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| Business credit card strategy |
| by Brian Kelly |
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This has been a really turbulent week in the credit card world. As many of you know — and I’ve written about before — there are senators trying to pass a bill that would effectively destroy credit card points. It advanced this week, and they are attaching it to the national defense spending bill. Sen. Roger Marshall, R-Kan., is going as far as saying that he’s going to hold the entire $800 billion defense bill hostage unless Congress passes this legislation, which is absurd.
If you haven’t done so already, take 60 seconds to email your senators and urge them to vote against this anti-consumer legislation at Handsoffmyrewards.com.
It got me thinking about how I earned credit card points all these years and what my key tactics have been, and it made me realize that I haven’t ever really written about business credit cards in this newsletter. Business credit cards are the core of my points strategy — I earn more points from business credit cards than any other cards, by far.
Now, everyone is different and not everyone will qualify for a business credit card, but you might be surprised at who does.
You don’t need to have a huge business; you can even have a concept of a business in your head that you want to start — and side hustles and freelancing count. As someone who started The Points Guy as a concept, I highly recommend getting a business credit card and keeping your business and personal finances separate.
You can get a business credit card with your Social Security number applying as a sole proprietorship, you don’t need to have an LLC. There are benefits to this: Not only does it help with keeping your expenses separate, but business credit, while tied to your personal credit, does not sit on the same credit report. So the credit utilization on a business card will not affect your personal credit score when applying for other cards or loans.
Let’s get into the juicy part: Business credit cards can be super lucrative for earning points.
Ink Business Preferred Credit Card
Sign-up bonuses on business cards are usually larger than those on personal credit cards. The Ink Business Preferred Credit Card is currently offering 100,000 Ultimate Rewards points after you spend $8,000 in the first three months from account opening, down from the previous spending requirement of $15,000.
Those 100,000 points are worth a minimum of $1,250 toward travel when redeemed through Chase, and even more when transferred to one of the bank’s 14 airline and hotel partners.
It’s known as one of the best business cards on the market due to its lucrative earning categories and reasonable $95 annual fee.
The Business Platinum Card® from American Express
Another great business card is The Business Platinum Card from American Express, which is currently offering 120,000 Membership Rewards points after you spend $15,000 on eligible purchases with your card within the first three months of card membership.
The 120,000 points are worth a whopping $2,400, according to TPG’s latest valuations.
The American Express® Business Gold Card
The American Express Business Gold Card is currently offering 70,000 points after you spend $10,000 on eligible purchases with your card in the first three months of card membership. You can earn 4 points per dollar on multiple categories, making this a great card for earning while making business purchases such as online advertising.
There are even business cards with no annual fees and ones that offer cash back, so it all depends on your business and preferred earning style. You can compare business cards on our site by checking the “Compare this card” box next to each card to view the details side by side.
While the interest rates might be a bit higher on business cards— you have to pay them off in full each month to win — the perks can be lucrative, so don’t count out business credit cards when putting together your points and miles strategy.
Have a great weekend,
BK
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