Business owners looking for funding sources are likely to converge on two options: business credit cards and business loans/lines of credit. In this article, we’re going to be comparing these two common sources of business financing and letting you know the circumstances that call for utilizing them.
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If you’ve arrived at this post because your business has been affected by the COVID-19 pandemic, we’ve got resources on business lending for you. Check out our full Coronovirus hub for small businesses, but start by reading What SBA Disaster Loans Are & How To Qualify For One and Small Business Loan Resources & Guides for Businesses Affected By The Coronavirus.
Credit Cards VS Business Loans: A Quick Comparison
There are some fairly obvious differences between business credit cards and business loans (total funding amount, revolving line of credit vs. a one-time lump sum of cash, etc) as well as some less obvious ones. Let’s examine the situations that call for using a business credit card vs. applying for a business loan or line of credit.
When To Use A Business Card
Let’s list the circumstances that favor the use of a business credit card over a business loan.
1) You Need Financing For Common Ongoing Expenses
Given the fact that a) you can usually get funding more quickly with a business credit card and b) the funding you can access via a business credit card is significantly less than what you can access with a loan, a business credit card is a better way to get working capital for everyday business expenses.
Because a credit card provides you with a revolving line of credit, you won’t be borrowing more than you need — and you won’t be paying interest on money you don’t need.
2) You Want To Pay 0% Interest (for a while)
Many business credit card issuers offer an introductory 0% APR period with their credit cards. The 0% APR period typically lasts 9-12 months, but you can find offers that extend this period to 18-21 months in certain instances.
This is especially useful for business owners who intend to make some significant purchases in the short term. Credit cards offering a significant 0% APR period can end up saving you lots of money on interest payments.
3) You Want To Build Up Your Business Credit
One helpful feature of just about every business credit card is the fact that they report your card activity to the three major business credit bureaus (Dun & Bradstreet, Equifax Small Business, and Experian Business). If you make your payments in a timely manner and maintain best practices with your credit utilization ratio — that is, the amount of credit you’re currently using divided by the total amount of credit you have available — using a business credit card can help build up your business credit.
Of course, there’s a flip side to this. If you don’t make a payment as required — or if you utilize a greater proportion of your credit than the credit bureaus like (less than 30% is generally considered good) — use of a business credit card can actually hurt your business credit, so be careful and don’t spend more than you can afford to pay down.
4) You Want To Earn Rewards/Cash Back For Your Spending
Most business credit cards are designed to have you earn rewards or cash back when you use the card to make purchases. You may even be able to find a card that targets its highest reward-earning at the purchase categories your business uses most.
If you’ve decided to get a business credit card, pay particular attention to the rewards scheme offered by the card issuer. This way, you can get the card that gives you the most value back in the form of reward points or cash back.
We’ve compiled a list of the best rewards credit cards for small businesses.
5) You Want Help Tracking Your Business Expenses
With most business credit cards, you’ll get a monthly billing statement that details your transactions for the month. Many of these cards also allow you to link to accounting software, giving you another way to track your business expenses in real-time.
When To Use A Small Business Loan
Now, let’s get into the circumstances that call for the use of a business loan or line of credit.
1) You Want To Finance A Large Expense (Up To $2 Million)
While credit cards are useful for financing smaller purchases, if you want to finance expenses worth up to $2 million (you can even get up to $5 million with an SBA loan, though those are difficult to qualify for), you’ll want to apply for a small business loan.
A loan will likely be needed if you’re looking to expand your business in a significant way.
2) You Want To Minimize Your Interest Payments On The Money You Borrow
When comparing business loans to business credit cards, it’s important to note that, all else being equal, you can get a lower interest rate with a loan or line of credit than you can with a business credit card.
With an online lender, a business with a good credit score and healthy business metrics can get a loan with an APR starting around 6% — or a line of credit with an APR around 8% — which is a significantly lower APR than what you’ll be offered with even the most basic business credit card.
3) You Want To Repay What You Borrow Over A Longer Stretch Of Time
Online lenders often offer loans with term lengths of up to 7 years. SBA loans can even carry term lengths of up to 25 years. Suffice to say, if you want to borrow a significant sum of money and you’re looking to spread out repayment over a significant length of time, a business loan is the way to go.
A Word Of Caution Regarding Business Loans
When comparing business loans with business credit cards, it’s important to note that requirements to qualify for a business loan are more stringent than the requirements to qualify for a business credit card. You’ll likely need to provide collateral, and for large loans, you might need to make a significant downpayment.
Another factor to consider: You can get funding more quickly with a business credit card than you can with a business loan/line of credit. You might be waiting a few weeks or longer for funding from a business lender. If you apply successfully for a business credit card, you should be able to get funded within a week.
That said, there are options for quick business loans if you apply online.
Which Is Right For Your Small Business?
In conclusion, when deciding between applying for a business credit card or a business loan to cover the cost of your business expenses, it’s important to consider your particular business situation and funding needs.
If you need more than $50K in funding and you have the ability to qualify for a loan — and are able to provide collateral and a downpayment — you should definitely start researching business lenders.
If you need less than $50K, you want to borrow money at 0% interest in the short term, or you want to earn rewards for your purchases on a continuous basis, you’ll want to apply for a business credit card. However, if you only need a small amount to keep you going and don’t want to mess with a credit card, there are options for $5,000 loans and $10,000 loans.
Next Steps
If A Credit Card Is The Right Choice For Your Business…
If you’ve decided to apply for a business credit card, here are some resources to help you in your search:
How To Get A Business Credit Card: The Step-By-Step Guide
The Best Business Credit Cards For 2020
Business Credit Cards For People With Bad Credit
If A Small Business Loan Is The Way To Go…
If a small business loan is what you need, check out the following links to help guide your search:
How To Get A Small Business Loan: The Step-By-Step Guide
Types Of Small Business Loans: 12 Types You Should Know
Best Small Business Loans For 2020: Our Top 10 Picks
Again, if you’ve arrived at this post because your business has been affected by the COVID-19 pandemic, we’ve got resources on business lending for you. Check out our full Coronovirus hub for small businesses, but start by reading What SBA Disaster Loans Are & How To Qualify For One.
The post Need Small Business Funding? When You Should Get A Business Credit Card VS A Small Business Loan appeared first on Merchant Maverick.
The global coronavirus pandemic and the resulting loss of consumer demand is placing unprecedented stress on small businesses that have had to either scale back or shut down completely. Other businesses in select industries may be experiencing the opposite: so much demand that they are struggling to meet it under emergency conditions. There’s no way to sugarcoat it: rough times are ahead, but don’t assume that means your business is doomed.
At the time of writing, the federal government is still shaping its response to the unfolding coronavirus pandemic and the accompanying economic fallout, so a lot of questions remain with regard to what kind of relief will eventually be available. In the meantime, there are some resources you can immediately tap that can either directly extend credit to you, or help guide you to it.
4 Small Business Organizations That Can Help You Get A Loan
The Small Business Administration (SBA)
In the best of times, the SBA serves as a loan guarantor, making it easier for small businesses to get approved for high-quality loans originated by other lenders. It will continue to do so during the COVID-19 crisis, but during times of disaster, the SBA offers some additional help.
The most notable program comes in the form of Economic Injury Disaster Loans. Unlike typical SBA loans, these loans are federally issued, offering low-interest cash-infusions to businesses within designated disaster zones. With regard to COVID-19 in particular, this includes states whose governors have requested aid under the Coronavirus Preparedness and Response Supplemental Appropriations Act. At the time of writing this includes:
California
Connecticut
Delaware
Washington, DC
Florida
Georgia
Indiana
Maine
Massachusetts
Montana
Nevada
New Hampshire
New Jersey
New Mexico
North Carolina
Rhode Island
Utah
Washington
Note that even if your state isn’t on that list, certain counties within your state may still be eligible.
Economic Injury Disaster Loans provide up to $2 million in funds to affected businesses and can be used to pay debts, accounts payable, and other bills that can’t be paid due to disaster conditions. The loans carry a 3.75% interest rate for small businesses and a 2.75% interest rate for non-profits.
Community Development Financial Institutions
Many CDFIs, such as credit unions, offer low-interest loans and other types of financial assistance during natural disasters. These programs tend to be dependent on federal funding, so keep an eye on stimulus relief bills being proposed at the federal level. If you aren’t sure what your local ones are, you can download a list of certified CDFIs through the U.S Department of Treasury site.
Once you’ve found your local CDFI(s), check their websites to see what kinds of programs they offer. In addition to the aforementioned loans, many will offer advice and consultation to businesses undergoing disaster conditions.
SCORE
SCORE is the largest network of business advisors in the U.S. During normal times they offer mentoring, webinars, courses on demand, and a library of online resources. The good news is that most of these things can still happen during a quarantine and, with the exception of in-person events, they still are.
While they can’t directly get money into your hands, they can advise you on the best course to get money as quickly as possible. If you’re feeling lost about what to do and you’re stuck at home, SCORE is a great resource you can tap without stepping foot outside. They’re currently producing a lot of coronavirus-related content on their website and updating frequently, so park your browser there for new developments as the crisis unfolds.
Internal Revenue Service
So, okay, you’re probably not going to get a loan from the IRS, but you may have suddenly found yourself with a lot less money to meet your tax obligations. Luckily, it looks like they’ll be cutting you a break:
Following President Donald J. Trumpâs emergency declaration pursuant to the Stafford Act, the U.S. Treasury Department and Internal Revenue Service (IRS) today issued guidance allowing all individual and other non-corporate tax filers to defer up to $1 million of federal income tax (including self-employment tax) payments due on April 15, 2020, until July 15, 2020, without penalties or interest. The guidance also allows corporate taxpayers a similar deferment of up to $10 million of federal income tax payments that would be due on April 15, 2020, until July 15, 2020, without penalties or interest. This guidance does not change the April 15 filing deadline.
I’d recommend checking in with the IRS site’s coronavirus page from time to time in order to keep up with developments. They also provide links to other resources that may be of use to you.
What To Do If You Need Fast Funding
On the other hand, if you’re a business that is experiencing higher-than-normal demand during the COVID-19 crisis, you may be dealing with a different kind of problem. Perhaps you need to get ahead of your inventory or purchase equipment to deal with the increased stress on your business. In that case, you can probably take a more mundane route to get funding
While there will no doubt be instability in the lending market for the foreseeable future, lenders are often some of the first institutions to receive federal relief in times like these. Appetite for risk will vary by the lender, but some will likely be looking for borrowers who seem like a safe investment. Note, I’d strongly caution businesses that have had to cut back or temporarily shut down operations against seeking high-interest financial products at this time; the expense can easily balloon out of control if you’re not able to keep up with payments. Debt collectors are the last thing you want to add to your plate right now.
