Divvy Credit Card Review: Spending Controls and Potential for Big Business Rewards
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The bottom line:
The potential for big rewards make Divvy an intriguing option for businesses with consistent spend, but you’ll find fewer restrictions with other business cards.
Pros & Cons
- No annual fee
- Card-level spending controls
- No personal guarantee
- Complicated rewards structure with limits on redemption
- Balance must be paid in full each billing cycle
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Divvy boasts a flashy rewards rate — up to 7x points on restaurants and 5x points on hotels — but the real draw of this corporate card is the spend management platform it’s linked to.
Business owners can set and adjust budgets for each employee card and get a bird’s-eye view of company spending via Divvy’s web and mobile app. You can also attach receipts to individual expenses and automatically categorize spending on specific cards, streamlining expense reports and bookkeeping.
Few business cards match these tools. Divvy’s rewards are a different story.
Divvy has direct integration with QuickBooks Online and plays nicely with other popular accounting software.
The Divvy credit card reserves its best rewards for businesses on a weekly billing cycle. And you need to spend at least 30% of your credit line in a given month to even earn rewards. You can also lose all accrued rewards if you don’t use your Divvy credit card in a given month.
Because of that, Divvy works best when it's your primary business credit card, and it's best suited for businesses with consistent spending and cash flow. Even then, the rewards you earn from Divvy don’t go as far as the rewards offered by other business credit cards.
Card type: Small business.
Annual fee: $0
Recommended credit score: Good to excellent.
Sign-up bonus: None.
Rewards: Base rate of 1 point per dollar spent (1.5 points with weekly payments). Rewards multipliers apply to the first $5,000 in spending per month and apply to the following categories:
Up to 7x at restaurants.
Up to 5x at hotels.
Up to 2x on recurring software subscriptions.
Rewards rate depends on your billing cycle: monthly, semi-monthly or weekly. Other terms apply.
Foreign transaction fee: None.
Free, unlimited employee cards (virtual and physical).
Expense management tools.
Spending insights and forecasting.
How Divvy rewards work
The Divvy credit card has a unique rewards structure, with several spending requirements and other restrictions attached.
Earning rewards: To earn rewards, you need to spend at least 30% of your credit limit in a given month. Cardholders earn a base rate — 1 to 1.5 points per dollar — and can earn up to 7x points in certain bonus categories, but only on the first $5,000 spent each month. Both the base and bonus rates depend on your billing cycle: monthly, semi-monthly or weekly.
Weekly billing cycle
Semi-monthly billing cycle
Monthly billing cycle
Recurring software subscriptions
Consistent spending is important for your Divvy rewards. Spend $0 in one month and you lose all accrued rewards. You also forfeit your points if you miss a payment, close your account within the first year or spend less than $5,000 in each of the last three months of your first year.
Redeeming rewards: You can accrue points during the first year, but you can’t redeem them until you hit the 12-month mark. After that, you can redeem at any point, but the minimum redemption is 5,000 points. Divvy points can be cashed in for statement credits, gift cards, cash back or travel reimbursements (if booked through a travel partner using your Divvy card).
Here’s what 10,000 points are worth, according to Divvy:
Travel: $100 (booked through a Divvy travel partner).
Cash back: $52.
Gift card: $51.
Statement credit: $49.
For comparison, 10,000 Chase Ultimate Rewards earned with the Ink Business Preferred® Credit Card are worth $125 in travel (booked through the Chase portal) and up to $260 when redeemed through transfer partners.
Why you might want the Divvy business card
Spending controls and insights
At its core, Divvy is an expense management platform. The Divvy credit card connects to that platform, giving account holders added control over employee spending. While other corporate cards offer spending controls, this level of integration is unique to Divvy and can give business owners added insight into and control over employee spending patterns.
No personal guarantee
Like other corporate cards, Divvy does not require a personal guarantee. That can offer peace of mind to business owners entrusting employees with company cards — if someone misuses a card or the business fails, you aren’t personally liable for outstanding charges.
