The Union Bank Business Visa Credit Card doesn’t make our best small business credit cards list. Nor does it appear on our best low APR credit cards roundup. But that doesn’t mean this no-annual-fee business credit card has no value for small business owners seeking to build their credit or finance purchases at a relatively low interest rate. In fact, during the 6-month 0% APR introductory period, this card is a solid option for those seeking affordable business financing options or simply to cut costs at an existing small business.
The Union Bank Business Visa Credit Card doesn’t excel in every department. It doesn’t have a sign-up bonus or ongoing rewards program, so it’s not appropriate for business owners seeking returns on their everyday spending. It also doesn’t have a ton of fringe benefits, which are common on more exclusive business credit cards, like the Chase Ink Business Preferred Credit Card. And, though its minimum regular interest rate is pretty low, it’s part of a much wider range. Cardholders with less-than-perfect credit may be surprised to find their rates approaching 20% APR here.
Still, Union Bank Business Visa is a solid, no-frills credit card option for many business owners. Here’s what you need to know about its features, benefits, drawbacks, and overall suitability.
Union Bank Business Visa Credit Card has a 6-month, 0% APR introductory promotion on purchases and balance transfers. Neither type of transaction accrues interest during the promotional period.
Once the introductory period ends, the purchase and balance transfer APR rises to range between 11.49% and 19.49%, depending on your personal creditworthiness and prevailing interest rates. The rate is subject to change going forward.
The cash advance APR is set at 26.25% from the day you open your account, but can vary at any time thereafter. The penalty APR ranges as high as 29.99% and kicks in after a missed statement due date. Some of our best low-APR credit cards, such as Barclaycard Ring Mastercard, have even lower interest rates. (See Ring’s terms and conditions for more details.)
The Union Bank Business Visa Credit Card has no annual fee. Balance transfers cost the greater of $10 or 3% during the first six billing cycles and the greater of $10 or 5% thereafter. Cash advances cost the greater of $15 or 5%. The foreign transaction fee is 3% of the transaction amount. Late payments cost up to $39. Returned payments cost $35.
Union Bank Business Visa Credit Card cardholders can avail themselves of merchant discounts through Visa SavingsEdge, a business-only savings program that counts a ton of popular vendors among its participants. Many participating vendors are food and hospitality companies, including plenty of national chains that you’re likely to encounter in your travels: Panera Bread, Red Robin, National, Alamo, and La Quinta Inn & Suites. Discounts range as high as 5% off your total purchase.
Visa-Backed Cardholder Benefits
Aside from Visa SavingsEdge, Union Bank Business Visa Credit Card’s Visa-backed benefits include:
- Emergency lost card replacement and cash disbursement
- Complimentary damage insurance on rental cars paid in full with the card
- Access to a dedicated hotline for card-related questions (the Card Inquiry Service)
Union Bank Visa Credit Card is designed for business owners with good credit. Minor blemishes won’t disqualify your application, but serious credit issues (such as a personal bankruptcy) could be problematic.
- No Annual Fee. Union Bank Business Visa Credit Card has no annual fee. If you don’t want to pay to keep your account open, you’ll like the sound of that – especially considering that this card doesn’t earn rewards.
- 0% APR Promotion. This card’s 0% APR introductory promotion applies to purchases and balance transfers for 6 months from your sign-up date. While that’s far from the most generous timeframe available, it’s better than the vast majority of business credit cards, which don’t offer introductory promotions at all. If you need to pay down an existing high-interest card balance or finance a major purchase without accruing interest, this card is worth a closer look.
- Low Ongoing Interest Rate for Qualified Cardholders. Applicants with very good to excellent credit are likely to qualify for ongoing interest rates at or near the lower end of this card’s range (11.49% APR). That’s better than most mainline business cards, which can charge 15% APR or higher.
- Great Discount Opportunities Through Visa SavingsEdge. Through Visa SavingsEdge, you can unlock discounts up to 5% at dozens of participating merchants, including national restaurant, rental car, and hotel chains. If you dine out often or travel domestically for business, you’re likely to make out well on this score.
- Nice Visa-Backed Benefits. Union Bank Business Visa Credit Card somewhat makes up for its lack of a rewards program with a solid lineup of Visa-backed benefits, including complimentary damage insurance on rental cars paid in full with the card, emergency lost card replacement and cash disbursement, and more. The best part: you don’t have to pay to use most of them.
- No Rewards. One of the biggest drawbacks of the Union Bank Business Visa Credit Card is its nonexistent rewards program. Purchases made with this card don’t earn cash back, points, or any other loyalty currency. If you initially sign up for this card to capture its interest-free financing or balance transfer period, you might find yourself with a “meh” card six months in. If you’re looking for a solid return on spending from a no-annual-fee business credit card, check out Chase Ink Business Cash Credit Card.
- No Account Opening Bonus. This card also doesn’t have a sign-up bonus. That’s a big drawback relative to other popular business credit cards – for instance, Capital One Spark Cash for Business offers new cardholders the chance to earn $500 within three months of account opening.
- No Overdraft Protection for Union Bank Deposit Accountholders. Unlike Union Bank’s consumer credit cards, Union Bank Business Visa Credit Card doesn’t offer overdraft protection for Union Bank deposit account holders. This is a big problem for business owners who occasionally overdraft their checking accounts due to liquidity issues or accounts receivable backlogs.
- No Travel Benefits. Though Union Bank Business Visa Credit Card has a decent lineup of Visa-backed benefits, it’s not a great choice for frequent travelers seeking perks like airport lounge access, complimentary in-flight inclusions, or priority boarding. If you regularly travel for business, you’d be better served by Platinum Delta SkyMiles Business Credit Card from American Express.
- Ongoing APR Can Be High for Less Qualified Cardholders. Though Union Bank Business Visa Credit Card has a low minimum ongoing APR, its maximum ongoing APR is on the high side – nearly 20%. If you’re seeking the flexibility to carry balances from month to month but don’t have perfect credit, this could add significantly to your total card costs.
- 3% Foreign Transaction Fee. Union Bank Business Visa Credit Card has a 3% foreign transaction fee. If you regularly travel outside the United States, this is likely to be a dealbreaker, especially since there’s no rewards program to partially offset the hit. Fortunately, plenty of business credit cards lack foreign transaction fees – the Starwood Preferred Guest Business Credit Card from American Express OPEN is a great place to start.
- Charges Penalty Interest. If you occasionally miss your statement due date due to liquidity issues or slow client payment, you may run afoul of this card’s penalty interest provision. Once you miss a payment, your interest rate rockets up to nearly 30% APR, potentially adding hundreds to your annual balance-carrying costs.
Every business’s needs are unique. Your company might run super lean, with just the founders, a few contract employees, a handful of electronic devices, some basic overhead expenses (such as utilities in a home office or rent in a coworking space), and a modest portfolio of affordable B2B services.
On the other hand, you might run a capital-intensive company with lots of expensive equipment, huge stores of inventory, a full-time payroll, generous office space, and a team of highly trained (and well compensated) support professionals.
If your business is on the lean side, this card is definitely fine for you. If your operation is larger, you’d be better served by a more powerful business credit card, such as the no-limit charge cards offered by American Express OPEN. The Plum Card from American Express OPEN is a great choice and offers impressive payment flexibility to boot. Or, look into Union Bank’s commercial credit options, which are meant for firms with revenues north of $1 million.