Do you work at a large, prosperous company which can afford paying for hundreds of its employees' purchases? If yes, you most probably have been offered a company credit card issued by one of the biggest credit card companies. What can be better when you spend on a credit card and then have your company pay for your charges?

This said, a corporate credit card seems to the most beneficial and thus desired credit card deal for every successful businessman, but unless you understand all the pitfalls of such cards, your credit experience may turn into a nightmare.

If a business credit card is in the offing, you really need to know when you can fail and endure loses rather than gain benefits. So, what is a business, or corporate credit card and what does it give you? A corporate plastic allows you to make business purchases and keep them separate from your personal spendings.

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Imagine that your job is based on frequent business trips entailing lots of special-purpose expenses. Naturally enough that you wouldn't like to use your own funds for carrying out the assigned transactions or purchases.

That's when you pull out a corporate credit card with invariable bonus points or other credit rewards programs making the credit card use more convenient and beneficial. How happy a business cardholder would be, if all these low APRs and no annual fees were at his or her personal disposal.

You wish... The worst thing is that you may be liable for the spending and required to pay for the card which is actually the property of your company. That's why you should be very careful managing this type credit card and be able to resist the temptation to overspend in pursuit of cash back or points.

Unfortunately, many cardholders mess up with their credit card and end up paying penalty fees or even losing their job. If you are a thoughtful credit user, you will think twice before making a corporate credit card deal or at least will ask the manager some questions.

First, you have to know what reimbursement policy your company adheres to. If it's centralized billing, you can use the credit card, Citibank, Chase or other, and the bills will be sent to your company which will pay for them. With this policy you feel confident about your personal finances safety but at the same time your spending limits are strictly fixed and each your step is known and scrutinized. If you make too many irrelevant purchases and exceed the credit limit, you may lose the job.

The other type of reimbursement policy is individual billing which is especially convenient at companies with hundreds or thousands of employees. In this case the credit company sends the bill directly to the employee and he or she is reimbursed.

This is where the major trap hides, putting at risk your personal budget. The credit card bill may arrive too early and then you will have to use your own funds to cover the company's expenses. Imagine that you don't have enough cash at the moment and you put the bill off and pay it later, after the check from your company arrives.

In this case you are sure to be charged late fees and finance charges which are usually not reimbursable. You pay them out of your own purse! What's more you'll also be charged for cash advances and over-limits.

Well, a corporate credit card looks really enticing as long as it is free to you. But it is free as long as you make only the assigned by your company purchases. Can you resist the temptation?

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