Best business credit cards for construction and contractors
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A business credit card can give your construction company more financing, various perks, and the ability to build credit. You can also stay on top of your employees’ expenses and grow your business with the right card.
Contractors and business owners in the construction industry can choose from many business credit cards. This guide will explore what to look for in a good business credit card, how to get a card, and some of the best choices available.
How to get a business credit card for construction and contractors
Many construction companies, contractors, and business owners use business credit cards to stay on top of their expenses. A business credit card also allows business owners to separate their personal expenses from their business expenses, providing a less complicated tax season in the process. Here’s how you can obtain a credit card for your business.
Review your credit score and eligibility
Credit card issuers have several benchmarks in place to minimize the risk of working with borrowers who fall behind on debt. You will typically need a good credit score to get an unsecured credit card. A good personal credit score can help you access some cards, but you will need business credit for other credit cards.
Some people get started with secured business credit cards. These cards are available for people with bad credit and require initial security deposits. Once you build your credit history with a secured business credit card, you can eventually upgrade to an unsecured card.
The Ramp corporate card is another viable option for business owners with good or bad credit. During the application process, Ramp prioritizes a company’s finances instead of your personal credit score.
Compare credit cards
Once you determine which cards you qualify for, the next step is to compare business credit cards and determine which one is right for you. These are some of the details to keep in mind when reviewing business credit cards.
- The credit limit: A higher credit limit will let you borrow more capital when you need it for your business. Corporate cards with no preset limits tend to have higher credit limits than traditional business credit cards. The Ramp corporate card can be a good choice if you want to borrow more money as long as you pay back your entire balance by the end of each month.
- The rewards program: Many credit card issuers have rewards programs to incentivize business owners to use their cards instead of a competitor’s card. Some rewards programs are straightforward, such as Ramp’s unlimited 1.5% cashback on every purchase. Other cards are more complex with elevated rewards and point conversions.
- Rates and fees: Look for a card’s annual fees, late payment fees, foreign transaction fees, balance transfer fees, cash advance fees, over-the-limit fees, interest rates, and other expenses.
- Business tools: You should check what cash flow management resources a credit card issuer provides. Many issuers let you auto-generate reports based on your spending and discover ways to keep your expenses low. Some credit card companies offer more than others, and you might also get access to numerous discounts from the best business tools and software.
It’s a good idea to browse through several business credit cards and compare each one. You’ll then establish expectations and know how to differentiate good cards from less promising ones.
Submit your application
You’ll eventually find a business credit card that checks most or all of the boxes. The application process for business credit cards is similar to applying for a personal credit card. Credit card issuers will request several details when you submit your application. Here’s some of the information you can expect to provide:
- Your personal ID
- Employer identification number (EIN)
- Your company’s name, address, and phone number
- Years of experience
- Annual revenue and monthly expenses
- Your company’s industry and legal structure
- The total number of employees in your company
Best business credit cards for construction and contractors
While business owners have many choices, these are some of the best business credit cards for construction companies and contractors:
Other financing options for construction businesses
A business credit card gives you the opportunity to borrow capital, build your business credit, and get plenty of rewards. Some of these cards are free to use as long as you pay off your balance at the end of each month, while others have annual fees.
However, a credit card isn’t the only way to finance your business. These are some of the alternatives to consider for your construction company.
Term loans
Business term loans have fixed monthly payments and don't use any collateral. While you can get a personal loan with a good FICO score, business loans have higher loan amounts, especially if you qualify for an SBA 7(a) loan. Term loans can range from three months to 25 years.
Business lines of credit
Business lines of credit let you access capital equal to a predetermined credit limit. You can borrow money against the credit line and make interest-only payments during the draw period. The remaining balance after the draw period either gets converted into a term loan or is subject to a balloon payment.
Equipment loans
These loans are term loans with fixed interest rates. They use the equipment as collateral and typically have terms ranging from 3-7 years. Lenders will look at your creditworthiness and the equipment’s condition when determining interest rates. Equipment loans usually have lower rates since the equipment becomes collateral.
Invoice factoring
Invoice factoring involves selling unpaid invoices to a factoring company. You receive capital equal to a percentage of the invoice’s face value, and the factoring company collects the payments. Invoice factoring companies look at the invoice recipient’s creditworthiness when assessing how much they will pay for your invoice. Invoice factoring doesn't involve any debt accumulation.
Invoice financing
Some companies let you keep your invoices and collect payments from clients which can preserve a good customer relationship. Invoice financing involves using your unpaid invoices as collateral and repaying the loan when you receive the invoice payments.
Grow your construction company with the Ramp corporate card
Construction companies need good cash flow. The industry has relatively low profit margins, but the right business card can make a difference. That’s where the Ramp corporate card comes in. This charge card doesn't accrue interest and lets you borrow more money than traditional business credit cards. You’ll also save an average of 5% on card spend, while also accessing discounts for top business tools and the opportunity to build business credit.
The Ramp corporate card for startups doesn't have any annual fees and comes with spend management software. You don't need to provide a personal guarantee or go through a credit check to get this card.
