8 Best Credit Cards For Contractors

Many contractors use credit cards to assist cover bills when times are tough or payments are slow. However, some credit cards might be more suited to the demands of the construction sector than others. The good news is that we've already done the research and compiled a list of the top eight credit cards for contractors in one short article.

The credit challenge for contractors

In the construction sector, payment issues imply that contractors frequently need to float expenses while they wait to be paid. A contractor's bank account may be under a lot of strain as a result of slow-paying owners and general contractors, schedule slips, and other unforeseen issues.

Construction companies occasionally require some assistance making ends meet until the next progress payment is received. That is how the business operates. But bear in mind that credit cards are not a magic solution to cash flow issues. Utilizing a card to keep yourself afloat while you have mounting receivables may end up raising your expenses.

Table of Contents

The credit challenge for contractors

The 8 best credit cards for contractors

• Best credit card for unexpected expenses

• Best credit card for an easy cash bonus

• Best credit card for contractors who love to travel

• Best card for contractors’ business travel expenses

• Best credit card for contractors who like cashback

• Best credit card for tools and materials

• Best credit card for contractors who need flexibility

• Best credit card for contractors with advertising needs

Alternatives options to credit cards for contractors

• Line of credit

• Bank loan

• SBA-guaranteed loans

Why a credit card is not always the answer for contractors

The right credit card can help contractors earn points and benefits when used wisely, which can really improve their bottom line. Different cards offer various benefits because not all contractors have the same requirements or preferences. Since there isn't a single "best" card for everyone, we divided them into groups based on your needs.

The 8 best credit cards for contractors

The best credit cards for contractors are listed below for those who need a little extra breathing room or simply wish to earn a little extra money. There are perks like cashback, sign-up bonuses, and points you may use to redeem rewards.

Please be aware that credit rates can change depending on your credit history and other factors. We can only provide you with the rate window that will apply if your application is accepted. 

However, keep in mind that while a credit card can provide some temporary breathing room during delayed payments, it is ideal to pay off the bill in full each month to prevent incurring any interest at all.

Best credit card for unexpected expenses

American Express Blue Business Cash Card

Benefits:

• Annual fee: $0

• 0% introductory APR on purchases for 12 months

• Variable 13.24% to 19.24% rate after an introductory period 

• 2% cash back on eligible purchases up to $50,000 a year, 1% after that

Flexible buying power

The American Express Blue Business Cash Card is aware that contractors must be flexible. It offers AMEX's Expanded Buying Power program, which enables you to make larger purchases when they come up by using more credit than your credit limit. 

Your payment and credit history, as well as your financial resources and other criteria, all play a role in how much of your credit limit you can go over.

For the first $50,000 of qualified purchases made each year, you'll additionally get 2% cashback. You can use the cash back to pay your bill or keep it in your own pocket.

Best credit card for an easy cash bonus

Capital One Spark Cash Card for Business

Benefits:

• Annual fee: $0 for the first year, $95/year thereafter

• One-time $500 cash bonus when you spend $4,500 on purchases within the first three months

• 20.99% APR

• Unlimited 2% cash back

• You can spend above your limit

The Capital One Spark Cash Card for Business can be quite useful if you're a contractor with plenty of expenses and the cash flow to cover them. You will receive an infinite 2% cashback with this card, which can easily cover the $95 annual cost. Even going over your spending limit won't result in over-limit fees; instead, you'll continue to earn cashback.

Best credit card for contractors who love to travel

American Express Blue Business Plus Credit Card

Benefits:

• Annual fee: $0

• 0% introductory APR on purchases for 12 months

• Variable 13.24% to 19.24% APR after an introductory period 

• 2X membership reward points on the first $50,000 in purchases each year, 1X thereafter

• Flexible buying power

Check out the Blue Business Plus Credit Card from American Express if you prefer to earn points for your hard-earned credit card expenditures. On your first $50,000 in purchases each year, you'll get 2X points; after that, you'll get 1X. Airline miles offer the most value for your money and maybe especially appealing to contractors who frequently fly.

Best card for contractors’ business travel expenses

Capital One Spark Miles for Business

Benefits:

• Annual fee: $0 for the first year, $95/year thereafter

• A one-time bonus of 50,000 miles after spending $4,500 within the first three months

• 20.99% APR

• Earn 5X points on hotels and rental cars

• $100 credit for Global Entry or TSA Precheck

The Capital One Spark Miles for Business will be very helpful to contractors and construction consultants that travel frequently.

With this card, you may quickly accrue redeemable points and put a crew up in a hotel close to the project while earning 5X the points on hotels and rental cars. The TSA Precheck credit definitely makes the deal more appealing.