If you need a loan quickly, I’d recommend taking a look at our top-ranked small business lenders for 2020. Bear in mind that some may or may not be lending as normal at this time.
A simpler option for short-term financing, particularly right now, may be a business credit card. While the interest rates on credit cards can be extremely punishing, if you pay off your balance each month you’re effectively getting a “free” extremely short-term loan. This can be useful for smoothing out your cash flow and making direct purchases. Many also come with lucrative rewards programs that can allow you, if you play your cards right, to actually save money by using a business credit card. Check out our guide to getting a quality business credit card fast for more info. And read about How To Use (& And Avoid Using) Business Credit During The Coronavirus Pandemic.
If you’re falling behind on credit card payments right now due to diminished business from the pandemic, our guide about how you can get help from credit card issuers might be useful.
Learn About Small Business Loans From Our Resources
Finally, we have a lot of content on this site that deals with how to find and apply for loans under various circumstances. Much of it will still be relevant during the COVID-19 crisis (and you can expect us to continue updating and adding to it as circumstances change and various federal relief packages start to come online).
If you’ve never had to apply for a business loan before, we can walk you through the process of where to look and how to apply. Given the volatility of the moment, you probably also want to take stock of whether or not you can afford a small business loan. We can also help you figure out how strong your business loan application is.
And be sure to check back in with us in the following weeks as we try to bring you the best, most current information about how your small business can weather the storm.
Merchant Maverick is currently offering a hub of resources and information for small business owners during the coronavirus pandemic. Learn about taking your business online or accepting payments online going forward, figure out how your restaurant can survive the pandemic, read some tips from our remote team about working from home with kids.
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Just like any point in recent history, credit cards are and will continue to be a useful tool for businesses — even though we have the COVID-19 coronavirus looming over our heads. However, credit cards can also still be costly and harmful when used wrong. Plus, many businesses are seeing financial struggles in the pandemic’s fallout. As such, it’s crucial for you to understand how to use credit cards smartly for your business.
That’s why we’ve written this guide — find out below how you can use credit cards to help your business weather the storm created by the coronavirus pandemic.
Utilize Mobile Apps
With social distancing recommended for the general public, going into physical banks to discuss your credit card may not be the best option. Even though you may not be a high-risk candidate for the coronavirus, the disease can still spread asymptomatically, meaning that it is in everyone’s best interests to limit in-person contact as much as possible.
As such, you’ll want to take advantage of other tools provided by your card issuer. While many issuers have customer service available over the phone, customers have been experiencing longer-than-usual wait times — sometimes up to three hours. With this in mind, managing your credit card account via an app or online may be your best bet. A number of the major credit card issuers offer Android and iOS apps for account management:
American Express
Bank of America
Capital One
Chase
Citi
Discover
U.S. Bank
Look Into 0% APR Credit Cards
Some credit cards offer 0% interest (also known as “APR” in the credit card world) for the first few months after you sign up for the card. If you apply and are approved for such a card, you’ll be able to carry a balance for several months without worrying about paying interest. That could be helpful if the coronavirus is impacting your current cash flow — but you believe you’ll start picking up more business in a few months.
Here are a few of our favorite business credit cards with 0% APR introductory periods:
American Express Blue Business Plus: 0% APR on purchases and balance transfers for your first 12 months
Chase Ink Business Unlimited: 0% APR on purchases for your first 12 months
Capital One Spark Cash Select: 0% APR on purchases for your first nine months
Which of the above cards works best for your business may come down to each card’s rewards scheme. Amex’s Blue Business Plus nets two points per dollar on the first $50,000 spent each year (and one point per dollar thereafter). For both Chase’s Ink Business Unlimited and Capital One’s Spark Cash Select, you’ll receive a simple and unlimited 1.5% cash back across all purchases.
For a more in-depth look at 0% intro rate credit cards, check out Merchant Maverick’s article.
Consider Requesting A Credit Line Increase
If you find yourself bumping up close to your credit card’s credit limit because of extra charges and cash flow problems due to the coronavirus, you may be able to request that your line be increased. Increasing your credit line will enable you to put more charges on your balance as well as potentially lower your credit utilization ratio (essentially the amount of debt you owe versus the amount of your credit limit).
Some issuers, such as Citi, have actively advised customers that credit line increases are an option during the pandemic crisis. For many issuers, you can request a credit line increase without calling or speaking to someone in person. Instead, apps and websites can process credit line increase requests — saving you time and limiting the strain on customer service lines.
A word of warning, however. Just because you receive a credit line increase doesn’t mean you should then go and max out your credit card. Doing so can negatively impact your credit utilization ratio — a statistic that plays a role in your credit score. Instead, make sure you still exercise smart spending habits and only spend extra when absolutely necessary.
Explain Your Struggles To Your Issuer
At this time, many credit card issuers are focused on working with customers impacted financially by the coronavirus. By contacting your issuer and explaining the problems you might be having with paying your bill, you may be able to receive some sort of relief.
Some issuers, such as American Express, have been granting cardholders interest-free periods, bonus points, and more. Others, such as the Apple Card (issued in conjunction by Apple and Goldman Sachs), have allowed customers to skip a payment period without incurring interest or late fees.
Merchant Maverick has previously detailed what a number of different issuers are doing to help financially-strapped customers during the coronavirus’s impact.
Keep Making Payments
If your issuer won’t extend payment deadlines, and you are unable to pay your credit card bill in full, making sure you at least make the minimum payment due is still helpful. When making the minimum payment, you will be charged interest on your remaining balance. However, you will also avoid costly late fees — as well as potentially harming your credit score.
Use Your Card Responsibly
If your business has no cash reserves, it may be enticing to start overloading your credit cards with expenses. However, putting charges on your card today that you won’t be able to pay off in a month, six months, or even a year could put you in a world of hurt.
Besides potentially being hit with late fees and interest on unpaid charges, failing to pay your bill on time can damage your credit. Having a healthy credit history could be important down the line — your credit can affect your ability to apply for loans and credit cards as well as impact your insurance rates and more.
Consider Other Financing Options
So instead of maxing out your business’s credit cards, turning to a different financing source could work for your business. Some businesses may find success by applying for a line of credit. You may also find financial assistance with SBA disaster loans or emergency business loans.
Regardless of how you handle your credit card during this tumultuous time, know that you are not alone. Small businesses in these cities have started support groups to help their communities (you may be able to find something similar close to you):
Asheville, North Carolina
Louisville, Kentucky
Seattle, Oregon
We at Merchant Maverick have also been working to create helpful resources; you can find more of what we’ve written at our coronavirus hub. The CDC also has useful information on its website.
The post How To Use (& How To Avoid Using) Business Credit During The Coronavirus Pandemic appeared first on Merchant Maverick.
With the COVID-19 coronavirus pandemic spreading throughout the world, travel plans have been impacted for both personal and business travelers alike. For small businesses especially, canceled plans may cause expenses you just can’t afford right now.
If you’ve booked your business travel with a credit card that includes travel insurance, you may be wondering if you can cancel your plans and get some or all of your money back. Unfortunately, credit card travel insurance is often fraught with language that excludes trips canceled “due to fear of getting sick.” This means you may find it difficult to get a full reimbursement if you cancel a trip solely because you don’t want you or your employees exposed to the coronavirus.
However, many airlines are working with customers on flight changes and hotels are being more flexible with their cancellation policies. Most big airlines are waiving flight change fees up through the next month. This means that if you can reschedule your trip (or use your booking for a different trip planned further out), you may be able to avoid eating all the costs.
Let’s dive into the full nitty-gritty below.
Does Trip Interruption Insurance Cover COVID-19?
A number of credit cards offer travel cancellation and trip interruption insurance when you pay for travel with the card. However, whether these travel insurance plans cover the coronavirus is something you’ll have to discover on a case-by-case basis.
Many credit cards exclude epidemics and pandemics from travel insurance coverage. Additionally, you may be out-of-luck if travel providers (such as airlines or hotels) cancel your travel arrangements (be it flights, hotel rooms, or rental cars). Other potential exclusions include situations where a travel provider goes bankrupt and can no longer offer to offer the service you’ve booked. All told, the possibility of your return flight getting canceled or you getting sick probably isn’t enough to induce travel insurance to cover your costs.
However, some credit cards do cover situations where you have been medically advised not to travel, a family member has a life-threatening illness, or you are quarantined by a physician or the government. If you or a travel companion qualifies for one of these cases, you may be eligible to have your costs covered by your credit card’s travel insurance.
To determine whether or not your specific credit card will cover you right now, you should carefully peruse your card’s benefits document. You may still have a paper copy of your benefits that the issuer sent out after you were approved for the card. You can also often access the details of your card’s benefits on your issuer’s online portal.
Something worth noting is that signing up for additional travel insurance may not protect you any better than just plain old credit card insurance does. These more “traditional” travel insurance plans still might contain language that excludes coverage if you cancel over worries about getting sick — unless you sign-up for an expensive “cancel for any reason” plan.
Because providers of credit card insurance seem to be waffling on their coverage, we recommend that you first contact airlines and hotels to see if you can either receive a refund or change your bookings to a different date.
Coronavirus-Specific Travel Policies
Specific travel policies regarding the coronavirus will depend on who you booked travel with and through. In most cases, you’ll find that the travel providers you booked with will be the most likely parties to issue refunds or waive change fees. If that doesn’t work, then you can try reaching out to the provider of your credit card insurance.
Airlines
Several airlines have provided information regarding flight changes due to the coronavirus:
Air France: Trips booked for before May 31 can be postponed to no later than November 30 without change fees. More information is available via Air France’s press release.
Alaska Airlines: Tickets purchased on or before February 26 for flights between March 9 and April 30 can be changed or canceled without a fee, per Alaska. Canceled flight funds will be credited for future fares.
American Airlines: Change fees are waived for those who book travel through March 31. More information can be found on American Airlines’ coronavirus updates page.
British Airways: Bookings made from March 3 to May 31, as well as existing bookings up to May 31, can have both the destination and date of travel changed for free. More details are available on the British Airways’ website.
Delta Airlines: Any Delta ticket for flights in March or April is rebookable without change fees until December 31. Delta also has a coronavirus updates page.
