The new Uber credit card from Barclays is turning many heads as you can earn up to 4 percent back on every purchase. If you're a self-employed entrepreneur who makes several business-related purchases every week in addition to your own personal spending, is Uber's new credit card offering a good option? 

What Can You Earn With the New Uber Credit Card?

Here are the highlights of the brand new Uber credit card which can make this a good fit for entrepreneurs:

  • No annual fee
  • No foreign transaction fee
  • Earn 1 percent to 4 percent on every single purchase
  • Mobile phone insurance (with autopay)
  • Rewards points can be redeemed for Uber credits, cash, and gift cards

Tiered Purchase Rewards

The most appealing part of this card is the tiered purchase rewards:

  • 4 percent back on dining and UberEATS
  • 3 percent back on airfare, hotels, and vacation home rentals
  • 2 percent back on Uber purchases, online shopping, and digital streaming subscriptions (i.e. Netflix, Hulu, Spotify, etc.)
  • 1percent back on everything else

This is by far, one of the best credit purchase rewards programs you will find for any rewards credit card since you can easily earn at least 2 percent back on every purchase except for your "everyday" purchases like buying gas or groceries.

Redeeming Your Rewards

The most valuable redemption option is (obviously) going to be Uber credits. If you ride Uber on a consistent basis, this card is a no-brainer. One drawback to the Uber credit card is that you cannot transfer your rewards points to any other travel partners.

Complimentary Cell Phone Insurance

By paying your monthly cell phone bill with the Uber credit card, you will be reimbursed for up to $600 in losses if your phone is damaged or stolen. Very few credit cards offer similar cell phone protection.

Chase Cards

If the occasional free Uber reward ride isn't worth owning another credit card, these combinations can be even more valuable as your rewards points can be redeemed for plane tickets and hotel nights.

If you enjoy travel flexibility, all you need are two credit cards from Chase to earn the valuable Ultimate Rewards points on every purchase. 

Travel Rewards

  • Sapphire Preferred (2 points on travel and dining/ 1 point for everything else)
  • Sapphire Reserve (3 points on travel and dining/ 1 point for everything else)

Each point is worth 1.25 cents each (Preferred) or 1.50 cents each (Reserve) when redeemed for travel. Either card also lets you transfer your points on a 1:1 basis to any of the Ultimate Rewards travel partners.

Everyday Spending

  • Freedom (5 percent cash back on quarterly bonus categories and 1percent on everything else)
  • Freedom Unlimited (Unlimited 1.5 percent cash back on every purchase)
  • Ink Business Preferred (3 percent back on the first $150,000 spent for travel, shipping, and additional business purchases and 1 percent on all remaining purchases)

Owning a Chase Sapphire and either a Freedom or Ink Business product is a powerful 1-2 punch to earn the most rewards points possible on every single purchase. Since you can earn unlimited travel and dining with the Sapphire Preferred or Sapphire Reserve, use this card to pay for your travel and dining, unless, you can get a better rate with the Ink Business Preferred or when the Chase Freedom is offering a 5 percent bonus category.

Business Platinum Card by American Express

While you won't receive $200 in annual Uber credits as you would with the personal Amex Platinum, but you still receive travel benefits including the annual $200 air travel credit, free airport lounge access, and the chance to earn 5 points per $1 for every airline and hotel purchase. Here's a benefit exclusive to business owners like you, a 35 percent point redemption bonus on air travel when you an award flight through AmexTravel.com making your points worth 1.35 cents each (1000 points=$135). Here are a few other perks:

  • Earn 1.5 points per $1  on single purchases greater than $5,000 (instead of the normal 1 point per $1 spent).
  • Free Boingo wi-fi hotspot access
  • 20 annual GoGo wireless hotspot passes
  • Membership Rewards points can be transferred on a 1:1 basis to leading airlines including Delta, Emirates, Etihad, British Airways Avios (American and Alaska)

The annual fee for the Business Platinum Card is $450 per year, so it's definitely a card that's not for everyone. 

If you love Uber and use it to get to client meetings or when you travel to avoid rental car fees, the brand new Uber card can be a nice bargain. Since flights and hotel nights can be a larger, more common business expense, you could be better served with a travel rewards card that caters to these award preferences.  

Published on: Oct 30, 2017