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Bank of America announced on Thursday the new 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.
In addition, you can increase your cash-back earnings with the card by switching 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 determine whether or not it is worth a spot in your wallet, and how you can pick the best business credit card for yourself.
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Bank of America Business Advantage Unlimited Cash Rewards
Earn unlimited 1.5% cash back on all purchases everywhere, every time.
Get a $300 statement credit when you make at least $3,000 in net purchases within 90 days of your account opening.
0% on purchases for nine billing cycles from account opening
12.24% to 22.24% variable APR
Balance transfer fee
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 for business owners to earn cash back on their purchases.
As you spend on the card, you will earn 1.5% cash back on all eligible purchases. And when you are approved for the card, you can earn a respectable welcome offer of a $300 statement credit after you spend $3,000 in net purchases in the first 90 days of card membership.
Compared to other business credit cards the Bank of America Business Unlimited offers a decent rewards-earning rate, but not the absolute best. For example, the Chase Ink Business Unlimited® earns the same 1.5% cash back on everything, but has a glaringly larger welcome offer, where you can $750 after spending $7,500 in the first three months after account opening. The Capital One Spark Cash Plus offers 2% cash back on all eligible purchases but comes with a $199 annual fee.
However, if you enroll in the Preferred Rewards for Business program you can increase the cash back you earn. Depending on which tier you fall into (determined by the amount of assets you have stored with Bank of America), your rewards will be boosted to 1.87%, 2.25% or 2.62% cash back on all eligible purchases.
The cash back earned from the card can be redeemed in several ways. You can simply deposit it into your Bank of America checking or savings account, accept it as a card statement credit or have a check mailed to you. And the best part is that cash back earned from a rewards credit card is non-taxable. So everything you earn can be pocketed without worrying about a 1099 form headed your way.
In addition, the card comes with 0% intro APR on purchases for nine billing cycles from account opening (12.24% to 22.24% variable APR after). This is a great feature to take advantage of if you need to finance any new purchases for your business, like a new computer or iPhone.
Lastly, the card does not have an annual fee.
This new business card is almost identical to the recently-launched personal Bank of America® Unlimited Cash Rewards Card. The Unlimited Cash Rewards Card is a no-annual fee card that earns 1.5% cash back on purchases with the ability to earn a higher cash-back rate if you're a Bank of America Preferred Rewards member. The card also offers a welcome bonus of $200 if you spend $1,000 within the first 90 days of account opening.
There are dozens of business credit cards available on the market, but which is the best? Well, there isn't really a 'best' business credit card. Every businesses' needs are different, which means you'll need to find a product that fits to your spending patterns.
As you search, you should 'reverse engineer' your thought process — which means to work backwards from your needs. To start, here are a few questions to ask yourself as you search:
Do you want cash back or travel rewards? If you travel frequently for either work or leisure, a business credit card that earns travel rewards and has ton of travel perks like The Business Platinum Card® from American Express may be a better fit than the Business Advantage Unlimited Cash Rewards Card.
What's your annual fee tolerance? Some business credit cards have no annual fee while others have costly price tags to compensate for the card's benefits. Before you start searching, it's important to know what you are willing to pay for an annual fee.
What are your spending habits? As you are analyzing your options pay close attention to how they reward cardholders. Does the card have tiered rewards for specific spending categories or does it earn cash back at a flat-rate? One is not better than the other, as it mainly depends on your spending habits. For example, if you spend frequently at office supply stores, a card like the Chase Ink Business Cash® credit card is a great option as it earns 5% cash back on the first $25,000 per year spent at office supply stores.
The Bank of America Business Advantage Unlimited Cash Rewards is a solid option for business owners aiming to earn straightforward cash-back rewards and don't want to worry about paying an annual fee. However, if you decide to get this card, it would be worth looking into the Business Preferred Rewards program through Bank of America to enhance the rewards you earn.
If this card isn't the right fit for you, there are several other no-annual-fee business credit cards to consider. But most importantly, before you select any card, be sure your business' and personal credit score is up to snuff so you can heighten your chances of approval.