With its 5 percent cash back rate on Uber purchases, the Uber Visa Card can be a good option if you take frequent rides. However, it doesn’t offer a 0 percent introductory APR and its rewards aren’t flexible. Let’s see how it compares to other business cards from Chase and Amex.
Dear Your Business Credit,When I travel for my business, I often use Uber. I’ve been putting the rides on my two business credit cards, an Ink Business Cash Credit Card and my American Express Blue Business Cash™ Card. Would it make sense for me to get an Uber credit card? – Michele
Making the most of your credit card rewards programs is a great way to stretch your resources in a small business.
Both of the small business credit cards you already have do offer rewards, so it’s important to take a close look at how each one works to determine if you would benefit from adding an Uber Visa Card to your portfolio of cards.
The Uber card offers 5 percent back on all Uber purchases, as well as 3 percent back on restaurants, bars, hotels, airfare and vacation rentals. You get 1 percent back on other purchases.
There is a $100 sign-up offer, which gives you the reward in Uber Cash if you spend $500 in the first 90 days. There is no annual fee. The interest rate ranges from 17.24 percent to 27.99 percent.
However, there’s one catch: the 5 percent you get back is in Uber Cash, which can only be redeemed with Uber. If you use Uber a lot, that may not be a deal-breaker for you – you can start redeeming Uber cash as soon as you have accumulated one cent’s worth. But if you don’t take a lot of rides, bear in mind you cannot use the points for gift cards or cash back.
If you are a frequent rider, getting the Uber card could pay off for you, in that you can apply the rewards directly to your rides without having to tap into your cash or use up space on your credit card.
Putting some charges on this card could help you avoid high credit utilization on your other cards, which can drive down your credit score. However, if you think you will carry a balance, you have to consider the cost of paying the interest, which is substantial.
See related: Best credit cards for Uber
Uber card vs. Chase Ink vs. Amex Blue Business Cash
So now let’s compare the Uber card to the Chase Ink Business Cash and the American Express Blue Business Cash Card.
The Chase Ink Business Cash card gives you 5 percent in cash back on select business purchases on the first $25,000 spent with no annual fee. There is a 0 percent APR on purchases for 12 months from when you open the account, and after that, a variable interest rate of 14.74 percent to 20.74 percent. You get a $500 bonus in cash back after you spend $3,000 in purchases the first three months after opening the account.
The American Express Blue Business Cash Card allows you to get 2 percent cash back on purchases up to $50,000 per calendar year, then 1 percent. It also offers 0 percent interest on purchases for 12 months and no annual fee. There is an APR of 13.24 percent to 19.24 percent variable.
If you carry a balance, you’d come out ahead using the Chase Ink card for your Uber rides. You could theoretically redeem the cash back for a gift card you could use toward your Uber rides.
Using the American Express Blue Business Cash Cards for your Uber rides would give you less cash back than either card. However, if you carry a balance, you would save on interest compared to the Uber card.
If, for instance, you were almost maxed out on your Chase Ink card or the introductory deal expired, then the American Express Blue Card would give you some benefit for charging your Uber rides.
In the end, the best card for your Uber rides depends on two things: How much you use Uber and whether you pay your balance in full every month. Fortunately, you already have two business credit cards, so you have several options available.