Chase Ink Preferred: Why it sucks for you

Posted By Jon Nickel-D'Andrea on Nov 21, 2016 | 4 comments

There has been quite the buzz over the past couple of weeks over the new and “improved” Chase Ink Preferred business credit card, but I’m here to be the one to tell you that I think this card sucks, and I think you should look elsewhere. 

Chase is known in the miles and points world as one of the best, if not THE best, companies to get credit cards for huge signup bonuses and great milesage earning opportunities. The Chase Sapphire Preferred and the Reserve continue to be the two cards that should be in everyone’s wallet, as they offer a fantastic flexible rewards structure and earning potential. There’s also the Hyatt card, the IHG card, the Marriott card, and to a certain extent, the United cards.

Ink Plus Card, Rest In Peace

Chase’s Ink Plus card was, for years, the best card in my opinion out there. It earned 5x at office supply stores and telecommunication expenses, among other things. Just a couple of weeks ago, this card was retired and only the existing card holders will be able to enjoy those awesome benefits. Staples and OfficeMax employees learned to know me by name, and I think some actually started getting into the miles and points world after a couple of the conversations that I had with them.

The disappointing Ink Preferred

Enter the Chase Ink Preferred! Fanfare! Balloons!

Ink Business Preferred

Meh.

Let’s go over some of the benefits of the card, as they’re pretty similar to what was offered in the past. From the company website:

3 points per $1

Earn 3 points per $1 on the first $150,000 spent in combined purchases on travel, shipping purchases, Internet, cable and phone services, advertising purchases made with social media sites and search engines each account anniversary year.*

1 point per $1

Earn unlimited 1 Point Per $1 spent on all other purchases. Points do not expire as long as your account is open.*

Sure, 3x points on travel is great, but that’s about it. Chances are you’re already getting that with the Chase Sapphire Reserve. $150k a year in Shipping purchases? Social Media Advertising? Please. Ain’t no one out there (who cares about miles and points) spending $12,000 a month on facebook advertising.

In contrast, the Ink Plus in the past offered 5x on Office supply purchases, ya know, something businesses actually use!

“But Jon, what about the signup bonus of 80,000 points?”

Sure, that’s a fantastic sign up bonus! 80,000 points is a lot. It’s also a business credit card, and you might not be able to get a business credit card. In the months before I left Chase, the company was getting very serious about business card applications, checking tax filings, asking for returns, being very strict on having accounts and/or personal collateral on file before they would approve an application. Chase is the largest credit card issuer in the USA, and if there’s one thing you don’t do, it’s bite the hand that’s feeding you. 

Be honest with your applications. Don’t try and “skirt the rules” and tell them that you have a business online selling guitar parts. It will come back and bite you in the ass, and you don’t want to get blacklisted by Chase.

The allure of the first and business class check-in is strong…

But, I’m over 5/24, and this is a great option for me!

I’m going to be the one to burst your bubble possibly here, and say that if you’re over 5/24, it sounds like you’ve taken really good advantage of some great credit card offers out there in the past two years. For me, and I think anyone who is serious about doing this long term with no stress, the name of the game is moderation. Remember that companies who issue credit are in the business of minimizing loss. If you’ve applied for 15 credit cards in the past 24 months, chances are that you’re not a good risk to take on, so maybe just slow down for a couple of months, enjoy those benefits that you’ve racked up, and slow down.

I know that’s contrary to popular belief and is probably going to get some hate mail, but what I’ve learned in my half-decade doing the miles and points thing is… moderation and consistency is key. That’s why we’ve both got amazing credit and millions of points. We’re not going overboard with crazy signup bonuses and getting the card companies to scrutinize us or our applications.

Do you really NEED another Chase card?

Keep in mind that this card, if you decide to apply, is not going to be a card that is one to hold on to. It’ll be a churn and burn, and we all know that Chase hates that. It may seem nice to get a huge 80k miles boost, but my suggestion is to hold off and wait for a different offer to come along. 

Are you going to buy ads on facebook and twitter? Are you going to use this to actually support your business? Go for it! But DO NOT tell Chase that you run a business from home, and your annual profit is $2,000, and then proceed to charge $150,000 in a year on your card. Chase does not like this, and you won’t like the end result.

Summary

I suppose that for some people out there, this will be a good card, but I’m guessing that for you and 95% of the people reading this post, it’s not. Don’t apply for a card just because it has a nice signup bonus. Try and actually get some use out of the card and be a responsible consumer. I’m sure this post will fall on a lot of deaf ears, but I’m eager to see and hear your comments below.

Are you going to be applying (or have you already) for the Chase Ink Business Preferred?