| Last updated on October 27th, 2023
IBERIABANK Business Classic Credit Card
IBERIABANK Business Classic Credit Card
- 9.99%, 12.75%, or 16.45% variable based on creditworthiness and the Prime Rate Regular Purchase APR
- 23.99% variable based on the Prime Rate Cash Advance APR
- 0% for 12 months from account opening date Intro Purchase APR
- Best Benefits
- Rates & Fees
- Why Should You Apply?
- Low annual fee
- 0% introductory APR for 12 months on purchases
- Lowest IBERIABANK APR for credit cards
- Access to Visa® Perks
- Intro Purchase APR: 0% for 12 months from account opening date
- Regular Purchase APR: 9.99%, 12.75%, or 16.45% variable based on creditworthiness and the Prime Rate
- Cash Advance APR: 23.99% variable based on the Prime Rate
- Cash Advance Transaction Fee: Either $5 or 5% of the amount of each cash advance, whichever is greater
- Annual Fee: $10
- Foreign Transaction Fee: 3% of the transaction amount in U.S. dollars
- Late Payment Penalty Fee: Up to $35
- Return Payment Penalty Fee: Up to $35
Ideal for Those Who:
- Prefer having a lower APR over earning rewards
- Want to pay a lower fee for to use a credit card
- Would like to take advantage of 0% APR on purchases for 12 months
- Already bank with IBERIABANK
IBERIABANK Business Classic Credit Card Review
The Business Classic Credit Card from IBERIABANK is this bank’s most basic credit card. It offers no rewards and very little perks. In exchange, cardholders pay a lower annual fee than they would with the Business Rewards Card.
Additionally, this credit card offers cardholders a lower potential APR. Despite this card’s barebones features, new cardholders do receive 0% APR for 12 months on purchases. This can be very attractive to business owners who need to make large purchases and want to remove the expense of paying interest.
There are some big changes in store for IBERIABANK in 2020 as it merges with another regional bank. Find out how these changes may affect cardholders and whether below.
Keep Your Bottom Line Low
The IBERIABANK Business Classic Credit Card offers cardholders a competitively low annual fee. This fee is actually less than half of what cardholders pay to use the Business Rewards Card. For most business owners, keeping a low bottom line is of utmost importance, and any savings can add up.
You do have to sacrifice earning rewards points in exchange for this lower fee. However, earning rewards points may not be that rewarding with IBERIABANK’s credit cards. This bank keeps its rewards catalog secret, and points have no cash value.
As such, it’s nearly impossible to know how much your points are worth. As a business owner, it would be like making an investment without know what the returns would be. And for any business owner, that sounds like a bad deal.
Additionally, the Business Rewards card’s interest rates are as much as two percentage points higher than they are with this Classic Business Card. While this may not seem like much, the cost becomes crystal clear when you put it in dollars and cents.
If you keep a $10,000 balance on your credit card, you can be paying around $200 in interest. That interest can eat away at your profits, especially if you are just starting out. You should ask yourself whether you’d prefer to save money or gamble on rewards that may not even benefit your business.
0% APR on Purchases
While the lower annual fee and APR are attractive features, the IBERIABANK Business Classic Credit Card’s greatest benefit is its introductory interest rate. Once you sign up for this credit card, you can take advantage of 0% APR for 12 months on almost anything you purchase with your card.
Keep in mind that this only applies to purchases. As with most credit cards, you cannot apply a purchase APR promotion on cash advances or other similar financial transactions.
Additionally, you should note that the 12-month promotional period begins on the day you open an account. In other words, a purchase you make eight months after signing up will only give you four months to pay it off without any interest.
Some cardholders get confused by such offers and thing that once they make a purchase, they have 12 months to pay it from the moment the transaction processed. That thinking can lead you to practically to waste this credit card’s most appealing feature. Not to mention, you may also end up accumulating unexpected interest.
How to Use the Intro APR Feature
The most effective way to use this introductory 0% APR is to identify the purchases you want to make before you apply for this card. That way you can use your new credit card right away and maximize the time you have to pay it off.
This tactic is especially helpful for new business owners whose cash flow may still be limited. If you need to spend $10,000 to purchase new office furniture, for instance, you’ll be able to pay it off in monthly installments of $833. Compare that to making monthly payments of over $1,600.
Remember that any balance that remains on your account after the 12-month promotional period will automatically accrue interest. This also applies to purchases you make right before your 12 months are up. If you buy all that office furniture one day prior to your signup anniversary, you’ll have to pay that balance immediately to avoid paying interest on that purchase.
Should You Apply for the IBERIABANK Business Classic Credit Card?
The Visa® Classic Credit Card from IBERIABANK may be a good option for your business needs if you are already a customer of this financial institution. This is a very basic business card with an average APR.
Even though it features a low annual fee, there are not enough benefits to this card to justify any fee, at all. If you are not already a customer of IBERIABANK, you may want to peruse other business cards to select one that offers more bang for your buck. After all, every dollar counts when you’re in business.
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