Business credit cards provide a great way for small business owners to build company credit and earn rewards. They also are a convenient way to purchase items necessary to grow the business.
But, of course, there’s are a couple of caveats. You must have good personal credit to be approved for a business credit card. And credit card issuers typically require you to personally guarantee the debt.
What are your options if your credit is less than stellar? What can you do if you don’t want to put up collateral as a guarantee to credit card companies?
Enter Brex, a new credit card company that is turning traditional underwriting methods on its head. Keep reading our Brex credit card review to discover everything you need to know about this new business card.
What Is Brex?
The Brex Card for Startups is a new business charge card which operates on the MasterCharge platform. They extend credit to tech startups and offer higher credit limits than most business cards. And they do it all without requiring a personal guarantee.
Brex is a new startup which launched in late 2017. Since then, the company has received $182 million in funding. Key investors include PayPal founders Peter Thiel and Max Levchi.
Brex is quickly making its mark in the payment industry and is currently valued at $1.1 billion.
What Are the Benefits and Fees?
Brex’s Exclusive rewards program gives users more points when they make Brex their only company purchase card. Cardholders then earn points according to the following schedule:
- 7 points per dollar for rideshare/taxis
- 3 points per dollar for travel booked through Brex Travel and restaurants.
- 2 points per dollar on recurring software payments/SaaS
- 1 point per dollar for all other purchases
If you use your Brex card along with other business cards, you will earn a flat one point per dollar for all purchases.
Brex cardholders also receive deals and discounts at numerous outlets. For example, new cardholders receive $150 in Google Ads credit and an Amazon Web Services credit for $5,000. In all, Brex claims to offer over $25,000 in value as sign-up bonuses.
There are no annual fees but if you have more than 5 Brex cards it will cost you $5 per month for every card user.
What Makes a Brex Card Different?
Brex offers a number of differences you likely won’t find anywhere else. Perhaps the biggest difference is that you do not have to personally guarantee your credit card. That means you do not have to accept personal liability for your business debts, as with most credit cards.
Another feature which sets Brex apart is that it doesn’t use your personal credit score as a basis for acceptance. Instead, Brex examines your business finances, including cash flow and company savings, to determine your creditworthiness.
Note that Brex is a charge card. As such, you must pay your balance in full each month and you don’t pay any interest. However, if you fail to pay on time, the balance will be automatically withdrawn from your account.
Should You Get a Brex Card?
You should get a Brex card if your company has a large amount of savings and you don’t mind paying your balance in full. The card is best suited for smaller purchases to build credit and rewards or if you need access to a higher credit limit.
You might not want a Brex card if you are a small business without high cash flow or if you don’t normally spend money in Brex’s reward groups.
Brex Credit Card Review: The Bottom Line
The key takeaway from this Brex credit card review is that the Brex Card for Startups is actually a charge card. As such, you will pay your bill in full each month and avoid paying interest charges.
The card provides an excellent way for small business owners to build credit, earn rewards, and enjoy hefty sign-on discounts and credits.
The best part is, your creditworthiness is determined by your business financials and not your personal credit score.
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