Credit cards are an integral part of American life. Some consumers use credit cards for every purchase. In fact, the average American now has 4 credit cards.
Due to its individual popularity, credit card ownership extends to businesses as well. Two out of every three small businesses have an active credit card. These businesses account for roughly $430 billion in spending each year.
Not every business credit card is created equal. Credit card companies try to recruit new customers with generous introductory bonus and reward programs. There are many other factors to consider.
Read on for a comparison between the Chase Ink Business Preferred and Brex credit cards. Explore a comprehensive review of each card to help you select the best one.
Chase Ink Business Preferred
The Chase Ink Business Preferred is a popular credit card for small businesses. Continue reading to learn the attractive details behind this credit card.
Annual Percentage Rate (APR)
APR is one of the most important comparison factors when considering business credit cards. The APR determines how much your company will pay in interest on the outstanding balance. The Chase Ink Business Preferred has an APR ranging from 17.49% to 22.49%.
Balance transfers have the same APR range as purchases. The APR on cash advances is 26.49%.
The APR that you receive depends on your company’s creditworthiness. Chase will consider things like payment history and business income to determine the APR.
Fees
Fees are another important factor to consider. Most business credit cards assess an annual fee. For the Chase Ink Business Preferred, an annual fee of $95 is charged for membership.
Both late fees and return payments are charged $39 fees as well. If you transfer a balance, Chase charges either a $5 or 5% fee depending on which one is greater.
Most consumers are happy to agree to these modest fees based on the generous rewards program offered by Chase. There are also no foreign transaction fees for paying in a different currency.
Rewards Program
The rewards program is one of the primary benefits of owning a Chase Ink Business Preferred card. New members can earn a $1000 introductory bonus for travel expenses. The only requirement is spending $5000 during the first three months of card ownership.
The rewards do not end there. Members continue to earn rewards on purchases for as long as the card is kept active.
For every $1 spent, members earn 3x points on various business expenses. These expenses include shipping, social media advertising, travel, and certain utilities.
Other expenses earn 1 point for each $1 spent. Another benefit is that you get a 25% bonus when you redeem points for travel expenses. This means that 40,000 points are worth $500 in travel. Clearly, this is a great benefit for companies that require their employees to travel.
Brex Card for Startups
While Chase has the name recognition, Brex still offers a great charge card to businesses. Below, you will find a comparison between the Brex and Chase Ink credit cards.
APR
The Brex charge card for startups does not charge interest. Instead, the card’s outstanding balance must be paid off in full every month.
There are pros and cons to this structure. The positive is that you are reducing business expenses by eliminating accrued interest charges.
The downside is that your company cannot make deferred payments. With a credit card, your company can pay off equipment or supplies over a longer period of time.
Fees
From a comparative standpoint, the Brex credit card is lighter on fees than the Chase Ink. For example, the annual fee is $0 compared to the $95 assessed by Chase. You also do not have to pay foreign transaction fees.
Rewards Program
The Brex charge card offers a generous rewards program. After you spend just $1000, Brex gives its members 75,000 points as an introductory bonus.
For rideshare expenses, Brex gives members 7% cash back. This perk is good for Uber, Lyft, and any other rideshare services.
For travel expenses, Brex offers 4% cash back. Reward points are earned on both flights and hotel stays. This is 1% higher than the reward points offered by Chase Ink Business Preferred.
At a restaurant, Brex members earn 3% cash back. This is 2% higher than the Chase Ink and a great perk for taking clients out to eat.
Lastly, Brex charge card users receive 2% cash back on recurring software expenses. Software subscriptions, such as accounting programs, are included in this category.
From a comparative standpoint, it is evident that the Brex rewards program is more generous than Chase Ink. This is true for all four of the aforementioned rewards categories. Brex members earn 1% on any purchases that fall outside these four categories.
Brex vs. Chase Ink
As it pertains to the Brex charge card, it seems too good to be true. It seems that the Brex outperforms the Chase Ink in most major categories.
Brex does not assess interest charges or annual fees. It also provides a generous rewards program that far exceeds the Chase Ink over the long-term. Both Brex and Chase give appealing introductory bonuses.
One downside for Brex is that it has strict approval requirements. For example, your company has to be a registered business to receive approval. This means designation as a Limited Liability Corporation (LLC), S-Corp, or C-Corp.
In order to qualify, your business also needs $50,000 in cash or $50,000 in monthly sales. This is a mechanism to mitigate risk as the card needs to be paid in full each month.
Therefore, Brex is more suited for large businesses with a big bank account. The rewards program is exceptional, but the Brex card may not be the right fit for a small business or freelancer.
A Recap of Chase Ink Business Preferred vs Brex Charge Card
Both of these cards are great options for startups and small businesses. After approval, you can look forward to receiving a large introductory bonus. Each card provides generous cash back programs.
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