Many independent contractors rely on credit cards to make ends meet during tough times or lengthy payment cycles. However, there may be some credit cards that are better suited to the requirements of the construction business. The good news is that we have already done the legwork for you by compiling an article on the eight best credit cards for contractors.
Contractors need to know why credit cards are only sometimes the best option. Inadequate Credit: A Problem for Contractors Let's be honest: contractors are routinely compelled to float expenses while they wait to get paid due to payment issues in the construction sector. Contractors' bank accounts might take a beating for various reasons, including late payments from owners and general contractors, disruptions to the work schedule, and other mishaps.
To make ends meet between each progress payment, construction companies often require a helping hand. Unfortunately, that's just how business works. Remember that credit cards aren't a magic bullet for money issues. Using a credit card to stay afloat while outstanding receivables mount can drive up expenses.
This is the construction industry's payment manual, so read it first.
To improve their financial standing, contractors can use the correct credit card to accrue points and redeem rewards. Because not all independent contractors have the same expenses and priorities, different cards offer varying degrees of assistance. Given that no single card can meet everyone's needs, we've organised them into groups.
The top eight cards for freelancers: If a contractor ever needs some financial breathing room or extra cash back, the credit cards listed below are among the greatest options available. Advantages such as rebates, signup incentives, and reward points are included.
However, interest rates might change based on various factors, including a borrower's credit history. If your application is successful, we can only tell you what range your rate will fall into. But remember that while a credit card can provide some breathing room if payments are delayed, paying off the bill in full each month is ideal to avoid paying any interest.
Suitably malleable purchasing ability
The American Express Blue Business Cash Card recognises the importance of adaptability for independent contractors. The card comes with AMEX's Expanded Buying Power function, which lets you spend more than your available credit when necessary. Credit limit increases are subject to the individual's payment and credit history, financial means, and other considerations.
Every year, for the first $50,000 you spend, you'll get 2% back in cash. You can use your earned money to settle your account or withdraw it entirely.
You can spend above your limit The Capital One Spark Cash Card for Business is a great choice for independent contractors with a steady income stream who can afford to make regular purchases. Despite the card's $95 annual charge, the unlimited 2% cashback rewards more than compensate for it. You'll still get cash back when you exceed your spending limit, but you won't be charged anymore for going over.
The Blue Business Plus Credit Card from American Express is a good option if you like to earn points through your purchases. You'll gain 2X points on the first $50,000 purchases yearly and 1X following. Miles from airlines offer the most value, which could be appealing to contractors who travel frequently.
The best credit card for freelancers' business travel
The Ink Business Cash Credit Card may be right if your firm routinely operates with low operating costs. Everything from office supplies to corporate internet to phone services qualifies for 5% cashback. There is a 2% cashback bonus at gas stations and restaurants, so you can make a little money back when you fill up or treat a client to dinner.
The ability to use Lowe's ProServices
Whether you're a fan of mega-stores for home improvement, the many advantages of the Lowe's Business Rewards Card from American Express cannot be ignored. A 5% discount on all purchases at Lowe's, including tools, lumber, and anything else, with no yearly fee. Additionally, you can earn five times as many points on office supplies, restaurants, and wireless services, all of which are mandatory expenditures.
Were you prepared to move on to a new job? The initial year is free, and there is a $250 yearly cost after that. Look at the Plum Card if you're interested in an AMEX but are concerned about the possibility of occasionally having to carry a balance. You have up to 60 days from the date of purchase to pay off your debt in full without being charged any interest. Payments made within ten days of the due date are eligible for 1.5% cash back, and customers can receive $500 cash back on purchases of $15,000 completed within three months.
