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What are your thoughts on this?

Valued Contributor

What are your thoughts on this?

So in a couple months we want to get the Ink Preffered. It's actually a great card for us because it waives foreign transaction fees which is 95% of our spend.

Usually how we do it is we pay off what we spend after 4 months.

Example: Spend 3k and pay Minimum for months 1-3 and Month 4 PIF or most occasionally carry to month 5 then PIF.

Our other 2 business cards are on 0% promos until the end of this year/start of next year so it's worked out good.

However, we really want this card 50% because of the card's benefits and 50% because of the sign up bonus. The only issue is there's no intro 0% apr period so if we carry the 5k balance to meet the spend requirement that's roughly $85 a month in interest charges. Over 5 months that's $425 Smiley Sad

I'm wondering if we can get the card meet the spend requirement then BT it (are there any business 0% BT's with no fees?) or to get a low APR small business loan to PIF at a lower interest rate.

What are your thoughts? And this isn't for right now it will likely be in August.
5 REPLIES
Super Contributor

Re: What are your thoughts on this?


Matt4200 wrote:
So in a couple months we want to get the Ink Preffered. It's actually a great card for us because it waives foreign transaction fees which is 95% of our spend.

Usually how we do it is we pay off what we spend after 4 months.

Example: Spend 3k and pay Minimum for months 1-3 and Month 4 PIF or most occasionally carry to month 5 then PIF.

Our other 2 business cards are on 0% promos until the end of this year/start of next year so it's worked out good.

However, we really want this card 50% because of the card's benefits and 50% because of the sign up bonus. The only issue is there's no intro 0% apr period so if we carry the 5k balance to meet the spend requirement that's roughly $85 a month in interest charges. Over 5 months that's $425 Smiley Sad

I'm wondering if we can get the card meet the spend requirement then BT it (are there any business 0% BT's with no fees?) or to get a low APR small business loan to PIF at a lower interest rate.

What are your thoughts? And this isn't for right now it will likely be in August.

I think you can forget the balance transfer concept; business cards aren't like personal cards.  The only one I know that has decent balance transfer offers is Capital One Spark, and there's no guarantee you'll get a balance transfer offer at any particular point in time. They offer it to you when they feel like offering it to you.

 

IMHO you should just forget about carrying balances on the Ink card.

FICO8 EQ 725 TU 750 EX 717 Total revolving credit 443500
Valued Contributor

Re: What are your thoughts on this?

Okay so what should I do then? Small business loan?

This card is exactly what we are looking for except it has no intro apr offer that's why I was thinking maybe a small business loan to pay it in full and pay down the balance at a lower apr (maybe 7%?) I don't really know haven't looked too much into them yet.
Valued Contributor

Re: What are your thoughts on this?

Doing some research Wells Fargo (where I've been a personal customer for nearly a decade) has some good offerings for small business unsecured lines of credit (which I'm assuming is a loan?)

Personal FICO is 720-740.

Here's the details: "Details

Amounts. Credit lines from $5,000 to $100,000.

Revolving line of credit, no scheduled annual review (5-year term for Small Business Advantage). Rates as low as Market Prime Rate + 1.75%; interest charged when you use the account.
Collateral. None needed."

It says no annual fee for ones between $5,000 and $9,999.

https://www.wellsfargo.com/biz/business-credit/lines-of-credit/unsecured-business-line/

What do you think of using the Ink Preffered Card then getting this from Wells Fargo to Pay it In full, then within 5 months pay Wells Fargo in Full?

The $800 bonus will be really helpful for us, and it's a card we will actually use compared to our Ink Cash which goes pretty much unused aside from paying internet bills, dining out when doing sales, and US supplies which accounts for maybe 1-2% of our overall business spend.
Super Contributor

Re: What are your thoughts on this?


Matt4200 wrote:
Okay so what should I do then? Small business loan?

This card is exactly what we are looking for except it has no intro apr offer that's why I was thinking maybe a small business loan to pay it in full and pay down the balance at a lower apr (maybe 7%?) I don't really know haven't looked too much into them yet.

I think you should get the Ink card, but pay it in full.

FICO8 EQ 725 TU 750 EX 717 Total revolving credit 443500
Valued Contributor

Re: What are your thoughts on this?

Well the way our business runs we can't pay it in full, which is why we're considering a Business LOC.

That's just how it's running for the time being but we're confident in the future we'll have funding available to PIF right away.