For small business owners looking to maximize rewards and benefits, the Chase Ink Business Preferred® credit card is a popular choice. However, with a $95 annual fee, many wonder if the perks justify the cost. In this article, we’ll break down the card’s features, rewards, and potential savings to help you decide if it’s worth the investment.
Key Benefits of the Chase Ink Business Preferred®
The Chase Ink Business Preferred® offers a range of benefits that can make it a valuable asset for business owners. Here are some of the standout features:
- Generous Sign-Up Bonus: Earn 100,000 Chase Ultimate Rewards® points after spending $8,000 in the first three months. This bonus is worth $1,250 when redeemed for travel through Chase Ultimate Rewards.
- High Earning Potential: Earn 3X points per $1 on the first $150,000 spent annually in select business categories, including travel, shipping, internet, cable, phone services, and advertising on social media and search engines.
- Flexible Redemption Options: Points can be redeemed for travel, cash back, gift cards, or transferred to airline and hotel partners for potentially higher value.
- Travel and Purchase Protections: Includes trip cancellation/interruption insurance, primary rental car coverage, and extended warranty protection.
- No Foreign Transaction Fees: Ideal for businesses with international expenses.
Breaking Down the Annual Fee: Is It Worth $95?
To determine if the Chase Ink Business Preferred® is worth the annual fee, let’s analyze the potential value it offers.
1. Value of the Sign-Up Bonus
The 100,000-point sign-up bonus alone is worth $1,250 when redeemed for travel through Chase Ultimate Rewards. If you frequently book flights or hotels, this bonus alone can cover the annual fee for over a decade.
2. Earning Potential for Businesses
For businesses that spend heavily in the 3X bonus categories, the rewards can add up quickly. For example:
- Spending $50,000 annually on travel and advertising would earn 150,000 points, worth at least $1,875 in travel rewards.
- Even moderate spending of $20,000 in these categories would yield 60,000 points, worth $750 in travel.
For businesses with significant expenses in these categories, the rewards far outweigh the $95 fee.
3. Travel and Purchase Protections
The card’s travel protections, such as trip cancellation insurance (up to ,000 per trip) and primary rental car coverage, can save business travelers hundreds of dollars annually. Additionally, purchase protection and extended warranties add further value.
Who Should Get the Chase Ink Business Preferred®?
This card is best suited for:
- Business owners who spend heavily on travel, advertising, and shipping.
- Entrepreneurs who want flexible redemption options, including travel transfers.
- Frequent travelers who can take advantage of the included travel protections.
- Businesses looking for a card with no foreign transaction fees.
Who Might Want to Skip It?
While the Chase Ink Business Preferred® is a great card, it may not be ideal for:
- Businesses with minimal spending in the bonus categories.
- Owners who prefer cash back over travel rewards.
- Those who want a no-annual-fee business credit card.
Final Verdict: Is It Worth the Annual Fee?
For most business owners who spend strategically in the bonus categories, the Chase Ink Business Preferred® is well worth the $95 annual fee. The sign-up bonus alone provides immense value, and the ongoing rewards and protections make it a strong contender in the business credit card space.
If you frequently travel or spend on advertising and shipping, this card can easily pay for itself multiple times over. However, if your business expenses don’t align with the bonus categories, you may want to consider a different business credit card with a better rewards structure for your needs.
Ultimately, the decision comes down to your spending habits and how well you can leverage the card’s benefits. If used wisely, the Chase Ink Business Preferred® can be a powerful tool for maximizing business rewards and savings.
