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Bank of America announced the news on Thursday Bank of America Business Advantage Unlimited Cash Rewards. This card is designed for small business owners who want to be rewarded on their purchases with simple cash back and no annual fee.
Additionally, you can increase your cash back earnings with the card by transferring your banking functions to Bank of America and participating in its Bank of America Preferred Rewards for Business program.
Select analyzed the card to help you determine whether or not it is worth a place in your wallet and how you can choose the best business credit card for yourself.
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Bank of America Business Advantage Unlimited Cash Rewards
Earn 1.5% unlimited cash back on all your purchases anywhere, every time.
Get a $ 300 credit when you make at least $ 3,000 in net purchases within 90 days of opening your account.
0% on purchases for nine billing cycles from account opening
12.24% to 22.24% variable APR
Balance transfer fees
Either $ 10 or 4% of the amount of each transaction, whichever is greater.
Foreign transaction fees
The Bank of America Business Advantage Unlimited Cash Rewards is a simple yet effective card that allows business owners to earn cash on their purchases.
As you spend with the card, you’ll earn 1.5% cash back on all qualifying purchases. And when you’re approved for the card, you can earn a respectable welcome offer of a $ 300 credit after spending $ 3,000 on net purchases during the first 90 days of card membership.
Compared to other corporate credit cards, Bank of America Business Unlimited offers a decent rewards rate, but not the absolute best. For example, the Chase Ink Business UnlimitedÂ® earns the same 1.5% cash back on everything, but has a significantly bigger welcome offer, where you can $ 750 after spending $ 7,500 in the first three months after opening the account. The Capital One Spark Cash Plus offers 2% cash back on all qualifying purchases, but comes with an annual fee of $ 199.
However, if you sign up for the Preferred rewards for companies program, you can increase the cash back you earn. Depending on the tier you belong to (determined by the amount of assets you have stored with Bank of America) your rewards will be increased to 1.87%, 2.25%, or 2.62% cash back on all eligible purchases.
The cash back earned with the card can be used in a number of ways. You can simply deposit it into your Bank of America bank or savings account, accept it as a credit card statement, or receive a check in the mail. Best of all, cash back rewards from a rewards credit card aren’t taxable. So anything you win can be pocketed without worrying about a 1099 form waiting for you.
Additionally, the card comes with an introductory 0% APR on purchases for nine billing cycles from account opening (12.24% to 22.24% variable APR after). This is a great feature that you can take advantage of if you need to fund new purchases for your business, like a new computer or an iPhone.
Finally, the card has no annual subscription.
This new business card is almost identical to the recently launched Bank of AmericaÂ® Unlimited Cash Rewards personal card. The Unlimited Cash Rewards Card is a no annual fee card that earns 1.5% cash back on purchases with the possibility of earning a higher cash back rate if you are a Bank of America Preferred Rewards. The card also offers a welcome bonus of $ 200 if you spend $ 1,000 within the first 90 days of opening the account.
How to choose a business credit card
There are dozens of Business credit cards available in the market, but which is the best? Well, there really isn’t a âbestâ business credit card. Every business’s needs are different, which means you’ll need to find a product that matches your spending habits.
As you research, you need to “reverse engineer” your thought process, which means working backwards from your needs. To get started, here are a few questions to ask yourself as you research:
Do you want cash back or travel rewards? If you travel frequently for work or leisure, a business credit card that earns travel rewards and offers many perks such as The American Express Business Platinum CardÂ® may be better suited than the Business Advantage Unlimited Cash Rewards Card.
What is your tolerance for annual fees? Some business credit cards don’t have an annual fee while others have expensive price tags to offset the card’s benefits. Before you start the research, it’s important to know what you’re willing to pay for an annual membership fee.
What are your spending habits? When analyzing your options, pay close attention to how they reward cardholders. Does the card offer tiered rewards for specific spending categories or does it generate a lump sum cash back? One is not better than the other, as it mainly depends on your drinking habits. For example, if you spend frequently at office supply stores, a card like the Chase Ink Business CashÂ® Credit Card is a great option because it earns 5% cash back on the first $ 25,000 per year spent at office supply stores.
Editorial note: Any opinions, analysis, criticism or recommendations expressed in this article are the sole responsibility of the editorial staff of Select and have not been reviewed, endorsed or otherwise approved by any third party.