Tuesday, April 10, 2018

4 USAA Business Credit Card Alternatives to Maximize Your Perks, Rewards, and Benefits

Many veterans and their families enjoy belonging to USAA, whose primary membership comprises current and former members of the armed forces. It’s no wonder, then, that veteran business owners might look to their usual bank to see if there’s a USAA business credit card, too.

The short answer—no. USAA certainly offers lots of products that military members and their families rely on for premium rates and service, including insurance, investing, retirement, real estate, and many banking products, too (naturally). Their suite of offerings for veterans, however, doesn’t include a USAA business credit card.

They do offer several USAA personal credit cards, which we’ll discuss to see if they could be a possible replacement for a USAA business credit card. That said, if you’re a USAA member and a small business owner, you’ll certainly want to look into other specific business credit cards to make sure you’re getting the most of out your business spending.

You can, of course, still reap the rewards of being a USAA member on your personal spending and get a lot out of spending on another type of business credit card.

That’s why we’ve found several options that provide a great alternative to a USAA business credit card. We know that lots of USAA members love their bank, and that USAA provides excellent perks for veterans and their families. So, we’ve been careful to choose cards that give you excellent rewards, too.

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Should You Use a USAA Personal Card Like a USAA Business Credit Card?

Although there isn’t a dedicated USAA business credit card, USAA does offer nine options for personal credit cards through two partners: Visa and American Express.

Before we go through their offerings, we should run through a quick overview of delineating personal vs. business finances.

Why You Should Keep Your Personal and Business Finances Separate

Although you, theoretically, can keep your business transactions on a personal credit card, and keep your business cash in a personal bank account instead of a business bank account… don’t.

Come tax time, your accountant will need to peel your business transactions from your personal ones in order to get your business taxes done. (Not only will this save them a massive headache, but if they charge hourly, it’ll save you money.) But also, if you ever get flagged for an audit by the IRS, it’ll be very important for you to keep tight, clean books—which means no co-mingling of money.

The other huge reason you need to keep things separate is that if you’re an LLC or a corporation, you won’t get the legal protections afforded to you by your business entity unless you have a clear division. (With all that in mind, if you need a business bank account circa now, you can sign up for a business checking account fast.)

Using a USAA Personal Credit Card as a USAA Business Credit Card

With all of that said, we’re not going to recommend that you use a USAA personal credit card as a USAA business credit card. It’s certainly possible to get one dedicated card to act as a USAA business credit card, but if you’re going to do that, you might as well build business credit. That’ll majorly help you as a small business owner—especially down the line, when you want to get small business financing.

So, even though you can’t get an official USAA business credit card, what is helpful is looking at the main categories that the USAA personal credit cards offer perks in so you can find a suitable alternative. Especially if you already have one of these cards, you’ll be expecting similar rewards and perks—and definitely nothing less.

  • Rewards points
  • Cash back
  • Credit-building
  • Low rate

Although these are excellent options for your personal transactions, as we mentioned before, these cards aren’t going to help you with your business. That’s why we’ve found great alternatives to a USAA business credit card, no matter which of these rewards categories you’re most interested in.

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Your Top Alternatives to a USAA Business Credit Card

The first step to searching for the perfect alternative to a USAA business credit card is to figure out why you want to apply for a business credit card at all.

Are you looking to maximize your spending by nabbing rewards or cash back? Or maybe you’re looking to build your credit to better position yourself to a lender as you’re preparing to apply for a small business loan. Could it be that you want an easier way to keep track of employee spending?

There are lots of reasons—and lots of business credit card options that stand in as great alternatives to a USAA business credit card.

Best USAA Rewards Alternative: Blue Business Plus from American Express

If you were most interested in the USAA Rewards American Express Card for its points and no annual fee, you’ll really love the Blue Business Plus from American Express. Not only do you get to reap essentially all of the great perks that the USAA card offers, but the Blue Business Plus comes with a 15-month 0% introductory APR offer—the longest we’ve ever seen. After that, your APR will set in at a rate that varies with the market prime rate, so be sure to see the issuer’s terms and conditions for the latest APR information.

