My Employer Is Making Me Get A Credit Card

My Employer Is Making Me Get A Credit Card

Savannah is in Charlotte Hi Savannah how are you? I’m good how are you, Dave? Better than I deserve, what’s up? All right. So I’m 22 and I’m about to start my first job out of college The company is there’s a lot of travel involved with the job And the company requires that I pay out of pocket and then they reimburse me and they suggest I get a credit card to pay those expenses first, but I don’t want to do that. So how should I work around that? Um, do you have any money? Yeah I do. I’m going into Baby Step 4. Good. Good for you. Well done. Well, um, how big of a company is it? Um, it’s a medium-sized company. 250 employees OK. Well why don’t you talk to someone in leadership and explain to them that you don’t borrow money and I don’t use credit cards so I won’t be getting a credit card I really don’t think it’s right that I’m using my money to travel for your company And so um I’d like for you all to furnish me a card. I don’t think that’ll work. I want you to try it with humility and kindness, not being a jerk about it I’m not suggesting you do something to lose your job or that you have an attitude or something And just go, “Hey, I’m 22 “I just got out of college. I am not “borrowing money. I’m not gonna get into debt. “And so you guys gotta help me, OK? “Cause I’m not taking out a credit card. “Is there any way you could just furnish me a card?” “Cause by the way, all this stuff I’m doing I’m doing for you.” “I’m not gonna put anything on the card that isn’t company.” “And if I do you can fire me.” I don’t think they’ll do it. But I would ask. OK? If that doesn’t work, then what we suggest to people is, two other options. One is, get a different job. Which is unreasonable, probably. The second option is for you to get a separate checking account just for travel. Put a debit card on it and put the amount in there that you need for monthly travel expenses And you only have to “prime the pump” so to speak one time And so, you estimate what your monthly travel is going to be–Do you have any idea what that’s going to be Um, well to start out, I’ll be doing a lot of training so I won’t be traveling consistently for about six months so I don’t know what the monthly expenses will be OK. Won’t be much then. But let’s just use Is it monthly that they reimburse? Um, it’s every pay check. Every two weeks OK. All right. So really all we have to worry about is two week’s worth of travel. So let’s pretend two weeks worth of travel was $1,000. OK? If you put $1000 in this checking account or $1200 in the checking account And you use your debit card. And you use your money. You turn it in They give you a check for $1000. You put the $1000 back in this account You see what I’m saying? You only have to put it in there one time. And you’re using your money but they’re reimbursing you which is what you’re doing by the way when you use a credit card. -Yeah.
-I mean, what if they didn’t pay you? Well, you’d have credit card debt. Well, you’ve lost the money. Guess what? You’ve lost the money either way. That’ s the weird thing So I don’t have anybody on my team that I ask to travel with their personal money. -OK
-We always furnish the money for them to travel Either furnish them a debit card from our company if they travel a lot. Or, We advance them petty cash to pay for the travel and we pay for the expenses. And they can’t turn in anything on that debit card obviously or on that petty cash receipt that isn’t you know, I’m not buying their shampoo, OK? I’m not buying a dress for you while you’re on the road. That’s your problem. I’m talking about usable company expenses for travel. And uh, that’s what you limit it to. Be very, very careful that you don’t use it for anything that isn’t reimbursable And then the money will always go right back to the account. And the only thing you’re at risk is two weeks worth of travel. And that works really well for people who travel a lot. And the debit card by the way on the road will do everything your credit card will do. I’ve heard people say “Well it doesn’t work “internationally.” Well I just returned from 3 weeks in Europe. I just got back. I didn’t have one single episode Not one negative episode with my debit card. Not one. Everyone took it. Just like a credit card. Guess what? That’s basically what it is. Except it’s using the money out of your account. Hey guys thanks for watching! If you enjoyed this video, click the subscribe button! To get the latest content and clips from the show!


33 thoughts on “My Employer Is Making Me Get A Credit Card”

  • If they are reimbursing her on her paycheck, is that going to be taxed? If so, that is a bad way to go about it because she is losing money for their expenses.

  • It’s not legal to require someone to get a credit card if you have religious objections. The employer is required to make reasonable accommodations. This comes up regularly with the Muslim employees on my team; usury is forbidden and we have to make reasonable accommodations.

  • This is bad advice. I work for a very large company(9k) employees and we have to pay travel expenses up front on our own dime, then we're re-embursed. I'm not saying it's the best policy but I don't make the rules. This type of situation is why you SHOULD have a credit card. She's not paying for the travel. She's just being paid after the fact. There should only be a problem if she's not paid back in a timely manner.

  • I have a co-worker who's husband was an assistant coach for a college basketball team . He was in charge of arranging travel for the whole team and put ALL the travel on his personal CC and gained points for that every month. She said at one time they had over 700K worth of travel rewards points. They went to Maui, PurtoRico, and several other destinations for FREE just by doing this and spending all of their normal expenses on the card and paying it off at the end of every month. I disagree with Dave on this particular subject. If your responsible and clever sorry, I don't care what kind of deal you think you can get. Free is Free

  • It's common with smaller companies. It's not right but it's not illegal, so they do it. Larger companies issue a corporate credit card to each employee.

