The Flagstar Visa Business Bonus Rewards Card is a small business credit card with no annual fee and a straightforward cash back program that earns 1 Reward Point per $1 spent on all purchases, with no caps or restrictions on how much you can earn. Though that’s not the most generous baseline earning rate, a 25% point bonus is automatically applied at the end of each statement cycle, bumping up the effective return on spending to 1.25%.
The Flagstar Visa Business Bonus Rewards Credit Card has some other helpful benefits, including overdraft protection for current Flagstar Bank deposit account customers and business-friendly features that make it easier to track, report, and hold employees accountable for spending. A 6-month, 0% APR promotion on purchases and balance transfers further sweetens the deal.
But this card has some notable drawbacks, including a sub-par sign-up bonus and limited benefits for frequent business travelers – a key downside compared with higher-end business credit cards such as Chase Ink Business Preferred.
Key Features
Sign-up Bonus
You get a one-time 2,500-point bonus after you make your first purchase. That’s equivalent to a cash bonus of $25.
Earning Cash Back Points
The Flagstar Visa Business Bonus Rewards Credit Card earns unlimited 1 point per $1 spent on all purchases, with no caps or restrictions on how much you can earn. Points expire 5 years (60 months) after they’re earned, so remember to redeem your points occasionally even if you don’t use this card often.
Redeeming Cash Back Points
The minimum redemption amount is 2,500 points ($25) for most methods. Points can be redeemed for statement credits against your credit card balance, direct deposits into checking or savings accounts (including Flagstar Bank accounts), general merchandise, travel purchases, and gift cards at dozens of participating restaurants and retailers.
Most redemption methods, including cash and cash equivalents, value points at $0.01 apiece. However, when you redeem 25,000 points through Flagstar’s travel portal, you can claim round trip airfare worth up to $325, for a redemption rate of approximately $0.014 per point. Bear in mind that you need at least 25,000 points to redeem for airfare. though.
Regardless of how you redeem, using your points wisely can be a great way to save money on a tight budget.
Monthly Bonus on Earned Points
At the end of each statement cycle, you automatically get a 25% bonus on all points earned during the preceding period. There’s no limit to the number of bonus points you can earn. This feature effectively bumps your point-earning rate up to a flat, unlimited 1.25%.
Introductory APR
The Flagstar Visa Business Bonus Rewards Credit Card has a 6-month, 0% APR introductory promotion on purchases and balance transfers. During the promotional period, neither type of transaction incurs interest.
Regular APR
Following the end of the introductory period, this card’s purchase and balance transfer APR is set between 13.49% and 24.49%, depending on your personal creditworthiness and prevailing interest rates at the time. The rate is variable, meaning it’s subject to change over time.
To start, the cash advance APR is set at 25.49%, but can vary with prevailing rates. The penalty APR is set at 28.99%.
If these rates are too high for you, check out our list of the best low-APR credit cards.
Important Fee
The Flagstar Visa Business Bonus Rewards Credit Card has no annual fee. Balance transfers cost $5 or 3%. Depending on how they’re executed, cash advances cost the greater of $5 or 3% to $20 or 4%. The foreign transaction fee is 2% to 3%, depending on how they’re denominated – dollar-denominated purchases are set at the lower rate. Returned payments cost up to $35. Late payments cost anywhere from $19 to $39, depending on size.
Overdraft Protection for Flagstar Bank Deposit Accountholders
Flagstar Bank deposit account holders can take advantage of Flagstar Bank’s optional overdraft protection transfer service.
Once you opt in, transactions that would regularly result in negative account balances automatically trigger cash advances from your Flagstar Visa Business Bonus Rewards Credit Card’s cash advance credit line. These advances keep your balance positive and allow attempted transactions to go through as usual. There’s a $10 fee per occurrence for this service.
Keep in mind that your card’s cash advance credit line is likely to be lower than its overall spending limit. Also, overdraft protection transfers immediately begin accruing interest at the cash advance rate, so it’s best to pay them off as quickly as possible.
Business Features and Benefits
The Flagstar Visa Business Bonus Rewards Credit Card’s business-friendly features and benefits include:
- Complimentary employee credit cards, complimentary online workshops on various business-related topics
- Expense reports that segregate business and personal outlays
- Up to $100,000 in protection against card misuse by terminated employees
- A slew of ways to categorize spending (including by employee and purchase category)
Visa-Backed Cardholder Benefits
Flagstar Visa Business Bonus Rewards Credit Card has some additional cardholder benefits backed by Visa. These include:
- Purchase protection for 90 days
- Emergency lost card replacement
- Transportation assistance for stranded travelers
- Complimentary extended warranties on certain items with existing warranties
Credit Required
Flagstar Visa Business Bonus Rewards Credit Card is for business owners with good to excellent credit. Serious issues like recent personal bankruptcy are likely to disqualify your application. Minor blemishes may be problematic as well.
Advantages
- No Annual Fee. Flagstar Visa Business Bonus Rewards Credit Card has no annual fee, which is great news for light-spending business owners who don’t want to have to worry about meeting an arbitrary spending (and point-earning) threshold. Likewise, if you’re a frugal cardholder who wants to avoid annual fees, you’ll like this card’s no-obligation aspect.