Essentially, though, this is like a 15-month interest-free loan. Depending on your credit line, you can do quite a lot with that money. And you don’t need to worry about the balance until the intro period is up.

More on the Blue Business Plus perks:

  • Earn 2x points for each dollar you spend in $50,000 in annual purchases
  • 1x point for every dollar over that
  • No annual fee

In a way, this is almost like a USAA business credit card—with the extra big perk of the amazing 0% APR period.

Best USAA Cash Back Alternative: Capital One Spark Cash for Business

USAA offers a great cash back card in its personal lineup: the Preferred Cash Rewards Visa Signature Card—a flat 1.5% no-limit cash back card with no annual or foreign fees. So you’ll want something that works hard for your business, too. That’s why we recommend the absolute top cash back rewards card, which is the Capital One Spark Cash for Business.

With the Spark Cash for Business:

  • Earn 2% flat on all business spending with no cap
  • $500 welcome offer when you spend $4,500 in the first three months
  • No fee for the first year ($95 after that)
  • No foreign transaction fees

If the annual fee feels tough to swallow, just think that if you earn your welcome bonus, you’ve covered your fee for the next five years and then some. Plus, you have nothing to lose by trying the card for the first year, since the fee is waived.

Best USAA Credit-Building Alternative: Capital One Secured Mastercard

For those business owners who have little-to-no credit history, or are trying to rebuild their credit, the secured cards in the USAA lineup might be interesting. Although there’s no secured USAA business credit card, there are lots of secured business credit cards that’ll allow you to build to rebuild your credit—and position your business for lots of future success.

With that in mind, the Capital One Secured Mastercard is a great choice. Unlike other credit cards, secured credit cards let business owners with lower credit scores access a line of credit. That’s because you’ll need to put down a deposit equivalent to your initial credit line.

The Capital One Secured Mastercard has:

  • A flexible security deposit, with the a chance to graduate to a higher limit with timely payments
  • No annual fee

We should definitely note that this is technically a personal card. Why would we say to choose this one as a replacement for a USAA business credit card if it’s a personal card, then? Because if you’re not yet in a position to get a dedicated business credit card, you can start with this secured credit card from Capital One. Then, you’ll have a relationship with this card issuer—so, once you’ve built your credit, you can graduate into one of Capital One’s other great business credit cards.

And, if for no other reason, both the USAA Secured Card Visa Platinum and the USAA Secured Card American Express cards have $35 fees—so going with the Capital One Secured Mastercard is cheaper! Just make sure to only use it for business expenses.

Best USAA Low-Rate Alternative: Capital One Spark Classic for Business

Last, but certainly not least, is an alternative for a fantastic low-rate card as a replacement for a USAA business credit card. If you were drawn to the USAA Rate Advantage Visa Platinum Card because of its low rates and zero penalties, you’ll be thrilled to see what the Capital One Spark Classic for Business can offer your small business. And, also, that it’s one of the easiest credit cards to qualify for.

Spark Classic for Business offers:

  • No annual fee
  • No foreign transaction fee
  • No balance transfer fee
  • Good for building credit

Plus, it’s the only subprime credit card for businesses from any major card issuer.

Finding Your Best Alternative to a USAA Business Credit Card

If you thought you’d be bummed that there’s not a USAA business credit card, hopefully you’re pleasantly surprised to see lots of alternatives that deliver similar—if not even better—benefits, perks, and rewards for your small business. You’ll be able to find the best parts of a USAA personal credit card in business credit cards from major issuers. And maybe even more.

The post 4 USAA Business Credit Card Alternatives to Maximize Your Perks, Rewards, and Benefits appeared first on Fundera Ledger.



from Fundera Ledger https://www.fundera.com/blog/usaa-business-credit-card

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