The Chase Ink Business Preferred Card is a top-tier travel rewards credit card designed specifically for small business owners. It stands out in the competitive business credit card market due to its generous sign-up bonus, high earning rates on common business expenses, and valuable travel redemption options through Chase Ultimate Rewards. For businesses that incur significant expenses in categories like travel, shipping, internet, cable, phone services, and advertising, this card can be an incredibly powerful tool for maximizing rewards.
What is the Chase Ink Business Preferred Card?
The Chase Ink Business Preferred is a business credit card issued by Chase. It’s part of the Chase Ultimate Rewards program, one of the most flexible and valuable points currencies available. Unlike personal credit cards, business credit cards are designed for expenses related to your company, whether you’re a sole proprietor, freelancer, or run a larger small business.
Key features of the Chase Ink Business Preferred include:
- High Welcome Offer: Typically one of the most lucrative sign-up bonuses in the market, providing a large sum of Ultimate Rewards points after meeting a specified spending requirement.
- Bonus Earning Categories: Earn accelerated points on categories vital to many businesses.
- Valuable Redemption Options: Points can be redeemed for travel, cash back, gift cards, or transferred to airline and hotel loyalty programs at a 1:1 ratio, offering immense flexibility and potential for high value.
- Travel and Purchase Protections: Includes a suite of benefits that protect your business travel and purchases.
- No Foreign Transaction Fees: Ideal for businesses with international dealings.
Important Information About the Chase Ink Business Preferred Card
Before applying for the Chase Ink Business Preferred, it’s crucial to understand its features, benefits, and potential costs to ensure it aligns with your business’s financial strategy.
Annual Fee
The Chase Ink Business Preferred comes with an annual fee, which is currently $95. While this is not negligible, the value derived from the sign-up bonus, earning potential, and redemption flexibility can easily offset this cost for businesses that maximize its benefits.
Earning Rewards
This is where the Ink Business Preferred truly shines. You’ll earn:
- 3 points per dollar on the first $150,000 spent annually in combined purchases on:
- Travel (including airfare, hotels, car rentals, tolls, and ride-sharing services)
- Shipping purchases
- Internet, cable, and phone services
- Advertising purchases made with social media sites and search engines
- 1 point per dollar on all other eligible purchases.
The $150,000 cap resets each cardmember anniversary. For businesses with significant spending in these categories, earning 3 points per dollar can quickly accumulate a large number of Ultimate Rewards points.
Redeeming Ultimate Rewards Points
The flexibility of Chase Ultimate Rewards points is a major draw:
- Travel through Chase Ultimate Rewards Portal: Points are worth 25% more when redeemed for travel through Chase’s portal. For example, 100,000 points are worth $1,250 towards flights, hotels, or rental cars.
- Transfer to Travel Partners: This is often where you can get the most value. You can transfer your points at a 1:1 ratio to a variety of airline and hotel loyalty programs, including:
- Airlines: United Airlines, Southwest Airlines, British Airways, Air France-KLM, Singapore Airlines, Virgin Atlantic, JetBlue, and more.
- Hotels: Marriott Bonvoy, Hyatt. Transferring to partners allows you to leverage award charts for potentially outsized value, especially for business or first-class flights, or luxury hotel stays.
- Cash Back: Points can be redeemed for cash back at a value of 1 cent per point (e.g., 100,000 points = $1,000 cash back).
- Gift Cards: Redeem points for gift cards, typically at 1 cent per point.
- Pay with Points: Use points for purchases with select merchants like Amazon.com, usually at a lower redemption value.
Travel and Purchase Protections
The Ink Business Preferred offers a robust set of protections, which are particularly valuable for business travel and large purchases:
- Trip Cancellation/Interruption Insurance: If your trip is canceled or cut short by sickness, severe weather, or other covered situations, you can be reimbursed for up to $5,000 per person and $10,000 per trip for your pre-paid, non-refundable travel expenses.
- Cell Phone Protection: Get up to $1,000 in cell phone protection per calendar year (maximum of 3 claims in a 12-month period, with a $100 deductible per claim) against covered damage or theft when you pay your monthly cell phone bill with your Ink Business Preferred card.
- Primary Car Rental Insurance: When you rent a car for business purposes, you get primary coverage against theft and collision damage. This means you don’t have to claim through your personal auto insurance first.
- Purchase Protection: Covers new purchases for 120 days against damage or theft, up to $10,000 per claim and $50,000 per account.
- Extended Warranty Protection: Extends the U.S. manufacturer’s warranty by an additional year on eligible warranties of three years or less.
