The Plum Card from American Express (learn more) is a unique card in that it offers business owners flexible payment options over a 60-day period rather than 30. While this charge card doesn’t offer any robust rewards program, there’s an option to earn a discount for early payments.
In this Plum Card from American Express review, you’ll learn more about the card’s unique structure and if applying for this small business card makes sense for your business.
Flexible Payment Options for Business Owners
Who should get this card?
If you are a small- to medium-sized business that invoices clients, invoices customers, or purchases inventory to sell, it may take you some time to get paid for your product or services. Having a longer period of time to pay your credit card balance could be helpful to make up for gaps in cash flow.
The Plum Card could come in handy if you’re facing this situation. Even though it’s a charge card, which would normally mean you’d need to pay off your balance each month, it offers a “net-60” payment cycle as opposed to the standard “net 30” — meaning you have 60 days to pay your balance instead of 30.
Along with this, if credit card rewards in the form of points or cash back aren’t your highest priority, the Plum Card from American Express could be perfect for you.
|Annual Fee||$250 (waived first year)|
|Welcome Bonus||Not applicable|
|Recommended Credit Score||Excellent, Good|
|Foreign Transaction Fee||None|
Top card benefits
- Net-60 payment terms: The Plum Card gives you two full months to pay your charges with no interest. This differs not only from the standard charge card, but also gives you more time without interest than credit cards do.
- Early pay discount: 1.5% cash back on the portion of your eligible charges balance that you pay within 10 days of your statement closing date, as long as you pay at least your minimum payment.
- No preset spending limit: Since this card is a charge card, there’s no predetermined spending limit like a traditional credit card.
- Protection policies: The Plum Card from American Express comes with extended warranty protection; purchase protection; car rental loss and damage insurance (secondary coverage); and baggage insurance.
- Expense management tools: If integration is important for your bookkeeping, American Express has tools to help you with your expenses, including connecting to QuickBooks.
Earning & redeeming
The only earning or redeeming offered by the Plum Card is the ability to earn 1.5% cash back on the portion of your eligible charges balance that you pay within 10 days of your statement closing date, as long as you pay at least your minimum payment. But if what you’re after is cash back, you shouldn’t get this card based on that discount, as there are plenty of higher-earning cashback rewards cards.
How does the American Express Plum Card work?
The Plum Card from American Express is a business charge card that allows business owners a longer time period to pay their balance. With a typical credit card, you’re given a net-30 payment cycle. With the Plum Card, the payment cycle is net 60. Net 30 means your payment is due in 30 days, while net 60 is due in 60 days. In addition to the payment cycle, you have the opportunity to earn discounts for timely payments.
What credit score is required for the American Express Plum Card?
For the best chance of being approved for the Plum Card from American Express, you’ll need to have a good-to-excellent FICO score of 670 or higher.
Is the American Express Plum Card worth it?
If you simply need a longer time to pay your balance, then yes. Outside of that feature, there are many other business credit cards that provide more lucrative rewards and benefits.
Does the Plum Card from American Express have a foreign transaction fee?
No, it does not.
Others cards to consider
If the Plum Card from American Express (learn more) doesn’t sound like it would suit the needs of your business, consider taking a look at one of the two cards below.
If you’re looking for a charge card with no predetermined credit limit, consider the American Express Business Gold Card. With a valuable welcome offer and a robust points-earning system, this card brings a lot of potential to save money and earn valuable rewards. You can earn 4X Membership Rewards points for the first $150,000 spent in two select categories each year, and 1 point per $1 spent on other purchases.
Looking to simply save on your bottom line? Consider the Chase Ink Business Cash Credit Card. This card is a straightforward cashback card with heaps of savings potential. To start, you can earn $500 bonus cash back after spending $3,000 in the first 3 months. You’ll also earn 5% cash back at office supply stores and on internet, cable, or phone services (up to $25,000 combined annually); 2% cash back at gas stations and restaurants (up to $25,000 combined annually); and 1% cash back on everything else. Lastly, you’ll have a 0% introductory APR (annual percentage rate) on purchases for 12 months.