JetBlue: Those traveling March 10 through April 30 will have change fees waived, according to JetBlue’s travel alerts page. For cancellations, JetBlue will credit the fare amount in the form of travel credit that is valid for one year.
Southwest Airlines: Southwest does not charge customers change or cancellation fees. Airfare from canceled plans can be credited for a future trip up to one year after the original purchase date. Southwest has set up a coronavirus information page.
United Airlines: Flights booked now through March 31 can be changed for free over the next 12 months. Additionally, all tickets issued on or before March 2 with original travel dates between March 9 and April 30 can be changed without a fee. More info can be found on United’s website.
Hotels & Lodging
If you booked with one of these hospitality firms, you may be able to receive some financial relief:
Airbnb: Reservations made on or before March 14 with a check-in date before April 14 can be canceled before check-in without a fee. Hosts can also cancel bookings without a charge or change to their Superhost status. For more information, visit Airbnb’s policy page regarding the coronavirus.
Choice Hotels: For those traveling within the US and Canada, changes or cancellations may be made without a charge up to 24 hours before arrival as long as the change/cancellation is made before April 30. A press release contains more info.
Hilton: All reservations scheduled for arrival before April 30 can be changed or canceled without a fee up to 24 hours before arrival. Hilton has more details, as well as information about the Hilton Honors program, on its website.
Hyatt: Any reservation for arrivals before April 30 can be changed or canceled at no charge up to 24 hours before the scheduled arrival. Hyatt has posted more details on its website.
IHG: Cancellation fees for existing and new bookings up through April 30 have been waived. IHG has updated its travel advisory page for coronavirus information.
Marriott: Cancellations and changes made before April 30 can be done at no charge up to 24 hours before the scheduled arrival date. Marriott’s press release has more info.
Credit Cards
Here’s a quick rundown of what a few of the bigger credit card companies are doing for travelers:
American Express: Amex has created a coronavirus hub for travel customers. For bookings made through American Express Travel, Amex will be honoring their travel partners policies and plans to waive fees on flight modifications or new bookings made through April 30. American Express further offers a FAQs page for trip cancellation/interruption insurance regarding the coronavirus and its credit cards.
Capital One: A FAQs page covering travel insurance and the coronavirus is up on Capital One’s website. Capital One advises customers to contact Visa or Mastercard directly with questions regarding travel insurance. For trip changes, Capital One recommends reaching out to the travel providers you booked with.
Chase: Chase suggests reaching out to travel partners, according to a support page on its website. Otherwise, Chase recommends that cardmembers check their benefit details or to reach out to Chase’s customer service with questions.
Other Ways To Get Your Money Back
Unfortunately, it may be difficult to trigger your travel insurance unless you get sick or are ordered to otherwise stay home by a doctor or the government. And because airlines aren’t simply offering free refunds, you may wind up being on the hook for travel costs. However, airlines are relaxing their change policies. This means that if you can change your plans to a later date or if you can change your flights for a different trip down the line, you may be able to soften the financial blow to your business.
If you find yourself unable to cover travel costs right now, you may be eligible to apply for a line of credit. Other financial help can be found via SBA disaster loans or emergency business loans. To save money elsewhere, look at what your credit card issuer is doing to work with those struggling to make credit card payments due to the coronavirus.
For more small business guides covering the coronavirus pandemic, check out Merchant Maverick’s hub.
For all general coronavirus information, we suggest visiting the CDC website.
The post When & How To Get Your Money Back If You Cancel Business Travel Because Of The Coronavirus appeared first on Merchant Maverick.
As COVID-19, a novel coronavirus, continues to spread throughout the world, small business owners are starting to feel the increasing pressure of uncertainty, from worrying about loved ones to wondering if they’ll be able to keep their business operating. The inability to make credit card payments on time is one of the potential financial hardships facing small businesses right now.
While the US Federal Reserve has offered some relief by lowering interest rates on loans, some credit card issuers have begun to roll out assistance programs in response to the virus, potentially softening the monetary blow to their customers. Available support varies from issuer to issuer, but can include skipping payments without interest, working with customers to adjust due dates, temporary credit line increases, and more. If you’re struggling to pay your credit card bill, we’ve detailed the important bits by issuer below.
Issuer Statements On Coronavirus & Late Payment Policies
A number of issuers have made statements regarding the coronavirus and how they intend to help customers through difficult situations. Here’s a quick breakdown of what issuers are saying, along with links to further information:
Apple Card
While not a business-specific card, if you are one of the three million Apple Card users, you will be able to skip your March payment without having to worry about incurring interest. As shared on Reddit, Apple Card (offered in conjunction by Apple and Goldman Sachs) notified customers via email that they can enroll in its Customer Assistance Program to avoid interest on balances from March.
For support questions, contact an Apple Card specialist at 877-255-5923 or through the Wallet app’s chat function.
American Express
At the time of writing, American Express has not made a public statement outside of travel regarding the coronavirus. For travelers, Amex has set up a coronavirus hub. Due to high call volumes, Amex has asked travelers who do not have a travel or specific cancellation date within the next 72 hours to call back at a later time.
If you are having problems paying your credit bill on time, it is otherwise recommended to call the Amex support number on the back of your card. Amex does offer a financial hardship program that could help with those impacted by the coronavirus.
Bank Of America
Bank Of America states that it is focused on providing customers “the solutions, support, and advice [they] need to manage [their] finances.” If you are having trouble paying your credit card bill due to the coronavirus, reach out to the bank’s customer service. Some small businesses may be able to take advantage of Bank of America’s hardship program.
Barclays
This British bank, which co-issues several travel-focused business credit cards in the US, encourages customers impacted by the coronavirus to contact customer service. Some may also be able to apply for a temporary increase to their credit card limit. Barclays has also stated that it is “rolling out a package of financial assistance for our personal, business and corporate customers.” However, it is unclear if that package is intended for only British-based customers.
Capital One
As part of its coronavirus response, Capital One is encouraging users to utilize online and mobile app tools to manage their accounts. If you are struggling financially, Capital One suggests that customers contact the company to “discuss and find a solution.”
Chase
Chase suggests that cardholders call the number on the back of your credit/debit card or on your monthly statement if you need help with your account or making payments. Chase’s CEO of consumer banking, Thasunda Brown Duckett, further said in a statement: “… weâre doing all we can to make sure our branches are open, our bankers and advisors are there and our call centers are staffed. If youâre affected by COVID-19 and need help with your accounts or making payments, please reach out to us.”
Chase also recommends that users remain wary of scams. Official contact when reached out from Chase “wonât ask for confidential information — such as your name, password, PIN or other account information.”
Citi
For credit card customers, Citi has mentioned “always-on” assistance programs that include “credit line increases and collection forbearance programs.” For further assistance, the bank suggests calling the number on the back of your card for 24/7 assistance.
Citi also specifically mentions small business bank accounts. The bank states that effective March 9, for an initial 30 days, small business customers can reach out for assistance with “fee waivers on monthly service fees and remote deposit capture” and “waived penalties for early CD withdrawal.” Citi also notes that bankers will be “available after hours and on weekends for support.”
Discover
While Discover does not offer business cards, the company recommends that personal cardholders reach out to customer service online, by mobile app, or by phone. Discover has further stated that “customers may receive assistance that can include support related to payment timing, fees and late payments.”
Synchrony
The bank that offers several co-branded business credit cards suggests that those experiencing financial hardship due to the coronavirus should contact customer service.
U.S. Bank
This bank recommends that customers financially impacted by the coronavirus call 888-287-7817 to discuss options. U.S. Bank also advises that customers avoid scammers who may pop up in response to fears spread around the virus.
The bank is also offering loans and on-demand lines of credit for small business accounts, which could help smooth out cash flow during the coronavirus’s impact.
Wells Fargo
For those experiencing hardships, including from the coronavirus, Wells Fargo advises calling 1-800-869-3557 “to discuss options available for your consumer lending, small business, and deposit products.” The bank also points customers to online banking services as well as being mindful of scams.
Other Options If You Canât Pay
If your issuer isn’t on the above list, we suggest you call the support number of the back of your credit card. Even if they don’t have an officially-announced policy, your issuer may be flexible in working with you should you be facing financial hardship due to the coronavirus.
Some credit cards also offer 0% APR for the first few months, which could shield your business from paying credit card interest during the initial stages of this pandemic. To look at available options, check out our list of the best 0% intro APR business credit cards. Should you be looking for monetary support outside of credit cards, you might want to consider applying for a line of credit. You may also find financial help via SBA disaster loans or emergency business loans.
We also have a coronavirus pandemic guide for small businesses, as well as an in-depth article detailing the Federal Reserve’s decision to lower interest rates.
For more general information on the coronavirus, we recommend visiting the CDC website.
The post Canât Make Your Credit Card Payments Due To The Coronavirus? These Credit Card Issuers Are Offering Assistance appeared first on Merchant Maverick.
Credit card companies across the board have been stepping up their rewards game recently, but one program has consistently come out near the top. That program is — as you can probably guess by the title of this article — Chase Ultimate Rewards.
With a plethora of redemption options — and bonus rates for travel redemption — Chase Ultimate Rewards makes a great case for being one of (if not the) best rewards program on the market. Most business users shouldn’t have difficulty utilizing the points they earn with one of Chase’s credit cards.
So how does Chase Ultimate Rewards work? We’ll take a peek into the nitty-gritty below, so read on through to find out!
Chase Ultimate Rewards Basics
There’s not really too much to the Chase Ultimate Rewards program. It’s basically just Chase’s way of marketing credit card rewards. The program enables card users to earn reward points with purchases and then redeem those points for a variety of options. Note that even Chase’s cash back cards earn points usable through Chase Ultimate Rewards — these types of cards are merely marketed as “cash back” earners.
By signing up for a credit card that’s a part of Chase Ultimate Rewards, you’ll be able to access a slew of ways to redeem the points you earn with your card. From travel to cash back to Amazon purchases, there should certainly be a redemption method to suit your fancy.
Chase Ultimate Rewards has been around for over a decade — the New York City-based bank launched the program way back in 2009. Originally kicked off with just two credit cards, Chase Ultimate Rewards now basically touches the entire stable of Chase’s first-party cards.
What Is The Point Value For A Chase Ultimate Reward Point?
The exact point value for points obtained within the Chase Ultimate Rewards program will vary on how you redeem them. However, the general value will range from 1 to 1.5 cents per point.
Let’s take a deeper look at what you can earn through Chase Ultimate Rewards based on the redemption method:
Travel: Depending on the credit card you have, your points value can equal anywhere from 1 cent to 1.5 cents on travel redemption.
