Our Verdict
The Hello Alice Small Business Mastercard®* is an intriguing option for small business owners who otherwise might not have access to credit. It offers a surprisingly strong earn rate that can benefit many entrepreneurs. In addition to a traditional unsecured card, a secured version of this card is available, with the option to transition seamlessly to the secured version after a minimum of 11 months of credit-building activity.
While this card doesn’t offer many fancy perks, it’s a solid option for small business owners who value the tools and support offered by the Hello Alice platform and may not be able to qualify for a traditional small business credit card.
Pros
- No annual fee
- Access to one-on-one business coaching
- Primary car rental insurance
- 0% intro APR on purchases and balance transfers made in the first 6 billing cycles from account opening, then a variable APR of 19.99% - 28.99% applies. A balance transfer fee of either $10 or 5% of the amount of each transfer, whichever is greater, applies
- Ability to transition from a secured version to an unsecured version of the card
Cons
- Points earned aren’t transferable
- The welcome bonus is minimal
- Foreign transaction fee
Highlights
- Earn a $50 statement credit after spending $1,000 in the first 3 billing cycles after account opening
- Earn 4X points for every $1 spent on eligible wireless telephone services and business software purchases
- Earn 3X points for every $1 spent on eligible office supplies and shipping purchases
- Earn 2X points for every $1 spent on eligible rideshare and restaurant purchases and 1.5X points for every $1 spent on all other purchases
- No annual fee
Introduction
Hello Alice is a free online platform for entrepreneurs and small businesses to access information on how to launch and grow a business as well as provide information about grants and other sources of funding. The Hello Alice Small Business Mastercard®* is the company’s first foray into credit cards. The no annual fee card is a unique offering because it comes in both a secured and unsecured version. Both options come with the same access to business-building tools, support and rewards-earning capabilities. However, for entrepreneurs with a limited or poor credit history, the secured version, which requires a security deposit, also has the ability to transition to an unsecured version after a minimum of 11 months of credit-building activity. The issuing bank, First National Bank of Omaha, determines which version of the card each customer is given based on a combination of the applicant’s credit history and the bank’s underwriting criteria.
The card earns points which can be redeemed for gift cards, virtual learning events or cash back within the Hello Alice Loyalty Program. It earns 4 points per dollar on eligible wireless telephone services and business software purchases, 3 points per dollar on eligible office supplies and shipping purchases, 2 points per dollar on eligible rideshare and restaurant purchases and 1.5 points per dollar spent on all other purchases.
Additionally, the card comes with a 0% intro APR on purchases and balance transfers made in the first 6 billing cycles from account opening, then a variable APR of 19.99% - 28.99% applies. A balance transfer fee of either $10 or 5% of the amount of each transfer, whichever is greater, applies.
Other benefits of the Hello Alice Small Business Mastercard®* include 24/7 business assistance, Mastercard ID theft protection, zero liability protection and primary car rental insurance.
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Quick Facts
- No annual fee
- Earn 4 points per dollar on eligible wireless telephone services and business software purchases, 3 points per dollar on eligible office supplies and shipping purchases, 2 points per dollar on eligible rideshare and restaurant purchases and 1.5 points per dollar spent on all other purchases
- Welcome bonus is a $50 statement credit after spending $1,000 within the first 3 billing cycles after account opening
- Access to business coaching sessions
- A 0% intro APR on purchases and balance transfers made in the first 6 billing cycles from account opening, then a variable APR of 19.99% - 28.99% applies. A balance transfer fee of either $10 or 5% of the amount of each transfer, whichever is greater, applies
- Offered in both a secured and unsecured version
- Foreign transaction fee: 3% of each transaction in U.S. dollars
Hello Alice Small Business Mastercard Rewards
Earning Rewards
Rewards are earned on the Hello Alice Small Business Mastercard®* in the form of Hello Alice Points. Cardholders of the Hello Alice Small Business Mastercard®* can earn 4 points per dollar on eligible wireless telephone services and business software purchases, 3 points per dollar on eligible office supplies and shipping purchases, 2 points per dollar on eligible rideshare and restaurant purchases and 1.5 points per dollar spent on all other purchases.
Cardholders can also earn points for engaging with the Hello Alice platform, including:
- 150 points when they update their profile on Hello Alice
- 100 points when they log in to their Hello Alice accounts three days in a row
- 100 points when they complete a program on Hello Alice
There’s also a first-year welcome bonus of a $50 statement credit after spending $1,000 within the first 3 billing cycles after account opening.
Redeeming Rewards
Hello Alice points, which are part of the Hello Alice Loyalty Program, can be redeemed for gift cards, virtual learning events or cash back. Hello Alice point value will vary depending on the redemption, but the company states that the value will be at least one cent per point.
Points will expire after 12 months if there is no card account activity.
