Is Chase Ink Business Preferred Worth the Annual Fee?

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Is Chase Ink Business Preferred Worth the Annual Fee?

Million Mile SecretsIs Chase Ink Business Preferred Worth the Annual Fee?Million Mile Secrets Team

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With the new Chase Ink Business Preferred card, you can earn 80,000 Chase Ultimate Rewards points after meeting minimum spending requirements.  But it comes with a $95 annual fee that is NOT waived the first year if you apply online.

So you might be wondering, is it worth paying the annual fee?

I think so!  Because you can easily offset it with the sign-up bonus and perks you’ll get.  And this is the highest public sign-up bonus I’ve seen for a Chase small business card!

Is Chase Ink Business Preferred Worth The Annual Fee
The Ink Business Preferred 80,000 Chase Ultimate Rewards Point Sign-Up Bonus Is Enough for 4 Free Nights at the Beautiful Andaz Scottsdale Resort & Spa. That Normally Costs ~$427 Per Night!

I’ll explain why I think it’s worth paying the $95 annual fee for the Chase Ink Business Preferred card.  At least for the first year!

About the Chase Ink Business Preferred Card

Link:   Chase Ink Business Preferred

Link:   My Review of the Chase Ink Business Preferred

When you open the Chase Ink Business Preferred card, you’ll earn 80,000 Chase Ultimate Rewards points after you spend $5,000 on purchases in the first 3 months from account opening.

You’ll also get perks like:

  • 3X Chase Ultimate Rewards points for every $1 you spend on travel, shipping purchases, internet, cable and phone services, advertising purchases made with social media sites, and search engines (up to a maximum of $150,000 in combined purchases per account anniversary year)
  • 1X Chase Ultimate Rewards points on all other purchases
  • Up to $600 in cell phone insurance when you pay your cell phone bill with the card
  • 25% bonus when you redeem points through the Chase Ultimate Rewards travel portal
  • Primary auto rental insurance (CDW) when renting for business purposes, plus purchase and extended warranty protection

The $95 annual fee is NOT waived the first year if you apply online.

And you’ll need to have a small business to get the Ink Business Preferred card.  But you might qualify for a small business card without realizing it!  Here’s how to submit a Chase small business card application.

You can read my full review of the Ink Business Preferred card here.

Chase Ink Business Preferred Annual Fee – Worth It or Not?

The Chase Ink Business Preferred is worth the annual fee for most folks.  At least for the first year.  Because the sign-up bonus alone is worth $1,000 in travel booked through the Chase Travel Portal!  Because each point is worth 1.25 cents when redeemed this way.

And could be worth even more with Chase’s airline and hotel transfer partners, like United Airlines and Hyatt.

You’ll also earn 3X bonus Chase Ultimate Rewards points in common spending categories, like travel, internet, and cell phone bills.

Is Chase Ink Business Preferred Worth The Annual Fee
Earning 3X Bonus Chase Ultimate Rewards Points on Travel Purchases Is a Good Deal. Especially Because You Can Get Big Travel With Chase Travel Partners, Like United Airlines!

That said, because of Chase’s stricter approval rules, if you’ve opened 5+ cards from any bank (except these business cards) in the past 24 months, it’s unlikely you’ll be approved for this card.  And you have to be strategic when deciding which cards to apply for first!

Considering Other Offers?

Link:   The Business Platinum® Card from American Express OPEN

Link:   Chase Ink Business Cash Credit Card

There are other cards that might make more sense for some folks, depending on your spending habits and travel goals.

You could apply for the 75,000 point AMEX Business Platinum offer where you’ll earn 50,000 Membership rewards points after spending $10,000 plus earn an extra 25,000 Membership rewards points after spending an additional $10,000 within the first three months.

That’s a little less than the value of the sign-up bonus on the Chase Ink Business Preferred.  But the minimum spending requirements are a LOT higher.  And it comes with a $450 annual fee that is NOT waived the first year.

Or, you could apply for the Chase Ink Cash small business card.  Which could make sense if you spend a lot on office supplies.  Because it earns 5% cash back (5 Chase points) at office supply stores and on cell phone, landline, internet and cable TV bills.

Is Chase Ink Business Preferred Worth The Annual Fee
If You Spend a Lot on Office Supplies, It Could Be Worth Considering a Card That Earns MORE Bonus Points In This Category. Like the Chase Ink Cash That Earns 5X Bonus Chase Ultimate Rewards Points at Office Supply Stores!

It only comes with a 30,000 Ultimate Rewards point sign-up bonus after meeting minimum spending requirements.  But it has no annual fee!

