As a contractor, managing expenses can be a challenging task. Whether you are running a small or large business, having the right financial tools is essential to the success of your business.
Credit cards can be a valuable tool for contractors because they offer a convenient way to pay for business expenses while also providing rewards and benefits. In this article, we will explore the best business credit cards for contractors and the benefits of using credit cards for business expenses.
Credit Cards as Valuable Tools for Contractors
Business credit cards are an essential tool for contractors because they can help you manage business expenses, build credit, and earn rewards. Here are some of the top business credit cards that contractors can consider:
Ink Business Unlimited Credit Card
The Ink Business Unlimited credit card is an excellent option for contractors because it offers unlimited 1.5% cash back rewards on every purchase. There is also a welcome bonus of $750 after you spend $7,500 within the first three months of account opening.
The credit card does not charge an annual fee, and the APR on purchases is 0% for the first 12 months.
Ink Business Cash Credit Card
The Ink Business Cash credit card is another option for contractors. The credit card offers 5% cash back rewards on the first $25,000 spent in combined purchases at office supply stores and on internet, cable, and phone services each account anniversary year.
There is also a welcome bonus of $750 after you spend $7,500 within the first three months of account opening. The credit card does not charge an annual fee, and the APR on purchases is 0% for the first 12 months.
Ink Business Preferred Credit Card
The Ink Business Preferred credit card is an excellent choice for contractors who want to earn points. The credit card offers 100,000 bonus points after you spend $15,000 on purchases in the first three months of account opening.
You also earn three points on the first $150,000 spent in combined purchases on travel, shipping purchases, internet, cable, and phone services, advertising purchases made with social media sites, and search engines each account anniversary year. The credit card has an annual fee of $95 and an APR on purchases of 15.99% – 20.99%.
The Blue Business Plus Credit Card from American Express
The Blue Business Plus credit card is a no annual fee credit card that can be useful for contractors who are looking for Membership Rewards points instead of cash back rewards. The credit card offers 2x Membership Rewards points on the first $50,000 spent each year and 1x Membership Rewards points on all other purchases.
The credit card also offers a 0% introductory APR on purchases for the first 12 months.
Capital One Spark Cash Select for Good Credit
The Capital One Spark Cash Select credit card is an excellent option for contractors with good credit. The credit card offers 1.5% cash back rewards on every purchase, and there is no annual fee.
There is also a 0% introductory APR on purchases for the first nine months, which can be useful for contractors who need to purchase new equipment or materials.
Benefits of Using Business Credit Cards for Business Expenses
There are several benefits to using business credit cards for business expenses. Here are a few advantages that contractors can enjoy:
Liability Protection
Using a business credit card can protect your personal liability. If the business incurs expenses that it cannot pay back, the liability falls on the business and not the contractor’s personal credit.
Build Business Credit
Using a business credit card can help contractors build their business credit. Timely payments and responsible use of credit can help contractors establish a credit history and qualify for loans and credit in the future.
Rewards and Benefits
Using a business credit card can also provide rewards and benefits. Many business credit cards offer cash back rewards, points, and travel benefits.
Contractors can use these rewards and benefits to reinvest in their business and reduce expenses.
Lower Interest Rates
Business credit cards also tend to have lower interest rates than personal credit cards. This can be useful for contractors who carry a balance on their credit card.
Comparison of Paying for Materials in Cash vs. Credit Cards
Paying for materials in cash can help contractors avoid interest charges and debt, but it can also affect cash flow and limit funding.
By using a credit card, contractors can purchase materials upfront and pay for them over time. They can also earn rewards and benefits that can help offset the cost of materials.
Using a credit card can also provide a credit line, which contractors can use to finance additional expenses.
Financial Benefits of Using the Right Business Credit Card for Expenses
Using the right business credit card for expenses can have a significant impact on contractors’ bottom line. Contractors who choose a credit card with lower interest rates, cash back rewards, and other benefits can save money on interest charges and reduce expenses overall.
Contractors can also develop better financial habits by paying their credit card bills on time and in full, which can improve their credit score and qualify them for better loans and rates in the future.
Conclusion
In this article, we have explored the best business credit cards for contractors and the benefits of using credit cards for business expenses. Using a business credit card can help contractors manage expenses, build credit, and earn rewards.
Contractors can compare different credit cards and choose the one that best suits their needs and business. Using a credit card responsibly can also have a positive impact on contractors’ financial habits and bottom line.
In summary, business credit cards can be valuable tools for contractors to manage expenses, build credit, and earn rewards. The best business credit cards for contractors include Ink Business Unlimited, Ink Business Cash, Ink Business Preferred, The Blue Business Plus, and Capital One Spark Cash Select.
Using business credit cards also offers benefits such as liability protection, rewards and benefits, lower interest rates, and the ability to develop better financial habits. Ultimately, contractors should choose a credit card that best suits their needs and business goals.
Using credit cards responsibly can positively impact contractors’ financial habits and bottom line.