While your personal credit score is considered when applying for a Divvy, it’s factored alongside revenue, cash balances, and business history and credit score. Businesses typically need good to very good credit (business credit score and personal credit) and at least $20,000 in a business bank account to qualify.
That’s a lower capital requirement than other corporate cards tied to spend management platforms. The Brex Card, for example, requires $50,000 in a business account ($1 million if self-funded). For the Ramp Card, that threshold is $75,000. Those cards don’t require a personal credit check, however.
Divvy does a soft inquiry on your personal credit, which will not negatively impact your personal credit score.
Why you might want a different card
Complicated rewards program
Divvy’s rewards program is underwhelming and unnecessarily complicated. The base rate — 1 to 1.5 points per dollar — is the minimum you’d expect from a rewards card. While “multiplier” categories add value, you need to be on a weekly payment schedule to get the biggest boost. Plus, multiplier bonuses only apply to the first $5,000 spent each month.
But all of that is moot if you don’t spend enough to earn rewards in the first place. Divvy account holders only earn rewards if they use at least 30% of their credit limit in a given month. And while you can accrue points right away, you can’t use them until you’ve had the card for 12 months. Unlike other business cards, you can lose your rewards if you miss a payment or don’t use your card.
The Ramp Card is a solid alternative for business owners who prefer a simpler rewards structure. This corporate card earns 1.5% cash back on all purchases, with no caps, limits or redemption restrictions — and no risk of losing the rewards you earn.
Limited travel perks
Divvy gives a hint of travel rewards, with up to 5x points on hotels and up to 7x points on restaurants on the first $5,000 spent per month. But frequent flyers and road warriors can net higher rewards and more valuable perks with a true business travel card.
For instance, the Ink Business Preferred® Credit Card earns 3x points on all travel spending, as well as shipping, telecom services and qualified advertising spending. While there is a cap on eligible spending, at $150,000 per year, it’s miles higher than the monthly limit imposed by Divvy.
The Ink Business Preferred does have an annual fee ($95), but it is easily offset by the welcome bonus: Earn 100k bonus points after you spend $15,000 on purchases in the first 3 months from account opening. That's $1,000 cash back or $1,250 toward travel when redeemed through Chase Ultimate Rewards®.
It’s a charge card
Divvy is a charge card, so you can’t carry a balance (and if you miss a payment, you forfeit your rewards). That model is fine for businesses with consistent spending and cash flow, but it’s less than ideal for many startups and companies with irregular cash flow.
Business owners who want more flexibility can look to the American Express Blue Business Cash™ Card, which offers 2% cash back on all purchases (up to $50,000 per year) and has a long intro APR period, ideal for new businesses or those that need to finance large purchases. Terms apply.
Should you get the Divvy credit card?
Businesses with consistent spending and the cash flow to support weekly payments can earn top-tier rewards on hotels and restaurants with the Divvy business card. But if you need more payment flexibility, or have irregular expenses, you’ll find a better match with another business credit card.
Frequently asked questions
Divvy uses your business history, annual revenue, cash balances, and business and personal credit history to determine approval and credit line. Businesses typically need at least $20,000 in a business checking account and good to very good credit scores (business and personal).
The Divvy credit card is a corporate charge card for small businesses. The card is tied to the Divvy spend management platform, so business owners can instantly issue virtual cards, set spending budgets and view overall business spending. Divvy earns rewards that can be redeemed for travel, statement credit, gift cards or as cash back after the first year.
The Divvy credit card is a good card for businesses that have multiple employees purchasing on the company’s behalf. The card doesn’t require a personal guarantee and has an expense management platform that lets business owners set individual and team spending limits and gives insight into overall business spending. Businesses that use the card at restaurants and hotels — and opt for a weekly billing cycle — can reap big rewards from the Divvy business card.