Advanta Life-of-Balance Platinum Card Review
What's The Main Attraction - The Advanta Life-of-Balance Platinum card offers a great balance transfer deal for new cardholders. In addition to that, you can potentially earn up to 6% rebates on a business expense category of your choice and up to 2% rebates on "other purchases". However, you need a high level of expenditure to earn these rebates. You can also choose to earn rewards rather than cash rebates. Read further to find out how this card works, and if it makes sense for you to get it for your small business.
Cash Rebate Formula - The cash rebate formula is tiered and rather complicated. We will now try to dissect it. Firstly, this card allows you to earn up to 6% rebates on certain business expenses. You have to choose which of these categories you want to include so that you can earn 6% rebates. You have the following choices and can only choose one.
- gasoline and diesel
- computer equipment and office supplies - classified as computer, computer peripheral equipment and software distributors, electronics stores, computer software stores
- building supplies - classified as home supply warehouses, lumber and building material stores, glass, paint and wallpaper stores, or hardware stores
- restaurant dining
- utilities and telecommunications - classified as utility or computer network service providers
The category you choose will earn rebates in the following manner.
| Up to $10,000 | 0.50% |
| $10,001 - $20,000 | 1.00% |
| $20,001 - $30,000 | 2.00% |
| $30,001 - $40,000 | 3.00% |
| $40,001 - $50,000 | 6.00% |
| more than $50,000 | 0.50% |
For "other purchases" and business expenses that were not chosen by you, the following rebate formula dictates how you earn rebates for these "other purchase items".
| Up to $5,000 | 0.25% |
| $5,001 - $15,000 | 0.50% |
| $15,001 - $25,000 | 0.75% |
| $25,001 - $50,000 | 1.00% |
| $50,001 - $125,000 | 2.00% |
| more than $125,000 | 0.50% |
Reward Program - If you choose to earn rewards, you earn one point for every dollar spent on purchases. Points can be redeemed for travel and shopping rewards. Unlike the cash rebate program, you can earn unlimited points. Points are valid for 36 months (3 years).
The Advanta rewards program consist of both travel rewards, a few shopping merchandise and gift certificates. For airline tickets, you need 25,000 points to get a free roundtrip ticket within the continental US. This is the standard rate among reward programs. In terms of shopping merchandise, Advanta has only one partner, Trek Recreational Hybrid bicycles. Below is a list of partners where you can exchange points for gift certificates.
| Advanta Bonus Cards | Darden Restaurants | The Panera Card |
| Avis | Dillards | Royal Caribbean International |
| Barnes & Nobles | Hyatt Weekend Certificates | SpaWish.com |
| Best Buy | 75 Sony iTunes Downloads | Staples |
| Blockbuster | Macy | Home Depot |
| Brinker International | Marriott Cheque | Ritz Carlton |
| Coach | Marriott Worldwide Select | Sharper Image |
| CompUSA | Orvis |
Fees and Rates - The Advanta Life-of-Balance Platinum Business Card has no annual fee for both the main card and additional employee cards. The apr is prime rate plus 1.74%. The highlight of this card is that it offers those who transfer their balance an apr of 2.99% for the life of the transfer.
Online Account Management - Advanta cardholders get benefits like free online account management, and detailed expense reports. Statements can be downloaded to Microsoft Money, QuickBooks or Quicken. Limits on employees cards can be set individually. You can get a credit line of up to $50,000.
Low Rates on Merchant Processing - Advanta offers their cardholders one of the lowest rate in credit card processing. They have partnered with Express Merchant Processing Solutions (EMPS) and offer a rate of 1.64% plus $0.25 per transaction.
Verdict - Is this card right for you? It really depends on what you are looking for in a card. If you are looking for a business cash back card, then you can earn up to 6% rebates on business expense and 2% rebates on "other purchase". However, your business needs to have a high level of expenditure to earn these rebates. Only you will know if this makes sense. If the level of your business expenditure is way below what is required to earn maximum rebates on this card, then you should explore other cash back business credit cards.
If you want this card simply for the reward program, I would urge you to reconsider because there are better reward programs than Advantas' program. For example, the Chase reward program (called the Ultimate Rewards Program) is much better. You might want to consider the Chase Ink Classic.
The area where this card stands out is its' low interest rate (prime rate plus 1.74%), and its 2.99% apr balance transfer for life offer. Hence if you are looking for a business credit card with a low interest rate and to transfer a balance, then the Advanta Life-of-Balance Platinum Card may just be the right card for you. Bear in mind that Advantas' other credit card, the Advanta Platinum with Rewards offers a 0% apr balance transfer deal for 16 months. You should do the math and see which of these two cards is better for you. It will depend on the amount you want to transfer over, and the amount of time you intend to pay off the balance. Right at this moment, the Citi Diamond Preferred Card (which are consumer cards) both offer 0% Intro APR* for 21 months on both balance transfer and purchases. This is probably a better alternative if 0% APR cards are what you are looking for.
Update - Advanta is no longer around. They closed down during the 2008 financial crisis and their cards are no longer available.
Positives
- Low apr
- Great balance transfer deal
- Choice of cash rebate program or travel reward program
- No annual fee
- No additional card fee
| Advanta Life-of-Balance Platinum Card | |
| Rewards | |
| Rebate Formula |
Earn up to 6% rebate on eligible business purchases, which includes gasoline and diesel purchases, computers, computer supplies, electronics and office supplies, utilities and telecommunications Earn up to 2% rebate from other purchases |
| Caps on Rebates | $300 |
| Business Reward Formula | Earn 1 point for every dollar spent on purchases |
| Caps on Points | Earn unlimited points |
| Points Expiry | 36 months |
| Benefits | |
|
Free Online Account Management Detailed Expense Management Report |
|
| Cost/Fees/Interest rates | |
| Introductory rate | 2.99% introductory APR for balance transfers for life of balance |
| Annual Fee | No annual fee |
| Purchase APR | Prime Rate plus 1.74% |
| Balance Transfer APR | Prime Rate plus 1.74% |
| Cash Advance APR | Prime Rate plus 1.74% or 11.74% |
| Penalty/Default Rate APR | The higher of account apr plus 3% or Prime Rate plus 19.74% |
| Min Finance Charge | $1.00 |
| Grace Period | 20 days |
| Balance Transfer Fee | 3% min $5.00, max $50.00 (during introductory period) |
| Cash Advance Fee | 3% min $5.00 |
| Convenience Check Cash Advance fee | 3% min $5.00, max $50.00 |
| Over-the-credit-limit fee |
$15.00 - less than $501.00 $29.00- between $501.00 and 1,001.00 $39.00 balances over $1,001.00 |
| Late Payment fee |
$15.00 - less than $101.00 $29.00- between $101.00 and 1,001.00 $39.00 balances over $1,001.00 |
