Divvy Business Credit Card Review 2023
Is It the Best Credit Card for Your Startup?
Last Updated: By TRUiC Team
Divvy is a relative newcomer to the corporate credit card market, but they’re making a big impact. Their corporate card offering has several features that set it apart from the competition and make it appealing to new startups.
In this article, we will take a comprehensive look at the Divvy Business Credit Card and compare it to Rho, one of the leading players in this space. We will cover everything from pricing and features to reviews and eligibility.
Apply now for a Divvy Business Credit Card.
Divvy Eligibility Requirements
There aren't many requirements to be considered for the Divvy Credit Card. The bank is one of the better options for those who don't already have business credit but are looking to build a history.
Important to note, Divvy has two different programs available to build credit based on history. One is the Divvy Credit Builder, and the other is an unsecured line of credit.
The Divvy Credit Builder card is perfect for businesses looking for second-chance banking. Businesses that may have made a mistake in the past or haven't established credit yet will use this program.
It requires a security deposit that ends up being the amount of credit you have available. As you pay your credit on time, you can eventually transition into a regular credit account.
Below are the eligibility requirements for signing up for a Divvy credit account:
- Must have a US bank account
- Must have a US EIN
- One person in the business must be a US citizen or resident and own 25% or more of the business.
Divvy does prefer small to medium-sized businesses, so the card may not be ideal for corporations or large businesses. However, any type of business structure can apply to Divvy, whether it be a sole proprietorship, an LLC, or a partnership.
Pros and Cons of Divvy Business Credit Card
Pros of Divvy Business Credit Card
- Rewards offered based on payoff frequency
- Excellent budget management features
- No hidden or annual fees
Cons of Divvy Business Credit Card
- Lack of integration options
- Lack of customization for alert systems
Should You Sign Up for a Divvy Business Credit Card?
Divvy does a great job rewarding account holders for paying off their balances more frequently. It's a reward rarely seen in the credit card industry and works very well with no hidden or annual fees.
Divvy Business Credit Card Fees and Features
Divvy is a good card for beginning entrepreneurs building business credit because it has very low fees with good rewards. Below is a list of all the features and fees you can expect when using the card.
Rewards and Benefits
- Automatic expense reporting
- Budget customization allows you to set spending and budget limits for each project, event, or any other category of your choosing
- Choosing a higher frequency when paying your account balance leads to more reward points for purchases of specific items
- 0% APR on purchases for the first 12 months
- No annual fee
- Late fees: 2.99% or $38
- Foreign transaction fees: 0.2%–0.9%
Divvy rewards customers who pay off their bills more frequently. Those who set up consistent automatic payments will receive higher reward points for purchases on eligible categories.
Although there are no interest rates for Divvy for the first 12 months, you'll need to talk with a customer support agent to determine what normal rates apply. Unfortunately, Divvy leaves out any information regarding interest rates from their website.
How Does Divvy Compare?
Divvy offers a credit card for startups that is best for entrepreneurs just starting to build their business credit. The eligibility requirements are low, meaning most businesses will be approved. For those that don't, they offer a credit builder program.
Even though the Divvy card has significant advantages, other cards may fill the gaps where Divvy lacks. Here is how Divvy compares to the Rho Mastercard and how to compare the two.
$0 Annual Fee
Earn higher reward points for more frequent bill payments throughout the month.
Best For: Startups with no or minimal business credit history.
$0 Annual Fee
All-in-one financial solution that includes varying repayment terms with no fees.
Best For: Companies that have a high-growth potential with larger cash reserves.
Final Thoughts on Divvy Business Credit Card
Divvy has earned a special place for itself in the highly competitive credit card industry. The lack of fees and unique reward structure make it appealing for a business starting its credit journey.
Companies that plan to pay their bill monthly can take advantage of the rewards; otherwise, there aren't enough budgeting tools and rotating discounts to make Divvy more appealing to larger businesses.
Frequently Asked Questions
How does a Divvy credit card work?
The Divvy card is free to use and has no annual fees. They make their money by charging the merchants who make purchases with a small fee for each transaction. Businesses can earn reward points based on how frequently they pay their bill off.
How long does Divvy credit take to approve?
You will know if you get approved for the Divvy credit card right after applying through the company's website. Once you've filled out the application, Divvy will complete a quick credit check of your history and determine if you are eligible. Then, you'll receive information from Divvy on whether or not you were approved minutes after applying.
Is Divvy a credit card or charge card?
Divvy is a charge card that does not allow you to carry a balance for purchases made. Instead, the total owed is due each month on a given date. You have several repayment options, but the most frequent options will receive higher reward points for specific purchases.