Credit Cards for Real Estate – How to Get Them
Getting into the real estate business is the best way to supplement your income. The sector also enables investors to create a full-time income stream. The real estate business requires a lot of hard work, and it comes with a lot of expenses and purchases to make. The use of credit cards can help you boost your bottom line. This is thanks to their excellent benefits and earning potential.
Credit cards offer users an opportunity to earn rewards on the purchases they make. Moreover, the benefits enable investors to save money on their real estate projects. Remember that it’s essential to have a quality credit score as an investor in real estate. Your credit score determines the risk you pose to any lender. It tells them whether you are capable of paying back the money you’re asking for.
A conventional real estate loan’s average credit score stands at 752. That’s why it’s necessary to ensure that you have the perfect credit score possible to qualify for a loan. Credit scores above 760 are considered top tier. Those below 620 are said to belong to the subprime category. That makes it even more difficult for real estate investors to find a loan.
So why should real estate investors consider getting credit cards?
- They provide more spending power. Investors in commercial real estate know just how quickly bills can add up. This makes it difficult for those paying in cash from their bank accounts. But, with a credit card, users can easily make more purchases and pay back online;
- You are building your credit. This benefit comes with a condition. Users must ensure they pay their credit card bill on time for good credit history;
- They are earning rewards. The rewards that credit cards offer help investors save money. Cards with good cashback can add up your savings significantly;
- The ability to track expenses. Credit cards enable investors to track their costs and correct real estate tax deductions.
Investors should go for purchase rewards and 0% introductory APR offers when looking for a suitable credit card. This enables users to save money, which is something every business needs. Purchase rewards enable investors to get value back on every expense. The 0% introductory APR gives you enough time to pay off eligible purchases.
To get the best credit card for real estate, investors should also get one with a high credit limit. This is very important because it gives you more spending power, which helps with cash flow. The credit card must also have a reasonable annual fee. It’s even better if it comes with zero annual fees. Other valuable benefits to look out for are purchase protection and bonus opportunities.
Suitable Credit Cards for Real Estate Investors
Although there are no specific cards designed for real estate, traditional cards are beneficial. A credit card that pays rewards on daily business expenses is best suited for this sector. Other cards to consider are those that offer cheap introductory financing. This article lets you in on some of the credit cards best-suited for real estate investors.
Customized Cash Rewards Card
This card from Bank of America is an excellent option for those who need cashback with flexible bonus categories. The card comes with no annual fee. It also gives users the freedom to change the bonus spending categories every month.
Bank of America gives incentives to preferred rewards members. The incentives include cashback of 25% – 75% on each purchase. You need to have an eligible Bank of America checking account to qualify as a preferred rewards member. You must also have a three months average bank balance of $20,000.
Citi Custom Cash Card
This card comes with a 0% introductory rate for the first 15 months. Citi custom cash cards have a standard variable APR of 13.99% – 23.99% based on the cardholder’s creditworthiness. It also has a variable penalty APR of up to 29.99%. The variable penalty applies to users who make late payments. It also applies to investors whose payment gets returned.
This card comes with no annual fee and has a minimal interest charge of $ 0.05. The other benefits of this card are:
- Its sign-on bonus;
- Its robust redemption options;
- Competitive cashback.
The Citi mobile app enables users to access accounts at any time from anywhere. Cardholders can view their available credit, the current balance, and spending summary.
The Business Gold Card
This credit card from American Express is one of the best options for businesses because of its special bonus categories. It allows users to earn 4x bonus categories without any specifics. The bonus categories are automatically selected to reach a user’s maximum points each month.
You can earn up to 600,000 membership reward points if you make purchases worth $150,000 a year. Like the business platinum card, the gold card has no spending limit. It enables cardholders to make purchases and transactions to keep the business going.
Based on a cardholder’s creditworthiness, they can receive an APR on purchases at a variable rate of 14.24% – 22.24%. Other benefits that come with the business gold card are:
- Travel insurance;
- Purchase protection;
- Extended warranty coverage;
- Secondary car rental insurance.
Ink Business Preferred Credit Card
This credit card from Chase is a popular choice among real estate investors. It comes with a low annual fee of $95, many perks, and a massive welcome bonus. It allows cardholders to earn 100,000 bonus points during their first three months if they spend $15,000. These bonus points are worth about $1,250 towards travel rewards. The bonus points are enough to cover a cardholder’s annual fee for more than ten years.
There’s a chance that as a real estate investor, you won’t be spending so much on travel and shipping purchases. This means that categories like telecommunications and advertising can come in handy. This card also comes with benefits like:
- Cell phone protection insurance;
- Extended warranty coverage;
- Purchase protection.
Blue Business Plus Credit Card
This credit card from American Express is one of the most rewarding credit cards for entrepreneurs. The card earns cardholders 2x points on daily business purchases of up to $50,000 a year. Users who can spend $3,000 on purchases within the first three months earn 15,000 membership rewards points.
This card also has no annual fee and an introductory 0% APR. This is in addition to extended warranty coverage and purchase protection. The card has an expanded buying power that allows cardholders to use it beyond their credit limit. There’s no limitation on how far you can go with spending beyond your credit limit. The amount adjusts based on:
- Your use of the card;
- Your credit record;
- Your payment history;
- Your financial resources are known to the issuer.
Final Thoughts
Many options can earn real estate investors rewards with credit card spending. However, few credit cards have valuable rewards and benefits to help one maximize their purchases.
Cards like the business platinum and others mentioned in this article can help you jumpstart your rewards. Remember to compare the benefits of different cards and pick one suitable for you.
