Divvy Credit Card Reviews: Is It Right for Your Business?

Divvy Credit Card Reviews

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It can be hard to choose the right credit card for your business. You’ll find cards listed that do not have an annual fee, those that waive the foreign transaction fee, and a host of rewards card options.

There are Divvy business credit card reviews all over the internet. Most of them are in agreement when it comes to the verdict, but they all get there a different way. Is a Divvy business card right for your business? 

What is Divvy?

First and foremost, Divvy is an expense management system. It was recently acquired by Bill.com as a result of the increasing number of customers that were looking for help with money management. 

The platform is designed to help businesses manage their finances by integrating with accounting systems and helping them control spending in a streamlined manner. 

In reality, it’s not meant to be a funding mechanism. The business card is just a means to an end. It’s a centralized way to manage spending.

It is not meant to be a business funding option on its own but rather a tool for business owners to use for more effective and efficient money management. They offer a lot of great features that allow business owners to control spending, manage expenses, and even handle accounts payable.

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The system allows you to see transactions in real time, and send funds in seconds via mobile or desktop. You can also issue cards to employees, either virtual or physical cards, and give them direct access to funds with a spending limit you set. 

This not only cuts down on expense reports, but also helps with budget management. That is the main purpose of the card. The system currently integrates with Quickbooks Online and Oracle Netsuite. Integration with Xero and Quickbooks Desktop is expected soon. 

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How much does a Divvy card cost?

It’s free. There are no hidden fees or contracts. They make money every time users spend money on a Divvy card. Each time, the merchant pays a fee to Visa, as well as the issuing bank. That fee is shared with Divvy. 

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This is in stark contrast to some other similar systems, which may offer free cards but charge a fee for the money management system. Furthermore, since the card is a charge card that must be paid off monthly, there is no interest. That makes using Divvy 100% free. 

Pros of the Divvy Card:

Other than being free, other pros include the following.

Streamline Money Management

Divvy allows business owners to manage spending, expenses, and accounts payable all in one place.The system allows you to see transactions in real time, and send funds in seconds via mobile or desktop.

Budgeting is made easy due to the fact that Divvy’s budgeting software syncs automatically with employee credit cards. This allows business owners to stop overspending at the source. There’s no need to constantly remind and nag. Just stop it before it happens. Better you, see spend in real-time by team, project, department, or individual budget.

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This makes budgeting for the year, quarter, or month much easier. However, it makes sticking to the budget easier as well. Traditionally, spend is tracked after the fact as receipts are turned in. With the ability to set control on the front end and see and approve spend in real-time, sticking to the budget is made easier as well. 

Manage Spending with Ease

The ability to issue cards to employees, either virtual or physical cards, makes spend tracking easy. Administrators give card holders direct access to funds with a spending limit they set.

Expense report tracking becomes nothing more than a tap on the screen, and managing the budget is just as easy. That is the main purpose of a Divvy card. 

One of the biggest time saving features is the automation of expense reports. Each time a card is used, you are notified in real time. The employee can capture receipt information directly into the systems, and it only takes a few taps to approve the expense, or not. 

Set up automated rules that ensure expenses are categorized and synched seamlessly each month. Transactions are automatically sent to your accounting system, and a big part of the month end closing process is already done. 

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Software Integrations

The system currently integrates with Quickbooks Online and Oracle Netsuite. Integration with Xero and Quickbooks Desktop is coming soon. 

These integrations are vital, and they are the crux of how Divvy does all it claims. If your accounting software is not compatible, you lose a huge amount of the benefit and functionality that comes from the automated synching of transactions with accounting systems. 

Divvy also now offers an integration with Slack as well. Businesses can create and manage Divvy fund requests within Slack for maximum efficiency. The ability to simply send a Slack message with a request is a major time saver. 

Also Read: The Best Business Cards with EIN Only

New software integrations are coming, but being aware of what is currently offered versus what your business uses will ensure you get all of the functionality Divvy has to offer. 

Payment Services 

With Divvy, you can skip manual data processing, check cutting, and envelope licking. You have the option instead to send Divvy a list of the invoices to be paid, and it’s handled from there. 

Paying with Divvy helps you earn rewards, and you can create vendor-specific virtual cards. This allows you to set limits to prevent vendors from charging more than what was agreed upon. The savings from this feature alone is valuable. 

