Editor’s Note: This is a recurring post, updated regularly with new information and offers.
Inc. Business Preferred Card Overview
*Card ratings are based on the opinion of TPG’s editors and are not influenced by the card issuer.
The Inc. Business Preferred Credit Card is a TPG favorite.
While there are many business credit cards, the Ink Business Preferred has unique benefits that make it attractive to business owners looking to maximize their earning potential and unlock valuable rewards through the Ultimate Rewards program.
The card has an annual fee of $95, making it very affordable for most people. For the best chance of approval, you want a credit score of at least 670.
Let’s take a closer look at Ink Business Preferred so you can decide if it’s right for your business.
Inc Business Preferred Pros and Cons
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Inc. Business Preferred Welcome Offer
Bonus points alone are worth $2,460, based on TPG’s July 2024 valuation, mainly because points are transferable to a variety of travel partners, including British Airways, United Airlines and Hyatt.
To unlock the welcome offer, you’ll need to spend an average of $2,667 per month in the first three months. For many small businesses, this level of expense may be a non-issue. In addition, small businesses with multiple employees can request unlimited free employee cards to meet spending needs.
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However, freelancers or those who want a business credit card to earn rewards on expenses related to a side gig may not really hit the bonus. And you don’t want to violate TPG’s sixth commandment for credit cards: You don’t miss out on sign-up bonuses.
Read more: How to meet the minimum spend on Ink Business Preferred
Inc. Business Preferred Benefits
The earning rates and redemption options alone make this an interesting card, but you’ll get several additional benefits that make it even more valuable. Here’s a quick rundown:
- Cellphone security: If you’re prone to damaging your cellphone, the Ink Business Preferred may be the best card for you. When you charge your monthly cellphone bill to the card, you and eligible employees on the plan can get up to $600 per claim for cellphone loss or theft. You are limited to three claims in a 12-month period and must pay a $100 deductible per claim. Still, this is a great perk that’s relatively rare among credit cards.
- Purchase protection: In addition to cellphone protection, you are covered for other purchases. If an eligible item is damaged or stolen within the first 120 days of purchase, you’ll be covered up to $10,000 per claim ($50,000 per account). I’ve luckily never had to use this kind of perk, but it can be a lifesaver if something goes wrong with that new purchase.
- Trip Cancellation/Interruption Insurance: If you must cancel or cut short a trip due to a covered issue (such as illness or severe weather), you’re eligible for coverage of up to $5,000 per person for prepaid, non-refundable travel expenses, providing peace of mind. . Unexpected problems arise.
- Compensation for trip delay: If a covered trip is delayed by a covered peril for 12 hours or more – or long enough to require an overnight stay – you may be eligible for compensation of up to $500 per ticket in reasonable expenses. This can save you in situations like bad weather, where the airline usually doesn’t offer any compensation. Note that you only need to charge a portion of your common-carrier fare to the card to use this benefit, so if you put taxes and fees on the card you’ll be covered on the award ticket.
- Primary car rental coverage: Renting a car can be a risky (and expensive) proposition, but if you use the Inc. Business Preferred Card for the entire rental cost and are traveling for business purposes, you’re in the U.S. And will be covered for theft and damage in most surrounding countries. the world Keep in mind that this does not provide liability coverage, but you are covered up to the actual cash value of the vehicle you are renting.
- Extended Warranty Protection: The US Purchases with a manufacturer’s warranty of three years or less will get coverage for an additional year. This can be extremely helpful when an item stops working shortly after its scheduled warranty has expired.
The Ink Business Preferred also offers a variety of business tools, including account insights, bookkeeping integration and account alerts. The most valuable benefit of this card is still probably cellphone protection. Many cards don’t offer this benefit, and considering Ink Business Preferred offers 3 points per dollar on phone services, it’s a win-win.
Ink Business doesn’t offer much in the way of preferred travel credits, lounge access, or other luxury benefits that competitors have, such as The Business Platinum Card® from American Express with its $695 annual fee (see Rates and Fees). However, for an annual fee of just $95, this card offers great value to cardholders.
Related: Is the Royal Business Worth the Annual Fee?
Earning points preferred over ink business
When it comes to earning points, the Ink Business Preferred offers a variety of bonus categories that can be very attractive to small-business owners. You’ll earn 3 Ultimate Rewards points per dollar spent on the first $150,000 in combined purchases each year in the following categories:
- journey
- Buy shipping
- Internet, cable and phone services
- Buy ads through social media sites and search engines
This $150,000 threshold is based on your account anniversary year, so it will reset each year when you renew your card. TPG’s July 2024 valuation shows a Chase Ultimate Rewards point worth 2.05 cents, so you’ll get an amazing return of over 6% on purchases in this category. And if you max out these categories by spending the full $150,000, you’ll take home a total of 450,000 Ultimate Rewards points, a TPG value of $9,225.
