The Plum Card® from American Express Review
Established businesses sometimes need a little extra cash flow to go the extra mile and enjoy growth. For many, a good credit card can provide the cash flow you need to buy equipment, pay utilities and other bills, and purchase inventory. If you are looking for a business card to help your small business grow, the Plum Card® from American Express, a Credit Cards House advertiser, might be a good choice.
Note: Terms apply to American Express benefits and offers. Visit americanexpress.com to learn more.
The Plum Card® from American Express
One of the biggest advantages that a business owner can receive is the ability to scale up a business. The right business card can help with that. The Plum Card® from American Express might be just the right card for you, since it is aimed at established businesses and offers the chance for you to grow your credit line along with your business.
You receive a cash back reward of 1.5% when you pay off your card early each month (see benefit terms). The 1.5% discount on your statement is on the amount paid within 10 days of your statement closing date. If you don’t pay off your card early, you can defer your payment for up to 60 days with no interest as long as you pay your minimum by your payment due date. This card also doesn’t charge annual fees for additional cards and you get an early-pay discount on employee spending.
There is a $250 annual fee (see rates and fees).
- Get a 1.5% discount when you pay early. No caps on what you can earn back
- If you pay your minimum by payment your due date, you can get up to 60 days to pay with no interest
- Spending limit grows as you grow your business
- No annual fee for additional employee cards (see rates and fees)
- No foreign transaction fees (see rates and fees)
- Annual fee: $250
- APR: N/A (see rates and fees)
The main benefits of the Plum Card® from American Express have to do with the payment flexibility. If you pay your balance in full each month, you effectively earn 1.5% cash back, which is a decent benefit.
With the the Plum Card®, there is no regular APR. However, you are charged a fee if you pay late. The Plum Card® allows you to take up to 60 days to pay with no interest when you pay at least the minimum on your balance by your payment due date. Make sure you pay attention to your balances and when you need to pay in order to avoid paying fees. Also, you have the option to choose your billing cycle to match your own business requirements.
As you use your card and make payments, your spending power changes. This allows you to take advantage of increased spending power to scale up your business as needed. For established businesses in the growing phase, this can be very useful.
There are also no foreign transaction fees with the Plum Card® from American Express, and you don’t have to worry about annual fees on employee cards. Plus, there is a discount for early pay-off for employee spending. The Plum Card® from American Express comes with American Express benefits like accident insurance and 24/7 concierge services.
While there are some benefits to this card, especially for a business in an expansion phase, you do need to watch out for the drawbacks. If you hold over your balance without paying it off, the fees can start to add up, especially if you take more than 60 days to pay off your balance.
On top of that, the 1.5% discount is only available if you pay off the balance in full each month. For the most part, it will be difficult to spend enough to overcome the $250 annual fee if you don’t pay off the balance each month and if you aren’t a big business spender.
The Plum Card® from American Express is best for established business owners with good credit that are looking for expansion. With the adjustable spending power and the deferred payment option, this card can help with your cash flow. However, you need to have a plan for repayment if you want to avoid steep fees for not paying off your balance regularly. However, the 1.5% discount isn’t as competitive as other cash back business cards, and the annual fee might be too steep for some business owners.
For rates and fees of the Plum Card® from American Express, click here.
Editorial Note: This content is not provided by American Express. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by American Express.
First published , last updated
Editorial Note: Any opinions, analyses, reviews or recommendations expressed in this article are those of the author's alone, and have not been reviewed, approved or otherwise endorsed by any card issuer.