The Plum card from American Categorical evaluate: Easy money again and cost flexibility for companies

The Plum Card® from American Express is a unique business card with a flexible payment option. You can get a discount of 1.5% for paying early or up to 60 days interest-free (on new balances) when you make the minimum payment. However, unless you’re a business with fluctuating cash flow, other higher rewards-earning cards will likely suit you better. Card Rating*: ⭐⭐

*Card Rating is based on the opinion of TPG’s editors and is not influenced by the card issuer.

The Amex Plum Card is a simple business card with no preset spending limit and an annual fee of $250 (see rates and fees). Normally, you need to pay this type of card in full each month, but the Plum card allows you an up to 60-day interest-free period, as long as you make the minimum payment by the due date.

Still, this card is very light on benefits. In most cases, you’d be better off applying for one of TPG’s top business credit cards. Many cards are on that list with more modest annual fees, first-year benefits valued at more than $1,000, and comparable (or better) ongoing reward rates.

The recommended credit score for this card is 670 or higher.

Let’s take a closer look at the Plum Card to see if this card might be a fit for you.

Unfortunately, the Plum Card does not have a welcome offer.

Many other business cards with similar or lower fees have valuable welcome offers, so it’s quite disappointing to see no welcome offer despite such a high annual fee on this card.

Related: This month’s best welcome offers

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With the Plum Card, you’ll earn a 1.5% discount on eligible charges you pay within 10 days of your statement closing date. The discount is applied to your account as a credit on the following statement. You don’t need to manage rewards or choose from several different redemption options — everything is automated for you.

You also have the option to carry a balance interest-free for up to 60 days. To qualify for this option, you’ll need to pay at least the minimum amount due (10% of new purchases plus all of any previously deferred balance) by the due date. However, deferred amounts are not eligible for the 1.5% discount.

This card has no foreign transaction fees (see rates and fees) and comes with extended warranty protection, return protection and secondary rental car loss and damage insurance.*

*Eligibility and Benefit level varies by Card. Terms, Conditions and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by AMEX Assurance Company.

Additionally, employee cards are free, and you’ll get a suite of expense management tools to help oversee your spending.

This is a very light list of benefits for a card with such a substantial annual fee. If you don’t need the option to carry a balance interest-free for 60 days, you’ll almost certainly get more value from a different card.

Related: Who qualifies for a business credit card?

With the Plum Card, you’ll earn 1.5% cash back on all purchases when you pay your balance within 10 days of the statement closing date. If you don’t pay within this time frame, you will not earn any rewards on your spending.

This earnings rate is especially unremarkable since many cash-back cards offer 1.5% or more on all purchases. What’s more — many of these cards come with no or a lower annual fee and don’t have restrictions like the Plum card’s 10-day payment window.

Related: Cash back vs. travel rewards: How to choose a credit card

Redeeming cash back on the Plum Card is simple, as it is automatically applied as a credit to your next billing statement.

This can be beneficial if you don’t want to have to worry about how to redeem cash back. However, it’s a drawback if you like to pool for cash back and redeem it at one time.

I prefer to earn points and miles instead of cash back as I tend to get great value with points redemptions, so I get far more value from my American Express® Gold Card than I would from this card.

Related: The best travel rewards credit cards

Many other cards are more enticing than the Plum Card, with lower or no annual fees and better earnings potential.

For additional options, check out our full list of the best business cards.

Related: Small-business credit card vs. corporate credit card: Which is right for your business?

The Amex Plum Card is only worth it if you are a business with variable cash flow and need extra time to pay by taking advantage of the 60 days to pay in full. You’d have to spend over $16,660 to break even on the card’s $250 annual fee after the first year, so most business owners will want to opt for a different card.

The main value of the Plum Card from American Express is its simplicity; there’s no credit limit to navigate, and it earns 1.5% back on eligible early payments. However, since you can earn 1.5% back (or more) with several different no-annual-fee business credit cards, the Plum card is rarely a good fit.

For rates and fees of The Plum card from American Express, click here.
For rates and fees of The Blue Business Plus Card, please click here.