Gift cards: Gift cards picked up through Chase Ultimate Rewards usually earn 1 cent per point. In some cases, however, you may be able to collect gift cards at a slightly better rate.
Cash Back: When you redeem your points as cash back in the form of direct deposit or statement credit, you’ll receive 1 cent per point.
Experiences: Should you book an experience through Chase Ultimate Rewards, the marketed cash value normally equals 1 cent per point. Note, however, that Chase sets the value for these experiences, so the true value of booking experiences with points may be difficult to calculate.
Apple Purchases: Buying Apple products through Chase Ultimate Rewards will net you 1 cent per point.
Amazon Purchases: Using your Chase Ultimate Rewards points at checkout on Amazon.com will earn a fairly unimpressive 0.8 cents per point.
Additionally, if you transfer your points to a travel partner outside of Chase Ultimate Rewards, you may be able to redeem points for multiple cents per point.
Is Chase Ultimate Rewards Different For Businesses?
While Chase credit cards marketed towards businesses may earn points at different rates than their consumer counterparts, Chase Ultimate Rewards itself doesn’t really function differently for businesses. You’ll still be able to use the points you picked up with a business credit card for travel, gift cards, cash back, and retail purchases. Transfer of points to partner programs outside of Chase Ultimate Rewards is also possible for business users.
Instead, the primary difference is how fast you collect points and on what purchase categories earn you those bonus points. For instance, the Ink Business Preferred credit card can snag 3 points per dollar spent on shipping purchases. That purchase category is unique to Chase business cards — it’s not possible to specifically earn bonus points by using a Chase consumer card for shipping purchases.
When looking at the benefits outside of Chase Ultimate Rewards, you may notice other differences between Chase’s consumer and business credit cards. This might include stuff like employee cards or cell phone protection — two benefits exclusive to cards within Chase’s business card stable. However, these differences come via the cards’ benefits packages and not from Chase Ultimate Rewards.
Credit Cards Eligible For Chase Ultimate Rewards
Chase has a number of first-party credit cards that dole out points for Chase Ultimate Rewards. To start down this journey, let’s look at Chase’s business-specific cards first.
Ink Business Unlimited
Chase’s unlimited cash back credit card for business use is the Ink Business Unlimited card. With an unlimited 1.5% cash back on all purchases, you’ll be earning rewards at a fine clip.
While the card is marketed as a “cash back” credit card, you technically earn 1.5 points for every dollar you spent. Because of this, rewards earned with an Ink Business Unlimited card can be redeemed for the gamut of Chase Ultimate Rewards methods. This includes cash back, gift cards, and travel.
Beyond its base rewards scheme, Ink Business Unlimited features no annual fee and a slew of benefits aimed at businesses, such as free employee cards and an auto rental damage collision waiver.
For more information, read our review.
Ink Business Cash
The second cash back business credit card on offer from Chase is the Ink Business Cash card. You can collect 5% cash back at office supply stores and on internet, cable, and phone services on the first $25,000 spent in combined purchases every account anniversary year. Plus there’s an additional 2% back on gas station and restaurant purchases (also with a $25,000 annual cap).
Just like Chase’s other cash back business card, Ink Business Cash technically gathers its cash back in the form of points. As such, you can redeem your rewards for cash back, gifts cards, travel, etc. through Chase Ultimate Rewards’s portal.
For benefits outside of rewards, Ink Business Cash has no annual fee, employee cards at no additional cost, and an auto rental damage collision waiver.
To take a deeper dive, check out the Merchant Maverick review.
Ink Business Preferred
Savvy business travelers may like Ink Business Preferred. That’s because this card dishes out 3 points per dollar spent on travel (as well as shipping, internet/cable/phone services, and select internet advertising). On top of that 3x bonus rate, points are worth 25% more when you book travel through Chase Ultimate Rewards.
Besides travel, you can redeem points for Chase Ultimate Rewards’s other methods. However, booking for travel will likely be the most economical choice. There’s also the option to transfer points to one of Chase’s travel partners on a 1:1 basis — this may see you saving even more money than just cashing in for the 25% bonus rate.
Ink Business Preferred also has no foreign transaction fee, as well as cell phone protection and free employee cards. Note, however, that all these perks come at a cost — Chase requires a $95 annual fee to use the card.
If you’re curious to learn more, our in-depth review has you covered.
Consumer Cards
Beyond business credit cards, there are plenty of consumer cards that are eligible for Chase Ultimate Rewards. Even though you might be looking at a credit card for your business, a consumer card might work for you. Here are the first-party consumer credit cards that work with Chase Ultimate Rewards:
Freedom (5% cash back on up to $1,500 in combined purchases in bonus categories each quarter)
Freedom Unlimited (unlimited 1.5% cash back)
Sapphire Preferred (2X points on travel and at restaurants; points worth 25% more when redeemed for travel)
Sapphire Reserve (3X points on travel and at restaurants; points worth 50% more when redeemed for travel)
Chase’s other, co-branded cards with hotels and airlines don’t use Chase Ultimate Rewards. To see the full list of Chase credit cards, check out our deep dive into Chase’s cards.
How To Earn Rewards
The simplest and most obvious way to earn rewards for Chase Ultimate Rewards is by spending money with your Chase credit card. Depending on the credit card you have, you can earn between 1 and 5 points for every dollar spent. Chase’s cash back cards will also earn points despite the “cash back” moniker.
Additionally, all of Chase’s Ink Business credit cards currently earn 5 points per dollar spent on Lyft rides. This limited-time partnership between Chase and Lyft runs through to March 2022. Chase’s array of first-party consumer credit cards can also take advantage of this partnership — the Sapphire Reserve card takes the cake here by earning a whopping 10x points on Lyft rides (the other three Chase consumer cards collect at the same 5 points per dollar rate as the business cards).
Beyond spending cash, there is at least one other way business users can earn rewards to redeem through Chase Ultimate Rewards. If you already have an Ink Business Unlimited or Preferred credit card, you can refer your card to up to five other businesses per year. You’ll collect the equivalent of $150 per referral sign-up if you have the Unlimited card (so up to $750 per year) or 20,000 points per referral if you have the Preferred card.
It’s worth noting that the referral program is also available for those with Chase’s Freedom, Freedom Unlimited, and Sapphire Preferred consumer cards. If you have one of these cards, each friend referred to the card will net you either $100 cash back (with the Freedom cards) or 15,000 bonus points (with the Sapphire Preferred). You can earn up to $500 cash back (with the Freedom cards) or 75,000 points (with the Sapphire Preferred) annually with this method.
Chase Ultimate Rewards Redemption Options
There are plenty of ways to use your points on Chase Ultimate Rewards. Let’s take a deeper look below.
Travel
The most marketed way to utilize Chase Ultimate Rewards is by booking travel. Trip booking options include airfare, hotels, and car rentals.
Chase has partnered with travel booking site Expedia since 2018 to run the back-end of Chase Ultimate Rewards’s travel service. As such, you should generally see similar prices when comparing Chase Ultimate Rewards and Expedia.
If you have a cash back card through Chase, booking travel via Chase Ultimate Rewards offers the standard 1 point equaling 1 cent. Points cards are where things get interesting. Both Ink Business Preferred and Sapphire Preferred users will snag 25% more value out their points when redeeming points for travel through Chase Ultimate Rewards. Chase’s premier consumer card, the Sapphire Reserve, garners a whopping 50% more value.
While booking travel through Chase Ultimate Rewards can be convenient and may save a bit of cash, a major drawback is the fact that you won’t be booking directly with airlines or hotels. This means that if something goes awry with your trip, you’ll need to contact Chase. Chase will then reach out to customer service on your behalf, potentially costing you time and giving you a headache.
Gift Cards
If you’d like your points to go to something outside of travel, Chase provides the option to redeem points for gift cards. At the time of writing, Chase advertises that Ultimate Rewards offers “over 195 gift cards” from various brands.
Generally speaking, 1 point equals 1 cent when redeemed for a gift card. However, Chase will occasionally run “sales” on cards from specific brands. For instance, you might be able to get a Lowe’s gift card for 5% off or a Jiffy Lube one for 10% off.
Unless you are snagging a gift card during a sale, getting gift cards through Chase Ultimate Rewards may not be the most economical way to use your points.
Cash Back
The simplest Chase Ultimate Rewards method is to redeem your points for cash back. If you go this route, you have the option to deposit the cash directly into your bank account or receive statement credit. Cash back usually takes three days before being posted to your account.
No matter the Chase credit card, a single point is worth 1 cent. This means that Chase Ultimate Rewards’s cash back isn’t spectacular — however, it does allow you to use your rewards more freely than if you redeemed them for travel or gift cards.
Experiences
Another redemption method Chase includes with its Ultimate Rewards program is “experiences.” Here you can use your points to book “experiences” from a selection of options, including fine dining, sports games, and music concerts.
During writing (in February — some of these events are seasonal), example experiences redeemable through Chase Ultimate Rewards included:
Ski lift tickets in California, Colorado, Utah, and Vermont
Tickets to professional sporting events, including basketball, hockey, and golf
Music concerts
High-class dining experiences
In general, these experiences were valued at 1 point equaling 1 cent. However, because Chase sets the “cash value” for each experience, it may be difficult to gauge the true value when redeeming points for experiences.
As far as total value, some packages are as cheap as 13,000 points for a Squaw Valley lift ticket. Others are vastly more expensive: two Saturday-Sunday tickets to the 2020 PGA Championship with access to Chase’s hospitality chalet and three nights at a hotel will run you a cool 265,000 points.
Note that because most available experiences are situated in large cities, you’ll want to live near a highly populated place or be traveling in one to take full advantage of this Chase Ultimate Rewards perk. Card members who live in rural Alaska, for example, may have difficulty finding a local experience to take advantage of.
Apple Purchases
If you like Apple products, Chase has partnered with the tech company to allow you to pay for all or part of an Apple purchase. To use your points this way, you’ll need to make your purchase through an Apple-branded online store accessed through the Chase Ultimate Rewards portal.
While this method does make it easier to buy the latest iPhone or AirPods, you won’t be saving anything extra here: 1 point is worth the standard 1 cent when redeemed for Apple products.
Amazon Purchases
By far the measliest way to redeem your points through Chase Ultimate Rewards is on Amazon purchases. After you link your Amazon account with your card, you’ll be all set to use your rewards at checkout on Amazon.com. However, keep in mind that points redeemed for Amazon purchases are only worth 0.8 cents. As such, we can’t really recommend redeeming points in this way.
