I’ve been asked a few times what credit cards I use to get the best rewards from paying for my business’s regular expenses. So I decided to compile a complete list of my cards, my strategy, and a breakdown of the three credit cards I recommend for gym owners (and other small business owners) and how I maximize their benefits.
My Recommended Card for Gym Owners: Chase Ink Business Preferred®
Why?
- Low Annual Fee: Only $95, which is quite reasonable for a high-rewards card. First year the fee is waived.
- Sign-Up Bonus: 120,000 points after spending $8,000 in the first 3 months.
- 3x Points on Key Categories: Earn triple points on internet, cable, phone services, advertising on social media and search engines, and travel.
- 1x Points on All Other Purchases: Earn one point per dollar spent on all other purchases.
How to Use It:
Run your ad spend and phone bill through this card each month and set up autopayment to pay the full balance. This helps you maximize your points without incurring interest.
Additional Benefits:
- Cell Phone Protection: Up to $600 per claim against covered theft or damage.
- Purchase Protection: Covers new purchases for 120 days against damage or theft, up to $10,000 per claim.
- Extended Warranty Protection: Extends the time period of the U.S. manufacturer’s warranty by an additional year on eligible warranties of three years or less.
- Trip Cancellation/Interruption Insurance: Up to $5,000 per trip for prepaid, non-refundable travel expenses.
- Travel and Emergency Assistance Services: Access to medical and legal referrals, lost luggage assistance, and more.
- Primary Car Rental Insurance: Coverage for theft and collision damage.
- Auto Rental Collision Damage Waiver: Coverage for rental car damage.
- Roadside Dispatch: Pay-per-use roadside assistance program.
- No Foreign Transaction Fees: Save on international purchases.
- Employee Cards at No Additional Cost: Add employee cards and earn rewards on their spending.
- Travel and Expense Management Tools: Integrate with accounting software like QuickBooks.
- Fraud Protection: Zero Liability Protection for unauthorized charges.
Link to The 120,000 Point Bonus For The Chase Ink Business Preferred! (On mobile, hover over the cards and scroll to the right to see the Ink Preferred application option. It’s kind of hidden)
Next Recommended Card: American Express® Business Gold Card
Why?
- 4x Points on 2 Highest Spend Categories: This includes U.S. media providers for advertising, restaurants (including takeout and delivery), gas stations, and wireless telephone services.
- 3x Points on Flights and Pre-Paid Hotels.
- Sign-Up Bonus: 70,000 Membership Rewards® points after spending $10,000 in the first 3 months.
- Annual fee is waived for the first year.
Additional Benefits:
- Flexible Spending Limit: The card adapts to your spending needs, allowing you to make larger purchases as your business grows.
- No Foreign Transaction Fees: Save money on purchases made abroad.
- Employee Cards: Add employee cards at no additional cost and earn rewards on their spending.
- Expense Management Tools: Integrate with QuickBooks and other expense management tools to streamline your business finances.
- Year-End Summary: Receive a detailed year-end summary of your spending to make tax time easier.
- Elite Status Opportunities: Transfer points to airline and hotel loyalty programs to help achieve elite status faster, providing benefits like room upgrades, priority boarding, and free checked bags.
Link To The 70,000 Point Bonus For the American Express Business Gold Card
Next Card I’m Considering: Capital One Venture X Business
Why?
- Greater for higher regular expenses!
- The Sign-Up Bonuses For This Card are HUGE right now (If you can reach them): 150,000 points for spending $30,000 in the first 3 months, and an additional 150,000 points after a total of $100,000 in spend over the first 6 months. Each 150,000 points is worth about $2,175 in value based on how Capital One values their points. So, $300,000 total is about $4,350 in sign-up bonus value if all bonuses are qualified for.
- 2x Travel Miles on Every Purchase: Earn double miles on every purchase.
- 10x Miles on Hotels and Rental Cars: Booked through Capital One Travel.
- 5x Miles on Flights: Booked through Capital One Travel.
- No Foreign Transaction Fees: When using the card abroad.
- $300 Travel Credit: Each year for bookings through Capital One Travel. This travel credit makes the $395 annual fee worth it if you use it.
- Capital One Lounge Access: Great for frequent travelers.
- Elite Status Upgrades: Automatic Hertz President’s Circle® status and access to special benefits at hotels within the Capital One travel portal.