FAQs
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- Higher credit limit than traditional business credit cards
- Spend management tools
- Give an unlimited number of physical and virtual cards to employees
- Spending controls and limits for employees
- Average savings of 5% from rewards and expense-reducing features
- More than $350,000 in offers from Ramp’s partners
- No annual fees, foreign transaction fees, or card replacement fees
- No credit check or personal guarantee is required
- No interest accumulation on your balance
- Seamless integration with numerous accounting software
- You must pay back the balance in full at the end of each month
- No elevated cashback rewards for specific categories
- You need $50,000 in your business bank account to qualify
- 10% business relationship bonus for the first year
- Up to 5% cashback for some categories
- You will automatically get checked for a credit line increase every six months
- Earn $750 bonus cash back in two separate payments if you spend $3,000 on purchases in the first three months ($300) and $6,000 on purchases in the first six months ($450)
- No annual fees
- Travel and purchase coverage
- 0% intro APR for the first 12 months
- Interest does not accumulate for the first 12 months
- The sign-on bonus is high for a card with no annual fees
- Competitive interest rates
- 3% foreign transaction fee
- Elevated cashback rewards only apply for the first $25,000 in select categories before going down to unlimited 1% cashback on remaining purchases
- The balance transfer fee is either 5% of the balance or $5, depending on which is greater
- Earn up to 5x points on business travel
- Receive 60,000 bonus points if you spend $6,000 in the first 180 days of account opening
- No foreign transaction fees
- Airport lounge access
- Transfer points to your personal card
- Use an ExtendPay Plan to pay your balance over time
- $0 introductory annual fee, then $95 per year
- Earn up to 5x points on business travel with some categories giving out 4x and 2x points
- $0 annual fee for the first year
- Access more than 1,300 VIP airport lounges worldwide
- Regular $95 annual fee after the first year
- High fees for cash advances and balance transfers
- Penalty fees for late payments, returned payments, and overlimit are $40
- No preset spending limit gives your company more flexibility than traditional credit cards
- Unlimited 2% cashback for all purchases
- Waive the $150 annual fee each year if you spend at least $150,000
- Pay-in-full charge card
- Unlimited free physical and virtual credit cards for employees
- Automatic Payments
- Year-end summaries to simplify budgeting
- No interest
- $1,200 cash bonus once you spend $30,,000 in the first three months of account opening
- 2% unlimited rewards
- You must repay the balance at the end of each month
- High annual fee
- Late payment is 2.99% of the unpaid portion of your minimum payment
- 19.24% to 24.24% APR rate, or 29.24% depending on creditworthiness
- Earn 5% cashback on all eligible purchases for the first six months of account opening or up to $10,000 in spend. Then, unlimited 2% cashback on all eligible purchases
- Add employee cards at no cost and set spending limits
- Earn $250 cash back as a statement credit if you spend $1,500 within the first 90 days after account opening
- Cell phone protection and other Visa benefits are included
- No annual fee
- Instant credit card replacements
- Visa Zero Liability
- No annual fee
- High unlimited cashback
- Manage your employees’ spending across all cards
- 3% foreign transaction fee
- No intro APR
- 3% balance transfer fee or $5 depending on which is higher
- No annual fee
- Earn a $250 statement credit after spending $5,000 within the first three months of card membership
- Introductory rate of 0% APR for the first 12 months
- 2% cashback for the first $50,000 in purchases each year. Then, unlimited 1% cashback
- Expanding Buying Power lets you exceed your credit limit while still receiving rewards
- 3% balance transfer fee
- No overlimit fees
- 0% intro APR for the first 12 months
- Access to more capital
- No annual fees
- You only get 2% cashback for the first $50,000 before going down to unlimited 1% cashback
- No elevated cashback rewards for specific categories
- $39 penalty fee for late payments and returned payments
- Earn unlimited 1.5% cashback on every purchase
- 0% intro APR for the first 12 months
- Earn $750 bonus cashback after you spend $6,000 on purchases within the first three months after account opening
- Unlimited employee credit cards at no additional costs
- 5% cashback on Lyft rides through March 2025
- Travel and emergency assistance services and roadside dispatch
- Auto rental collision damage waiver
- Set spending limits for each employee’s card
- 0% intro APR for the first 12 months
- Chase Pay Over Time can help you save money on interest with fixed monthly payments
- 3% foreign transaction fee
- If it’s more than $5, you will have to pay a 5% fee for balance transfers. That’s higher than most business credit cards.
- You can end up with the default 29.99% APR if you do not make on-time payments
- Access digital tools that make it easier to manage your expenses
- Unlimited 1% cashback on all purchases
- 5% unlimited cash back on hotels and rental cars booked through Capital One Travel
- Get as many credit cards as you need for your employees
- Enable account managers who can make purchases and payments, review transactions, and resolve any problems
- $0 fraud liability
- Capital One Travel offers some of the best prices on thousands of trip options
- No balance transfer fees
- No annual fees
- Easier to obtain for business owners with fair credit
- Higher APR than most credit cards
- Only 1% unlimited cashback
- No sign-on bonus
- 0% intro APR for the first 18 billing cycles
- No annual fee
- 24/7 dedicated service from the company’s 100% domestic servicing center
- Visa Spend Clarity helps business owners track their spending and manage money more efficiently
- Control where, when, and how employees use their credit cards
- Pay bills over time with ExtendPay
- 24/7 fraud monitoring
- 18 billing cycles before interest accumulates
- $0 annual fee
- Spending limits and other controls help you manage employee credit cards
- No rewards or sign-on bonuses
- 3% foreign transaction fee
- 3% balance transfer fee ($5 minimum)
- 0% intro APR for the first 12 months
- Earn 30,000 membership rewards points after spending $6,000 in purchases within the first three months of account opening
- 2x points on purchases for up to $50,000 per year before unlimited 1x points on every purchase
- Expanded Buying Power lets you borrow money above your credit limit
- No annual fees or additional costs for employee cards
- Connect to QuickBooks
- Extended warranty and purchase protection
- No extra cost for multiple employee cards
- 0% APR for the first 12 months
- Borrow more capital than your credit line’s limit
- 2.7% foreign transaction fee after converting the foreign currency into USD
- Rewards program becomes lackluster once you exceed $50,000 in spending
- 3% balance transfer fee ($5 minimum)