How credit cards benefit real estate investors
There are several reasons a credit card is worth having when investing in real estate:
- More spending power: With certain types of real estate investing, such as house flipping and commercial real estate, bills add up quickly. That can be hard to manage if you’re paying for everything in cash from your bank account. A credit card is a convenient way to make purchases on credit and pay it back when the bill’s due. If you need even more time, you can get a card with anintro 0% APR offer.
- Building your credit: When you pay your credit card bill on time and follow other good financial habits with it, it can improve your credit history. This is a crucial step if you’re trying to reach a sufficient credit score for an investment property.
- Earning rewards: A rewards credit card is an easy way to save on the money you’re spending anyway. For example, if a card offers 2% cash back, it’s like getting a 2% discount on your spending. Over time, these rewards add up to significant savings.
- Track business expenses: Getting a credit card solely for your real estate business helps you track your business expenses and make the right tax deductions. Many business owners use a business credit card for this. However, you can do it with any credit card that you only use for business expenses.
What real estate investors should look for in a credit card
The most important factors real estate investors should look for in a credit card are purchase rewards and 0% intro APR offers. Both of these perks can help you save money on every real estate investment. Purchase rewards allow you to get value back on all your expenses. 0% intro APR offers give you time to pay off eligible purchases or balance transfers at a 0% annual percentage rate (APR).
There are several other things you can look for as you shop around for the best credit cards for real estate investors. A high credit limit gives you more spending power, which can help with cash flow. The credit card you choose should have a reasonable annual fee or no annual fee at all. Bonus opportunities and purchase protections are also valuable benefits for a real estate investor.
To recap, here are the factors to consider when choosing a card for real estate investing:
- Purchase rewards
- Intro 0% interest offers</…….