Rewards Potential
Forbes Advisor uses data from various government agencies in order to determine both annual expenses and spending averages across various categories. To determine the rewards potential of the Hello Alice Small Business Mastercard®*, we considered what a sole proprietor or small business might spend in the bonus categories. The average cardholder in the 70th percentile has $118,438 in annual spending, with $39,337 in expenses that can reasonably be charged to a credit card. We base our calculations on these numbers.
|
Category
|
Earning Rate
|
Estimated Annual Spend
|
Estimated Annual Earnings
|
|
Wireless telephone service and business software purchases
|
4X
|
$2,493
|
9,972 points
|
|
Office supplies and shipping purchases
|
3X
|
$2,342
|
7,026 points
|
|
Rideshare and restaurant purchases
|
2X
|
$5,369.50
|
10,739 points
|
|
All other purchases
|
1.5X
|
$29,132.5
|
43,698.75 points
|
|
Total: 71,435.75 points
|
|||
0% Introductory Rates
The Hello Alice Small Business Mastercard®* offers a 0% intro APR on purchases and balance transfers made in the first 6 billing cycles from account opening, then a variable APR of 19.99% - 28.99% applies. A balance transfer fee of either $10 or 5% of the amount of each transfer, whichever is greater, applies.
Other Hello Alice Small Business Mastercard Benefits
- Business coaching. Each account has access to two business coaching sessions every calendar year
- 24/7 business assistant. Cardholders have access to assistance with business tasks such as making restaurant reservations to making travel plans
- Mastercard ID theft protection. Cardholders don’t need to worry about identity theft due to the card’s monitoring and protection against identity theft
- Zero liability protection. Rest assured you won’t be responsible for unauthorized transactions
- Primary car rental insurance. As part of the Mastercard World Elite program benefits, cardholders will get primary car rental insurance coverage
Fine Print
Interest Rates
- Regular APR: 19.99% - 28.99% variable
- Purchase intro APR: 0% intro APR for the first 6 billing cycles from account opening
- Balance transfer intro APR: 0% Intro APR on balance transfers for the first 6 billing cycles from account opening
Fees
- Annual fee: $0
- Balance transfer fee: Either $10 or 5% of the amount of each transfer, whichever is greater
- Foreign purchase transaction fee: 3% of each transaction in U.S. dollars
How the Hello Alice Small Business Mastercard Stacks Up
Hello Alice Small Business Mastercard®* vs. Capital One® Spark® Classic for Business*
The Hello Alice Small Business Mastercard®* and the Capital One® Spark® Classic for Business* are both no annual fee business cards that are good for building credit. While the Hello Alice Small Business Mastercard®* has business-focused earning categories like wireless telephone service and office supplies that earn 1.5 to 4 points per dollar, the Capital One® Spark® Classic for Business* earns 1% cash back on every purchase and 5% cash back on hotels and rental cars booked through Capital One Travel.
The Spark Classic for Business doesn’t come with any introductory 0% APR offers but it does come with some benefits not available on the Hello Alice Mastercard like roadside assistance, a lack of foreign transaction fees, extended warranty protection, free employee cards and the ability to use your earnings to book travel through Capital One’s site.
Hello Alice Small Business Mastercard®* vs. Bank of America® Business Advantage Unlimited Cash Rewards Secured credit card*
The Bank of America® Business Advantage Unlimited Cash Rewards Secured credit card* is similar to the Hello Alice Small Business Mastercard®* because it is a no annual fee card which offers the ability to upgrade to an unsecured card over time.
It earns 1.5% cash back on all purchases, which is solid for a secured credit card, but it lacks the bonus categories offered on the Hello Alice Small Business Mastercard®*.
The Bank of America® Business Advantage Unlimited Cash Rewards Secured credit card* doesn’t come with an introductory 0% APR offer, but does have some benefits not offered on the Hello Alice Small Business Mastercard®*, including optional overdraft protection, travel accident insurance, lost luggage assistance, purchase protection and extended warranty protection.
Both of these cards charge a foreign transaction fee.
Hello Alice Small Business Mastercard®* vs. Capital on Tap Business Credit Card*
The no annual fee Capital on Tap Business Credit Card* earns 1.5% cash back on purchases and offers free employee cards. Other small business cards may offer more robust rewards, but they typically require a hard inquiry into your personal credit. What makes the Capital on Tap unique is that applying won’t affect your personal credit score.
However, the card is only a fit if you are either an active director of your company or a majority shareholder of 25% or more ownership. Additionally, your business has to be U.S.-based and have annual revenue of at least $30,000. This means the card is uniquely suited for someone without strong personal credit but who holds a lot of sway within their company.
Is the Hello Alice Small Business Mastercard for You?
The Hello Alice Small Business Mastercard®* could be a good option for small business owners who don’t have a great credit history and also need the business tools and support offered by Hello Alice. Plus, the card’s ability to transition from a secured version to a non-secured version can help business owners improve their credit scores along the way. It offers benefits not usually available on secured credit cards and it even stacks up well against some other traditional small business cards for entrepreneurs with less than stellar credit.
However, if you already have great credit, there are more rewarding business card options out there that you’ll want to consider.
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Methodology
Forbes Advisor considers a variety of criteria when assigning credit cards a rating. Cards are graded based on numerous factors, including:
- Annual fees
- Welcome bonus offers
- Ongoing earning rates
- Value of individual points or miles
- Included travel or merchant credits
- Additional cardholder benefits
Card features we expect cardholders to use the most often are weighted more heavily in our ratings. Altogether, the factors came together to provide a star rating for each individual card.
Read more: How Forbes Advisor Rates Credit Cards
*The information for the following card(s) has been collected independently by Forbes Advisor: Hello Alice Small Business Mastercard®, Capital One® Spark® Classic for Business, Bank of America® Business Advantage Unlimited Cash Rewards Secured credit card, Capital on Tap Business Credit Card. The card details on this page have not been reviewed or provided by the card issuer.
