The Divvy card has been making waves as a high-tech, free, business credit card. And, as I’m about to show you, it’s even better than that. This business funding solution offers powerful budgeting software, virtual cards, rewards, and more. But, do they truly deliver on all of their promises, and is a BILL (formerly Divvy) credit card right for you?
Here, you’ll find the answer. Let’s explore the following:
- What is a Divvy Card?
- How Does a Divvy Card Work?
- Divvy Card Customer Service
- Divvy vs Ramp vs Brex vs Stripe Capital
- Answers to Common Questions
- Takeaway: Should You Get a Divvy Card?
(Note: Read to the end before you apply for a Divvy credit card.)
What is a Divvy Card?
The Divvy Visa offers fast and flexible business credit for “all-sized companies.” There are a handful of edges this card has over most of its competitors:
- A user-friendly platform for expense management, budgeting, and bill-pay
- The Divvy virtual card offers a modernized credit solution
- More frequent payments lead to higher bonus rewards
- All services are free for the cardholder (Divvy used to charge for reimbursements — Those fees are gone)
Since they don’t charge the usual fees to cardholders, Divvy makes money by taking a portion of transaction fees charged to the merchant for each purchase.
When you hear the name, Divvy, you might think of the bike subscription service, stock purchase product, or homebuyer program. The Divvy business credit card is an unrelated offer.
Divvy Credit Card Requirements
While the talking points above are genuinely exciting, this card (like all financial services) has it’s pitfalls for some people. In the past, Divvy was somewhat elusive about their qualification requirements, but they have shared some things about what makes a successful applicant.
- At least $20K in an active bank account
- A “good” to “very good” credit score
- Based in the United States
Revenue and time in business requirements vary from applicant to applicant.
Divvy Credit Card Limit
Divvy’s credit card limit is $15 million and based on your business cash flow. The system’s algorithm determines the amount that you are likely to be able to afford in full each month, which is usually about ⅓ of your monthly revenue. If you’re offered a lower limit initially, credit limit increases are offered after consistent on-time payments.
Divvy App Overview
Android users seem to love recent updates to the Divvy app. In the beginning, the app rating wasn’t so high, but Divvy listened to early user complaints to enhance their mobile features to most cardholders’ liking.
Now, let’s dive deeper.
What to Expect When You Apply for a Divvy Card
Your first step on the path to a Divvy account will be to check out the demo or to apply for business credit. The application process is pretty thorough yet easy.
You’ll be asked to provide banking information, income, and details about your business to determine the amount of credit you can qualify for. I love their application process because it leaves no stone unturned and gives you the option to include documentation upfront for a faster decision. But, I was so excited that I didn’t want to wait the three days it took to hear back from an account manager.
The system needs to analyze transactions from at least one business checking account to verify your income. You may use information from multiple bank accounts.
The platform will then average your monthly deposits and offer you a credit limit of roughly 30% of that amount. This is a charge card, which means you can’t carry a balance on a Divvy card — you’ll be required to pay the account in full each month.
So, Divvy doesn’t look at your credit score to qualify you. Instead, your spending limit is based on business bank deposits.
In some cases (maybe if you have overdrafts on your business accounts in the past couple of years or show other high-risk spending behavior), you might be asked for a cash deposit to back your initial credit line, which is common practice for secured credit lines.
Note that even if an applicant is denied a line of credit with Divvy, they’re typically given a pre-paid option so that they can still access all the benefits of the Divvy software, which is the core product.
Once approved, it might take a couple of weeks to get your card, but it’s worth the wait.
How Does a Divvy Card Work?
If you qualify for a Divvy account, in addition to a new line of business credit, you’ll get access to some helpful tools. Learn more about their exclusive spend and expense management, AP automation, virtual card(s), and above-average rewards.
1. Divvy Spend & Expense Management
Divvy’s spend and expense management platform can help you take control of business and employee finance, and within specific categories. Most users agree that this is a standout tool for corporate and small business budgets.
How does Divvy’s budgeting software work?
- Assign each employee a card with a budget
- Limit staff budgets on a case-by-case basis
- Enable budget increase requests for unexpected expenses
- Automatically categorize spending
- Enable spenders to upload receipts in the app
- Access spending reports in real-time
So, what’s the downside? To leverage these tools for free as the website assures, you need to spend at least $5K of your Divvy credit each month. So, lower budgets might not qualify.
I recommend you talk to an account manager to help you customize the platform for your needs. For example, you can allow or disallow features that you need and don’t need such as receipt photo uploads. Doing so, you can get a fully personalized experience.
Another key detail about the system is that payments owed will be automatically withdrawn on your due date, the same day a statement is generated. Some users complain that they would like to see more flexibility including payment grace periods and more time for invoice review.
2. Bill.com Accounts Payable Automation
In addition to spend and expense management in the Divvy dashboard, cardholders can leverage Bill’s AP automation technology to streamline their entire accounts payable process.