If you want to maximize your Amazon rewards and you also want to sign up for a card through Chase, it may be worth going with the bank’s co-branded Amazon credit card. This card, which can earn up to 5% cash back on Amazon purchases, features a rewards scheme that allows you to use rewards at checkout on Amazon.com. Note, however, that rewards obtained through Chase’s Amazon card don’t earn Chase Ultimate Rewards points.
Transfer Points
We’ll go into more depth below, but if one of Chase’s own redemption methods don’t suit your fancy, you can transfer your points out to one of 13 travel partners. These travel partners include both airline and hotel loyalty programs and can be one of the more lucrative ways to use your points.
Additionally, you can transfer points between multiple Chase accounts if you have several credit cards. Consolidating points can be a great way to save a bit extra cash when booking travel or if you’re planning to close a card.
Chase Transfer Partners & Best Ways To Transfer
With 13 different transfer partners, Chase has a nice array of loyalty programs where you can transfer your points on a 1:1 basis. These partner programs include both airlines and hotels.
At the time of writing, Chase’s airline partners are:
Aer Lingus AerClub
British Airways Executive Club
Emirates Skywards
Flying Blue Air France/KLM
Iberia Plus
JetBlue TrueBlue
Singapore Airlines KrisFlyer
Southwest Airlines Rapid Rewards
United MileagePlus
Virgin Atlantic Flying Club
For hotel loyalty programs, Chase is partnered with:
IHG Rewards Club
Marriott Bonvoy
World of Hyatt
Because your Chase Ultimate Rewards points can be transferred to these loyalty programs on a 1:1 basis, the value of your points will vary depending on where you transfer your points to.
Determining the best loyalty programs to transfer to will often depend on your situation. Generally, however, World of Hyatt delivers the best bang for the buck when it comes to hotels — free nights start low as 5,000 points. For flights, check out British Airlines — its trans-Atlantic flights can be had for as little as 9,000 Avios (what British Airlines calls its points). Air France/KLM’s Flying Blue program can also be a great deal if you snag a monthly promo.
The Best Ways To Use Chase Points
All told, if you have a rewards credit card from Chase, you’ll likely find that redeeming Chase Ultimate Rewards points for travel (either through Chase’s own booking portal or by transferring out to a partner program) will stretch their value the furthest. This makes Chase’s point cards great options for businesses that require frequent voyages.
If you have one of Chase’s cash back cards, it’s hard to go wrong with redeeming points through Chase Ultimate Rewards. Most methods output rewards at 1 cent per point value. This means that you can be flexible by redeeming your rewards just the way you want to.
This flexibility is probably one of Chase Ultimate Rewards’s strongest attributes and it helps make the program one of the best out there. Whether you are transferring points to one of Chase’s travel partners or redeeming points for the exact gift card you want, Chase gives you the freedom to choose — that’s pretty hard to beat.
The post Everything You Need To Know To Earn & Maximize Your Chase Ultimate Rewards Points appeared first on Merchant Maverick.
It’s not easy for business travelers to spend time away from home. Between the tedium of waiting around at airports and the discomfort of sleeping in new beds, business travel can be a grueling grind. One way you can help to ease the grind a bit is by deciding on a primary hotel rewards program.
Also known as loyalty programs, these programs can help you rack up points while taking advantage of extra perks. It’s honestly hard to see why a frequent business traveler would pass on signing up for a hotel rewards program — you’ll get free nights, access to free Wi-Fi, and more. And best of all, these rewards programs are free to join.
So which program might be best for you? Keep on reading for the low-down on what’s out there!
Hotel Rewards Programs: The Basics
Hotel rewards programs offer you the chance to save money while traveling. Every time you book a room at a hotel, you’ll receive a set number of points (usually around 10 points for every dollar spent). Once you’ve earned enough rewards, you can cash them in for free nights, room upgrades, and more. Additionally, by joining a loyalty program, you’ll be set to receive perks like free Wi-Fi- or late check-out — no points required.
In some cases, you may be able to earn even more rewards by signing up for a credit card that a particular hotel brand offers. These cards will usually shoot you to the highest level of points earning within that particular brand’s rewards scheme. These cards are of the personal variety in most cases, but there are a few business-specific cards floating around too.
On the flip side, however, these rewards programs can tie you down to a set of hotel brands. This means you might ultimately spend more money instead of just searching for the best deal. Plus, if you’re set on earning points from one set of brands, you may find yourself needing to be less flexible when it comes to hotel location.
All that said, smart usage of hotel rewards programs can indeed help business travelers save a bit of cash when used smartly. As such, those who require frequent travel may want to focus on joining a hotel rewards program to eke out that extra cash where possible.
Popular Hotel Rewards Programs For Business Travelers
Your favorite hotel brand probably offers its own set of rewards or is part of a rewards network alongside other hospitality brands. Here’s a look at a few of the most popular hotel loyalty programs and how they might stack up for business use:
IHG Rewards Club
InterContinental Hotels Group’s Rewards Club covers over 5,000 hotels throughout 100-plus countries. Its network of hotels includes Holiday Inn, InterContinental, Crowne Plaza, Regent, and Hualuxe.
Points are generally obtained at the rate of 10 points per dollar spent on hotels within the IHG network. Those who reach IHG Reward Club’s top bracket (achieved by booking 75 nights or earning 75,000 points) can earn 20 points per dollar. Miles can also be earned for an array of airline partners. Booking a table via OpenTable or ordering from Grubhub through IHG can also pick up points for you. Points can additionally be bought with cold hard cash, which may make sense if IHG is running a sale on points.
Savvy travelers might also be able to save more with the IHG Rewards Club Premier Credit Card through Chase. While this is a personal card, business users can still take advantage of the card’s 25x points rate. It’s also worth noting that IHG is a transfer partner with Chase — this means that if you have a Chase Ultimate Rewards-eligible card, you can transfer points to your IHG Rewards Club account on a 1:1 basis.
Once you have points in hand, they can be redeemed for hotel stays and airfare with over 40 airlines. Free nights start at 10,000 points and go up from there depending on the brand and location. You can also use your points for items from a variety of brands. Note, however, that if you fail you stay at an IHG network hotel over the course of 12 months, your points will expire.
Choice Privileges
Choice Privileges is a global rewards programs for hotels under the umbrella of Choice Hotels. Its network of budget brands includes Cambria Hotels, Comfort Inn & Suites, Econo Lodge, Sleep Inn, and Quality Inn. This network reaches 7,000 locations worldwide, with hotels in over 40 countries throughout North and South America, Asia, Australia, the Caribbean, and Europe.
You’ll start off earning a base 10 points for every dollar you spend at eligible properties. After 40 nights at Choice properties, you can qualify for the program’s top rewards bracket, Diamond, and earn 15 points for every dollar spent. Points can additionally be earned for golf purchases, travel bookings through Bluegreen Vacations, and car rentals through Avis and Budget.
The Choice Privileges Signature Visa Card (offered in conjunction with Barclays) can stretch your savings even further. Signing up for the card will automatically boost your earning rate to Diamond status and there are various bonuses to earn even more. However, note that Choice Privileges only offers a personal credit card and not a business-specific one.
Points obtained through Choice Privileges can be cashed in for free nights, resort bookings, vacation rentals, gift cards, and trips with various travel partners. Choice Privileges’ list of travel partners includes Alaska Airlines, Southwest Airlines, United Airlines, and Amtrak. Points can further be used for purchasing golf gear or booking cruises. Free nights at eligible Choice hotels start at 8,000 points. You’ll want to keep in mind that Choice Privilege points expire after 18 months of account inactivity.
Marriott Bonvoy
With over 7,000 hotels to choose from across the U.S., Canada, Asia, and Europe, Marriott Bonvoy is a solid rewards program with fairly strong coverage. The program includes the 30 different hospitality brands owned by Marriott International, including The Ritz-Carlton, Marriott Hotels & Resorts, Renaissance Hotels, and Courtyard.
Marriott Bonvoy users will be able to enjoy 10 points per dollar spent at eligible hotels. The highest two tiers (Titanium Elite and Ambassador Elite) both earn an extra 75% on points. Besides staying at hotels, points also can be picked up through air travel or by booking travel “activities” through Marriott’s own portal.
Business travelers who frequent Marriott properties may want to look into the Marriott Bonvoy Business American Express Card. This credit card will dole out 6 points per dollar on Marriott purchases (plus 4 on restaurants and 2 everywhere else). You can also take advantage of employee cards and one free night award every account anniversary.
After you’ve banked up points, you can use them on free nights, for partially paying for a stay, for booking travel with over 250 airlines and rental car companies, or for snagging travel packages. You can book free nights at eligible Marriott International properties for as little as 5,000 a night — plus there are no blackout dates on when you can book. Marriott Bonvoy points do expire, but not until after two years of account inactivity.
World of Hyatt
While World of Hyatt packs a punch with an excellent rewards program, it lacks the coverage other brands might have. There are fewer than 1,000 properties worldwide under the Hyatt umbrella. However, most U.S. travelers shouldn’t find difficulty — many of Hyatt’s hotels are located in the country’s biggest cities. Brands included in the Hyatt network include Grand Hyatt, Hyatt Regency, Joie de Vivre, Andaz, and Alila Hotels and Resorts.
World of Hyatt dishes out 5 points per dollar spent on eligible purchases at Hyatt hotels. The highest membership tier, Globalist, collects an extra 30% on top of those 5 points. You can obtain Globalist status by spending 60 nights in Hyatt hotels, earning 100,000 points, or attending 20 qualifying meetings/events at Hyatt properties.
There is no business credit card for World Hyatt, but there is the World of Hyatt Credit Card. This card, co-offered with Chase, delivers 4 bonus points for every dollar spent at all Hyatt hotels (plus 2 points per dollar on dining, airfare, local transit, and gym memberships). Every cardholder will receive one free night annually, plus the opportunity to earn a second free night by spending $15,000 on the card in an anniversary year.
World of Hyatt has one of the most valuable points redemption rates around — some estimate that a point in this program is worth almost 2 cents a pop. You can use your World of Hyatt points on free nights, dining/spa experiences, fitness classes, trips, air travel, and car rentals. Free nights start at 5,000 points. Your points will expire after account inactivity of two years.
Wyndham Rewards
Its 9,000 properties worldwide mean that Wyndham Rewards is one of the furthest-reaching rewards programs on the planet. Available locations cover the U.S., Mexico, the Caribbean, Europe, Africa, and Asia. Among Wyndham Rewards’ brands are Wyndham Grand, Dolce Hotels and Resorts, La Quinta, Ramada, and Days Inn.
