I just received and activated new Chip-Enabled US Bank Business EDGE Select Rewards Credit Card. There are some benefits and potential drawbacks of using this card.
0.00% introductory rate for qualified purchase balances for 9 month
It’s good not to pay interest on purchases when you start using this card, but the term of no interest on balances is not that impressive. Many credit cards nowadays offer 0% annual percentage rate on purchase and balance transfers for the first 12 to 15 months.
You can choose one from three categories to earn three points per dollar.
Day-to-day expenses – including phone, office supplies, utilities, and other professional services.
Automotive – including gas, tolls, dealership, tires, auto repair, and other auto related expenses.
Travel and entertainment – including hotels, airlines, auto rentals restaurants, and other business travel expenses.
On all other purchases you will earn 1 point per dollar.
Rewards are always great, but are those rewards the best? All businesses use phone, and most businesses need a vehicle. Unfortunately, these two expenses separated into different categories. I own a different credit card with 3% cash back on gas and telecom. The other card has great rewards on hotels and airlines. With new Select Rewards Credit Card I still have to use those two just to get the most from every single purchase.
You can earn unlimited points with no caps. Rewards points could be redeemed for a gift card, merchandise, travel, or statement credit. There is no option to deposit “converted” to dollars points to checking or savings account or get a check.
No annual membership fee
The card doesn’t have annual fee. I do not apply for any credit card which has membership fee no matter how rewarded the credit card is. This card is not an exception.
High APR for balance transfers with no introductory low rates
US Bank Business EDGE Select Rewards Credit Card is not the best option for those who plan to transfer high APR balances from other cards. 14.24% rate is already high and there is no 0.00% or low interest rate offer.
How high credit line would be is certainly depends on credit history and income, or profit from the business, but, in my case, US Bank always offer credit cards with higher initial credit limits compare to Citibank, Chase, and Bank of America.
If you spend over $1,000 in the first 45 days after opening the account, you will get $100 back. It is very attractive offer which save you an additional 10% on purchases.
It is a business credit card with decent rewards, but it is not the best card I have. It is OK option to separate your personal and business expenses, but in term of rewards, most likely I will use this card only for certain purchases which qualifies for 3 points per dollar earnings, and will pay for other goods and services with more rewarding than 1 point per dollar credit card.
June 2016 update
In about 11 weeks after credit card application was approved, my account was credited with $100 cash back. Plus I redeemed all available points for almost $83 statement credit. For the first two months I spent about $1,900 in purchases and received close $183 back. Getting US Bank Business Edge Select Rewards credit card turned out to be a good deal!