Employee Cards
You can add employee cards at no additional cost, which helps streamline expense tracking and ensures all business spending contributes to your Ultimate Rewards balance. You can also set spending limits on employee cards for better control.
Credit Score and Eligibility
Applying for the Chase Ink Business Preferred typically requires excellent personal credit. While it’s a business card, Chase will consider your personal credit history and income as the business owner. Chase also considers the “5/24 rule,” which generally means if you’ve opened 5 or more personal credit cards across all banks in the last 24 months, you’re unlikely to be approved for most Chase cards, including business cards. This rule does not count business cards (except for certain Capital One and Discover business cards) towards your 5/24 count.
Your business must be legitimate, even if it’s a side hustle or freelance work. You’ll need to provide information about your business, such as its name, address, and annual revenue. Sole proprietors can often use their Social Security Number (SSN) as their business Tax ID (EIN is preferred if available).
How to Apply for the Chase Ink Business Preferred Card in the US
Applying for the Chase Ink Business Preferred Card is a straightforward process, primarily done online. Here’s a step-by-step guide:
1. Check Your Eligibility
Before applying, ensure you meet the general requirements:
- Business Entity: You must have a legitimate business. This can be a sole proprietorship (even a side gig like freelancing, Etsy shop, or consulting), partnership, LLC, or corporation.
- Excellent Personal Credit: Review your personal credit score (FICO score) to ensure it’s in the excellent range (typically 740+). You can get free credit reports from AnnualCreditReport.com and free credit scores from various financial apps or your bank.
- Chase 5/24 Rule: Count how many new personal credit card accounts you’ve opened across all banks in the last 24 months. If it’s 5 or more, you’ll likely be denied. Business credit cards from most issuers (like Chase, American Express) do not count towards this limit for personal cards you apply for. However, applying for a Chase business card is subject to the 5/24 rule.
2. Gather Necessary Information
You’ll need the following details for your application:
- Personal Information: Your full name, address, date of birth, Social Security Number (SSN).
- Business Information:
- Business Legal Name: Your personal name if you’re a sole proprietor.
- Business Address: Can be your home address if you work from home.
- Business Phone Number: Can be your personal cell phone.
- Business Type: E.g., Sole Proprietorship, LLC, Partnership, Corporation.
- Tax ID (TIN/EIN): If you have an Employer Identification Number (EIN) for your business, use it. If you’re a sole proprietor without an EIN, you can use your SSN.
- Annual Business Revenue/Sales: Your gross annual income from your business. Be honest and realistic. Even small amounts from a side hustle count.
- Years in Business: How long your business has been operating.
- Number of Employees: If any, otherwise 1 if you are a sole proprietor.
- Nature of Business: A brief description of what your business does.
3. Apply Online
The most common and efficient way to apply is directly through the Chase website:
- Visit the Official Chase Website: Navigate to the credit card section and find the Chase Ink Business Preferred card.
- Click “Apply Now”: This will take you to the secure online application form.
- Fill Out the Application: Carefully enter all the required personal and business information. Double-check for accuracy.
- Review and Submit: Before submitting, review all the details you’ve entered to ensure there are no errors. Then, click “Submit.”
4. Application Status and Decision
- Instant Decision: Sometimes, you might receive an instant approval or denial.
- Pending Application: Often, applications go into “pending” status for further review.
- Call the Reconsideration Line: If your application is pending or denied, it’s highly recommended to call Chase’s business reconsideration line. This allows you to speak with a credit analyst, explain your business, clarify any information, and potentially get your application approved. The number is typically available on Chase’s website or by searching for “Chase reconsideration line.” Be prepared to explain your business model, expected spending, and why you want the card.
5. Receive Your Card
If approved, your Chase Ink Business Preferred card will be mailed to your business address (or home address if it’s your business address). The card and PIN are usually sent separately for security reasons.
Important Considerations During Application:
- Be Honest: Provide accurate information about your business income and expenses. Chase may ask for verification.
- Business Purpose: Clearly articulate the nature of your business. Even small online ventures or freelance work qualify.
- Existing Relationship with Chase: Having a checking or savings account with Chase can sometimes be beneficial, but it’s not a strict requirement.
Conclusion
The Chase Ink Business Preferred is an outstanding credit card for small business owners looking to maximize their rewards, particularly for travel. Its robust earning categories, valuable Ultimate Rewards redemption options, and comprehensive travel and purchase protections make it a compelling choice. By understanding its features, ensuring you meet the eligibility criteria, and carefully following the application process, you can leverage this card to significantly benefit your business’s financial health and travel aspirations.