    My employer issues a corporate card. I'd rather they reimburse my personal card, because then I get the points and miles. Using their card I get none. The risk is $0 because this company reliably and promptly reimburses all expenses.

  • The only time I was required to have a card was when renting a vehicle from Enterprise. I could only rent one very specific vehicle if I brought cash/debit.

    That was really annoying. Any suggestions on alternative vehicle rental companies that are fine with real money?

  • The one caveat with using a debit card adverse to using a credit card is the deposit most Hotels require when paying with a debit card. They put a hold on your card which is removed once you check out, that is something to keep in mind when going this route.

  • A lot of companies make you pay out of pocket then reimburse you back. Not a big deal to use the credit card only for your business expenses and be diligent about turning in your expense reimbursements and either payroll or accounting cuts you a check within a week or two.

  • I know Dave doesn't like credit cards but this is ridiculous. She is going to get reimbursed every paycheck. If she has self control and use it only for travel , I don't see a problem get a cc just for travel and to get points.

  • Great she just lose her job lol, if theres 250 people in the company without a problem, and she wants an exception, she IS the problem

  • I cancel corporate cards whenever I have the chance. User's don't feel any pressure to submit expense reports. It is always an accounting nightmare.

  • OMG, I wish my company would reimburse me for travel expenses on my personal credit card.Cha Ching reward points. I know Dave Ramsey does not condone credit cards. And I disagree with Dave Ramsey. However if you struggle with debt and paying your bills off on time don’t get a credit card. If like the caller in the video said she had savings she did not indicate that she had any debt. Why not earn reward points? Dave Ramsey says reward points won’t make you a millionaire. I never claimed that it would. But I’ll tell you it is so nice when checking into a hotel for the night and it’s free!!!

    By the way if your debit card gets infiltrated and money starts flying out of your personal account because that’s what thieves do I hope you don’t need that money quickly because you’ve got a fight on your hand with merchants and the bank. Going to take a long time to get even some of your money back. However if you had a credit card that would be the banks money that was stolen.

    Last thought is having a credit card, and paying the balance off every month Makes up 35% of your FICO score. Why do you care about your FICO score? Because when you get a home loan or a car loan they’re gonna look at your FICO score. landlords when you rent, I know you’re not buying they look at your FICO score. Also utility companies look at your Phico score if you have a low FICO score the utility company is going to ask you to put down the deposit. If you have a high FICO score utility companies not gonna ask you to put down a deposit. Using credit cards wisely helps build your FICO score. I’m not certain if debit card to do that because it’s your own money. I don’t have a debit card I don’t have personal experience with that.

    Again, know thyself if you are not stable with your money wait to get a credit card after you do all the baby steps in the Dave Ramsey program. You’ll know when you’re ready. I’m suggesting that you think for yourself and don’t let Dave Ramsey tell you what to do. While Dave Ramsey has wisdom, I will give him that his niche audience is people who are stupid about money and people who are in debt.

  • Leilani Ku'uipo says:

    Dave doesn't get that companies pay off the debt plus per diem. Telling the firm what DR say's is lunacy. DR say's it's not much travel and it is doable. What about 15-20k a month in expenses. Also DR doesn't even comprehend that many jobs require a credit check, i.e. background checks, making sure you won't take bribes, and people travel weekly for work too. DR needs to be educated about CC's before telling people advice in which he's not familiar with.

  • William Mahony says:

    I’d be thrilled to work for a company where I could earn tons of free travel by spending other people’s money on a credit card.

  • I love that he recommends VISA debit! As long as your card has that plus symbol on the back it really does work everywhere. I have taken out cash in the middle of rural villages in Laos, Cambodia, Egypt, and just all over the place and its fine 🙂

  • Michael Post says:

    Must be a low quality/tacky job. Not very professional for a company to not issue a company card as a courtesy. Then again seems like a small and insignificant company (only 250) so maybe it would be difficult for them to take the risk and afford something like that to their employees. My father always got company cards for travel expenses

  • the funny thing is in germany the smaler stores hardly take credit cards. they often only take debit or even only cash… 😉

  • Christina York says:

    All companies I've worked for do this. They give you a corporate credit card (like an AmEx or Diners Club) but it's in my name with my company name underneath it. I charge business expenses, and they reimburse me by paying the credit card bill when I submit my expense report. If I put a personal expense on the card, then I'm liable for paying for that item (but I don't–I like to keep business and personal stuff separate).

  • That's standard proceedure in business. My ex had started a job where he had to travel. He got a GREEN AmEX which has to be paid in full every month. As soon as you get your reimbursement from the company, you pay it. They don't take too long to reimburse.

  • Yeaaa, debit card is fine overseas for planes and hotels, etc. What about car rental? I'm in Israel. Avis wants $1,000 deposit on a rental and I hear it can take a long time to get it back on a debit card. That's tying up my cash for a Loooooooong time. I remember not being able to use a debit card in the US to rent a vehicle. Before we moved here, we got a secured card because I had had an accident settlement and we were going back and forth from St. Pete to Miami several times for move related stuff. Once we were finished with all that, we closed it and let the security deposit cover it.


    Credit cards are okay if you are not easily tempted and you pay it off every month. It is good for emergencies and for the points or cash back. But if one is easily tempted, then don't use a credit card.

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