The card that offers you 1.5% discount and an opportunity to pay off later.
The card is beneficial for those who own a small business and need to make sure that they pay off all the sums necessary. This card promises perks that are great for businesses that have either consistent cash flow or the flow of cash that’s hard to predict.
Basic features and advantages of the card
This card is a little bit different in terms of its rewards structure. Actually, it doesn’t give you any rewards based on the sums you spend. It gives you a 1.5% discount on the balance that you manage to pay off 10 days before the statement closing date. Below you’ll find all the facts about this card that you need to know about before applying for it.
- There applies no additional fee in case you make purchases with the card abroad.
- The “rewards” rate is relatively high.
- The card requires you to pay a certain fee for using it for as long as you’re a cardholder.
- The annual fee that you’re expected to pay as a cardholder amounts to $250 (applies starting from the 2nd year of you using the card).
- No Standard APR. Due to this fact, there is no Special Offer in terms of APR.
- Special Offer: No offer for this card.
More information concerning the card:
- You’re encouraged to pay off early. If you do it, you’ll get the discount mentioned above. Keep in mind that there are no restrictions on the sum you can get back.
- If you need some more time to pay off your balance, you can pay the minimal sum on time and then request an up to 60 days interest free period.
- The card is very beneficial if you have a couple of big purchases to make for your business.
- If you need to use the card while you’re on a business trip abroad, you may not worry about any additional fee.
- Your spending limit depends on the way your business grows.
- You can get additional cards for your employees for free. These cards won’t cost anything to carry during the 1st year ($250 per year after that). Besides, those employees who pay off early will also get the discount.
- Remember that the offers of the card are bound to certain terms and restrictions.
You also need to know about the benefits of the card that make it so outstanding. They are as follows:
- The card doesn’t have a fixed spending limit. This card is different from the standard credit cards. It’s a charge card. This implies that you’re not bound to any certain spending limit. At the same time, this doesn’t mean that you’re free to spend as much as you want. it just means that your limit is more flexible because it can change based on a number of factors.
- The card offers you a feature that allows to delay your payment. As a rule, credit cards have a grace period of up to 25 days during which you’re required to pay off your balance (if you don’t want to pay the penalty fee). This card will let you request a delay of up to 60 days. Once you’re approved for it, you can not worry about paying high extra charges due to late payment.
However, there is a certain thing you need to do prior to getting this period. We are talking about the fact that you’re required to pay off at least 10% off the total sum on your card. You’re to pay this sum on time according to the terms specified in your cardholder’s agreement. For some businesses this feature may be extremely valuable.
- The card grants the access to an exclusive service. We are talking about the OPEN service offered by the issuer. The perks that come with it are as follows:
- You can ask for an advice or share your ideas with other small business’ owners on an official forum.
- You get access to the online bonus mall. This is the place where you can get 5% discount when buying items from a number of the card’s partners.
- You can keep all your expenses under control with the help of ReceiptMatch.
- You can use the card abroad without worrying about any additional expenses to pay off. This card is different from the majority of other cards out there that are issued by the AMEX. this card has no fees that occur when you make a purchase with it abroad.
The reasons for you to consider applying for a different card and other options you may be interested in
Every card has its own drawbacks that a potential cardholder may not like. Before you get this card, you need to be aware of the following several drawbacks:
- With this card you’d better not carry any balance. Since this is a charge card, it’s not good for you to carry a balance on it. Consequently, before you get the card, you need to make some calculations and see whether it’ll be possible for you to pay the sums off on time. In case you fail to do it, you’ll be expected to pay a fee of 1.5% off the sum left on your account (or at least $38 depending on whichever is greater). Of course, if your balance is small the fee won’t be high. The crux of the matter is that if you have a very big balance ($100,000), the fee to pay will be quite steep.
- The card rewards you the discount under the certain conditions. We’ve already mentioned the fact that the discount is available only when you pay off early. If this isn’t about you and you don’t want to be bound to such like conditions, we think you’ll be interested in the Capital One® Spark® Cash Select for Business. This card rewards you the cash back of 1.5% no matter when you make the payment.
The card comes with neither annual fee no additional fee for the purchases made with it abroad. Nevertheless, you can still expect the sign-up bonus of $200 cash. It is given to you in case you manage to spend $3,000 during the firs 3 months after you open an account.
This card promises an interest free period of 9 months thus allowing you to slowly pay off a really big purchase. The Standard APR amounts to 13.99 – 21.99%. Keep in mind that it can vary based on your credit history.
- The annual fee required to be paid may seem to be rather high for some potential cardholders. This card from AMEX comes at a very high price. The truth is that there are other credit cards out there that are both beneficial to business and free to use. For example, have a look at the Ink Business Cash℠ Credit Card. It allows you to earn rewards for making purchases in bonus categories. The rewards rates vary from 1% to 5%. If you’re a new cardholder, you’ll have a chance to get the sign-up bonus of $300 cash back (provided that you spend at least $3,000 within the first 3 months of using the card).
One more thing that you should know is that the card has an interest free period that lasts for 12 months (and applies not only to the purchases made, but also to the balance transfer operations carried out). After the APR of 14.24 – 20.24% applies.
Our tip: Keep in mind that the rewards rates of 2% and 5% apply for as long as you don’t exceed the spending limit of the $25,000 in each of the categories.
Summary: Is the Plum Card® from American Express OPEN the card you should get?
We believe the card can be advantageous for you in 2 cases: if you’re the one who can easily pay off the balance earlier than required and if you are the one looking for opportunities to prolong the interest free period. However, if you think that you’re very likely to have a balance left on the card and you find the annual fee to be too high, we recommend you to pay attention to one of the cards we discussed as possible alternatives.