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TPG reader Mark sent me a question on Facebook:

I’m a business owner and charge between $100,000-$200,000 per month. I’ve been using the Citi AAdvantage & Executive Mastercard, but they don’t have high enough limits. Any suggestions?

As a business owner, it’s awesome to be able to put all of your business expenses on a points earning credit card and then reap the benefits. Back in my corporate America days, I was putting up to $50,000 a month in expenses on my corporate card that was paid directly by the company, and I got all the points–pretty sweet!

Make sure you are using the right credit card for all your business expenses. Image courtesy of Shutterstock
Make sure you are using the right credit card for all your business expenses. (Image courtesy of Shutterstock)

TPG reader Mark is spending $100,000-$200,000 a month on his Citi AAdvantage and Citi AAdvantage Executive World Elite MasterCard, and is wondering what other cards to consider, since the limits on those cards aren’t high enough to accommodate all his spending.

First things first:  if you want AAdvantage miles, you’re using the wrong cards. It’s fine to hit the $40,000 in spend to get the 10,000 Elite Qualifying Miles on the Executive AAdvantage Card, but beyond that, you’ll earn 25% more miles using the Starwood Preferred Guest Credit Card from American Express (either the personal or business version). Starwood points transfer 1:1 to AAdvantage, and for every 20,000 points you transfer, you get a 5, 000 mile bonus.

Consider this as well: at that rate of spend, you really should be diversifying. You’d be better off with points that can transfer to several airlines and hotel partners instead of just AA miles. That way if AA doesn’t have the flights that you want, you’ll have other options. It’s much nicer to have 31 other transfer options and the ability to redeem for hotels too, so don’t put all your miles in one basket; diversify!

Another good reason to diversify is the ongoing AA/US Airways merger. American has already made some negative changes this year and more could be coming. Having other options could make such changes less damaging to your frequent flyer prospects.

You might also consider a charge card that will give you flexible spending. Although there are a lot of business charge cards out there, I think the best one is the Chase Ink Bold Card. Right now Chase offers a 50,000 point sign-up bonus when you spend $5,000 in three months, and the $95 annual fee is waived for the first year. Beyond that, they have some great earning categories like 2X on hotels and 5X at office supply stores. Granted, Ultimate Rewards can’t be transferred directly to American Airlines, but you can use them on 11 different partners (British Airways, Korean Air, Southwest, United,Virgin Atlantic, Singapore, Hyatt, Marriott, Ritz-Carlton IHG and Amtrak). Another option I like is the Capital One Spark Card if you’re looking for cash back rewards.

In conclusion, Mark, diversify your credit card spending to maximize rewards, and consider a business charge card to avoid running up against spending limits.

If you have additional questions, please message me on Facebook, tweet me @ThePointsGuy, or send me an email at info@thepointsguy.com.

Chase Sapphire Preferred® Card

Even after the introduction of the Chase Sapphire Reserve, the Chase Sapphire Preferred is still a fantastic choice if you want to avoid the Reserve’s $450 annual fee, earn 2x on all travel & dining and earn a 50,000 point sign up bonus.

Apply Now
More Things to Know
  • Earn 50,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $625 toward travel when you redeem through Chase Ultimate Rewards®
  • Named Best Credit Card for Flexible Travel Redemption - Kiplinger's Personal Finance, July 2016
  • 2X points on travel and dining at restaurants worldwide & 1 point per dollar spent on all other purchases.
  • Earn 5,000 bonus points after you add the first authorized user and make a purchase in the first 3 months from account opening
  • No foreign transaction fees
  • 1:1 point transfer to leading airline and hotel loyalty programs
  • Get 25% more value when you redeem for airfare, hotels, car rentals and cruises through Chase Ultimate Rewards. For example, 50,000 points are worth $625 toward travel
  • No blackout dates or travel restrictions - as long as there's a seat on the flight, you can book it through Chase Ultimate Rewards
Intro APR
N/A
Regular APR
See Issuer's Terms
Annual Fee
Introductory Annual Fee of $0 the first year, then $95
Balance Transfer
5.00%
Recommended Credit
Excellent Credit

Editorial Disclaimer: Opinions expressed here are author’s alone, not those of any bank, credit card issuer, airlines or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.

Disclaimer: The responses below are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser’s responsibility to ensure all posts and/or questions are answered.