As a multinational investment bank and financial services provider, Chase has been a major player in the lending game for centuries. In 2000, the bank merged with JP Morgan and evolved into what it is today.
While I usually endorse smaller community banks and credit unions for their flexible business loan and credit card underwriting requirements, today I want to share everything I know about the Chase Ink Business Preferred card — it’s definitely worth learning more about.
Here’s what we’ll cover:
- Chase Ink Business Credit Cards Overview
- Chase Ink Business Preferred Under the Microscope
- Does Chase Report to D&B?
- Chase Ink Business Preferred Card Benefits
- Chase Ink Business Preferred Preferred Card Downsides
- How to Apply for a Chase Ink Preferred Card
- Chase Ink Business Preferred Competitor Overview
- Final Thoughts
Chase Ink Business Credit Cards Overview
Chase Ink Business Preferred is one of three Ink Business Visa credit cards offered through Chase, each of which have their own set of rewards.
- Chase Ink Business Unlimited – Earn unlimited 1.5% cash back and up to $750 bonus cash back.
- Chase Ink Business Cash – Earn up to 5% cash back in select categories and up to $750 bonus cash back.
- Chase Ink Business Preferred – Earn up to 100,000 bonus points equal to $1,000 cash back or $1,250 in travel rewards.
Chase also offers travel rewards cards for Southwest and a United travel reward card. For now, I want to share a quick side-by-side comparison of the three Ink cards before diving deeper into the Business Preferred card.
With Chase Ink Business Preferred, 1 point is equal to roughly 1 cent cash back or 1.25 cents worth of travel rewards. For businesses with higher spending, because of the higher reward caps, Preferred is the Chase Ink card to strive for.
How to Upgrade an Unlimited or Cash Card to a Preferred Card
When you meet the qualifications for a Chase Ink Preferred card, you may be able to upgrade an existing Unlimited or Cash card. Your Unlimited or Cash card must have been open and in good standing for at least a year and you will need to pay the $95 annual fee.
Furthermore, when you make a product change, you won’t be eligible for the sign on bonus for new Preferred cardholders.
To upgrade, simply call Chase using the phone number on the back of your card and ask for an account review or contact the company via the secure messaging platform inside your account dashboard.
Chase Ink Business Preferred Under the Microscope
Now, let’s take a closer look at the pros and cons of the Chase Ink Business Preferred Card. We’ll start with credit reporting, since that’s the lifeblood of what we do here at Business Credit Workshop. Then, we’ll explore more about the benefits of using a Chase Ink Preferred card and when it might be better to try other channels for business cash flow.
Does Chase Report On-Time Business Credit Card Payments to Dun & Bradstreet?
Dun & Bradstreet (D&B) is the monarch of business credit reporting agencies. While there are rumors floating around online credit forums that Chase doesn’t report to to D&B, this simply isn’t true.
The fact is that Nav — a highly reliable source — reached out to the major banks late last year to see which ones report payment activity to business credit bureaus. They found that Chase and Citi are the only big banks in the United States that report business financing payment activity to all four of the top bureaus (D&B, Equifax, Experian, and SBFE).[Image Source: Nav]
So, on-time payments and responsible credit use on a Chase Ink Business Preferred card can help you improve or maintain your business’ PAYDEX score.
Recommended: Everything You Need to Know About a DUNS Number
Chase Ink Business Preferred Card Benefits
Some of the perks of using a Chase Ink Preferred card are summarized above. Now, let’s explore them further.
Telephone Damage and Theft Protection
If you pay your business phone bill with a Preferred card, you will be eligible for up to $600 per claim on damage and theft for you and your employees. This is a standout feature not offered by competitors’ credit cards. You will be eligible for up to three such claims per year, which will have a $100 deductible.
Free Employee Cards
Once your account is approved, you can get employee cards at no cost. For each card, set spending limits to control your budget. All rewards will pool into the master account. This means that employee spending on a company Chase Ink Preferred card will count toward your bonuses and points.
Auto Rental Collision Damage Waiver
When you rent a car and pay with your Business Preferred card, you don’t need to purchase insurance, because Chase automatically has you covered with damage protection up to the actual cash value of the vehicle. This can save you quite a bit on business travel, especially when multiple employees rent cards when traveling for business.
