Are Corporate Credit Cards Losing Prestige? ThinkingMoney Investigates

February 17, 2009 - Despite the increasing amount of fraud during the recession owning the best credit card remains a status symbol, reports ThinkingMoney.org. A recent survey, told of the fear people have aquired in owning one during hard times for fear of spending beyond thier means.

While few would be sympathetic to major credit card companies losing their money by handing out credit cards to anyone that wishes to have one, this problem hits far closer to home when public money is being wasted.

The Metropolitan Police have recently been at the centre of a huge controversy where at one point, £3.7m of public money could not be accounted for. Investigations are on-going for several Scotland Yard officers, with one already sacked for their flagrant disregard for the conditions of the card. 1,183 employees of the Met were forced to switch to what could be percieved as an inferior card due to doubts about their spending.

Thinking Money suggests the best method to prevent further fraud with company credit cards, is to stop providing them to abusers. Using a personal credit card and then claiming back on expenses will force individuals to carefully think before spending.

With the release of certain rewards credit cards, financially secure workers can garner air-miles and bonus points that they will legitimately be able to use on themselves.

Thinking Money reports the best way to regulate credit card use is through a financial advisor or accountant. As the economy recovers from a long recession, the credit card industry should also see an uplift as trust is restored.