Regardless of industry, both established businesses and new companies are typically evaluated for business credit cards according to the business owner’s personal credit score. So, before deciding which business mastercard is best for your construction firm, check your credit history. With the exception of secured business credit cards, all credit cards require a minimum credit range to be eligible, or to use at all. Once you know your score, you’ll be able to hone your search only on the cards you understand you’ve got a shot at securing.
Also, look into your financial records to determine how and where you do most of your spending-picking the right best credit card for construction business also largely is determined by the type of purchases you’re making, and your ability to pay off what you spend month to month.
For instance, if you need extra time to pay off a significant purchase, decide on a card with an interest-free grace period. In the event that you know you spend in certain categories more than others, choose a credit card with a tiered rewards program so you can maximize your earning potential.
And keep in mind that while business bank cards are powerful financing tools, you can’t use them to pay for your entire business’s expenses. Using a business credit card for charges you can’t pay back immediately-like a firm vehicle or large equipment-might mean carrying a balance month to month until you can pay it off, which will boost your interest rates. And when you can’t repay your bills in time, or if you max out your credit card, you’ll actually damage your credit history.
Running a construction business is expensive.
Between keeping up with your inventory of raw materials, renting and purchasing construction equipment, paying your employees, and getting all of the right permits and licenses, the expenses will mount up.
The best cards for construction businesses will have high credit ceilings, excellent rewards, and flexible financing terms.
That way, you can get as much as you can out of every dollar you spend, whether it’s on lumber or labor. Getting an incremental 1% or 2% back on large business expenses can make a huge difference over time. And of course, it always helps if you can get benefits for travel, too!
Let’s check out our favorite credit cards for construction businesses.
The Plum card is a fantastic choice for contractors that open new contracts or deliver strong values every year. The card offers strong rewards in either of the two scenarios. Also if you run a business that occurs to have an irregular flow of cash, then this card should be a good choice. However, the card requires a minimum credit worthiness of 800 that you can b eligible for its use. The card offers give you a duration of 60 days to pay without interest charges which is good if you would like to finance a job or something else. An early-day discount of 1 1.5% is also offered with no limits to how much you can earn back. Although there is not a annual charge for the first year useful, you will need to pay 250 dollars annually starting from year two and beyond. There’s also no spending limits.
So, check out your current and predicted expenses, and think realistically in what you can repay over a timely basis. It might be the case that you should be buying a construction business loan for big purchases, when you peruse business charge cards for smaller bills.