This article is being updated.
Working as a freelancer or operating a small business is challenging, and there are many tough questions you’ll come across. Two related questions you should put a lot of thought into are regarding your finances: What recurring costs do you incur during the course of doing business? And what’s the best way to manage your flow of money?
Luckily, there are many business credit cards out there designed to make your life and your business operate as smoothly as possible. The Ink Business Preferred℠ Credit Card is one of those credit cards, and its benefits can make it an easy choice for the right business owners.
But who benefits the most from this card? Here’s how to know if it could be a good fit for you.
You’re a small-business owner
This is almost a no-brainer, but if you’re getting a credit card with “business” in the name, it’s best suited for common business expenditures. While you’ll be earning points redeemable through Chase Ultimate Rewards® — the same rewards program tied to many other non-business Chase cards — you’ll earn the most points from business expenses.
The following spending categories earn particularly generous rewards: travel, shipping purchases, internet, cable, phone services and advertising through search engines or social media sites. The first $150,000 spent each year toward these purchases earns 3 points per $1.
Keep in mind that you don’t have to have a big business in order to make use of a business credit card. Even if you sell your art at art shows a couple of times each summer or mow the neighbor’s lawn, you technically have a small business. If you think you’ll be able to make enough use of the bonus categories to justify the $95 annual fee, the card is worth taking a close look at.
You travel frequently for business
One of the main ways to earn points on the Ink Business Preferred℠ Credit Card is through business travel. Travel purchases made in that first $150,000 earn 3 points per $1 spent. That includes hotels and plane trips booked for conferences or sales events, cabs and rental cars to help you get around — anything that’s classified as travel, even when you’re not traveling for business.
When redeeming your stockpile of points, this card also offers benefits that help cut costs for your next trip. Any points redeemed through Chase Ultimate Rewards® are worth 25% more when redeemed toward travel. That means the sign-up bonus available for new accounts can be worth $1,000 toward travel.
If you’re already the member of an airline or hotel program that you are loyal to for work travel, you may also be able to rack up points even faster. Chase partners with a number of hotel and airline loyalty programs including United and Hyatt, and you have the option to transfer your points at a 1:1 ratio to those programs.
» Learn more: How to Redeem Chase Ultimate Rewards
You buy digital advertising
A well-placed ad can help any business succeed. Small businesses especially can benefit from digital advertising that targets local potential customers for a lower cost than traditional advertising. Up to the first $150,000 of digital ad buys through either social media sites or search engines made with the Ink Business Preferred℠ Credit Card qualify for 3 points per $1 spent. This includes the major sites like Google AdWords, Facebook, Instagram and Twitter. Wherever your customer base lives, you’ll be able to reach them and earn points back.
You need employee credit cards
If a business partner or trusted employee is making purchases for your business, the Ink Business Preferred℠ Credit Card is a great option. Not only are you able to add additional cards at no cost, but you’re able to set up spending limits on each card. That way whoever has the card can’t overspend by accident and damage your budget. Of course, all purchases made via employee cards will contribute to your growing point totals.
» Learn more: Should I give a business credit card to my employees?
Signs you may want to get a different card
Even though there are some great benefits of the Ink Business Preferred℠ Credit Card, it’s definitely not the right option for everybody. If you fall into one of the categories below, the Ink Business Preferred might not be the right choice for you.
You’re just looking for cash back
You can potentially earn a massive amount of points through the Ink Business Preferred℠ Credit Card, but those points have less value when redeemed for cash back — they’re only worth 1 cent each. If you aren’t interested in managing your points through Chase Ultimate Rewards® or just want cash back, you’re better off looking at one of Chase’s other cards, specifically the Ink Business Unlimited℠ Credit Card or Ink Business Cash℠ Credit Card. Both offer major cash back bonuses instead of points, and both have a $0 annual fee.
» Learn more: The best credit cards for earning cash back
You’re entertaining clients
This depends more on how you’re entertaining clients than anything else. Are you paying for their travel? Then great! That would be eligible for 3 points per $1. Are you taking clients out to dinner or entertaining them at local attractions? Then this may not be the card for you. While this card does earn a standard 1 point per $1 spent on any purchases not outlined above, other cards offer better benefits.
The Chase Sapphire Preferred® Card, while not business targeted, offers 2 points per dollar on travel and dining at restaurants with the same $95 annual fee, while the Chase Sapphire Reserve® earns 3 points per dollar in the same categories but carries a heftier $550 annual fee.
Businesses can easily earn a bunch of rewards points from everyday purchases with the Ink Business Preferred℠ Credit Card. If your expenses line up with any of the categories that earn bonus rewards, this card is a great choice for your business. If not, you may want to look elsewhere to find a credit card that benefits your business.
How to maximize your rewardsYou want a travel credit card that prioritizes what’s important to you. Here are our picks for the best travel credit cards of 2020, including those best for:
- Airline miles and a large bonus: The Chase Sapphire Preferred® Card
- No annual fee: The Wells Fargo Propel American Express® card
- Flat-rate rewards with no annual fee: The Bank of America® Travel Rewards Visa® credit card
- Premium travel rewards: The Chase Sapphire Reserve®
- Luxury perks: The Platinum Card® from American Express
- Business travelers: The Ink Business Preferred℠ Credit Card
Planning a trip? Check out these articles for more inspiration and advice:
Find the best travel credit card for you
Who can apply for a small business credit card?
NerdWallet’s best small business credit cards