What to know about business credit card bonus offers
Quick insights
- Business credit cards may provide welcome bonus offers to new cardmembers.
- These offers typically come in the form of points or cash back.
- To qualify for these offers, cardmembers usually need to spend a designated amount within a set timeframe.
Some business credit cards feature welcome bonus offers—also called a new cardmember or introductory offer—to new cardmembers. These one-time promotions may help you earn extra rewards or receive favorable terms during a specified promotional period.
Reviewing the terms of any welcome bonus offer can help you determine if it complements your business’s spending habits. Here are some things to consider when evaluating business credit card welcome bonus offers and assessing the potential benefits for your business.
Features of welcome bonus offers
Welcome bonus offers can provide an opportunity to earn extra points or cash back beyond the standard rewards structure of a credit card. Assuming the cardmember meets the criteria, they’ll usually earn the rewards faster than they would without the welcome bonus offer. Typically, these offers require cardmembers to spend a specified amount within the initial months after opening the account.
Welcome bonus offers may include a(n):
- Initial spending requirement
- Time limit for meeting the spending requirement
- Bonus value amount and type of rewards (typically, points, cash back or miles)
For example, a business credit card might feature a welcome bonus offer of $750 cash back after the cardmember spends $6,000 on purchases within the first 3 months of the account opening.
Evaluating business credit card welcome bonus offers
When choosing a business credit card, it may be a good idea to factor in the card’s overall terms, rewards and benefits. A welcome bonus offer that complements your business’s needs can be an extra incentive to apply for a card you’re already considering.
When evaluating business credit card welcome bonus offers, you might want to consider the following:
High reward value
As you evaluate a welcome bonus offer, you may want to determine if it provides substantial rewards relative to the spending requirement. Of course, what’s considered “substantial” can vary.
You’ll only be eligible for an offer if you meet the spending requirement, so it may be a good idea to make sure you can afford to meet it and pay it off accordingly.
Ultimately, it’s up to you to determine the overall value of the business credit card, including the welcome bonus offer, standard rewards program and other benefits.
Spending requirements
Assess whether the spending requirement of the welcome bonus offer is realistic for your business. While a welcome bonus offer can be enticing, making unnecessary purchases just to meet the spending requirement could lead to accumulating debt.
Reviewing your business’s historical spending and forecasting any upcoming expenses may help you determine if the spending requirement is feasible.
Let’s say Maria, a freelance graphic designer, spends roughly $1,600 per month on business expenses and needs to purchase a $1,400 laptop soon. She’s evaluating a welcome bonus offer that requires cardmembers to spend $8,000 in 3 months to earn $1,000 cash back.
Even with the laptop purchase, Maria’s spending during this 3-month period will total $6,200, falling short of the spending requirement by $1,800. Maria could apply for this credit card if she still finds it valuable without the welcome bonus offer, or she could explore other business credit cards with welcome bonus offers for which she’s potentially eligible.
Introductory APRs
Some business credit cards offer new cardmembers a low introductory APR for a promotional period. That means you typically incur fewer interest charges for any balance you carry during the promotional period, though you’ll still need to make at least the minimum payment to avoid late fees. This may be beneficial for business owners who want to make a large purchase and pay it off in installments.
Another potential benefit of an introductory APR period is that you could transfer another credit card balance to the low-APR card to limit interest charges, though a balance transfer fee may apply.
Once the introductory period ends, the APR will revert to the standard rate outlined in the terms. The standard APR will be applied to any remaining balance, as well as new purchases. Understanding how APR is calculated after the introductory period ends may help you evaluate whether the card meets your needs.
Annual fees
Business credit cards with more extensive rewards and benefits tend to charge annual fees. Sometimes, credit card issuers may waive this fee for the first year during promotional periods.
If you plan to keep the business credit card after the promotional period ends, you may want to analyze the long-term costs of the card and determine if the benefits outweigh them. For example, some travel rewards business credit cards with annual fees come with accelerated rewards on flights and hotels, airport lounge access and protection benefits, which may be worth it for business owners who travel for work.
Eligibility criteria
Before receiving a welcome bonus offer, cardmembers must qualify for the business credit card, as well as the offer itself.
Eligibility for the promotion often depends on your history with the credit card issuer, including whether you’ve had a version of that card before or received a welcome bonus offer from the issuer recently.
Additionally, you may not get the welcome bonus offer if you apply for the credit card through a third-party rather than the issuer’s website. Contact the credit card issuer for specific eligibility requirements.
Other business credit card features to consider
For some, welcome bonus offers can be a deciding factor, but you may want to consider a holistic approach when evaluating a business credit card.
These other business credit card features could be worth considering:
- Rewards structure, including redemption opportunities and values
- Travel and purchase protection benefits
- Fees and interest rates after the welcome bonus offer
If you find a business credit card with features that complement your business’s spending habits, then it could be the right card for you.
In summary
Welcome bonus offers allow business owners to potentially earn extra rewards on top of the standard benefits that business credit cards offer. Business credit cards may have higher welcome bonus offers than consumer ones. To earn the bonus rewards, eligible cardmembers must meet certain spending requirements within a specified timeframe.
You may want to consider your eligibility for the welcome bonus offer and if it aligns with your business spending habits. While promotions can be enticing, you may also want to consider what terms apply after the promotional period ends, as well as the card’s reward structure and benefits.