You can relax knowing that there will not be a charge that is more than you expect without you knowing about it on the front end. It’s much easier to correct this type of issue before the funds have been paid. 

In addition, you can see the real-time status of your virtual card payments by vendor. You’ll be able to keep track of who has been paid and who hasn’t easily. If a vendor questions a payment, the information will be easy to access, and you can handle things in stride. 

Business Credit Building

Divvy has more than one way of underwriting, so if you do not qualify with traditional underwriting, they can look at other factors for approval. There is really no elaboration on what these may be. But, often it is monthly income, time in business, and the like. 

One major benefit of this card is that they report positive payment history to both the Small Business Finance Exchange and Dun & Bradstreet. That means this card does help you build your business credit score. 

Since only 7% of companies that offer credit to businesses actually report positive history, this is big. One of the hardest things about building business credit in the beginning is finding accounts that will report positive history. Most only report missed payments. 

It’s important to note, one account reporting is not enough. You need a lot more than that before you have a business credit score at all, let alone a good one. It’s a challenge, but Divvy is definitely one way to get at least one account reporting. 

Cons of the Divvy Card

The online reviews for Divvy offer a mixed bag. The negative reviews and complaints are mostly from those looking for a business credit card.

Those looking for money management services seem to be pleased. Here are some of the more common complaints.

Unclear or Hard to Find Information

It seems they are not clear on a lot of things, or at least they do not make the information easy to find, relating to how the card works and rewards.

For example, there was a complaint that this is a charge card rather than a credit card. With a charge card, the balance must be paid in full each month.

This would explain why there is no interest rate information as is typical with any other credit card. There is no interest because the card carries no balance. 

It took a lot of digging to confirm that the Divvy card is a charge card. It pulls against a line of credit. 

It is not a credit card, and therefore you cannot carry a balance. This information was definitely not easy to find on the website. Muddying the water further is the fact that they refer to the card as a credit card multiple times. 

Restrictions on Rewards Earning

Another noted that card rewards are not earned unless you use at least 30% of the credit line.

I could not find verification of this. That doesn’t mean it isn’t true, but it certainly is not information on the front end. If rewards are important to you, be aware of this possibility.

While not making this or any information clear is a definite drawback, the minimum usage for rewards, if it is true, will not affect you if you stay over 30% of the credit line. While some businesses will not, many businesses will likely hit that threshold. 

It might be wise to review the potential rewards and consider how important they really are.

Bad Better Business Bureau Rating

They have a F rating at BBB.org. It’s hard to tell how bad this really is, as people are much more likely to report negative experiences to the Better Business Bureau.

Any negative report is going to bring the grade down very quickly. Reading through the complaints, it is clear that many of them are a result of users not really understanding the system. Some others are a result of not reading the fine print. 

It’s important to note, the company did respond to the complaints and worked to make them right if they were in the wrong. They responded to each one with their side if it was different, an explanation if warranted, and a noted attempt to make right any actual wrong that may have occurred. 

Divvy Card Features

Divvy offers a host of features that are nice to have in a small business credit card.

Alternative Underwriting

They know each company is unique. As a result, Divvy offers various ways of underwriting in an effort to offer each business a credit line that fits their specific needs.

Employee Cards

Cards for each employee allows business owners to empower employees with a Divvy card of their own. Each card is linked to spend controls set by the owner of the business.

Software Integration

They offer powerful software for desktops and an app with a 4.7 star-rating as of 11/12/21.

These integrations mean that neither you nor your employees have to change the way you do business.

Business Credit Builder Program

The original Divvy program is a charge card that is connected to an unsecured line of credit.

If your business does not qualify due to bad credit or some other reason, you can take advantage of the Divvy Business Credit Builder Program at account opening.

This is a program that allows a business to pre-fund a card and use it the same as the unsecured card. However, the spend is limited to the pre-funded amount.

They report transactions to one business credit bureau, Dun & Bradstreet. They also report credit history to the Small Business Finance Exchange, thus helping to build your business credit score.

Rewards and Offers

With Divvy, you can earn points and get offers from partners like FedEx, Amazon, Costco and more.

Divvy Rewards allow customers to earn reward points when they spend using a Divvy card.

