First… If you're allergic to credit cards and credit in general, please stop reading now. Even though I do not totally agree with your perspective, I do 100% respect it!
Second… A confession. Prior to Covid-19, I was a loyal Southwest Credit Card user and paid no mind to other available credit cards. I flew once every two months and liked earning points and A-list status, using points to purchase tickets, getting to the front of the A-line, and occasionally using the buddy pass while traveling with my wife.
Covid not only changed my traveling plans, but it also forced me to think about the credit cards that are in my wallet.
Based on my observations, business credit card users fall into the following categories:
1. Pride & Perks Seekers - these users are truly loyal to a brand and the rewards that come along with it, from an extra bottle of water, to a better room, to a shorter wait line. They will go out of their way to stay at a Hilton even though there are closer and less expensive hotels available. They will fly American with a layover rather than flying direct with Southwest. They are loyal to the brand and often showcase the status that comes with their rewards.
2. Strategic Ninjas - these users have 15 different credit cards and they know when to use each of them: one for dining because they get 5% cash back; one for gas and the accompanying 3% reward on Tuesdays; one for travel; and so on. They know the point conversion rates from one card to another and plan their credit card usage like a budget. These users were excited when Mark Cuban invested into RewardStock on SharkTank.
3. Cash-back Maximizers - self-explanatory.
4. The Aloof Ones - the users here ended up with their credit card because their bank gave them one or it was the first one that came across their desk when they were opening a business, etc. Basically, they think that all credit cards are essentially the same. This is the category I was in.
If you identify with #1 or #2, you can stop reading. Keep doing what you’re doing.
If you did not identify with any of the above, please send me an email and let me know your perspective.
If you saw yourself in #3 or #4, here’s why I recommend you look into CapitalOne Spark 2% Cash as a credit card for your business:
1. Highest cash-back percentage in the industry. When I did my research, I realized that most rewards through cash-back and/or points hover around 1-1.5%. On Southwest, for example, if I time everything properly with using my points on their fares, the maximum reward equals 1.6%. On average, it’s well below that. So, one can increase their savings by as much as 100%! That’s a lot!
I typically work with real estate businesses with revenues over $1M so it’s fairly typical for those business owners to charge about $250,000 per year on their credit card given the convenience and protection that comes along with doing so. With Spark, that business will get $5,000 in cash back. That’s it. No questions asked. Nothing else to do except to figure out what you’ll do with the extra savings.
Plus, when I signed up, I received a $500 bonus when I started using the card. Icing on the cake!
2. Flexibility - You can spend the money on anything you want at any time. I am currently sitting on over 200,000 Southwest points and do not have any plans to fly as much as I did any time soon. Plus, with Spark you can also transfer your cash rewards to Amazon and other online vendors for additional savings. Typically, we pay extra for flexibility. Now, I get more in rewards and have more flexibility.
That’s all folks!
If you have any questions or comments, please email me at email@example.com. If you agree with my rationale above and would like to apply for Spark 2% Cash card, please use this link: https://capital.one/3qxMe8O
Full disclosure: if you apply and get approved using the above link, CapitalOne will credit my account a small referral fee that I will use to give to causes important to me. Although the referral fee is not the reason I wrote the above, it’s yet another reason why I believe that this is a great credit card for business owners who believe in getting more!