Are you a small business owner? Do you have a consulting business on the side? Or maybe you created an LLC to sell your crafts on Etsy. So long as you have a registered legal entity, you can be eligible for a business credit card to help accelerate your mile earning potential. And for loyal AAdvantage fliers, there are some exciting ways to get extra bonus offers and convert your business expenses into airline tickets.
We all know that frequent flier miles can lead to free travel. But most of us don’t really know what a mile is actually worth. That is why I looked across the web for a tool to help me understand – in $s – the value of those miles. After much searching, I found a good tool. To figure out how many miles you can earn with your business spend – and what those miles are worth, just input your information into this AAdvantage tool.
Select “business” under Card Type, and you can see the offers available. (You should also get a personal AAdvantage card as well for your personal spend. You are eligible for bonus offers on both cards, and if you put both your personal and business spending on AAdvantage cards – you will be earning free travel much quicker). The table makes it very clear how many miles you will earn based upon how you spend. But, even more interesting, it tells you how much those miles are worth in the language that a small business owner speaks – $!
The best part about signing up for a new card is the bonus offer. The CitiBusiness AAdvantage Card offers 30,000 bonus points if you spend $1,000 in the first 3 months. Starwood offers up to 25,000 bonus points (which can be transferred 1:1 into the American Airlines program). You are able to have both cards (in addition to your personal AAdvantage Cards), so don’t be shy and consider applying for both of them.
It is important to understand that the individual (not the business) remains liable for the charges on a small business card. If you default on that card, it will hurt your individual credit rating. Also, business cards are not protected by the CARD Act. That means the credit card company can re-price (increase the rate) on your existing balance. But that brings up an important point – always pay your business credit card balance in full, on time. If you don’t – you will pay very high interest rates that can quickly eliminate the value you receive from earning miles.
Having a separate business card can help you manage your expenses and your business in a more controlled way. And, if you have employees, you can add additional employee cards. This will help you earn even more AAdvantage miles, while enjoying greater spending control with custom credit lines – set by you.
The CitiBusiness AAdvantage Card offers quite a few benefits to help reduce travel costs if your business uses American Airlines regularly. For example, the first checked bag will be free for the cardholder and up to 4 travelling companions.
Like most cards, these are only available for people with established credit history, and for businesses that can be verified. If you just created your business, you may want to wait a few months before applying. The banks tend to verify your company against databases of companies – and it can take a few months from incorporation for your business to show up in the database, depending upon the state. And, if you apply and are rejected, it could be a while before you are allowed to apply again.
For the discerning small business owner, these cards are a win win. You can manage your expenses (without mingling your personal and business expenses) while earning free travel and receiving travel benefits. Pay your balance in full every month, and your next flight will be sooner than you think.
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