There are a number of redemption options including cash, statement credit, travel reimbursement, and a number of gift card options.

Divvy reward points may be earned by all spenders, but they can only be redeemed by an account admin. They are only earned on eligible purchases as well, so be sure to read the fine print for those.

Partner Offers Include:

  • Google Ads: Get $150 off
  • Fedex Office: $15 off any print order
  • Costco: $50 off becoming a new member
  • MileIQ: 20% off an annual subscription
  • Verizon Wireless: Get $50 off your new phone
  • Lyft: $10 off your first ride
  • TSheets: 20% discount on first three months
  • Carta: 20% discount on first year subscription & waived implementation fees
  • Adobe CC: $20 off Creative Cloud – all apps
  • Avis Car Rental: Up to $25 off plus get a free single upgrade
  • Vistaprint: $10 off and free shipping on first order of $50 or more
  • Deskpass: 30-day free trial & 20% off the first year at over 600 coworking spaces.
  • Gusto: 25% off first year subscription
  • Uber Eats: $5 off your first 3 orders
  • Grubhub: $12 off purchase of $15 or more 
  • BambooHR: $200 account credit
  • Enterprise Rent-A-Car: Up to $25 off plus get a free single upgrade
  • Notion: If you’re a startup, apply to get going with $500 in credit for Notion. 

Is Divvy Safe?

It seems to be. They use an advanced third-party platform to monitor transactions in real-time. This helps prevent fraud effectively and efficiently.

Of course, nothing is 100% full proof. This is a new company, and it appears to be making its way well among the new-ish niche of expense management options. 

They offer what appears to be smooth integration with common accounting systems and there aren’t any complaints of glitches in this area that are widely reported. 

Just be sure to take precautions on your enda as well. Divvy seems to have a good handle on security, but it is your business. No one will protect it like you. 

That means keeping an eye on things daily. Be on the lookout for anything that doesn’t seem right, and if you do notice something, report it to Divvy immediately. 

Our Verdict

In the end, this is a great tool for managing business financing. One major reason for this is that they can help you build credit for your business. If you are looking for a way to make managing business funds easier, Divvy is a good choice.

If you mainly need a business credit card, you may be better off with something else. It isn’t really even a corporate credit card since you cannot carry a balance. The term “Divvy credit card” is really a misnomer.

Of course, if you need an account reporting to your business credit, the credit builder may be a good option.

Just remember, you definitely need more than one account reporting to build strong business credit.

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FAQs

How long does Divvy credit take to approve?

You can sign up to use the system any time. As for the unsecured card option, there doesn’t seem to be a definitive answer from Divvy. It seems most that do get approved are getting their cards a couple of weeks after finishing the application.

If you do not qualify for the unsecured option and need to start the business credit builder program, it may take a little longer. After you have responsibly used the secured business credit builder card for awhile, you can apply for approval for the unsecured card again. 

Does Divvy affect personal credit?

While Divvy will do a soft inquiry on personal credit after approval to determine credit limit, they do not report to the personal credit reporting agencies. 

A soft pull does not affect your personal credit score. However, since they do check your personal score, even with a soft pull, your personal score can affect your ability to get approved. 

They do not report payment history to your personal credit report, so that will not affect your personal credit score either. 

In short, using Divvy does not affect your personal credit in any way. 

Is Divvy easy to get approved?

In comparison to other business cards, Divvy is easier to get approval for simply because they offer flexible underwriting. They may see that your personal credit score isn’t great when they do a soft pull on your credit report. However, they will take other factors into consideration. 

Then, if you do not qualify for an unsecured credit line, you can join the credit builder program. This allows you to use the Divvy system while building credit, so that you can eventually get approval for the unsecured credit line.

So, yes, it is easier to get approved due to flexible underwriting, and then there is another option if you are not approved for a regular account. 

Is Divvy a credit card or charge card?

Though it is referred to as the Divvy credit card a number of times on their website, it is indeed a charge card. The difference is in the payment terms. With a credit card, you can carry a balance. You have the option to pay back as much or as little as you want each month, as long as the payment meets the minimum payment requirement. 

A charge card however, must be paid off in full each month. You cannot carry a balance. That being the case, there is automatically no interest. However, you do have to be certain that you have the funds available to pay off the full balance each month. 

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