Once you exceed that mark, your purchases in the above categories will match the earning rate of all other purchases: 1 point per dollar spent. While that’s not too exciting, you’re still looking at over 2% returns, which isn’t bad for a card with a $95 annual fee.
Related: Is the Royal Business Worth the Annual Fee?
Redeeming points preferred on Ink Business
Earning a big haul of points is one thing; Redeeming them for maximum value is an entirely different story. As with most cards that earn transferable points, you get the most value when you redeem yours Inc. Business Preferred Rewards for travel by transferring to any of Chase’s 14 hotel and airline partners or booking travel directly through Chase Travel.
You can redeem these points at a flat rate of 1.25 cents for travel purchases you book through Chase Travel, such as flights, hotels and rental cars. Or, if you have a Chase Sapphire Reserve®, you can transfer your points to that card and redeem them at a flat rate of 1.5 cents for travel.
Although you’ll get less than the 2.05-cent valuation of TPG’s Ultimate Rewards points with this redemption option, it’s easy and doesn’t require much effort. Remember that when you redeem Ultimate Rewards points directly for airfare, you’ll get the full miles and Elite credit, just like you would on a regular paid ticket. However, this is not usually the case with hotel bookings.
Related: Should you book directly or through a portal?
Preferred to transfer points on Inc business
You also have the option to transfer your points to any of Chase’s 14 hotel and airline partners. You’ll get the most value from your points by going this route, thanks to such strong transfer partners Air France-KLM Flying Blue, United MileagePlus and World of Hyatt.
Additionally, most of these transfers are posted immediately, ensuring you’re not stuck waiting for points or miles to arrive and miss out on the redemption you want.
TPG Credit Cards editor Emily Thompson likes to maximize her Ultimate Rewards points by transferring them to Southwest Rapid Rewards to take advantage of their flash sales to get the best value on domestic flights.
Regardless of the partner you choose, the strength of the Ultimate Rewards program (and really any transferable points currency) is the flexibility it allows. You’re not locked into a single airline or hotel rewards program, and you can wait until you’re ready to book to transfer points. In some cases, you can even run programs against each other.
Related: Maximizing the Chase Ultimate Rewards Program
Which cards compete with Ink Business Preferred?
With low annual fees, valuable points, attractive earning rates and solid benefits Ink Business Preferred is a great option for many small businesses. However, there are some other options that may be a better fit for your company:
- If you want more customizable bonuses: This American Express® Business Gold Card Carries a higher annual fee of $375 (see Rates and Fees), but you’ll earn four points per dollar spent in your two highest spending categories each month (on the first $150,000 in combined purchases per calendar year, then 1 point per dollar thereafter). If you can’t max out the categories of Inc Business Preferred or your spending varies from month to month, this can be a good option. For more information, read our full Amex Business Gold review.
- If you don’t want to worry about bonus categories: This Capital One Spark Miles for Business The card offers a minimum of 2 miles per dollar spent on all purchases, and the $95 annual fee is also waived for the first year (see rates and fees). You still have access to transfer partners through Capital One, although you will sacrifice additional benefits. For more information, read our full review of the Capital One Spark Miles Card.
- If you don’t want an annual fee: The Ink Business Unlimited® Credit Card earns 1.5% back on every purchase with no annual fee, plus basic benefits like purchase protection and the option to add an employee card at no additional cost. For more information, read our full review of Ink Business Unlimited.
For additional options, check out our guide to the best business credit cards.
Related: Inc. Business Preferred Vs. Capital One Spark Miles for Business
Bottom line
If you spend significantly across the four bonus categories (travel, shipping, advertising and telecommunications providers), you’ll earn additional Ultimate Rewards points on your new Ink Business Preferred. Plus, you and your employees will enjoy a variety of travel and purchase protections — like primary coverage when renting a car for business purposes and generous cellphone protection.
If you are just starting out, I would highly recommend starting with this card, especially if you can combine it with other cards, such as Chase Sapphire Reserve and Chase Freedom Unlimited®, to maximize your rewards on more purchases.
Apply at: Inc. Business Preferred Credit Card
For Amex Business Platinum rates and fees, click here.
For Amex Business Gold rates and fees, click here.