Best Credit Cards for Real Estate Investors

Real estate investing is a business in which you need to spend money to make money. That's why, as an investor, a credit card is such a valuable financial tool. It's a convenient option if you need real estate financing sources, and in addition to being a convenient payment method, many top credit cards offer plenty of other useful features. To help you find the right card for you, here's our list of the best credit cards for real estate investors.

When it comes to investing in real estate, having access to funds is crucial. That's where credit cards come in, as they provide a ready source of credit that can be used to finance various aspects of real estate projects. However, not all credit cards are created equal, and not all credit cards are suitable for real estate investors.

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 an intro 0% APR offer and a credit card with a high or no preset spending limit.
• 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.
• Renovations: Home improvement credit cards allow investors to make necessary repairs and renovations to their properties while earning rewards and staying within their budgets. Additionally, many home improvement credit cards offer extended financing and low interest rates, giving investors more flexibility when it comes to paying off their projects.

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 or no present spending 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, credit card perks, 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
• A high credit limit
• A reasonable annual fee
• Bonus opportunities
• Purchase protections

Now, let's go over in more detail how each of these factors works and why they matter.

Purchase rewards

Cards with purchase rewards give you back a percentage of all qualifying purchases. Depending on the type of rewards credit card you have, you can earn cash rewards, travel rewards, or other types of rewards points.

Real estate often involves lots of different expenses, so with the right credit card, you'll have ample opportunities to earn rewards. You generally can't pay your mortgage with a credit card, but everything else is fair game.

0% intro APR offers

A credit card may offer a 0% APR on purchases, balance transfers, or both for a set period of time. This type of offer is helpful when you know that you won't be able to pay your credit card bill in full. For example, if you have a costly remodel on a rental property and need to pay it off over time, a 0% purchase APR lets you do that without interest.

A high credit limit

The credit limit is the maximum amount you can spend using your credit card. Since real estate investing can be expensive, a card with a high credit limit is nice to have. You'll be able to spend more without hitting your credit limit.

A reasonable annual fee

Some credit cards charge an annual fee, but you can also find plenty of cards without annual fees. If you decide to get a card with an annual fee, make sure the benefits are worth more than what you're paying for the card.

Bonus opportunities

Credit cards often provide bonus opportunities, especially for new cardholders. The most common is a welcome bonus. This is a bonus you can get after opening the credit card, and it usually requires you to spend a certain amount.

For example, a card could offer $500 in cash rewards if you spend $5,000 in the first three months. Bonuses like these are a great way to get money back through your everyday purchases.

Purchase protections

Purchase protections are some of the more underappreciated credit card perks. A credit card could offer complimentary insurance covering new eligible purchases against damage or theft. Another popular protection is extended warranty coverage.

Whether your real estate business purchases tools, computer equipment, or any other supplies, purchase protections can cover you if anything goes wrong.

Benefits/perks

Finally, it's crucial to consider any other benefits or perks that may come with a credit card. For example, some credit cards offer extended warranties, roadside assistance, expense management tools, and complimentary concierge service.

Do real estate investors need a business credit card?

You don't need a business credit card for real estate investing, but there are advantages to getting one. Here are the benefits of opening a small business credit card as a real estate investor:

• A business credit card can keep your business expenses separate from your personal expenses.
• Business credit cards often have features designed for business owners, such as expense-tracking reports.
• If your business has employees, you can request employee cards for them.

Although business cards have their advantages, a consumer credit card can also work well. You may find it's best to focus on choosing the card with the benefits you value the most, regardless of whether it's a consumer or business credit card.

Best for 0% intro APR and unlimited cash back: Wells Fargo Active Cash® Card

If you want to earn competitive cash rewards on your purchases, the Wells Fargo Active Cash® Card is the best choice. It offers an unlimited 2% cash rewards -- the highest, no hassles flat rate we've come across. In addition, new cardholders who spend $1,000 in the first three months will earn a $200 cash rewards welcome offer.

This card has no annual fee, so it won't add extra costs for your business. It also includes a 0% introductory APR for the first 15 months on purchases and balance transfers made within 120 days of account opening (after which the go-to rate of 20.24%, 25.24%, or 29.99% Variable APR applies), giving you time to pay off large business expenses or refinance credit card debt.