Trip Cancellation/Interruption Insurance
For prepaid, otherwise non-refundable travel fare, tours, and hotels, you won’t have to worry about losing your money if you need to cancel or delay a trip. When you pay for travel expenses using your Preferred card, they’re insured up to $5K per person and $10K per trip. Sickness, severe weather, and other covered reasons are covered when you need to take advantagee of this perk.
Purchase Protection and Extended Warranties
If you buy a product with your Preferred card and it is stolen or damaged within the first four months after purchase, Chase will compensate you up to $10K per claim and $50K per account. This neans that you don’t need to insure every single item that you buy, instead, hold onto your receipts (or just keep track of transactions in your online account dashboard).
Furthermore, any item that you buy with your Preferred card with a three year or less warranty, will be warrantied for an additional year. For example, if you were to purchase a computer with a two year warranty using your card, Chase would extend the warranty to three years.
Transferable Points & Rewards That Never Expire
As long as your account is open, you can redeem rewards points at any time. This means that you can save up points for years before you spend them. Furthermore, you can transfer your points at a 1:1 exchange with leading frequent flyer programs.
100K Chase points are worth around $1K and 80K Chase points are worth roughly $800 when used in the Chase Ultimate Rewards program dashboard. Be sure to find out if your points will change in value when transferred since points/miles’ value can vary between programs.
Login to your Chase Ultimate Rewards program dashboard or check with your frequent flyer program to find out for sure if your points would be transferrable — not all travel programs have a partnership with Chase.
Chase Ink Business Preferred Preferred Card Downsides
As with most business credit cards from big banks, the Chase Ink Preferred Card does come with notable fees. Your APR on spending will range between 15.99% and 20.99%. We’ve reviewed cards from credit unions and community banks, as well as alternative modern funding sources, with interest rates below 10%, but they don’t typically offer the same level of rewards as the Preferred card.
And, you will pay a $95 annual fee to maintain your account. This means that if you don’t plan to redeem your rewards, even if you pay your account in full every month to minimize interest payments, you could be out at the end of the year. However, an annual fee is typical of rewards cards in this tier. Amex, for example charges much higher annual fees than Chase.
How to Apply for a Chase Ink Preferred Card
Before you apply, you must meet Chase’s requirements for this card. In addition to a 688+ FICO score (some recommend 700 to 740 and above), there are a handful of minimums you must meet.
- Less than 5 new credit cards opened in the past 24 months (Chase’s 5/24 rule)
- No new Chase cards opened in the past few months
- Enough income/spending power to warrant a line of credit
- A credit utilization ratio below 30%
Even if your credit is excellent and you meet all of the above requirements, there is not a guarantee you’ll be approved. But, if you can show these characteristics, your business is likely to appear less risky to the underwriters. And, you may up the odds if you have a Chase business checking account in good standing. If you’d still like to proceed, you can visit this page and sign in to apply or apply as a guest. If you’ve received an invitation to apply, visit getchaseink.com.
Chase Ink Business Preferred Competitor Overview
The Chase Ink Business Preferred credit card, of course, has some competition in the marketplace. Amex Platinum and Capital One Spark are often considered by medium to high-earning small businesses looking for this type of rewards on spending. And, one of the alternatives might be a better fit for your situation.
So, let’s look at a summary of Chase Ink Preferred, Amex Platinum, and Capital One Spark next to one another to see the differences.
In addition to what’s listed above, none of these cards have foreign tansaction fees. They provide various trip cancellation and delay insurance and reimbursement. And, they all have
The Amex Platinum card certainly comes with the most benefits, but there’s a trade-off with the $550 annual fee, more than five times that of its competitors. If you only take advantage of the Fine Hotels & Resorts Perks,™ that cost will be covered.
The Chase Ink Business Preferred card is acclaimed as one of the best small business credit cards, likely because of the huge sign on bonus. While you won’t get 0% APR and you will pay an annual fee, there’s still a lot of potential for savings and rewards here. If you think you business can meet the qualifications, I say go ahead and apply.
And, if you still need to learn how to build business credit and you want to learn to obtain $100K in business credit, join Business Credit Workshop today.