Best Business Credit Cards For Construction – As a contractor, you shouldn’t ignore your credit card as a more valuable tool than the hammer. Whether you’re on your first assignment or as a seasoned professional, you have the potential to earn cash back and valuable travel rewards from the spending you’re already making.
If you’re not familiar with how rewards credit cards can take your hiring savings potential to a whole new level, this article is for you.
Best Business Credit Cards For Construction
As a contractor, it’s important to stay on top of your finances. If a job requires you to pay for materials out of pocket, you will not be reimbursed for those costs until you complete the job. Depending on the size of the job, these costs can significantly slow you down. Depending on the length of work, you may have to wait months to receive payment and/or reimbursement.
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However, there is a way to avoid using your cash reserves to pay business expenses while earning big rewards: credit cards.
When you use the best business credit card to finance your business purchases, it allows you to do two things: lighten the burden of using your own money to pay for materials upfront, and get cash back for those expenses. For these reasons, credit cards are valuable lines of credit that every contractor should add to their wallet.
Let me paint a picture of what I’m talking about so you can see the huge savings potential of adding a credit card to your toolbox.
Let’s say you’ve found a new roofing job. The work is to replace the entire roof of the 3,000 square meter house. The owner has told you what kind of material he wants to use, but it’s up to you to provide everything. So you go to HomeDepot to get what you need.
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You get the materials and the total is around $15,000. Let’s see how to fund this project with cash and a credit card.
You have $15,000 in your bank account until you get paid for the roofing job. It could mean that you don’t have money for other expenses or projects.
You use the card’s line of credit until you get the money, not the cash, so your bank account isn’t affected.
Spend enough to qualify for the sign-up bonus on your new card and you’ll get $900 cash back. You can get an additional $150 back just for making the purchase.
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You avoid paying interest on the credit card because the card offers 0% introductory APR for 12 months (then 17.49% to 23.49% (variable)) and pays off your $15,000 balance in 12 months.
Credit card instead of cash, get $900 back. This is just the sign-up bonus – it does not include the points you earn on your purchase. With Ink Business Cash, you get 5% cash back on stationery stores and internet, cable, or phone services (up to $25,000 per year) 5% cash back on Lyft; 2% cashback at gas stations and restaurants (up to $25,000 per year) and 1% cashback on everything else. That means your $15,000 Home Depot purchase netted you $150 back. It’s $750 cash back for making a purchase, and this card has a $0 annual fee.
This is just one example of how the right business credit card can improve your bottom line. In fact, there are many business credit cards that can convert your spending. They all have something unique about them, but they all allow you to cut costs and increase your revenue.
As a limited liability company (LLC) contractor, it is important to use business credit cards for your business expenses. You carry a lot of responsibility in your profession, and using a personal credit card for your business expenses exposes you to personal liability if something goes wrong at work. Using a business card for all your business expenses completely separates you and your business.
Benefits Of A Business Credit Card
With that in mind, I’m going to walk you through some of the best business credit cards I recommend for contractors.
5% cash back (up to $25,000 per year) at office supply stores and internet, cable or phone services 5% cash back on Lyft; 2% cashback at gas stations and restaurants (up to $25,000 per year) and 1% cashback on everything else
3 times more points on the first $150,000 spent each year on ad purchases through travel, shipping, internet, cable or phone services, social media and search engines; And 1X points for $1 on everything else
120 days of protection on new purchases; extended warranty coverage; Employee Cards at no additional cost; mobile phone protection
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Unlimited 1.5% cashback on all purchases on all cards linked to the account; Plus 5% cashback on hotels and car rentals booked through Capital One Travel
2X Membership Rewards points on daily eligible merchant purchases of up to $50,000 per year and 1X points on eligible purchases thereafter
The Ink Business Unlimited ® credit card is a simple credit card that takes the guesswork out of earning rewards. Don’t worry about spending categories with this card. You receive a fixed amount every time you swipe your card. There are no spending limits, which means unlimited rewards for all your business expenses.
No matter where you shop or what you buy, you’ll get 1.5% cash back on everything you spend. Your purchases will have 0% APR for the first 12 months (then 17.49% to 23.49% (variable)). This is great if you need to maintain a balance until you get paid for a project because it won’t carry interest. Since Chase does not count business activity against your personal credit, maintaining a balance on this card will not negatively affect your personal credit score, increasing your credit utilization.
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As a new card member, you can also earn $900 cash back bonus after spending $6,000 in the first 3 months (limited time offer). It’s money that goes back into your pocket for expenses you’re already making. Also, this card has a $0 annual fee, so there’s no cost to you.
The Chase Inc credit card Business Cash rewards you for spending in certain categories. With this card, you can earn 5% cash back on stationery stores and internet, cable, or phone services (up to $25,000 per year) 5% cash back on Lyft; 2% cashback at gas stations and restaurants (up to $25,000 per year) and 1% cashback on everything else.
This card comes with a $0 annual fee and new card members can earn $900 cash back bonus after spending $6,000 in the first 3 months (limited time offer). The Chase Inc credit card Business Cash comes with a 12-month APR of 0% (so 17.49% to 23.49% (variable)), so you have the freedom to carry the balance until you pay it off without worrying about high interest.
Now you might be thinking “My outsourcing business doesn’t benefit from 5% cashback at office supply stores. I get everything I need from Home Depot or Lowe’s, and I want to get the best bang for my buck.
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If you go to an office supply store like Staples or OfficeMax, you’ll usually find a variety of gift cards for sale. If you purchase a Home Depot or Lowe’s gift card at an office supply store using your Chase Inc. Business Cash, you will receive 5% cash back on your purchase. Then use that gift card to pay for your supplies at Home Depot or Lowe’s. While originally you only got 1% cash back with this card at Home Depot or Lowe’s, now you can earn 5% cash back.
While it takes an extra step to get these gift cards, it’s worth it to allow yourself to earn at a higher rate. You buy the materials for your project no matter how you pay, so why not get paid?
The credit card comes with a lucrative sign-up bonus where you can earn 100,000 points after spending $15,000 in the first 3 months. It’s $1,250 per trip when redeemed through the Chase Ultimate Rewards travel portal or $1,000 cash back. Plus, you can earn 3 times more points on the first $150,000 you spend each year on travel, shipping, internet, cable or phone service, and social media and search engine ad purchases; And 1X points per $1 on everything else.
This card comes with a $95 annual fee, but it’s worth it when you consider how much you can earn with the sign-up bonus. If you regularly spend in these bonus categories, this card becomes even more valuable.
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The American Express Plus credit card is another fixed rewards credit card that allows you to earn 2x Membership Rewards points at qualifying businesses every day.
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