If you’re a contractor, then you understand that many penny counts. You have to be smart about how exactly you spend your money in order to keep your business afloat and ensure that you’re making a profit. One way that contractors can save a significant sum of money is to apply the right credit card.
There are construction specific credit cards that offer a number of benefits, such as cash back on construction related expenses, extended conditions for payment, and even special financing options. Through the use of one of these brilliant cards, you can save thousands of dollars each year.
Entrepreneurshipg.com is a superb resource for finding the right construction mastercard for your business. They give you a side-by-side comparison of the different cards available, and that means you can easily see which one will provide you with the most savings for your business. Make sure to check them out the next time you’re buying a construction credit card. You’ll be glad you did!
Look for a card with a 0% APR period
A credit card that charges 0% interest for a certain time frame lets you spread the best expense of a home remodel over multiple payments, to avoid shocking your budget with the cost all at once. Moreover, many of these cards come with rewards points and other benefits such as purchase protection. If you know you’ll pay off the card’s balance before the 0% introductory APR offer ends, you can gain all the perks without paying any interest or fees.
Some contractors might charge an extra payment for payments by credit card. If that’s the case, you will want to make sure the fee doesn’t outweigh the huge benefits you might gain utilizing the card.
Know discounts, downsides of store-specific cards
Store-branded credit cards come in many forms, so go through the details to determine whether the card makes sense for you. Damcevski recommends asking yourself how often you shop at the store, whether you’ll pay back the total amount monthly to avoid interest and what, if any, discounts the card gives you.
A best credit card for construction business which you can use at any store will often offer more rewards flexibility and may also come with a lower interest rate and higher borrowing limit.
Home Depot, for example, offers a store credit card with six months of deferred interest on purchases of $299 or more, with occasional special offers but no ongoing rewards. The Lowe’s Advantage Card offers 5% off purchases as well as a similar deferred interest option on purchases of $299 and up if you forgo the 5% discount.
Deferred interest, however, isn’t exactly like 0% APR. Unlike with the latter offer, if you haven’t paid off balance by the time a deferred interest period ends, you’ll owe all of the interest that is accumulating throughout that period. And it can be a lot.
The Blue Business® Plus Credit Card from American Express
The Amex Blue Business Plus is one of our own favorite credit cards in the world since it has a very attractive earning structure.
This card is straightforward and a great earner with 2x Membership Rewards points on everyday business purchases on the first $50,000 every calendar year. After that, you’ll earn 1x Membership Rewards points.
That means you’ll get a 4.4% return on spending for the first $50,000 you may spend per calendar year, which is phenomenal for a card lacking any annual fee.
Plus, employee cards are in no cost, and you could leverage the Expanded Buying Power and access Amex Membership Rewards (including transfer partners).