GM Business Credit Card from Goldman Sachs Review

Introduction

Navigating the plethora of credit card options available in today’s financial market can be a daunting task. As a financial expert with years of experience analyzing and reviewing credit cards, I aim to simplify this process for you. Today, we delve into the intricacies of the GM Business Credit Card from Goldman Sachs, a card designed specifically for business owners who have a penchant for General Motors (GM) products and services. This card offers a unique blend of rewards and benefits that can be particularly advantageous for businesses with fleet needs or those that frequently interact with GM dealerships.
The GM Business Credit Card from Goldman Sachs stands out with its robust rewards program, appealing introductory offers, and absence of an annual fee. This review will cover every aspect of the card, from its rewards structure to its fees, helping you determine if this card is the right fit for your business needs.

GM Business Credit Card from Goldman Sachs Key Takeaways

– Rewards Structure: Earn 5% back in earnings on GM dealership parts or services, 3% back on gas, restaurants, and office supply stores, and 1% back on all other purchases.
– Sign-Up Bonus: Earn $750 in earnings to redeem at GM towards the purchase or lease of eligible new GM vehicles after spending $5,000 on purchases in the first 5 months from account opening.
– Introductory APR: 0% introductory APR for 12 months from the date of account opening.
– Variable APR: Post-introductory APR ranges from 19.24% to 29.24%, based on your creditworthiness.
– Annual Fee: $0
– Credit Score Requirement: Good to Excellent (670-799)
– Issuer: Goldman Sachs

GM Business Credit Card from Goldman Sachs Pros and Cons

Pros

1. High Rewards Rate for GM Dealerships: The card offers an impressive 5% back on GM dealership parts and services, making it extremely beneficial for businesses that rely on GM vehicles.
2. Broad 3% Categories: Earn 3% back on gas, restaurants, and office supply stores, common expense categories for most businesses.
3. Generous Sign-Up Bonus: New cardholders can earn $750 in earnings towards a new GM vehicle, a substantial incentive for businesses planning a vehicle purchase or lease.
4. Introductory APR Offer: The 0% introductory APR for 12 months is a valuable feature for businesses looking to manage cash flow or finance larger purchases without immediate interest charges.
5. No Annual Fee: The absence of an annual fee makes this card a cost-effective option for businesses.

Cons

1. Limited Redemption Options: Rewards can only be redeemed towards GM vehicle purchases or leases, which may not be ideal for businesses that do not plan to acquire GM vehicles.
2. High Variable APR: The post-introductory variable APR of 19.24% to 29.24% can be quite high, making it essential to pay off balances each month to avoid hefty interest charges.
3. No Intro APR on Balance Transfers: The card does not offer an introductory APR for balance transfers, which could be a drawback for businesses looking to consolidate existing debt.
4. High Cash Advance APR: With a 29.99% variable APR on cash advances, this feature should be used sparingly to avoid significant interest charges.

GM Business Credit Card from Goldman Sachs Benefits

Rewards Program

The GM Business Credit Card from Goldman Sachs offers a tiered rewards structure that can be highly beneficial for businesses. Here’s a deeper dive into how the rewards stack up:
– 5% Back on GM Dealership Parts and Services: This is the highest rewards tier and is excellent for businesses with GM vehicles that require regular maintenance and parts.
– 3% Back on Gas, Restaurants, and Office Supply Stores: These categories are common business expenses, making it easy to accumulate rewards quickly.
– 1% Back on All Other Purchases: While not as high as the other categories, this ensures you still earn rewards on every dollar spent.

Sign-Up Bonus

One of the standout features of this card is the sign-up bonus. After spending $5,000 within the first 5 months of account opening, you earn $750 in earnings to be used towards the purchase or lease of a new GM vehicle. This is a significant incentive, especially for businesses planning to expand their fleet with GM vehicles.

Introductory APR

The 0% introductory APR for 12 months is a notable benefit. This feature allows businesses to make large purchases or manage cash flow without incurring immediate interest charges. However, it is essential to plan for the end of this period, as the APR will revert to a variable rate between 19.24% and 29.24%.

No Annual Fee

The absence of an annual fee makes the GM Business Credit Card from Goldman Sachs an attractive option for businesses. This feature ensures that you can enjoy the card’s benefits and rewards without an additional yearly cost.

Credit Score Requirement

With a required credit score of Good to Excellent (670-799), this card is accessible to a wide range of businesses. However, maintaining a good credit score is crucial to securing the best possible APR within the variable range.

Additional Benefits

– No Foreign Transaction Fees: This is particularly beneficial for businesses that operate internationally or have employees who travel abroad frequently.
– Online Account Management: The card offers robust online account management tools, making it easy to track expenses, pay bills, and monitor rewards.
– Customer Support: Goldman Sachs provides reliable customer support to assist with any issues or questions regarding the card.

Conclusion

The GM Business Credit Card from Goldman Sachs is a specialized financial tool that can offer significant benefits to businesses with specific needs related to GM vehicles and services. Its high rewards rate for GM dealership purchases, generous sign-up bonus, and 0% introductory APR make it an attractive option for businesses that can maximize these features.
However, the card’s limited redemption options and high variable APR are important considerations. Businesses that do not plan to purchase or lease GM vehicles may find the rewards less valuable. Additionally, the high post-introductory APR underscores the importance of paying off balances in full each month to avoid costly interest charges.
In summary, the GM Business Credit Card from Goldman Sachs is best suited for businesses with fleet needs or those that frequently utilize GM dealership services. If your business aligns with these criteria, this card can provide substantial rewards and benefits, making it a valuable addition to your financial toolkit.