The GM Business MasterCard offered by Chase Bank is specifically designed and customized to meet the needs of business owners. No matter how big or small your business, it often pays to have a credit card that can be used by yourself or employees for work related tasks, services, and business expenses. However, like any other credit card on the market today, it pays to learn not only about the benefits and rewards of such credit cards, but potential drawbacks, exclusions, or limitations.
Chase GM Business MasterCard Benefits
The Chase GM Business MasterCard offers a variety of benefits. For example, holders of the business card enjoy 5% earnings on accessories and services from authorized GM dealers, as well as on GM parts. This is great for those who own business vehicles, but may not be such a good perk for someone who doesn’t. In addition, when it comes to the 5% earnings on GM parts, cardholders can also take advantage of 3% earnings at restaurants, gas stations, and office supply stores, in addition to 1% earnings on other purchases.
The Chase GM Business MasterCard claims to be one of the hardest working of credit cards out there. The accrued 5%, 3% and 1% earnings in a variety of categories could earn you approximately $51 every month or approximately $612 earnings a year. However, it pays to look at the numbers. An example provided on the Chase GM card site offers a variety of expenditures in numerous categories that include but are not limited to:
- business travel
- office supplies
- GM vehicle services
- business lunches
Percentages for specific categories differ, so make sure you know what type of rewards are offered for what type of services. The earnings per month as listed above are rewarded when you spend approximately $2,000 – so for approximately $2,000 in expenditures, you can earn up to $51 in earnings). For active and profitable business owners, the card is certainly a viable, but for others, the expenditures required for the earnings may not be such a great perk.
Cardholders can earn a $100 statement credit if you spend $500 within the first three months following the opening of the account. In addition, there are no limitations to the amount of earnings that can be accrued, received or redeemed on new GM vehicles, and as long as you’re a card member, your earnings will not expire (however, stipulations apply – more on that below).
Last but not least, the Chase GM Business MasterCard doesn’t require an annual fee, and new cardholders may enjoy a 0% APR for the first six months. The card allows business owners to add an employee card for no additional costs or fees, and those cards will be linked to your primary account. You do have the option of setting individual spending limits and you are also able to track individual spending activities.
The Chase GM Business MasterCard enables business owners to save and accrue earnings toward the purchase of new eligible vehicles offered through Cadillac, Chevrolet, Buick, and GMC. The website also provides a list of eligible vehicles, current offers, and incentives. However, as with any other offer, certain limitations may apply. For example, the very fine print stipulates that some of the earnings cannot be used on any vehicle purchase sold through private offers or discounted sale programs.
Limitations, Exclusions, Fees, and Interest Rates
The Chase GM Business MasterCard is eligible only to business owners who currently have either a valid Social Security number or a tax identification number (TIN), and you’re eligible to apply for the card.
Take the time to research and understand the pricings and terms associated with the Chase GM Business MasterCard. The card offers new accounts an introductory 0% APR for the first six months following the opening of the account. After the first of six billing cycles, the annual percentage rate is 13.24%. The 0% fixed introductory APR also applies to balance transfers, and after the first six months, the balance transfer APR is also 13.24%.
Cash advances come with a 19.24% APR, as do overdraft advances. If you happen to default or make a late payment, your APR may rise to 29.99%, and that default APR applies indefinitely to all future transactions and outstanding balances on your account.
However, the Chase GM Business MasterCard does offer a grace period, with payments due within 20 days following the close of every billing cycle. No minimum interest charges are attached to this card. However, other fees do apply. While you won’t pay an annual membership fee, you will pay certain transaction fees including those attached to balance transfers, cash advances and foreign transactions.
Balance transfers accrue a $5 or 3% charge for the amount of each transfer, depending on which is larger. Cash advances come with a $10 or 3% fee for each transaction, again whichever is greater. Foreign transactions charge 3% of each transaction, in US dollars. Penalties also apply. A $15 charge is applied to late payments if your balance is under $250, but you’ll pay $39 if your balance is $250 or more. Returned payments and return checks assess a $39 penalty fee. (Be aware that Chase GM Business MasterCard rates, terms, and fees may change at the discretion of the company, and in accord with the business card agreement.)
You will not earn rewards or earnings for balance transfers, cash advances, or convenience checks, and as mentioned above, GM also reserves the right to alter program regulations, rewards, and rules at their discretion.
Last but not least, the earnings program is available as long as your account is in good standing. Your points are redeemable as long as your account is open. There is no limit to the amount of earnings you can accumulate. For example, if you have $10,000 in earnings, you have available to you $10,000 in points that you can redeem toward an eligible, new, GM vehicle. Visit the card website for additional information.
Bottom line – The Chase GM Business MasterCard offers a variety of benefits and rewards for cardholders, but the greatest benefit, at least to some, will be that the earnings you accrue can be applied to the purchase of a new vehicle. If you’re looking for cash rewards, you may want to look elsewhere.