Review: Is Bank of America Platinum Visa Business Credit Card a Good Value for Your Business?
The Bank of America Platinum Visa Business card is a no-frills, no-rewards credit card that offers a 0% introductory offer as well as APR’s as low as 10.99%.
The card is one of three business cards that Bank of America offers. The other two, known as “Business Advantage” cards, offer some lucrative cash and travel rewards. While the Platinum Visa Business, doesn’t provide big rewards, it does have its place in the life of certain businesses.
In this review, we’re going to explain to you what the card offers, an explanation that will cover the card’s introductory APR, its regular APR and the business tools it provides. We’ll also talk about the card’s fees.
To give you a sense of where this card fits in the B of A business card family, we’re going to do a comparison to the other two cards we mentioned a few seconds ago.
After that, we’ll wrap up this review with a quick section on the card’s pros and cons as well as who we think it’s good for.
What the Bank of American Platinum Visa Business Card Offers: Low APR and Cash Bonus
There are two main money-saving features of this card. First, you get 0% APR on purchases for the first seven months that you own the card. Normally, if you make a bunch of purchases and don’t pay them off by your card’s due date, you have to pay interest on the remaining balance.
Getting 0% for seven months means that you can make as many purchases as your credit limit allows and you won’t pay any interest on those purchases for seven months, even if you don’t pay off your entire balance on the due date.
This type of benefit can be a great boost to someone who is starting their own e-commerce business, for example, and you need to pay startup costs like registering your business, filing a fictitious business name, buying a domain, purchasing inventory and so forth.
Be smart with this power, though. Make sure that you don’t purchase more than you can pay back by the end of the seventh month. If you do, any balance you still have after the seventh month will be subject to an APR of between 10.99% and 21.99%.
The second main benefit of the card is the APR we just mentioned. The Platinum Visa’s range of 10.99% to 21.99% is the best among Bank of America’s three business cards:
- Platinum Visa: 10.99% - 21.99%
- Travel Rewards Business Advantage: 12.99% - 22.99%
- Cash Rewards Business Advantage: 12.99% - 22.99%
The biggest advantage the Platinum Visa has is the low APR. If your credit scores are above 700, then there’s a good chance you can get the 10.99%. Now, for the responsible credit card customer, you’ll pay your balance off every month and you’ll never have to worry about an interest rate.
However, if you know you’re most likely going to carry a balance, the APR is important. Furthermore, a 2% advantage with a credit card APR could be a deal breaker for you.
For example, let’s say you carry an average balance of $4,000 for an entire year. You’ll end up paying $439.60 interest at the end of the year if your APR is 10.99%. A 2% increase will result in you paying $80 more a year, putting your total interest payments at $519.60.
That $80 may not seem like a lot, but think of it in terms of your yearly expenses. That $80 could help pay for your website domain, hosting fees, transaction fees from Square or any number of nickel-and-dime kind of expenses you have.
The last main perk the card offers is a $200 cash bonus that you earn when you spend $500 in the first 60 days you’re approved for the card.
The bonus is something that you can apply to your credit card statement, therefore reducing your balance.
As a point of comparison, the B of A Cash Rewards business card has a $200 bonus and the travel rewards business card has a $250 bonus.
When you compare the Platinum Visa’s $200 bonus to personal credit cards, you’ll find that the card fares better than the best cash rewards cards but lags behind the best travel rewards credit cards.
If rewards are your goal, then those cash and travel cards may be a better fit for you. However, keep in mind that the Platinum Visa provides a set of business-specific features that personal cards don’t give.
The main feature is the ability to download your transaction to QuickBooks and to track them in B of A’s “MyReport Center”, where you can get an overview of your spending.
Of course, this is only something that will benefit you if you can keep your personal and business expenses separate. Doing so will make your accounting easier and make your taxes smoother if you choose to do your taxes yourself or hire someone to do it for you.
The Bank of America Platinum Visa Business Card’s Rates and Fee
As we mentioned earlier, the Platinum Visa has an APR range of 10.99% to 21.99%, which means that applicants with the best credit scores will usually get the lowest rate and vice versa.
The card’s best APR of 10.99% is extremely competitive not only when you compare Bank of America’s other business credit cards, but compared to the leading business credit cards on the market.
The rate is lower than all seven cards we analyzed in our guide to the best business credit cards of 2018.
The card’s other pertinent fees are as follows:
- Cash advance APR: 25.99%
- Penalty APR: None
- Cash advance/balance transfer fee: 4%
- Late payment fee: $19-$49
- Returned payment fee: $39
The big takeaway from the Platinum Visa’s fees and rates is that its best APR is the best among the leading business credit cards. The other fees and rates are average for the industry.
How the Platinum Visa Compares to Other Bank of America Business Cards
Normally we’d compare the Platinum Visa to credit cards from other banks to give you an idea of how it ranks. However, for this card, we’re doing a comparison with cards from Bank of America because the other B of A cards are representative of most business credit cards on the market.
|Platinum Visa||Advantage Travel Rewards||Advantage Cash Rewards|
|APR||10.99% - 21.99%||12.99% - 22.99%||12.99% - 22.99%|
|Relationship Rewards||None||25%/ 50%/ 75%||25%/ 50%/ 75%|
The main difference here is that the Platinum Visa is not a rewards card, which means you don’t earn a rewards balance each year by making purchases with your card.
This is a big deal because rewards cards like the other two in the chart can bring you at least $600 a year simply by using your card to pay for things you’d normally buy.
The B of A Business Advantage Travel and Cash Rewards cards offer another significant perk, too: Relationship Rewards.
This program will boost your rewards balances by 25%, 50% or 75% depending on how much you spend on your card each year. You’ll also get discounts on various business-related loans.
In our opinion, the Platinum Visa doesn’t measure up to competing Bank of America business cards, nor does it provide much competition to popular business cards like the Chase Ink Business Preferred or the Capital One Spark Cash for Business.
Bottom Line: Is Bank of America Platinum Visa Card Worth It
Based on our research of this business credit card, we believe its greatest strength is the 10.99% you can get if you have good credit scores, which usually means 720 or above.
As we talked about earlier, this lower APR could save you $80 a year over B of A’s other business cards if you carry an average daily balance of $4,000.
However, those other cards have rewards programs that easily counteract the higher interest you’d pay because of their higher APR. So, while the interest rates are higher, the upside to the cards is far more lucrative.
On that note, we believe that the Platinum Visa’s greatest weakness is that, aside from the $200 sign-up bonus, it provides no rewards. While the low APR is a great perk, the fact that there is no way to earn cash on the purchases you make really sets this card back.
If you’re someone who wants a business credit card that can earn you cash rewards and you like the simplicity of the Platinum Visa, then the Spark Cash for Business card may be a good fit for you. It provides double points on all purchases you make. So, if you spend $25,000 a year, you’ll earn $500 in rewards.