Operating a business is an exciting and rewarding endeavor.
We believe and advocate for entrepreneurship as one of the best ways to design a purposeful life and gain more personal liberty.
New business owners quickly discover the importance of separating business from personal expenses. One of the simplest ways to do this is by using a dedicated credit card.
Not only is it best for clarity of expenses, but business expenses can be overwhelming very quickly.
It is nice to have the flexibility of not having these expenses appear on your credit report (if it is a business credit card).
You’ve probably looked for a business credit card, you were likely overwhelmed by the options because each has its collection of benefits.
For us, we prefer to have one primary card that we can turn to for business expenses.
Our primary criteria for a business credit card are:
Low/reasonable interest rate
On the rare occasion that we carry a balance, we want to make sure the interest rate is manageable.
The ability to collect points
Rewards all the way! We spend a fair bit on our businesses annually, so having a card system that rewards us for using it, is a plus.
Good value for the points collected
We have little motivation to collect 1,263,836 points only to find out that they can be redeemed for a body loofah! Give us the good stuff!
For us, a central tenet of living a good life is the ability to travel…
A credit card that allows us to redeem points for airline miles at a generous conversion rate is big winner in our book.
So, what is a reliable business credit card that offers the lowest possible interest rate and good rewards to help compensate for your travel habit?
American Express Starwood Preferred Guest Business Credit Card.
What are the benefits?
The American Express Starwood Preferred Guest Business Credit Card earns up to 5 starpoints for dollar spent in participating SPG (Starwood Preferred Guest) hotels and 1 starpoint on any other purchases.
When you compare this card to others, the speed of collecting points is pretty standard and bonus might seem low.
This all changes when you want to redeem your points.
Other cards points value around 1 cent per point while this card comes to around 2.3 cents per point when you want to exchange them for a free night.
If you chose to change points for something else, points value is still higher than other cards.
We also like the ease of being able to choose from over 30 airline partners for points transfer.
That’s huge! Most other cards are airline specific, so if you haven’t accumulated points on an airline that travels to your destination of choice, you’re just plain out of luck.
If you would like to spend your points on airline rewards it would be a lot easier with this American express card than many others.
American Express sweetened the deal to keep us coming back!
Get this, you also collect additional points each time you swap at least 20,000 starpoints for miles. For every 20,000 star points you transfer, you get additional 5,000 points. Cha-ching! Keep us coming back AmEx.
With a purchase APR of 15.49%-19.49% variable this card meets our criteria for a reasonable credit card interest rate.
Once you consider the fact that there are no foreign transaction fees on international purchases, this card just keeps getting better and better.
The final perk of this card is huge…
We’re talking mega-big for anyone who has spent a reasonable amount of time in airports.
With the American Express Starwood Preferred Guest Business Credit Card you will have a free unlimited Wi-Fi with over a million Boingo hotspots around the globe.
That’s right, holders of this card enjoy complimentary, unlimited Wi-Fi access when they enroll in the Boingo American Express Preferred Plan.
The plan entitles you to receive Wi-Fi access on up to four devices to more than 1,000,000 hotspots worldwide and pay no Wi-Fi roaming fees.
You know Boingo, they are the people whose network offers hotspots in hundreds of airports, thousands of hotels and other popular locations around the world. This alone can already SAVE few hundred dollars a year on a membership.
What are the drawbacks?
Ok, we will tell it to you straight. Because of all the travel-related benefits, you won’t really maximize the use of the card unless you travel (or plan to travel) a lot. Homebodies beware.
The other potential drawback is that you might not be able to find a hotel in your chosen location that is part of the program. But let’s be honest, with over 1,200 SPG locations we have think it is pretty unlikely that you will find yourself in this situation, but it could happen.
Why we love the American Express Starwood Preferred Guest Business Credit Card
If you travel a fair amount or have a business where you put business expenses on your card, then this credit card might be for you. It is considered one of top hotel credit cards and has a high volume on exchanging the points.
Check the offers for this card often as there is typically a sign up bonus. Right now there is a great bonus offer of earning 25,000 starpoints if you spend $3,000 in your first three months.
With $0 introductory annual fee and afterwards $95 per year, this card is perfect for when you’re starting a new renovation project and will have a lot of expenses coming.
We will talk more about that strategy in a later post but it has helped us get more benefits from expenses that were already planned.
If you’re not quite ready for a card like this one, remember, getting your finances in order starts with a budget.