- Unlimited 1.25% Earning Rate on All Purchases. The lack of caps or restrictions on point-earning and the 25% monthly bonus on all points earned combine to raise this card’s effective return on spending to 1.25%. If you’re disciplined enough to redeem your points only for airfare, you can achieve an even higher return on spending.
- 0% APR Introductory Promotion. If you’re facing down high-interest credit card debt or need to make a large purchase for your business, Flagstar Visa Business Bonus Rewards Credit Card’s 6-month, 0% APR promotion is worthy of consideration. As long as you commit to paying down your balance before the intro period expires, you could save tens or hundreds of dollars on interest charges.
- High Returns on Airfare Redemptions. This card’s airfare redemption scheme values Reward Points at roughly $0.014 apiece – 40% higher than when they’re redeemed for cash back. If you use your card frequently or have multiple employees authorized to spend on your account, it’s realistic (and very worthwhile) to save up your points until you clear the 25,000 minimum airfare redemption threshold. Every 25,000-point airfare redemption is worth up to $325, compared with $250 maximum for cash redemptions.
- Affordable Overdraft Protection for Flagstar Customers. If you’re a Flagstar deposit account customer, you can opt into the bank’s overdraft protection program. Compared with other banks’ overdraft protection programs, it’s relatively affordable – just $10 per transfer. That’s a small price to pay to ensure that you honor your obligations.
Disadvantages
- Earnings Capped at 1.25%. Flagstar Visa Business Bonus Rewards Credit Card has no bonus categories or elevated spending tiers. Accordingly, the 1.25% return on spending is the best you can achieve under normal circumstances, though you can boost that by another 40% on a case-by-case basis when you redeem for airfare. By contrast, competing cards such as Citi Double Cash Card (a consumer product) and Flagstar Visa Business Cash Card both offer opportunities to earn 2% or more on spending.
- Has a 2% to 3% Foreign Transaction Fee. Frequent international travelers are likely to be disappointed by this card’s foreign transaction fee, which can range as high as 3% of the total transaction amount. Needless to say, any overseas spending done with this card is likely to be a losing proposition in light of the 1.25% earning rate.
- Has a 28.99% Penalty APR. This card has a 28.99% penalty APR that kicks in after you miss a due date, remaining in place indefinitely thereafter. If your business struggles with unpredictable cash flow, this could be a costly feature.
- Points Expire After 5 Years. Like all Flagstar-backed credit cards, this card’s points expire 5 years after they’re earned. This is a big issue for infrequent users, who might forget that they have points in reserve, or might not spend heavily enough to clear the 2,500-point minimum redemption threshold.
- $25 Minimum Redemption Threshold. Flagstar Visa Business Bonus Rewards Credit Card has a 2,500-point minimum redemption threshold for most redemption options, and a 25,000-point redemption threshold for airfare redemptions. For light spenders and infrequent card users, the first threshold can take months to clear, and the second may well remain out of reach forever. If you’re looking for a credit card with unlimited redemption potential, check out Chase Freedom Unlimited.
- Mediocre Sign-up Bonus. Flagstar Visa Business Bonus Rewards Credit Card has a $25 sign-up bonus. That’s better than nothing, but it’s not exactly super-generous either. Competing business credit cards such as Chase Ink Cash Business Credit Card and Capital One Spark Cash for Business have sign-up bonuses worth 10 to 15 times that amount.
Final Word
Flagstar Bank is based in Michigan. It mostly operates in the Midwest and South. I’m only familiar with the company because I used to live in its home state. Had my travels not taken me to Flagstar’s neck of the woods, I likely would remain with the majority of Americans who have no idea the bank exists.
But Flagstar Bank’s low profile is deceptive. I’ve reviewed a lot of bank-backed cash back, small business, and travel rewards credit cards. While Flagstar’s card lineup isn’t always superior to household-name issuers such as Chase and Bank of America, it more than holds its own against the competition.
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Flagstar Visa Business Bonus Rewards Card
The Flagstar Visa Business Bonus Rewards Card is a solid choice for frugal business owners who hate annual fees and don’t care about sign-up bonuses or cushy fringe benefits. Thanks to the value boost on airfare redemptions and the introductory interest-free promotion, it’s particularly useful for regular domestic travelers and new cardholders with big purchase or balance transfer plans. However, the lack of favored spending categories and the pesky foreign transaction fee both limit this card’s generosity and appeal.
Score: 3.7 out of 5 stars
Key benefits include the lack of an annual fee, the 6-month interest-free promotion, the unlimited 1.25% baseline earning rate (thanks to the 25% monthly point bonus), the above-average returns on airfare redemptions, and the overdraft protection transfers for Flagstar deposit account customers.
Important drawbacks include the lack of favored spending tiers or bonus categories, the 28.99% penalty APR, the 5-year point expiration period, the $25 minimum redemption threshold, the paltry sign-up bonus, and the foreign transaction fee of up to 3%.
Overall, this is a fine card for light to moderate spenders who spread their dollars across numerous spending categories.