- Annual fee is waived for the first year.
The Strategy (Important!)
The trick is not to use these cards for ancillary spending but to run recurring bills you would otherwise pay in cash through them. Set up autopayment to pay these cards off in full each month. This way, you pay zero interest since you’re paying the card off during its no-interest grace period, usually 30 days.
Key Point:
Always run your surplus cash two months behind because your credit card bill will always lag a month before the statement posts and your autobill pays. This avoids the common mistake of thinking you have extra cash flow when in reality, you don’t. Being disciplined and staying two months ahead with this strategy works wonders.
I carry no balance on any of my cards each month.
Why I Have Different Cards
- High Rewards Categories: Some cards offer high rewards in certain categories, such as the Amex Gold’s 4x rewards.
- Valuable Perks: The benefits and perks of some cards, like Amex Platinum’s lounge access, justify their annual fees.
- Sign-Up Bonuses: I often get cards with excellent sign-up bonuses, hit the required spend, and then cancel before the annual fee hits again if the card has no fee.
My Full List of Credit Cards and Their Annual Fees
- Chase Business Cash: $0
- Chase Amazon Prime Visa: $0
- Chase Freedom: $
- Amex Gold (Personal): $375
- Amex Gold Business: $375
- Amex Platinum (Personal): $695
- Amex Platinum Business: $695
- Capital One Venture: $0
- Citi Business Platinum American Airlines AAdvantage: $99
- Chase Business Ink Preferred: $95
Real-Life Example: Our Free Trip to Europe
We’re excited to share how we used our credit card points for an incredible trip to Germany, Switzerland, and Italy for my birthday, all for free!
We booked our flights to Europe, flying into Frankfurt. From there, we took a scenic train ride through Switzerland and ended our journey in Milan to attend the F1 Italian Grand Prix, where we had two tickets on the main straight.
The round-trip Premium Plus seats on United cost $3,600 for two, similar to a domestic first-class seat. However, we paid nothing out of pocket.
Additionally, we didn’t spend a dime on lodging throughout the trip. We stayed in luxurious places that averaged $500-$1000 a night. The entire trip would have cost us around $10,000, but it was all covered by our credit card points.
How Did We Do It?
By running every business expense through high-rewards credit cards and setting up autopayment to pay the statement balance in full each month during the interest-free grace period, we accumulated a significant amount of points.
Here’s the breakdown:
- We amassed 750,000 rewards points in six months, equivalent to about $7,500 in redemption value.
- At this rate, we will net around 1.5 million points in a year, which translates to $15,000 in redemption value, possibly more with certain transfer partners.
This strategy allows us to travel anywhere we want in the world for a couple of weeks, covering all lodging and other expenses, while also having access to premium lounges at airports to eat and relaxe between long international connections.
Key Points:
- Autopay and No Balance: We never carry a balance on our cards, and we set up autopay to ensure we don’t incur interest.
- Targeted Spending: We focus on spending in categories with high reward multipliers, such as 4x on ad spend, since we spend over $200k a year on advertising.
- Personal Expenses: We apply the same strategy to personal expenses, using different rewards cards with 3x-5x multipliers on utilities, groceries, and fuel, always paying off the balance each month.
- Sign-Up Bonuses: Many cards offer substantial sign-up bonuses. We switch our expenses to new cards to hit the required spend and earn thousands of dollars in free points.
With careful planning and discipline, we’ve been able to leverage our business and personal expenses to enjoy amazing travel experiences without additional costs. This strategy can be a great way to gain valuable perks and rewards if managed correctly.
Tips and Tricks
- Spreadsheet Tracking: I keep a spreadsheet of all my cards and set calendar reminders for annual fees to decide if I need to keep the card.
- Amazon Prime Visa Trick: This card gives 5% back on all Amazon Prime purchases. I buy Airbnb gift cards on Amazon Prime and use them to book trips, earning 5% cashback on those gift cards which I use towards my stay.
- Tax Deductible Annual Fees: The annual fees for these business credit cards are tax deductible, which can provide additional savings and make the rewards even more valuable.
By playing the credit card rewards game right, you can get a lot of free stuff, but you have to be disciplined and organized.
Hope this helps! 🙌☺️🔥
Happy travels! 🛫🌍
– Coach Will