With Wyndham Rewards, you’ll net 10 points per dollar or 1,000 points per stay — whichever is higher. The top membership level, Diamond, nets 20% more rewards (you can reach that status after 40 stays at Wyndham properties). Wyndham enables other rewards-earning methods, such as shopping, gas from Marathon Gas stations, tours/activities, DoorDash purchases, and car rentals through Avis and Budget. You can also purchase points in increments of 1,000.
For credit cards, you can apply for either of the Wyndham Rewards Signature Visa cards. Offered in conjunction with Barclays, these two cards grant 5 points (for the annual fee version) or 3 points (for the no annual fee version) per dollar spent at Wyndham properties. These cards also feature welcome offers that will dish out enough points for free nights. Note that both these cards are of the personal variety; Wyndham offers no business credit card.
Points earned for Wyndham Rewards can be redeemed for free nights (starting at 7,500 points), shopping, tours/activities, gas, gift cards, and charitable donations. You can also transfer points to one of Wyndham’s travel partners (including American Airlines AAdvantage Miles, United MileagePlus Miles, Frontier Miles, and Amtrak Guest Rewards Points) or to Caesars Rewards to take advantage of casino-focused rewards. Those who own Wyndham vacation properties can also transfer points to pay for maintenance and exchange fees. Wyndham Rewards points have a long shelf life — they won’t expire until four years after they are posted to your account.
Other Hotel Rewards Programs
There are a few other programs worth mentioning, but just didn’t make the cut the above:
Best Western Rewards: With a decent rewards rate and points that won’t ever expire, Best Western Rewards is a solid loyalty program. There are also a couple of Best Western co-branded (non-business) credit cards on offer, too.
Hilton Honors: Hilton is one of the largest hotel chains in the world, with over 4,000 locations globally. However, the Honors program has one of the lowest points values around; by some estimates, Hilton Honors points equal less than 0.5 cents per point. Hilton Honors does have a business credit card that can help stretch your rewards value further, however.
Radisson Rewards: With over 1,000 properties eligible, Radisson Rewards might be an excellent option. As their hotels are primarily located in the U.S. and Europe, those who frequently hop across the pond for business may find Radisson to be their best option.
Choosing The Best Hotel Rewards Program For Business Travel
Ultimately, there’s no one way to pick a rewards program. The program that works best for you will depend on where you travel to, which brands best suit your price point, and whether or not you can take advantage of credit card perks. But by utilizing a hotel rewards program smartly, you’ll be well on your way to softening the business travel grind.
The post Save Money On Travel Expenses By Finding The Best Hotel Rewards Program For Business Travelers appeared first on Merchant Maverick.
From purchasing office supplies to taking staff out for dinner or traveling to events, nonprofit organizations have plenty of reasons to sign up for a credit card. And, because a nonprofit is technically a business, it may make sense to apply for a business-specific credit card. Consumer cards can work, if you use them correctly, but business credit cards usually offer rewards and benefits that better suit professional organizations.
There are also credit cards out there designed specifically for nonprofits. Depending on your location and your organization’s situation, you may find that one of these credit cards will actually work better for you than a business-centric card.
Curious to find out what’s out there in the world of credit cards for nonprofits? Take a peek below to find out which business credit card might work best for your nonprofit organization.
Best Credit Cards Designed For Nonprofits
While they may not be the most common type of credit cards, cards built for nonprofits do exist. The most notable thing about these cards is that they require no personal guarantee from applicants. This means that the card issuers won’t look into the personal credit history of individuals listed on the application; instead, they’ll simply consider the organization’s financial records. Let’s take a deeper look at a few credit cards designed from the get-go for nonprofits:
Charity Charge Nonprofit Business Card
Charity Charge is an issuer dedicated to helping nonprofits thrive. Besides its nonprofit business credit card, Charity Charge offers other cards that automatically donate cash back to a nonprofit of the user’s choice.
This co-branded Mastercard, meanwhile, was designed from the ground up for nonprofits to spend with. First appearing in the summer of 2019, the Charity Charge Nonprofit Business Card could make a solid option for your organization. There simply aren’t many credit cards dedicated to working for nonprofits — and certainly none of the others come from a company built around giving back to such organizations.
Besides requiring no personal guarantor, this card will generate 1% cash back on all of your purchases as an automatic rebate to your monthly statement. Going beyond rewards, Charity Charge promises online expense reporting and card management, dedicated customer service, and fraud protection. Charity Charge also markets this card to schools and associations.
U.S. Bank Community Card
In partnership with Mastercard, U.S. Bank offers its community card for nonprofit organizations. With this card, you’ll be able to apply without needing a personal guarantee. U.S. Bank also offers an online tool to analyze your organization’s spending. Plus, employees can get their own cards for free.
When it comes to rewards, you have two options. You can either pay $99 per year and gain access to 1% cash back on all purchases. Or you can choose to pay no annual fee — but you also eschew rewards. It’s also worth noting that going the annual fee route opens up the possibility to earn points for taking credit card payments and making purchases with U.S. Bank’s Encore Relationship Rewards program.
Unfortunately, you’ll need to live near a U.S. Bank location because you must apply in person for this credit card. While the bank operates in over half the states in the U.S., if you don’t live in Ohio or further west, there probably isn’t a U.S. Bank near you.
Visa CommUNITY Card
Introduced by Visa several years ago, the Visa CommUNITY Card is available at local banks and community credit unions throughout the country.
Because this card is issued through various banks, the exact terms may vary from location to location. You’ll generally be able to earn rewards for this card (usually either 1% cash back or 1 point per $1 spent) and the annual fee is low ($99 per year) or nonexistent. You’ll also be able to access high credit lines. Like the above two cards, no personal guarantee should be required when applying.
You’ll likely need to apply in person for a Visa CommUNITY Card. Several banks and credit unions issue this card, so you might be able to find a location near you. Issuers include:
Bangor Savings Bank (Maine and New Hampshire)
bankHometown (Massachusetts)
Beacon Credit Union (Indiana)
First County Bank (Connecticut)
Fulton Bank (Delaware, Maryland, New Jersey, Pennsylvania, and Virginia)
PCSB Bank (New York)
Shelby State Bank (Michigan)
South State Bank (Georgia, North Carolina, South Carolina, and Virginia)
Sunrise Banks (Minnesota)
United Community Bank (Georgia, North Carolina, South Carolina, and Tennessee)
There are also a number of other banks that offer a Visa CommUNITY Card, so be sure to call around locally if none of the above financial institutions are near you.
Best Business Credit Cards For Nonprofits
Unfortunately, it’s pretty slim pickings when it comes to credit cards designed specifically with nonprofits in mind. Because of this, you may find it better to apply for a business credit card that offers a set of rewards, benefits, interest rates, etc. that best suit your organization. Here are a few of our favorite business credit card picks for nonprofits:
Best For No annual fee
Spark® Cash Select From Capital One®
Compare
Annual Fee:
$0
Â
Purchase APR:
14.49%-22.49% (variable)
Required Credit: Excellent
Welcome Offer: $200 cash back if you spend $3,000 in the first 3 months after opening your account
Intro Purchase APR: 0% APR for 9 months
Intro Balance Transfer APR: N/A
Foreign Transaction Fee: 0%
Rewards:
Unlimited 1.5% cash back
Featured Benefit:
Zero fraud liability if your card is lost or stolen. Plus, get automatic fraud alerts via text, email, or phone call.
More card details (click to expand)
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No one likes an annual fee. While paying a yearly charge is often a requirement of some higher-tier credit cards, there are a few solid options without one. Spark® Cash Select from Capital One® is one such option.
The Spark Cash Select card features a strong 1.5% cash back on all purchases. What’s most impressive about that rewards rate is that there’s no cap on how much you can earn. You’ll also be able to take advantage of a 0% introductory APR rate for your first nine months, free employee cards, and a welcome offer worth $200. The card also includes other standard credit card perks like extended warranty and fraud protection.
Best 0% APR introductory period
Blue Business Cash⢠Card from American Express
Compare
Annual Fee:
$0
Â
Purchase APR:
14.74% – 20.74% (variable)
Required Credit: Good
Welcome Offer: None
Intro Purchase APR: 0% APR for 12 months
Intro Balance Transfer APR: 0% APR for 12 months
Foreign Transaction Fee: 2.7%
Rewards:
2% cash back on all eligible purchases on up to $50,000 per calendar year, then 1%
Featured Benefit:
Spend beyond your credit limit with Expanded Buying Power (Just remember, the amount you can spend above your credit limit is not unlimited. It adjusts with your use of the Card, your payment history, credit record, financial resources known to us and other factors.)
More card details (click to expand)
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If you know you’ll be carrying a balance right off the bat, going with a credit card that has an introductory rate period could be a great possibility. When a card has an intro rate period you won’t have to pay interest until the period is up. The Blue Business Cash⢠Card from American Express has one of the longest intro rate periods for business credit cards at 0% APR for the first 12 months.
Outside the 0% intro rate, you’ll be able to nab 2% cash back on the first $50,000 you spend every calendar year (the cash back rate drops to 1% after passing the $50,000 threshold). There’s also no annual fee and Amex allows you to spend above your credit limit. Otherwise, standard credit card features come along for the ride, such as extended warranty and purchase protection.
Best For Travel
Chase Ink Business Preferredâ
Compare
Annual Fee:
$95
Â
Purchase APR:
17.49% â 22.49% (variable)
Required Credit: Excellent
Welcome Offer: 80,000 points if you spend at least $5,000 within the first three months of opening your account
Intro Purchase APR: N/A
Intro Balance Transfer APR: N/A
Foreign Transaction Fee: None
Rewards:
3 points per $1 spent on the first $150,000 in combined purchases on travel, shipping purchases, internet/cable/phone services, and advertising purchases made with social media and search engines each account anniversary year
1 point per $1 on all other purchases
Featured Benefit:
Points are worth 25% more if redeemed for travel via Chase Ultimate Rewards
More card details (click to expand)
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Should your organization require frequent travel, finding a credit card with travel rewards and perks may be wise. One of the most well-rounded travel cards on the market is Chase Ink Business Preferredâ .
This card has a nifty rewards scheme — you’ll net 3 points per dollar spent on travel, shipping, internet/phone/cable services, and advertising. You can then redeem those points for 25% more when booking travel through Chase’s own online portal or you can transfer them on a 1:1 basis to an array of travel partners. In terms of perks, Ink Business Preferred promises trip insurance, extended warranty, and cell phone protection.