- Import or manually enter your recurring and one-time bills
- Simplify your payment approval procedures
- Automate payments via ACH, credit card, check, or wire transfer
- Sync with your budgeting software
Of course, the AP automation system from Bill is designed to work effortlessly with Divvy’s platform, but it can also be used as a standalone service.
3. Divvy Virtual Cards
In addition to your physical card, each user can access virtual cards on their mobile device. Instead of a carbon copy of their original card, virtual cards act as a “burner credit card.” These can be particularly helpful for temporary subscription offers where a staff member could forget to cancel their account at the right time.
They’re also handy for high-risk situations wherein a card could be compromised.
Rather than wait a week or more for a new card or multiple cards to arrive in the mail, users can generate a new, 16-digit card number to use immediately for purchases. Plus, virtual cards can make the general business spending experience super secure.
4. Divvy Card Reward Points
Reward points on Divvy card spending have three tiers. Each tier is based on how often the credit is paid off and earned points increase with frequent payments.
- Weekly Rewards
- 7X on restaurants
- 5X on hotels
- 2X on recurring software subscriptions
- 1.5X on everything else
- Semi-Monthly Rewards
- 4X on restaurants
- 3X on hotels
- 1.75X on recurring software subscriptions
- 1X on everything else
- Monthly Rewards
- 2X on restaurants
- 2X on hotels
- 1.5X on recurring software subscriptions
- 1X on everything else
Rewards can then be spent on Divvy travel, gift cards, a statement credit, or cash back.
$1,500 in restaurant spending for an account paid weekly can earn card users roughly $100 for travel, $51 for gift cards, $49 for statement credit, or $52 cash back. And, that’s not all…
Card users can leverage partner discounts. While these are likely to change, right now the cardholder sign-on bonus is a 2-year, $25,000 credit for AWS Activate. Users can also get $150 off Google Ads, $15 off any print order with FedEx Office, $50 off a phone at Verizon, and many other discounts when they pay with their card.
Divvy Card Customer Service
The customer service at Divvy gets mixed reviews. I know that front-end communication is automated through Intercom.™ One of the impressive features of this platform is that customers get access to their entire conversation, without logging in, from the company’s main website.
So, you know that the customer service team has access to these conversations as well, which is nice. Plus, Divvy’s help center is a pretty extensive knowledge base designed to help users with everything from managing cards to reimbursements and more. You can also email firstname.lastname@example.org or call 385-352-0374 to leave a message with a representative.
Divvy vs Ramp vs Brex vs Stripe Capital
While Divvy claims to have no fees, some users have reported foreign transaction fees, which Brex and Stripe don’t have. The lack of transparency on this front might indicate a few similar surprises down the road.
And, while Stripe and Brex don’t have the same level of built-in advanced expense tracking as Divvy, they provide other standout features. For example, Brex can be used like a bank account with no ACH transfer fees and Stripe enables you to see your business income and expenses in one unified dashboard.
Answers to Common Questions
Does Divvy report to credit bureaus?
Another awesome feature of Divvy is that they do report on-time payments to the Small Business Financial Exchange (SBFE). The SBFE then reports your payment behavior to Dun & Bradstreet, Equifax, Experian, and Lexis Nexis Risk Solutions.
What kind of card is Divvy? Credit card or charge card?
Divvy is a corporate credit card, which means that payments are made in full shortly after the funds are used.
Is Divvy a line of credit?
As a corporate card, Divvy offers credit, but the terms are not revolving, and used funds must be repaid in full each billing cycle.
Do you have to pay Divvy in full?
Yes, all payments must be made in full, since Divvy does not offer revolving terms.
Is Divvy a Visa or Mastercard?
The Divvy card is powered by Visa.
What bank does Divvy use?
Divvy issues cards in partnership with Cross River Bank out of Ft. Lee, New Jersey. The bank was founded in 2008 and is a subsidiary of CRB Group, Inc.
How much money do you need for Divvy?
Your business deposits should exceed $5k per month to qualify for a Divvy card.
What credit score is needed for a Divvy card?
Divvy cards do not require a personal guarantee, so there’s no minimum FICO score qualification. However, Divvy states that users should have a good to excellent credit score to qualify. And, they report accounts to business credit bureaus, so you can build your business credit score with responsible payments.
Does Divvy check your bank account?
Yes. During the application process, Divvy looks at historical deposits made to your business bank account when determining whether you are eligible for credit. They require a minimum of $5k in monthly revenue.
Can you withdraw money from a Divvy card?
No, you can’t draw a cash advance on a Divvy card, nor can you withdraw funds out of a Divvy account from an ATM.
Takeaway: Should You Get a Divvy Card?
Like all financial offers, Divvy has its own set of pros and cons. So, if you’re wondering if you should take advantage of the offer, ask yourself the following:
- Does your monthly business spending exceed $5K?
- Does your business employ multiple staff members with spending privileges?
- Are you able to pay your expenses in full each month?
If you answered “yes,” the Divvy credit card could be great for you. I love this card, and do recommend you check it out. So, sign up now to view the credit line you could qualify for.
And, if you’re interested in learning how you can obtain up to $100K in business credit in as few as 30 days, join Business Credit Workshop today.