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Introduction
Bank of America is one of the largest and most well-known banks in the United States, offering a wide range of financial products and services. One of their offerings is the Bank of America Platinum Plus Business credit card, which is targeted towards small and medium-sized businesses. In this article, we will take a closer look at the Platinum Plus Business card, evaluating its benefits and drawbacks, and determining whether it is a platinum opportunity or a business bust.
The Benefits of the Bank of America Platinum Plus Business Card
The Platinum Plus Business card comes with a variety of benefits that can be advantageous for business owners. Here are some of the key advantages:
- Generous Rewards Program: The Platinum Plus Business card offers a rewards program that allows cardholders to earn points on their purchases. These points can be redeemed for cash back, travel rewards, or gift cards. This can be a great way for businesses to earn rewards on their everyday expenses.
- Introductory 0% APR: For the first 12 billing cycles, the Platinum Plus Business card offers a 0% APR on purchases and balance transfers. This can be particularly beneficial for businesses that need to make large purchases or transfer balances from other high-interest credit cards.
- No Annual Fee: Unlike many other business credit cards, the Platinum Plus Business card does not charge an annual fee. This can save businesses a significant amount of money each year.
- Expense Management Tools: Bank of America provides robust expense management tools for Platinum Plus Business cardholders. These tools can help businesses track and categorize their expenses, making it easier to manage their finances and prepare for tax season.
The Drawbacks of the Bank of America Platinum Plus Business Card
While the Platinum Plus Business card offers several benefits, it also has some drawbacks that potential cardholders should be aware of. Here are a few of the main disadvantages:
- Higher Interest Rates: After the introductory 0% APR period ends, the Platinum Plus Business card has a variable interest rate that can be higher than some other business credit cards. This means that businesses that carry a balance on their card may end up paying more in interest charges.
- Limited Acceptance: While Bank of America is a widely accepted bank, there may still be some merchants or vendors that do not accept the Platinum Plus Business card. This can be a disadvantage for businesses that rely on certain suppliers or vendors that do not accept the card.
- Strict Approval Criteria: Bank of America has strict approval criteria for the Platinum Plus Business card, which means that not all businesses will qualify. This can be a disadvantage for small businesses or startups that may have limited credit history or lower revenue.
- Lack of Additional Business Benefits: Unlike some other business credit cards, the Platinum Plus Business card does not offer additional benefits such as travel insurance, purchase protection, or extended warranties. This may be a drawback for businesses that value these additional perks.
Case Study: XYZ Company's Experience with the Platinum Plus Business Card
To provide a real-life example, let's take a look at XYZ Company's experience with the Bank of America Platinum Plus Business card. XYZ Company is a small manufacturing business that has been using the card for the past year.
XYZ Company found the rewards program to be highly beneficial. They were able to earn cash back on their everyday business expenses, which helped offset some of their costs. Additionally, the 0% APR introductory period allowed XYZ Company to make a large equipment purchase without incurring any interest charges.
However, XYZ Company did encounter some challenges with the Platinum Plus Business card. They found that some of their suppliers did not accept the card, which meant they had to use alternative payment methods for those transactions. Additionally, XYZ Company had to meet Bank of America's strict approval criteria, which required providing extensive financial documentation.
Overall, XYZ Company found the Platinum Plus Business card to be a valuable tool for managing their business expenses and earning rewards. However, they also acknowledged that the card may not be the best fit for every business, particularly those with specific vendor requirements or limited credit history.
Conclusion
The Bank of America Platinum Plus Business card offers several benefits for small and medium-sized businesses, including a generous rewards program, an introductory 0% APR, and no annual fee. However, it also has some drawbacks, such as higher interest rates, limited acceptance, strict approval criteria, and a lack of additional business benefits.
Before applying for the Platinum Plus Business card, it is important for business owners to carefully evaluate their needs and consider whether the benefits outweigh the drawbacks. Conducting a thorough analysis of their spending habits, vendor requirements, and credit history can help businesses determine if the Platinum Plus Business card is a platinum opportunity or a business bust.
