Credit cards are now an essential part of our financial lives. They have enabled many to carry out their transactions even without actually having money at that moment. With the advent of time and increased financial needs, credit cards have evolved at a great pace. Nowadays, almost every bank has a new credit card type and various related schemes. One such type of credit card is the corporate credit card. This article will talk more about it and how you can apply for this card.
But first, let’s understand what a corporate credit card is.
What is a corporate credit card?
The concept of a corporate credit card is similar to any normal banking credit card. As you can evidently tell by the name, this card is meant for corporates.
Banks issue these cards to businesses and corporate entities, unlike a normal credit card which is issued to the individual account holder. This corporate credit card is then passed on by the company, to their employees, for the purpose of using it for their business payments. For example, payments related to a business trip can be made using this card.
Who will repay the dues on a corporate credit card?
For a corporate credit card, the liability for repaying your dues is usually decided by the company. It can either be:
1. Company’s responsibility
Here the entire liability for the repayment of card dues falls on the company.
2. Individual’s responsibility
The company may decide that the individual must be responsible for paying the dues.
3. Joint responsibility
In certain cases, a company may decide to pay a part of the credit card dues while the remaining is to be borne by the individual account holder
How can you apply for a corporate credit card?
As an individual, you will not need to apply for this card. This responsibility lies with the employer who then hands it over to you.
If you are a company or any corporate entity, then you may apply for a corporate credit card using these steps below:
1. Check your credit score and repayment history. It is necessary that both of these are good enough.
2. Check with your bank by visiting the nearest branch or their online website
3. You may then select a plan for corporate credit card plan that looks the best for you.
4. Ensure that you are eligible to apply for the same
5. If you fulfill all the requirements, then apply for the card by filling up the application form and submitting the required documents
Applying for a corporate credit card is very simple and quick also you can apply for current account. As a preliminary step, you need to be aware of your credit score and must keep it excellent so that you do not have any issues in obtaining this card. A corporate credit card also has a lot, many privileges, and benefits. There are huge number of attractive offers for your purchases and discounts to be enjoyed on this card.