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Becoming a Sam’s Club member can be a smart, money-saving decision for a small business owner. So, is choosing the Sam’s Club business credit card for your business spending just as wise?
Before you sign on the dotted line, you have to be armed with all of the details about the Sam’s business credit card. And it’s also essential to understand how the Sam’s business credit card stacks up to its competitors so you can make the right decision for your business spending.
Obviously, no small business owner has time to compare the fine-print details of lots of cash-back business credit cards. We’ve done the necessary legwork so you can really know if the Sam’s Club business credit card is the right choice for you.
There are two basic requirements to apply for a Sam’s Club business credit card—and you’ll have already ticked one of the boxes if you’re a Sam’s Club member. If you don’t belong, you’ll have to join to apply, and this’ll cost you an annual fee. (Hang tight, and we’ll cover how much that is.)
Second, you’ll need to be working with at least a good personal credit score in order to apply for the card.
The Sam’s Club business card delivers a welcome bonus ASAP. You just have to spend $45 during your first day with your card, and you’ll earn a $45 statement credit. Keep in mind that this welcome bonus offer expires at the end of 2017.
True, this is a pretty sparse welcome bonus compared to other business credit cards—the Chase Ink Business Preferred card delivers $1,000 worth of travel, for instance—but the Sam’s Club business card has one of the lowest welcome bonus thresholds on the market.
Put simply, this credit card doesn’t force you to spend big, only to spend quick, if you’re looking to cash in.
With your Sam’s Club business credit card, you’ll earn cash back for every dollar you spend, but how much you earn depends on what you spend on.
If your small business has you zooming to and from clients (or whatever you do best in whatever far-flung place you do it), heads up: You’ll earn 5% cash back on every dollar you spend at gas stations for up to $6,000 worth of purchases each year. After that cap, you’ll earn 1% cash back on gas.
To give you a picture of whether that’ll be a boon for you, here’s some quick math—with gas at an average of $2.44 right now, you could be earning 5% for 2,459 miles, meaning you’ll pocket just less than $123.
On top of gas, you’ll earn 3% cash back on travel and purchases and 1% cash back on everything else.
Here’s the catch (since nothing’s ever that simple…). You’ll only be able to earn up to $5,000 in cash back every year with your Sam’s Club business credit card. So, no matter how savvy you are with your spending, your cash back rewards will always be limited, even if the 3% and 1% rewards categories technically aren’t capped.
The good news is the Sam’s Club business credit card doesn’t come with an annual fee, but you will have to be a Sam’s Club member. If you’re already a member, though, you’re probably already budgeting for the Sam’s Club annual membership fee of $45 to $100—so you don’t have to think about accounting for in an extra cost.
If you’re not already a Sam’s Club member, you’ll have to join and pay the annual membership fee if you want to apply for the Sam’s business credit card. But it’s worth considering joining not only for the card, but also because buying in bulk might end up saving you a bunch of cash as a small business owner, anyway—to the point where the membership (and, ultimately, card) pays for itself.
Keep in mind: Although it’s not quite accurate to call the membership fee an annual fee for the card itself, it is an expense that you’ll need to factor in as you consider this card.
Let’s drill down, shall we?
If the dealbreaker alarm is sounding, you might want to consider similar business credit cards that outperform the Sam’s Club business credit card in a few key areas particularly helpful to small business owners:
The SimplyCash Plus is another cash back business credit card that comes with similar top-earning rewards categories as the Sam’s Club business credit card.
You’ll earn 5% cash back in every dollar you spend on office supply store purchases and wireless phone service purchases. You’ll also earn 3% cash back on your choice of one category from a list of eight small business friendly categories. The 5% and 3% cash back rates will apply for your first $50,000 spent within each tier every year. After that cap and outside of those categories, you’ll earn 1% cash back on every dollar you spend with no limit to how much you can earn.
A heads up that the SimplyCash Plus does come with a foreign transaction fee of 2.7% of every purchase you make overseas. As such, if you’re doing a lot of your business spending abroad, the SimplyCash Plus probably isn’t the best business credit card for you.
Here’s a helpful link if you want to learn more about whether the SimplyCash Plus Card from American Express or take the jump and apply now.
The Spark Cash Select is the perfect business credit card for business owners who want no-fuss, no-fee rewards and cheaper, unlimited cash back earnings.
This card’s pretty simple, but in a good way—you’ll get an even 1.5% cash back for every dollar you spend with your Spark Cash Select with no limit to how much you can earn. Plus, you’ll get a $200 statement credit as soon as you spend $3,000 during your first 3 months with the card.
There’s no annual fee, no foreign transaction fee, and no membership fee, which should sound like music to the fee-averse.
Is the Capital One Spark Cash Select for Business Card piquing your interest? Read more about it or apply now.
Every small business owner is different, so only you can decide which business credit card is the right one for you. But sometimes the proof is in the numbers—and in almost any circumstance, you can probably find a better business credit card than the Sam’s Club business credit card.
Whether you want to dodge sneaky fees, cash out on a huge signing bonus, or earn more cash back for your spending, the SimplyCash Plus or Spark Cash Select are probably the better choice for your business. (Although, hey, buying in bulk could still be a good choice for your business supplies, regardless!)
Think one of these cards sounds like the right one to maximize your business spending? Apply now and start earning more for your everyday business spending.