Work expenses / Credit card

cs90

Hi Everyone.


I rack up between £200-£1000 worth of company expenses every month. I have been asked if I'd like to use a company credit card as I am currently just paying out of my current account (which can be fairly damaging!)


I have never had a credit card before, but some other guys at work use their own personal credit cards for their work expenses. It has been suggested that I can get a Tesco Club card credit card to purely use just for work expenses so I can reap some rewards for myself.


Now, I am not quite clear on how they work. Would I be right in saying that if you pay off the credit card bill on time every month, any purchase you have made during that month will not get any interest added on top?


I ask this because the company pay back my expenses to the penny, and I don't want to be lumbered with extra charges such as interest on top!


Also, generally, would you say it is a good or bad idea to get my own Tesco Club card purely for work expenses? Or would it be a wiser choice to go for the company card?

PeacefulWaters

cs90 wrote: »

I rack up between £200-£1000 worth of company expenses every month. I have been asked if I'd like to use a company credit card as I am currently just paying out of my current account (which can be fairly damaging!)

What type of expenses?

Petrol? Hotels? Trains? Planes? If it's hotels or planes, which chains / airlines do you tend to use most.

I'll assume it totals £7,000 a year.

I have never had a credit card before, but some other guys at work use their own personal credit cards for their work expenses. It has been suggested that I can get a Tesco Club card credit card to purely use just for work expenses so I can reap some rewards for myself.

That is one option. Look at the top of the page for others. I've made a suggestion below but your spending pattern might make an alternative better. Tesco's okay but can be bettered.

Now, I am not quite clear on how they work. Would I be right in saying that if you pay off the credit card bill on time every month, any purchase you have made during that month will not get any interest added on top?

The vast majority of cards work this way, yes.

Also, generally, would you say it is a good or bad idea to get my own Tesco Club card purely for work expenses? Or would it be a wiser choice to go for the company card?

Go for something that pays you. For example, the BA AMEX card will give you a £10 incentive to apply via TopCashback, 9,000 Avios points once you've reached £750 of spend in three months and also pay you an Avios per £1 spent.

Once you've spent £9k you'll have enough Avios points for two return flights to Europe.

Additionally, make sure you're enrolled in airline / hotel loyalty schemes. They can add up remarkably quickly.

almost_there

It's possible that as someone who has never had a credit card that you may only get an initial limit of 250

I would personally bite your firms arm off to get a company credit card

This saves you using your own cash and makes them responsible for payments etc and isn't logged on your credit history

To be honest, the Tesco points are so so you only get 1 point for every 4 pounds that you spend(except fuel which is more)

Take the company card is my advice,the limit will be more generous and the payment onus is on them

You may not be accepted for the cards mentioned if you've not had 1 before. This will depend on your credit history.

PeacefulWaters

almost_there wrote: »

It's possible that as someone who has never had a credit card that you may only get an initial limit of 250

I would personally bite your firms arm off to get a company credit card

This saves you using your own cash and makes them responsible for payments etc and isn't logged on your credit history

To be honest, the Tesco points are so so you only get 1 point for every 4 pounds that you spend(except fuel which is more)

Take the company card is my advice,the limit will be more generous and the payment onus is on them

You may not be accepted for the cards mentioned if you've not had 1 before. This will depend on your credit history.

I think you've identified the back up plan if the OP is declined for a couple of credit cards.

I can't see the money saving sense in not trying to get something for nothing.

almost_there

PeacefulWaters wrote: »

I think you've identified the back up plan if the OP is declined for a couple of credit cards.

I can't see the money saving sense in not trying to get something for nothing.

I see where you're coming from,but applications will harm credit profile(not score as they don't exist)

Being given a company credit card with the payment reassurance etc that goes with it is indeed something for nothing:)

PeacefulWaters

almost_there wrote: »

I see where you're coming from,but applications will harm credit profile(not score as they don't exist)

A couple of credit searches will make little to no difference.

If the OP isn't looking for credit besides this then within a couple of months they'll be interpreted as meaningless anyway.

Being given a company credit card with the payment reassurance etc that goes with it is indeed something for nothing:)

Nah, that's nothing for nothing.

redpete

almost_there wrote: »

I see where you're coming from,but applications will harm credit profile

But applying for, getting issued with, using and paying off a credit card each month will improve your credit profile.

sweetilemon

If you stick to the plan of paying off each month I would suggest using a personal card. However if a delayed payment would leave you in hardship it may not be worth your while. I use personal cards for work expenses and certainly benefit although I never miss a payment. Some expenses I could request to use company card however would loose out on loyalty points. Considering current interests rates I defiantly win out of lending my money for expenses.

planteria

PeacefulWaters wrote: »

I can't see the money saving sense in not trying to get something for nothing.

nor can i. i absolutely recommend using this as an opportunity to 'spend & repay & spend & repay' and generate some good credit history and some cashback/points along the way.

my first thought would be cashback: if you are spending at places that take Amex for all of your company expenses, i would have Amex Cashback. if not, perhaps CapitalOne? or otherwise, points....and this is dependent upon cs90 wants points for:)

verybigchris

I use my Capital One card for work expenditure, making me a whopping 0.5% cashback! There are a couple of pitfalls to be wary of:

How secure is the company? You need to be careful because you're effectively loaning them money (you spend today, they don't pay you until xx days later). If they get into financial difficulties, you'll join the other unsecured creditors at the back of the queue to get your money back (and could you cover the credit card bill with if your wages are delayed too?).

It's also important that you keep a full record of expenditure you make on the company's behalf, so you can prove to HMRC that the extra payments you receive from them aren't taxable income.

planteria

agreed, keep a record, and keep your receipts..

and try to improve upon 0.5%. perhaps with your own spending combined with work-related purchases, you could move through other thresholds.