If you’re just getting into the business credit card game, going straight to the Chase Ink Business PreferredSM can be pretty daunting: It has a $95 annual fee and a $5,000 signup bonus spending threshold, and it requires excellent credit.
However, even if you’ve never gotten a small business credit card, the Ink Preferred is worth a long look.
Chase Ink Business PreferredSM: An Overview
What can you expect from the Chase Ink Business Preferred?
First, there’s the signup bonus: 80,000 Chase Ultimate Rewards Points when you spend $5,000 in the first three months of cardmembership. Next, there’s the ongoing rewards. You earn 3 Ultimate Rewards Points on the first $150,000 spent in combined purchases on travel; shipping; internet, cable and phone services; and advertising on social media sites and search engines each account anniversary year. And you earn an unlimited 1 point per $1 spent elsewhere. You also get employee cards at no additional cost.
The downside to the Chase Ink Business Preferred?
As we mentioned, there’s a $95 annual fee, which can be a bit steep.
Its side benefits are also a little less exciting than the American Express Business Platinum Charge Card®, which, despite its $450 annual fee, offers great value for frequent travelers.
Still, we consider the Ink Business Preferred to be one of the best cards out there for small businesses. If you’re ready to jump into the world of great rewards and side perks, this is a fantastic option. Here are four reasons why you should consider the Ink Preferred as your first-ever small business card.
1. It pays off right away.
First off, the Ink Business Preferred has one of the best signup bonuses in the business credit card world.
We’ll go into why Ultimate Rewards Points are so valuable later on, but in the meantime, it’s enough to know that this is one of the best signup bonuses on the market and is valued at a minimum of $800.
For comparison, the Capital One® Spark® Cash and Spark® Miles for Business offer signup bonuses worth $500 when you spend $4,500 in the first three months. The American Express Business Platinum Charge Card® also has a high signup bonus of 75,000 Membership Rewards Points, but they come at a cost: You get 50,000 Membership Rewards points after spending $10,000 in the first three months and an extra 25,000 points after spending an additional $10,000 during that same time period.
When it comes to a high bonus that’s within reach of most small business owners, you can’t do better than the Ink Preferred.
2. It’s good for travel.
Whether you travel domestically or abroad, the Chase Ink Business Preferred is a solid option.
For international travelers, there’s no foreign transaction fee, saving you up to 3% when you’re overseas. You also get trip cancellation and interruption insurance up to $5,000 per trip, roadside dispatch, and rental car insurance.
But the biggest travel perk is the Ultimate Rewards Points themselves.
With premium Chase cards (like the Ink Preferred and the Chase Sapphire Preferred and Reserve consumer cards), you can transfer your points 1:1 to Chase’s airline and hotel partners, including Marriott, United, Southwest, and Hyatt.
If you redeem strategically—for example, finding an arbitrage opportunity with a high-price, low-category hotel or booking a ticket on miles during the holidays—your points’ value can well exceed 3 or even 5 cents apiece. That would put your signup bonus’ value over $2,400 and rewards rate over 3% base and 9% bonus. If you redeem your points for miles or hotel stays, you can get quite a bit of value.
3. You can get good value even if you aren’t a rewards junkie.
But if monitoring hotel and airline websites for arbitrage opportunities isn’t your thing, the Ink Business Preferred is still a great option.
Your points are worth 25% more if you redeem for travel booked through Chase’s Orbitz-powered rewards portal, which offers the same prices on hotel stays, airline tickets, and rental cars as the online travel agency. This low-effort travel redemption puts your signup bonus’ value at an even $1,000, and your ongoing rewards rate at 1.25% base and 3.75% bonus.
And if you don’t want to redeem for travel, points are worth 1 cent apiece when redeemed for gift cards or as a statement credit. At an absolute minimum, you’re looking at a signup bonus worth $800. Not too shabby—especially compared to other business credit cards’ signup offers.
4. You can always downgrade.
Finally, the Chase Ink Preferred offers an out if you become uncomfortable with paying an ongoing $95 annual fee. You can downgrade to the no annual fee Ink Business CashSM, which has a great cash rewards program:
- 5% cash back on the first $25,000 spent in combined purchases at office supply stores and on cellular phone, landline, internet, and cable TV services spent annually
- 2% cash back on the first $25,000 spent in combined purchases at gas stations and restaurants spent annually
- 1% cash back everywhere else
The Ink Business Cash’s signup bonuses significantly overlap with the Ink Business Preferred’s, and it too offers free employee cards. It does come with a 3% foreign transaction fee, and you can’t transfer your rewards to Chase’s airline and hotel partners.
Another thing to keep in mind is that the Ink Preferred pays out rewards on your account anniversary, so if you cancel to avoid the annual fee, you’ll lose out on the rewards you accumulated that year. Still, if you’re nervous about committing to a card like the Ink Preferred, you can rest easy knowing there’s an out.
Whether you’re a business credit card veteran or small business owner just starting out, the Chase Ink Preferred offers both a strong upfront bonus and great ongoing rewards.
The post 4 Reasons the Chase Ink Business Preferred Should Be Your First Business Credit Card appeared first on Fundera Ledger.
from Fundera Ledger https://www.fundera.com/blog/chase-ink-business-preferred
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