So again, it’s worth considering your ability to meet minimum spending requirements, travel goals, and spending habits, when deciding between cards.

Check out my post about why thrifty folks like me have annual fee cards.

Should You Keep the Ink Preferred Beyond the First Year?

After you’ve earned the sign-up bonus, deciding whether to keep the card for a 2nd year or more is trickier.

For example, if you can earn 50,000 Chase Ultimate Rewards points through regular or bonus spend each year, that’s worth $625+ in travel.  So paying the annual fee a 2nd year would be worth it!

Even you spend at least ~$2,533 per year in the 3X bonus categories, you’ll earn ~7,600 Chase Ultimate Rewards points.  That’s worth $95 toward travel (7,600 X 1.25 = $95).  So it doesn’t take much to cover the annual fee if you like the bonus categories!

As always, do the math to see what makes sense for you.

Bottom Line

You can earn 80,000 Chase Ultimate Rewards points after spending $5,000 on purchases in the first 3 months of opening a Chase Ink Business Preferred card.  But if you apply online, the $95 annual fee is NOT waived the first year.  Here’s how to fill-out a Chase small business card application.

I think the annual fee for the Chase Ink Business Preferred is worth it for most folks.  Because the sign-up bonus alone is worth $1,000 in travel booked through the Chase Travel Portal.  And possibly more with airline and hotel transfer partners.  If you spend a lot in the 3X bonus categories, it’s an even better deal!

Just remember, because of Chase’s stricter approval rules, you have to be careful when deciding which credit cards to apply for first.  Consider your ability to meet minimum spending requirements, travel goals, and spending habits, when deciding which cards to get.

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Ink Business Preferred℠ Credit Card

Ink Business Preferred℠ Credit Card

  • Earn 80,000 bonus points after you spend $5,000 on purchases in the first 3 months from account opening. That's $1,000 toward travel when you redeem through Chase Ultimate Rewards®
  • Earn 3 points per $1 on the first $150,000 spent on travel and select business categories each account anniversary year
  • Earn 1 point per $1 on all other purchases–with no limit to the amount you can earn
  • Points are worth 25% more when you redeem for travel through Chase Ultimate Rewards
  • Redeem points for travel, cash back, gift cards and more – your points don't expire as long as your account is open
  • No foreign transaction fees
  • Employee cards at no additional cost
  • $95 Annual Fee

More Info

Editorial Note: We're the Million Mile Secrets team. And we're proud of our content, opinions and analysis, and of our reader's comments. These haven’t been reviewed, approved or endorsed by any of the airlines, hotels, or credit card issuers which we often write about. And that’s just how we like it! :)

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I’m new to the points hobby and the Ink Business Preferred is one of the credit cards I have. Looking at what the 3x spend categories are, confuses me a little. I recently purchased a documentary program online, which I watched online and renewed my Microsoft Office online. Both purchases earned me 3x points. Not complaining, but does anyone know what theses two purchases fell under. This way I can ensure I’m doing the best to maximize my points on future purchases.

I hate how they do the math on these articles. The $95 fee is NOT worth it if you spend $2533 in 3x categories. You need to spend more. Because if you don’t get this card, you’ll use another card that also gives you rewards. So you pay $95 and with that much spend you get $95 back. But if I put that much spend on a 1x card with no fee, I’d get $25 back. So I’m still $25 lower with this card.

The actual break even point is $3455. A 1x card would get you $34.55 back. This card would get you 10,365 UR points, which at a 1.25 redemption rate would be worth $129.56. With the $95 fee, that puts your profit at $34.56.

This is if you don’t have the CSR. If you do, you get 1.5 redemption rate, so your break even point is $2715.

This also doesn’t take into consideration any other benefits, just the rewards.

Full formula:
break even point = (fee1 – fee2) / (rate1 – rate2)

Simple formula:
This is if you’re comparing to a 1x reward card with no annual fee.
break even point = fee / (rate – 1)

Use the rate you would get final rewards for, like the Chase IBP would be .0375 because you get 3% with 1.25x increase. If you have the CSR you would put .045 because of the 1.5x increase.

since the disclaimer is that the fee is not waived if we apply online, you are indirectly telling us to apply in person with the bank to get the fee waived, correct?

Great advice. Love the breakdown on whether it makes scene to keep the card beyond the first year. Most sites omit that. But if you use the card to the spending you noted–or above, the annual fee really does pay for itself.

Keep up the great, practical advice!

So if one has a valid business and the chase ink card (employees have the chase ink card also) one can still apply for this, correct?

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