Best For Low Credit Users
Spark® Classic from Capital One®
Compare
Annual Fee:
$0
Â
Purchase APR:
24.49% (variable)
Required Credit: Fair
Welcome Offer: None
Intro Purchase APR: N/A
Intro Balance Transfer APR: N/A
Foreign Transaction Fee: None
Rewards:
Unlimited 1% cash back
Featured Benefit:
Zero fraud liability if your card is lost or stolen. Plus, get automatic fraud alerts via text, email, or phone call.
More card details (click to expand)
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If you or your organization lacks a strong credit history — or doesn’t have one at all — the Spark® Classic Card from Capital One® might work best for you. Designed for credit-building users, this card can help you strengthen your credit — allowing you to eventually graduate to a better credit card down the line.
Even though Spark Classic was constructed for those with weaker credit, it still comes with some decent perks. Its 1% cash back will see you earning rewards at a nice clip. Beyond that, the card comes with other standard benefits like free employee cards, no foreign transaction fee, and extended warranty.
Didnât Find What Youâre Looking For? Check Out Our Other Resources For Nonprofit Organizations
If a credit card isn’t the next step for your organization, Merchant Maverick has a few more tools that can lend a hand. In case you’re curious about the difficulties nonprofits face when it comes to financing, check out our guide to loans for nonprofits. Organizations in need of a grant may find our in-depth article on grants helpful. Or, if you’d like to try raising funds with a more modern approach, read up on crowdfunding for nonprofits.
The post The 7 Best Business Credit Cards For Your Nonprofit Organization appeared first on Merchant Maverick.
When you launch a new business, you’re probably aware of how a business credit card can help you smooth out your cash flow to help you get your enterprise off the ground. You may also be aware that a business credit card can help you out in other ways — by helping you build your credit score and earn rewards for your business spending.
However, with your other responsibilities, you may not have the time to spend studying the business credit card universe to determine which cards have the most to offer a young business.
Thankfully for those of you who prioritize pursuing your passion over comparing credit card offers, Merchant Maverick exists! Let us separate the winners from the losers and give you the scoop on the business credit cards best suited to entrepreneurs and startup businesses.
Credit Card
Best For
Chase Ink Business Cash
Overall Best Startup Card
Amex Blue Business Plus
Long 0% Intro APR
Chase Ink Business Preferred
Big Signup Bonus
Capital One Spark Miles Select For Business
Travel Rewards
Brex Corporate Card
No Personal Guarantee
Capital One Spark Classic For Business
Average Credit
Wells Fargo Business Secured Credit Card
Secured Card For Bad Credit
Chase Ink Business Cash: Best Overall Card For Startups
Chase Ink Business Cash
Compare
Annual Fee:
$0
Purchase APR:
15.49% – 21.49%, Variable
Required credit: Good, excellent
Bonus offer: $500 cash back if you spend at least $3,000 in the first three months of opening your account
Purchase intro APR: 0% for the first 12 months
Balance transfer intro APR: N/A
Foreign transaction fee: 3%
Rewards:
5% cash back on the first $25,000 spent in combined purchases at office supply stores and on internet, cable, and phone purchases each account anniversary year
2% cash back on the first $25,000 spent in combined purchases at gas stations and restaurants each account anniversary year
Due to both its overall combination of features and its 5% cash back earning rate on several common purchase categories for new businesses, we’re picking the Chase Ink Business Cash as the best overall credit card for entrepreneurs and startups.
To start off, the Ink Business Cash offers an introductory 0% APR for 12 months on purchases and balance transfers and a bonus offer of $500 cash back when you spend $3,000 on purchases in the first 3 months. The card also lacks an annual fee, which is remarkable for a business credit card that offers this much value.
Startup businesses stand to reap some great rewards when using Ink Business Cash to pay for building up a young company. The card offers 5% cash back on the first $25,000 spent in combined purchases at office supply stores and on internet, cable, and phone services each year. No other business card offers such a high level of cash back for the spending necessary to build your office.
You’ll also earn 2% cash back on the first $25,000 spent in combined purchases at gas stations and restaurants and 1% cash back on everything else. All in all, few cards tailor their reward structures to the needs of startups better than Ink Business Cash. Despite this, the card offers a very competitive variable APR of 15.49% to 21.49%.
You can redeem your cash back for statement credits, travel (via Chase Ultimate Rewards), shopping at amazon.com, and gift cards. The card also includes handy benefits such as an auto rental collision damage waiver, travel and emergency assistance services, roadside dispatch, and purchase protection.
American Express Blue Business Plus: Best For Long 0% Intro APR
Blue Business Plus Credit Card from American Express
Compare
Annual Fee:
$0
Purchase APR:
15.49% – 21.49%, Variable
Required credit: Good, excellent
Bonus offer: None
Purchase intro APR: 0% for the first 12 months
Balance transfer intro APR: 0% for the first 12 months
Foreign transaction fee: 2.7%
Rewards:
2 points per dollar spent on all purchases, up to $50,000 per year
1 point per dollar on all purchases after $50,000
Notable perks & benefits:
Expanded buying power â buy above your credit limit with no penalty fees
The Blue Business Plus Credit Card from American Express has one distinguishing feature that should be of particular benefit to those starting a business.
The card offers a 15-month intro 0% APR on purchases and balance transfers — the longest such period offered by any business credit card issuer. So while circumstance may force you to carry a balance on your card as your business gets on its feet, you’ll have 15 months before you start having to worry about paying interest.
As for spending rewards, they’ll come in the form of Membership Rewards points. You’ll earn 2X points on your first $50,000 in annual purchases with no category restrictions whatsoever. All purchases beyond this $50K annual double points limit will earn you 1 point per dollar spent.
Just as with some other Amex business cards, the Blue Business Plus lets you spend above your credit limit. There’s also no annual fee. On the downside, there’s no bonus offer, and the card carries a foreign transaction fee of 2.7%.
Chase Ink Business Preferred: Best For Big Signup Bonus
Chase Ink Business Preferred
CompareÂ
Annual Fee:
$95
Purchase APR:
18.24% – 23.24%, Variable
Required credit: Good, excellent
Bonus offer:Â 80,000 points if you spend at least $5,000 within the first three months of opening your account
Purchase intro APR:Â N/A
Balance transfer intro APR:Â N/A
Foreign transaction fee: None
Rewards:
3 points per dollar spent on the first $150,000 in combined purchases on travel, shipping purchases, internet/cable/phone services, and advertising purchases made with social media and search engines each account anniversary year
1 point per dollar on all other purchases
Notable Perks & Benefits:Â
Points are worth 25% more if redeemed for travel via Chase Ultimate Rewards
Points can be transferred to other travel programs on a 1:1 point basis
Business credit cards don’t typically come with bonus offers as generous as that offered by Chase’s Ink Business Preferred card.
The card offers 80,000 bonus points when you spend $5,000+ on purchases in the first 3 months. Because your points are worth 25% more when you redeem for travel through Chase Ultimate Rewards, these 80,000 points can be worth $1,000 when spent on travel. For entrepreneurs needing to travel for business, this $1,000 bonus can be a godsend.
As for earning points, you can earn 3 points per $1 on the first $150,000 spent annually in combined purchases on the following items:
Travel
Shipping purchases
Internet/cable/phone services
Advertising purchases made with social media sites and search engines
You’ll earn 1 point per $1 spent on all purchases in these categories after the $150K annual high-earning limit and on all other purchases. The card also carries some great travel benefits, has no foreign transaction fee, and you can transfer your points to various airline and hotel travel reward programs on a 1:1 basis.
Sadly, the card carries a $95 annual fee, no introductory 0% APR, and a higher purchase APR than that offered by Chase’s Ink Business Cash card.
Capital One Spark Miles Select For Business: Best For Travel Rewards
Spark Miles Select From Capital One
Compare
Annual Fee:
$0
Purchase APR:
15.24% – 23.24%, Variable
Required credit: Good, excellent
Bonus offer:Â 20,000 miles if you spend $3,000 on purchases within the first 3 months of opening your account
Purchase intro APR: 0% for the first 9 months
Balance transfer intro APR: N/A
Foreign transaction fee: None
Rewards:
1.5 miles per dollar spent on all purchases
Notable perks & benefits:
Free employee cards
Redeem miles for any airline tickets, hotel stays, vacation packages and more with no expiration date
Transfer points to over 10+ travel partners on a 1:1 basis
The beauty of Capital One’s Spark Miles Select For Business lies in its simple travel rewards earning scheme: Earn an unlimited 1.5X miles on your every business purchase with no blackouts or seat restrictions and no minimum to redeem. Considering that you can redeem rewards directly for flights, this card can really benefit the startup that incurs a lot of travel expenses.
The Spark Miles Select card has no annual fee, no foreign transaction fee, and carries a 0% intro APR for 9 months on purchases, but not on balance transfers. However, there is no balance transfer fee.
The card’s bonus offer —Â 20,000 miles ($200 for travel) when you spend $3,000+ on purchases in the first 3 months — is more modest than that of many of the other cards featured in this article.
Brex Corporate Card: Best For No Personal Guarantee
Brex Corporate Card
Compare
Annual Fee:
$0
Purchase APR:
N/A (this is a charge card)
Required credit: No credit requirements, though your business must have at least $100K in the bank
Bonus offer:Â None (though over $25,000 in discounts and credits for Brex’s partner services becomes available to you upon approval)
Purchase intro APR: N/A (this is a charge card)
Balance transfer intro APR: N/A
Foreign transaction fee: None
Rewards:
7 points per dollar spent on rideshares and taxis (all points multipliers are for Brex Exclusive members only)
4 points per dollar spent on travel booked through Brex Travel
3 points per dollar spent at restaurants
2 points per dollar spent on recurring software/SaaS purchases
1 point per dollar spent on everything else
Notable perks & benefits:
No personal guarantee required
Get 5 free cards when you open your account (additional cards cost $5 per user per month)
And now for something completely different. The Brex Corporate Card is a unique product — created in 2018 — that aims to disrupt the world of business credit cards. How does it do so?
The card does not require a personal guarantee. That means that in the event that your business goes under, you won’t be personally liable for the debt on your card and your personal assets will be safe!
Brex doesn’t even check your personal credit score when you apply for the card. Instead, Brex relies solely on the health and potential of your business when considering your application.