Best for 0% intro APR on purchases and balance transfers and unlimited Cashback Match: Discover it® Cash Back

The Discover it® Cash Back gives you plenty of time to pay off purchases and balances you transfer over. You get the best of both balance transfer and cash back worlds with this card.

Plus, for the first year you get an unlimited Cashback Match dollar-for-dollar on all the cash back you've earned. There's no minimum spending or maximum rewards. Just a dollar-for-dollar match. So you could turn $500 cash back into $1000.

Best for a welcome bonus: Ink Business Preferred® Credit Card

The Ink Business Preferred® Credit Card offers a welcome bonus of 100,000 points for spending $8,000 on purchases in the first three months. Those Chase Ultimate Rewards points are worth $1,250 when redeemed for travel through the Chase Travel portal. You can also transfer them to Chase's airline and hotel partners or redeem them for $1,000 in cash back. It's an extremely valuable bonus, especially for a card with a reasonable annual fee.

You can earn even more extra points through this business credit card's bonus categories. The card offers 3 points per $1 on the first $150,000 in combined purchases each year across the following categories:

• Travel
• Shipping
• Internet, cable, and phone services
• Advertising purchases through search engines and social media

Best for long balance transfer and no late fees: Citi Simplicity® Card

With the Citi Simplicity® Card, you get one of the longest 0% intro APR periods for balance transfers of credit cards we've come across. The 0% intro APR lasts for the first 21 months for balance transfers and 12 months for purchases.

Investing in real estate often involves paying large upfront costs and then paying them off over time. If you need to do that, then this card can save you quite a bit of money. You'll be able to avoid interest charges for a full year and a half. You also won't need to pay anything extra to carry the Citi Simplicity® Card, as it doesn't charge an annual fee.

This content is not provided by the issuer. Any opinions expressed are those of The Ascent alone, and have not been reviewed, approved or otherwise endorsed by the issuer.

Best for home improvement spending: Lowe's Advantage Card

When your business involves fixing up an investment property or flipping houses, there are usually plenty of trips to home improvement stores for supplies. That's where the Lowe's Advantage Card comes in handy. It's a great value for the store's frequent shoppers.

The Lowe's Advantage Card offers a 5% discount on all your eligible purchases, including both in stores and online. On certain types of purchases, it offers special financing plans with interest rates as low as 0%. When a special financing plan is available, you can choose between getting a 5% discount or taking advantage of the financing offer.

There's no annual fee for the Lowe's Advantage Card. The card issuer is also flexible about who it approves, so you don't need a good credit score for this card.

Best for home improvement financing plans and return policy: Home Depot® Credit Card

If you find yourself needing to tackle some home repairs or improvements for your properties, you may be worried about the cost. Fortunately, the Home Depot® Credit Card can help you extend your budget and make your home projects more affordable.

With six months financing on purchases of $299 or more and up to 24 months financing during special promotions, you can break up your expenses into manageable monthly payments without accruing interest. Plus, as a cardmember, you'll have one whole year to make returns, four times longer than if you weren't a cardholder.

Best for flexible rewards: American Express Business Gold Card

The American Express Business Gold Card has no preset spending limit -- instead, the flexible spending limit adapts according to factors such as your purchase, payment, and credit history -- and offers bonus rewards to match your spending habits. Every billing cycle, this American Express card earns 4 points per $1 in the two bonus categories on its list where you spend the most ($150,000 annual spending cap, terms apply). That list includes airfare purchases directly from airlines, as well as U.S. purchases in the following categories:

• Online, TV, and radio advertising
• Computer hardware, software, and cloud systems from select technology providers
• Gas stations
• Restaurants
• Shipping
• Terms apply; enrollment may be required

You earn bonus rewards on up to $150,000 in bonus spending per calendar year. All other eligible purchases earn 1 point per $1. This business credit card costs $295 per year for the annual fee (see rates and fees), but the rewards and the card's other perks can make up for that if you have high spending.

Compare the best credit cards for real estate investors