The new Chase Ink Business Preferred Credit Card is a smart business-oriented charge card used by financially conscious business owners. Many other business credit cards are beneficial, however, the Chase Ink Business Preferred Credit Card is quite advantageous for business owners with large expenses related to shipping, advertising or travel.
The Chase Ink Business Preferred Credit Card – Highlights from the Fine Print
- This business charge card’s annual fee is $95. Before you balk at this fee, carefully consider some of the amazing benefits this card offers, noted below.
- There are No Foreign Transaction Fees. A cardholder would save $150 in foreign transaction fees if they spent about $5,000 internationally.
- The Annual Percentage Rate (APR) varies between 16.99% and 21.99%; depending upon factors like economic indices & conditions, or the cardholder’s current credit profile.
- One-time bonus – Cardholders will receive 80,000 bonus points when they charge at least $5,000 during the first 3 months of account ownership. This bonus is equivalent to about $1,000 in travel rewards when redeemed with the Ultimate Reward Program offered by Chase.
- Rewards Galore – Earn triple points (3X) when spending (up to $150,000) in select business related categories like phone and cable services, shipping, travel, internet and advertising, etc. Earn one point for each $1 spent for all other expenditures. Each point is valued 25% higher than its face value if redeemed through the Chase Ultimate Rewards program. Points can be used through Chase’s program or transferred to hotel and airline business partners:
- The Ritz-Carlton Rewards®
- Marriott Rewards®
- IHG® Rewards Club
- World of Hyatt
- Southwest Airlines Rapid Rewards®
- United MileagePlus®
- Virgin Atlantic Flying Club
- British Airways Executive Club
- Singapore Airlines KrisFlyer
- Iberia Plus
- Korean Air SKYPASS
- Flying Blue AIR FRANCE KLM
Let’s review the details and benefits of the Chase Ink Business Preferred Credit Card.
First, and Foremost
Chase’s Business Preferred Credit Card, as its name suggests, is available for business use ONLY. Stellar credit and impressive income amounts will not guarantee an approval if the charge card applicant is not a business owner. The term ‘business,’ for the purposes of applying for this card, is applied rather loosely.
A ‘business’ with regards to this credit card is anything activity or service that generates a profit. The card’s eligibility also includes business-like activities that are done with a reasonable intention to turn a future profit. Examples include:
- An Etsy or Ebay shop owner
- A Student Tutor
- A Freelance Designer
- A part-time Uber Driver
- An arts and crafts seller at the local farmer’s market
Required Credit Profile Criteria
Approval Requirements for the Chase Ink Business Preferred Credit Card are stricter and more rigid than other business credit cards. Applicants with Excellent Credit are the target market for this charge card with awesome business benefits. This translates to credit scores that are 720 or higher. It is noted that some applicants with 700 scores may be approved should their overall credit profile offer strong compensating factors.
Remember, though, that a charge card applicant’s approval is not only based upon credit, but several other important credit-usage factors.
- An applicant with many open lines of credit (credit cards) typically reeks of credit mismanagement, or a business owner opening a lot of credit cards to receive one-time discounts. These patterns conflict with Chase’s objective of building loyal relationships with their customers.
- The 5/24 Rule – The applicant’s credit report must not disclose that the applicant has opened more than 5 credit cards in the previous 24 months. If this occurs, the applicant will not be approved for the Chase Ink Business Preferred Credit Card. This is one of the fundamental reasons that applicants are rejected.
- Credit Utilization Ratios – These calculations reflect a credit applicant’s use of credit cards. In other words, credit utilization ratios reveal the mismanagement of credit limits, and card usage.
- Too Many Inquires – Inquiries on a cardholder’s credit may be present for all the right reasons, but most creditors view too many inquiries in a negative light.
- Existing Relationships with Chase – Accounts in good standing with Chase at the time of application for the Chase Ink Business Preferred Credit Card, can be helpful towards an approval. Open a business checking account is also a good idea.
What to Do Your Application is NOT Approved?
Chase maintains what they call the ‘Reconsideration Hotline’ (888-270-2127) This is the area in the credit card company where an applicant to appeal the decision and have time to explain situations in their credit history that may be perceived as negative. Remember:
- Be polite
- Offer additional info to support your position
- Explain how the card is to be used
- Clarify why an account has been recently opened or why there are too many inquiries
In the meantime, begin to improve your business’ credit profile to gain an approval from Chase:
- Pay down existing balances
- Avoid late payments
- Avoid opening new accounts
- Open a business checking account with Chase
Additional Benefits Offered by the Chase Ink Business Preferred Credit Card
- Roadside Assistance – For automobile emergencies call 800-847-2869.
- Insurance for Trip Interruption or Cancellation
- Cell Phone Protection – $600 per cell phone claim protection for damage or theft. The annual maximum for claims is 3 per 12 month time period.
- Auto Rental Collision Damage Waiver – No need to pay for collision insurance from the rental car company when renting a car.
- Purchase Protection – purchases are covered for a maximum of 120 days – up to $10,000/claim.
- Extended Warranty Protection – This protection extends the a United States Manufacturer’s warranty by one year, for original warranties that were less than 3 years.
- Employee cards at no additional cost.
Ways in Which to Redeem Rewards
Gift Cards – There are over 70 gift card options.
Cash Back – Redeem the rewards as a statement credit or have it directly deposited into a savings or checking account. There are no minimums to redeeming rewards as cash.
The Chase Ink Business Preferred Credit Card is a somewhat difficult credit card to obtain, but the rewards offered are so worth the effort. The two most prevalent factors for approval are the applicant’s credit score and their ownership of a for-profit business. Remember, if at first you do not succeed, re-apply when your credit profile is stronger.
Still undecided or unsure? Business Financing Hub is a helpful resource that helps fine-tune a future borrower’s thinking. Check out their Business Financing Hub’s website for further consumer assistance and convenience.