Best credit card for contractors who like cashback

Chase Ink Business Cash Credit Card

Benefits:

• Annual fee: $0

• 0% introductory APR on purchases for the first 12 months

• Variable 13.24% to 19.24% APR after an introductory period

• $750 cashback after spending $7,500 in the first three months

• 5% cash back on the first $25,000 each year on office supplies, internet, cable, and phone services

• 2% cash back on the first $25,000 each year at gas stations and restaurants, 

• 1% unlimited cash back on all other purchases

The Ink Business Cash Credit Card can be the right choice for you if your business often operates with lower expenses. On regular purchases like office supplies, corporate internet, and phone services, it gives 5% cashback. Additionally, it provides 2% cash back at restaurants and gas stations, allowing you to profit when you top up your tank or take a client out to dinner.

Best credit card for tools and materials

Lowe’s Business Rewards Card from American Express

Benefits:

• Annual fee: $0

• 0% APR for the first six months

• Variable 15.74% to 24.74% APR after an introductory period

• 5% discount at Lowe’s on all purchases

• 3X Points at restaurants, office supply stores, and wireless telephone services

• 2X Points at Lowe’s

• 1X Points on all other purchases

• Redeem points for Lowe’s or AMEX gift cards

• One-time $100 cash back upon approval

• Access to Lowe’s ProServices

Whether you enjoy shopping at big-box home centers or not, you can't argue with the substantial perks the Lowe's Business Rewards Card from American Express offers. You'll pay no yearly fee and get a 5% discount at Lowe's on tools, lumber, and other purchases. 

Additionally, you'll get five times as many points while using wireless services, dining establishments, and office supplies—all costs you'd already be incurring.

In addition to receiving 5% off all purchases and redeemable points, you will also get access to Lowe's ProServices. You will be qualified for the Lowe's Business Replenishment Program, bulk rate pricing, and discounted delivery.

Best credit card for contractors who need flexibility

Plum Card from American Express

Benefits:

• Annual fee: $0 first year, $250/year thereafter

• $500 cashback after you spend $15,000 within the first three months

• Unlimited 1.5% cashback on payments made within 10 days of the due date

• Flexible payment terms

Check out the Plum Card if you're thinking about getting an AMEX card but are concerned that you might occasionally need to carry a balance. With this card, you have up to 60 days to pay off the entire debt interest-free. 

A program that offers $500 cash back if you spend $15,000 within three months is available, as well as 1.5% cash back on payments made within 10 days of the due date.

Best credit card for contractors with advertising needs

Chase Ink Business Preferred Credit Card

Benefits:

• Annual fee: $95

• 15.99% to 20.99% APR

• 100,000 bonus points when you spend $15,000 in the first three months

• 3X rewards on the first $150,000 each year spent on travel, shipping purchases, internet, cable, or phone service, and advertising with social media sites or search engines

• Unlimited 1X points on all other purchases

It's challenging to succeed in the construction industry, and many companies rely on advertising to spread their name. If you use a social media platform or search engine to purchase your advertising, Chase's Ink Business Preferred Credit Card will award 3X points on the first $150,000 you spend. Additionally, you'll get unlimited 1X points on all other purchases in addition to 5X points for internet, cable, and phone services.

Alternatives options to credit cards for contractors

There are alternative solutions you might investigate if you don't like the thought of using a credit card to help augment your cash flow.

Line of credit

Talk to your bank about a line of credit if you appreciate the freedom of a credit card but would prefer a lower interest rate. A line of credit is a sum of money from which the lender permits you to withdraw funds as needed. You can take from it as often as necessary and repay it. The best feature is that you only pay interest on the money you actually withdraw rather than the line's entire value.

Bank loan

It might be worthwhile to approach your bank about a typical business loan if you require longer payment terms or a larger loan. A bank loan has the advantage that its interest rates are frequently lower than those of credit cards. The drawback is that you might have to pledge collateral, such as your house or privately owned business property, in order to obtain a loan.

SBA-guaranteed loans

Another choice for small enterprises is to apply for SBA-guaranteed loans. Through a local lender, the Small Business Administration backs these loans, enabling banks to charge lower interest rates. SBA loans entail a ton of paperwork, and you could have to wait a while for a response. But if other options don't work out, it's a nice, affordable alternative.

Why a credit card is not always the answer for contractors

Getting a credit card can ultimately be a wise business move for contractors—if they know how to utilize it. Regular tools, equipment, or business expenses can be charged to a credit card to earn cashback or other incentives that will boost your cash flow.

But in reality, credit cards are really a band-aid for a contractor's cash flow issues. Running up a credit card balance would only make things worse if your business is consistently short on cash due to difficulties in collecting your accounts.

Instead, take action to increase your cash flow and receive payment more quickly for each work.

To keep the money flowing in, you might need to choose your prequalified consumers more carefully or hire a credit and collections manager. Protecting your lien rights is crucial if you want to significantly shorten the time it takes to receive paid.