🧐 To Fee, or Not to Fee? - The Points Guy

THE POINTS GUY

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If you read our newsletters or website, you won’t be shocked to learn that there’s enormous consumer interest in premium credit cards right now (as evidenced by the cavalcade of new and refreshed options hitting the market this year).

And while these types of cards can bring enormous value to those who utilize their benefits, some folks (especially shrewd business people) may not have the time or interest in chasing those perks just to make sure they’re getting their money’s worth out of that $800 annual fee.

Fortunately, there are plenty of great no-annual-fee options out there, too.

Here’s what we’re talking about today:

🤔 You can mint points with your business spending. But which points do you actually want?
🫰 Are business cards worth paying a premium for?
❓ Who really qualifies for those blockbuster 200,000-point card offers?

SMART REDEMPTIONS

You can mint points with your business spending. But which points do you actually want?

Whether you’re flying to pitch a client or taking a much-needed break, your business card rewards can go a long way in enhancing your experience — if you know how to use them. From airfare flexibility to hotel redemptions, each rewards ecosystem brings its own strengths (and quirks).

Don’t just take it from me, take it from Edward Pizzarello. He has not only been running restaurants and other businesses for decades, he’s also a bona fide points and miles hustler whose rewards have taken him, his family and his employees all over the world.

Here’s a quick look at how these three major programs compare, according to Ed:

Chase Ultimate Rewards

Chase has been making some changes to how points are valued in its travel portal with its new Points Boost feature, but the real magic still lies in its transfer partners. With World of Hyatt among them, Chase is easily the best option for getting maximum value on hotel stays. And its lineup of airline partners doesn’t disappoint, either.

Here’s how to get the most out of Chase points.

American Express Membership Rewards

Amex has long been a favorite for frequent flyers thanks to strong airline and hotel partners and premium travel perks on its Platinum cards that help stretch every point. If you know when to transfer and where to book, your rewards can go much further.

Here’s how to get the most out of Amex points.

Capital One miles

For simplicity, it’s tough to beat Capital One. With flat-rate earning and easy redemptions for flights and hotels, it’s a flexible option for business owners who’d rather travel than track bonus categories. Plus, this program also has a fine lineup of transfer partners you can take advantage of.

Here’s how to get the most out of Capital One miles.

Check out our quick comparison guide for business owners for Ed’s full breakdown on how to get the best value in each program. And remember, no matter whose card you carry, every business expense can be a step closer to your next trip.

BUSINESS CARDS

Are business cards worth paying a premium for?

Premium credit cards are having a moment, with new and refreshed options flooding the market and plenty of consumer buzz to match. These cards can deliver tremendous value, but not everyone wants to chase perks just to justify the huge annual fee they come with.

As we’ve established above, the key to deriving outsize value from your card is to earn valuable rewards on your spending, and make smart redemptions with them.

The good news? There are plenty of options available for whatever you’re willing to pay. (Including some strong earners with no annual fees and excellent limited-time offers available right now!)

Take Chase’s business card offering, for example. Each of these three business cards has a different appeal, and all are currently sporting impressive welcome offers.

Chase Sapphire Reserve for Business℠: Earn a massive 200,000 bonus points after you spend $30,000 on purchases in your first six months from account opening.

Annual fee: $795
What do you get? Access to more than $2,500 in annual value in the form of various statement credits, promotions and (my favorite) access to Chase Sapphire airport lounges for you and up to two guests.

Ink Business Cash® Credit Card: Earn $900 cash back (or 90,000 Chase Ultimate Rewards points) after spending $6,000 in the first three months from account opening.

Annual fee: $0
What do you get? Besides a delightfully elevated welcome offer (which is usually $750 or 75,000 points), you’ll get some seriously strong earning rates on business spending categories, like 5% cash back (or 5 points per dollar) on the first $25,000 spent in combined purchases at office supply stores and on internet, cable and phone services each account anniversary year.

For a lot of businesses, that’s an easy 125,000 points to harvest each year just for paying your bills — thanks to a card that costs you nothing!

Ink Business Unlimited® Credit Card: Earn $900 cash back (or 90,000 Chase Ultimate Rewards points) after spending $6,000 in the first three months from account opening.

Annual fee: $0
What do you get? Once again, zero annual fee, plus that hefty welcome offer alone delivers plenty of value. And with this card, you can earn an unlimited 1.5% cash back (or 1.5 points per dollar spent) on every single purchase made for your business.

How much of your annual spending can you put on a card? Multiply those dollars by 1.5 and you’ve got a simple, straightforward and highly lucrative way to stack up valuable rewards for no annual fee.

Bottom line: Whether you like paying premium fees for premium perks or just want a strong earner with no annual fee, you can find a business card aligned with your needs.

PREMIUM CARDS

Will you actually qualify for that 200K-point card offer?

With two of the best premium business cards available on the market today, each sporting a hugely valuable 200,000-point welcome offer, we hear from lots of people wondering if their business would meet the eligibility requirements.

The good news? Whether you’re a sole proprietor or fully incorporated with 500 employees, you could qualify for either of these cards!

What really matters? Underwriting standards vary from issuer to issuer (and their flexibility is subject to whims). In general, your eligibility will mostly hinge on things like credit history, income and the overall strength of your application.

For example, it’s no surprise that someone like Brian Kelly, founder of The Points Guy, would be approved for a high-end card like the new Chase Sapphire Reserve for Business (a card he says has been a game changer for his whole points strategy).

But what if your business isn’t as big as The Points Guy? Well, TPG’s Nick Ewen, who holds an LLC for a small rental property, applied for the same card and was quickly approved after a brief follow-up call from Chase to verify some details about his business.

So, if you’ve been thinking those blockbuster 200,000-point offers are just for the bigger fish, you might be surprised to learn that you can swim in those waters, too.

Here are some more resources on applying for business cards:

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The cards we feature here are from partners who compensate us when you are approved through our site, and this may impact how or where these products appear. We don’t cover all available credit cards, but our analysis, reviews, and opinions are entirely from our editorial team. Please view our advertising policy and product review methodology for more information.

Editorial Note: Opinions expressed here are the 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.

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