL Bank Platinum Choice SuperCard is – CIBIL score improvement. As you use this card to make purchases, your CIBIL score gets improve. From home appliances to fashion products, this credit card gives you the freedom to purchase whatever you desire.
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Some Of The Benefits Of Credit Card
Like corporate cards, credit cards, too, come with many benefits. Hence, from big discounts to easy access to various products, customers can get a long list of innovative features and benefits on each credit card.
EMI Conversion – A credit card does not only give you ample opportunity to purchase, but it also gives you the chance to convert high purchase costs into affordable monthly EMI. However, to get the approval for EMI conversion, your purchase cost needs to go over Rs 3,000.
Emergency Advanced – Depending on the financial institution, you can avail emergency personal loans using your credit card. For this, you don’t have to provide any processing fee. However, customers are request to check their eligibility score before applying.
Immense Reward – Based on the expenditure and card type, customers can get tremendous rewards, including a welcome bonus on each credit card issuance. Customers have the freedom to redeem these reward points. In addition to this, customers can use the rewards points to get big discounts and obtain various gift vouchers.
Security – Purchase security is an essential factor. The increasing rate of cybercrime has everyone worried. Credit cards are design to nullify cyber threats. Some financial institutions provide credit cards with zero fraud liability cover. In addition, customers obtain in-hand security.
How to use a credit card?
Credit cards are considered as financial tools which improve purchase experience and make spending money a rewarding endeavour. Thus, credit card features are designed to offer customers the freedom of managing their short-term financial requirements.
Quick credit card facts to remember
- On-time bill payment is require. Delay may lead to interest accrual.
- Tracking credit card expenditure is essential.
- Setting a credit limit within capacity is important.
- Applying for a credit card that suits your needs will enable you to obtain more purchase benefits.
