I want an Employee to Use My Card - Which CC Co?

Pimlico

I'm self employed & also have a Ltd Company which takes a lot of the extra profits. My wife & I are higher rate tax payers.

I have a Tesco CC which I've had for 15 years & I've never missed a payment, paid off in full every month. I use the card for business as well as private use, so spend up to my limit every month.

I have a limit of £11,100. I was given this right at the beginning when my business wasn't making any profit, and so I couldn't afford to spend much because I didn't earn enough to pay it back. Now that the business is turning over so much more, and I am in a position to spend more the limit isn't enough. I've been applying for a limit increase for years now and they keep refusing, so I have to pay off the card every couple of weeks in order to keep using it. Or use a debit card instead.

I've decided to get another CC for use solely for business purposes. This will make accounting for business spending better and easier, and will solve my CL problem. I'd also like to make an employee a signatory on the new card so that they can make business purchases for me.

I used the MSE CC checker and it indicated that most companies will refuse an application from me. I presume having a 3rd party authorised on the card makes things even worse.

Does anyone have any advice as to where I can go to get a 2nd CC?

[Deleted User]

Wanting an additional cardholder will have no impact on your acceptance. However, be aware that some cards require additional cardholders to live at the same address.

MisterBaxter

If you are looking for a card for business use and are concerned about limits it may be worth taking a look at one of the Amex business charge cards. In theory they have no preset limit although in reality they set internal limits based on your pattern of spend and payment. Obviously as it is a charge card rather than credit it has to be paid in full each month and you need to check that the people you have dealings with will accept Amex.

You will probably also find it easier to have employees issued with business cards than personal credit cards if they live at a different town address.

Other card providers will offer business cards and you may find that your own bank (business account) will be able to offer you something.

Pimlico

Unfortunately I want the business expenditure to be by my Sole Trader business rather than the Ltd.. Only the Ltd has a business account.

Mr_Goodkat

Do you have any adverse credit history - defaults, CCJ's late payments etc or not on the electoral roll, short time at current address?


There will be reasons why Tesco won't extend your credit facility and why you are coming up with likely refusal on the eligibility checkers.


If you are not aware of any issues get your statutory credit reports from all three agencies and check for errors etc and get anything corrected that is not factual.


Getting the above sorted out would hopefully enable you to get another personal credit card and solve the credit limit issue.


A lot of personal credit card companies insist on a partner/spouse/family/same address criteria for additional card holders so you may be struggling to get the employee an additional card.


A business credit card / charge card would be best but see you want to use the sole trader business rather than the LTD - is this a tax planning consideration or are the sole trader and LTD business completely stand alone doing different things?


You could look at business banking for the sole trader business as a lot of banks do offer free business banking for a period and that could get you a business credit card.

MisterBaxter

Some business cards are available to sole traders so it is worth looking in to, although in that instance I'm not sure about additional employee cards. I have heard of eBay sellers obtaining a business card on the strength of their sales.

Being self employed probably doesn't help especially when it comes to obtaining new, or extending personal credit. The fact that you spend up to limit each month with your current card could also be ringing alarm bells as it is a personal card and at any given time when you apply for new credit your credit report could be showing you as being maxed out, one of the problems with a completely automated system.

Sitting down with someone at a bank may yield better results as they can get to understand what your needs are.