The Brex Corporate Card is a great fit for tech startups with at least some history, but not so much for entrepreneurs just starting out or the mom-and-pop dry cleaning place down the street. Your business will need at least $100,000 in cash assets in order to qualify for the card.
The Brex card offers some truly impressive points-earning rates on common startup expenses as well:
7 points per dollar spent on rideshares and taxis
4 points per dollar spent on travel booked through Brex Travel
3 points per dollar spent on restaurant purchases
2 points per dollar spent on software subscriptions
1 point per dollar spent on everything else (Brex Exclusive membership not required)
The only drawback is that to earn points at these rates (except for the 1 point per dollar on general spending), you need to make Brex your exclusive corporate card. You won’t be able to use any other cards for company-related purchases.
The Brex card is a charge card, so you won’t be able to carry a balance from month to month. Thankfully, there’s no annual fee.
Capital One Spark Classic For Business: Best For Average Credit
Entrepreneurs trying to realize their plans while dealing with average credit will find a lot to like about the Capital One Spark Classic For Business credit card.
Being a card for business owners with average personal credit, the Spark Classic For Business doesn’t come with much in the way of bells and whistles. There’s no signup bonus, no intro 0% APR, you’ll get only 1% cash back for your purchases, and the APR is high (currently 25.24% variable).
However, if your credit is less than good and your startup doesn’t fit the profile of a business that would be eligible for the Brex card, the Spark Classic For Business is one of the few ways you can actually fund your business operations. Furthermore, the card has no annual fee, no foreign transaction fees, and there are no transaction fees applied to balance transfers (though the high APR still applies).
While the Spark Classic For Business can be a godsend, try not to carry a large balance from month to month.
Wells Fargo Business Secured Credit Card: Best Secured Card For Bad Credit
Wells Fargo Business Secured Credit Card
Compare
Annual Fee:
$25
Purchase APR:
Prime + 11.90%
Required credit: Poor
Bonus offer: None
Purchase intro APR: N/A
Balance transfer intro APR: N/A
Foreign transaction fee:Â None
Rewards:
If you choose cash back rewards:
Unlimited 1.5% cash back on net purchases
Receive cash back automatically as a credit to your account or to an eligible checking or savings account each quarter
If you choose reward points:
1 point for every dollar spent on net purchases
1,000 bonus points when your company spends $1,000 in a billing period
Redeem points for gift cards, merchandise, airline tickets, and more
10% bonus if you redeem points online
Extra bonus points or discounts from Earn More Mall retailers
As hard as it is to access startup capital when you’ve got average credit, it’s even worse when you’ve got bad credit. That’s where secured business cards like the Wells Fargo Business Secured Credit Card come in.
With the Wells Fargo Business Secured Credit Card, you make a security deposit of between $500 and $25,000. This becomes your credit limit, as you are essentially borrowing from your own money. Not ideal, but when your credit is bad, entrepreneurial beggars can’t be choosers.
If your credit stinks but your startup business is thriving, check out the Brex card instead. But for entrepreneurs with bad credit just getting out of the gate, the Wells Fargo Business Secured card is a solid option in the secured business card market. You can choose to enroll in either the Cash Back or the Rewards Points program. The first option gets you 1.5% cash back on every dollar you spend while the second option gets you 1,000 bonus points when your company’s spending is $1,000+ in any monthly billing period. Not bad for a secured card!
Unfortunately, there’s a $25 annual fee for each card you get (you can add up to 10 employee cards).
What You Need To Apply For A Business Credit Card
Here’s what you’ll need in order to apply for a business credit card.
Your business name — Note that your business doesn’t necessarily have to be a corporation or even an LLC. You sole proprietors and freelancers can just give your own name (or another name if you’ve filed for a DBA)
Your tax identification number — This can be your Employer Identification Number (if your business is a corporation/LLC/partnership) or your Social Security number (if you’re a freelancer/sole proprietor)
Your business type — Corporation, limited liability partnership, sole proprietorship, etc
The nature of the business you’re in — Designing apps, running a restaurant, selling hats for dogs on Etsy, etc.
Your role in the business
Your business phone number/address
Time in business
Number of employees
Annual business revenue — Brand new businesses can just put “$0” here
Your estimated monthly business spending
Remember, though you’re applying for a business credit card, your chances of getting approved will depend to a significant degree on your personal credit, and you’ll have to sign a personal guarantee, thus making you responsible for your business debt. (Note that this is not the case for the Brex card)
Final Thoughts
Great business ideas can come from anybody and anywhere. Unfortunately, startup capital is notoriously hard to access for those who were not born into wealth or privilege. Business credit cards may be an imperfect instrument for entrepreneurs trying to stake their claim to the ever-receding American Dream, but if you’re careful, they can help you manage your expenses and set you up for greater success.
Still trying to make sense of the world of credit? Here are some helpful articles for you!
Doâs and donâts of business credit cards
Best business credit cards for 2019
Using personal cards for business
The post The Best Business Credit Cards For Startups And Entrepreneurs appeared first on Merchant Maverick.
Your credit score is a number that tells creditors and other third parties how risky it is to lend money to you. Did you realize (and not everyone does) that three separate credit bureaus evaluate your credit? Or that there are multiple scoring models used to interpret the data provided by each of these bureaus?
If you own a business, you will likely be working with many different credit providers. So you need a decent understanding of how credit scores work. We’ll guide you through the world of credit scores, how they are calculated, and how you can improve yours.
What Are Credit Scores?
As I said, your credit score, a number ranging from 300 to 850, is used to assess the likelihood that you will repay your debt. This is why banks and other lenders use it to determine whether or not to lend to you.
So just what information goes into determining your credit score?
The number one factor in determining your credit score is your payment history. After all, what better way to determine the likelihood you’ll pay your bills on time than to look at whether or not you have a history of doing so?
Other factors that affect your credit score include:
the amount of time you’ve had credit (the longer, the better)
the types of credit you have (credit cards, mortgages, loans, etc.)
your total debt burden
your credit utilization ratio (your current debt divided by your credit limit)
the number of hard inquiries on your credit report
What Is Considered A âGoodâ Credit Score?
It’s important to note that there is no single official standard for what constitutes a “good” credit score or an “excellent” credit score. Every credit-evaluating institution has its own standards, but there is some general agreement on what constitutes a decent score and what does not.
Merchant Maverick assesses credit scores as such:
Poor: 300 – 579
Fair: 580 – 639
Good: 640 – 739
Excellent: 740 – 850
Why You Have Multiple Scores
You might think that your credit score is one specific score compiled by one scoring institution. However, this isn’t the case.
As it happens, there are three different credit bureaus — TransUnion, Equifax, and Experian — and each one evaluates your credit independently of one another. These credit bureaus gather information about you and your finances while compiling this information into credit reports. By law, you can request a free copy of your credit report from each credit bureau once per year. However, these reports do not actually contain your credit score — just the information your score is based on.
When evaluating you for credit risk, most lenders will check your FICO score. The FICO score was first developed in 1989 by the Fair Isaac Corporation. It uses the data in your credit report from one of the three credit bureaus and assigns you a score based on the FICO scoring model. Just know that your FICO TransUnion score may differ from your FICO Experian score or your FICO Equifax score. That’s because the three credit bureaus may not have the same information about you (a lender may report to one credit bureau but not another). So the FICO scores produced by each set of information may differ a bit.
FICO isn’t the only credit scoring model out there, however. VantageScore is a competing credit scoring model — one used by most free credit score websites. VantageScore weighs your personal financial history somewhat differently than FICO does. Your VantageScore may differ from your FICO score, even when the data comes from the same credit bureau. However, the differences won’t be dramatic (payment history is highly influential in both models). If your VantageScore is in the “good” range, your FICO score is likely to be as well.
Why Your Credit Scores Are Important
For better or worse, your credit scores play a significant role in determining your access to credit. If your credit score falls short of what your potential creditor wants to see, it could imperil your ability to get a mortgage or an auto loan.
Your credit scores not only determine your ability to access credit — they also determine the quality of the credit you can access. For instance, with a poor credit score, you’re likely to qualify for only the most basic of credit cards. These credit cards usually carry higher interest rates than the cards available to those with better credit scores.
Likewise, you’ll be subject to a higher interest rate on a loan if you only have a mediocre credit score than you would with an excellent credit score. Additionally, with a lower credit score, a bank may compel you to make concessions to obtain a mortgage — concessions you wouldn’t have had to make with a higher score.
If you’re running your own business, access to credit is of paramount importance, making it all the more critical that you maintain a decent score!
Next Steps
Now that you know what goes into determining your credit scores and how they can affect your life, how can you track and improve your credit score?
Check Your Credit Score For Free
As I said earlier, you can request a free copy of your credit report from each of the three credit bureaus once a year. However, these reports do not contain an actual score. Thankfully, several websites offer free access to your credit score (typically your VantageScore). These sites may also offer other services, such as credit monitoring, notifications when something new appears on your credit report, credit card recommendations tailored to your particular credit profile, customized advice to improve your credit, and more.
Check out our article on the best free credit score sites to get a thorough rundown of the leading credit score services.
Learn How To Improve Your Scores
Advice such as “pay down your credit card debt” sounds somewhat tin-eared since people tend to take on debt only out of necessity, especially these days. However, the fact remains that doing so is the quickest way to have a positive impact on your credit score. Paying down credit card debt does this in two ways: it reduces your overall debt burden, and it improves your credit utilization ratio. Getting a credit line increase is another action that will boost your credit utilization ratio and, in turn, your credit score.
Another way to potentially improve your credit score is to go over your credit reports and dispute any errors that you might find. Credit bureaus make mistakes — in fact, it’s one of the arguments against their primacy in determining Americans’ access to credit — and it’s not uncommon to see an improvement to your credit score after successfully disputing a mark on your credit report. Unfortunately, there are three different credit bureaus whose reports might contain damaging errors.
Check out our guide to disputing errors on your credit report if you think one of the credit bureaus may be doing you wrong.
Other ways to improve your credit include applying for a new credit card and keeping old accounts open, even if you aren’t using them. Both of these actions positively impact your credit utilization ratio. Just remember, nothing helps your credit score as much as missing a scheduled debt payment will hurt it, so prioritize paying your bills on time over all else.
For more on credit scores and how to improve them, check out the following links!
5 Ways To Improve Your Personal Credit Score
How Long Does It Take To Improve My Credit Score?
Business Credit Scores: The Complete Guide
The post The Complete Guide To Credit Scores appeared first on Merchant Maverick.
