The Plum Card® from American Express OPEN is a ground breaking business card not only because it offers cash back, but also because provides a type of credit line that is similar in nature to vendor financing, as opposed to a traditional credit card.
How it Works
Perhaps the best part of the Plum Card is that it can be used as a trade card, or for vendor financing. Since the markets have turned sour, and businesses no longer are obtaining desirable trade terms, money is tighter than ever, which can lead to problems with ordering and making purchases. This is where the Plum Card can help: cardholders can get zero percent financing for up to sixty days, with a small down payment of just ten percent. In this case, as long as you pay ten percent before the due date, and the remaining balance within sixty days, you will not accrue any interest. Regular credit cards start charging interest on any unpaid portion of the balance after the initial due date has passed.
At the time this review was written, the Plum Card also boasted 1.5% cash back on all purchases. In order to get this great deal, you must pay off your balance in full within ten days. This is a bit of a shorter billing cycle than other types of credit cards, but the extra rewards are well worth it!
Other Important Information (which is subject to change)
- There is no annual fee for the Plum Card for the first year;
- After the first year there is an annual fee of $185.00;
- There is a $45.00 fee for additional cards issued;
- Just like with other versions of American Express Business cards, discounts are available at participating OPENSAVINGs merchants.
Because the Plum Card is so unique by allowing businesses more of a cushion and up to sixty days to pay off a balance without the worry of interest, it has become one of the most popular cards for businesses. With no preset line of credit, and attractive cash back rewards with no cap to boot, this card can be a tremendous asset.
For those of you still wondering if these great incentives are really worth the cost of the annual fee, consider this: if you regularly pay your balance in full, you have a great opportunity to earn exceptional rebates on purchases you already make. It is also an inexpensive form of insurance that allows you the comfort of knowing you have an interest free finance option for up to sixty days should you find the need for one.
Review Written August 6, 2011. Card terms subject to change.