Best Credit Cards for Real Estate Agents & Investors
The best credit cards for real estate agents have a low annual percentage rate (APR), a valuable rewards program, and no annual fees. There are many options for financing your business, but only a few of them have excellent rating choices for real estate agents by independent third parties.
Read on to learn more about our top credit cards for real estate agents.
Best Credit Cards for Real Estate Agents and Investors
Looking for a powerful cash back credit card? Look no further than the Capital One Quicksilver Cash Rewards Credit Card. Earn cash back through everyday purchases with this cards rewards rate of 1.5% Cash Back on every purchase, every day and 5% Cash Back on hotels and rental cars booked through Capital One Travel (terms apply) and a bonus of $200 Cash Back after you spend $500 on purchases within 3 months from account opening. That's money going right back into your pocket whether you're buying marketing materials or a welcome home fruit basket for a new client.
As if the cash back offers aren't competitive enough, Capital One Quicksilver Cash Rewards Credit Card offers 0% intro on purchases for 15 months and a $0 annual fee effectively keeping costs low. Regular Purchase APR is 15.24% - 25.24% (Variable). This card is the full package for those looking to consistently use and take advantage of their credit card.
While real estate can be profitable, getting your footing can take some time. You might have to wait a few months before getting that first commission check. Thats where the Wells Fargo Reflect℠ Card comes in. With a 0% intro APR for up to 21 months from account opening , this card allows you to float expenses and provides some breathing room. Ongoing 13.74%-25.74% Variable APR.
On top of the incredible 0% intro APR period, Wells Fargo Reflect℠ Card also offers a $0 annual fee. Whether you want to build up your credit, need to float expenses, or would just like to have the safety net of an emergency credit card, this card is a great, flexible option.
Can You Purchase Real Estate With a Credit Card?
People can purchase real estate using their credit cards. Because there are various types of loans and terms associated with the process, you must meet specific requirements when purchasing property with a credit card. If someone has good credit, they might get approved for this type of loan because it does not require as much money upfront as other loans.
The only disadvantage is that you will get charged interest on your balance, making it more challenging to pay off the debt over time if you make too many purchases with the credit card at once. Most people, however, do not require this level of capital, and it can be an excellent way to begin investing in real estate.
When purchasing something, it all depends on the contract terms and the type of credit applied to the account. Because there are no hefty upfront fees, it can be much easier to get approved for this type of loan in some cases. In other cases, people may require a more significant sum of money.
The only disadvantage is that these loans usually have higher interest rates. If people use more money than they planned, they will have to make higher monthly payments for the loan to get paid off over time. When buying real estate with a credit card, people should keep all of this in mind because it can get complicated, especially when compared to other types of loans.
How Credit Cards Benefit Real Estate Investors
- Credit cards offer a way to build credit and improve your score: Consumers and businesses alike benefit from credit cards. Still, the most crucial benefit is the ability to improve your credit score. A person's credit score gets used by potential lenders to assess the risk of lending money to them. It aids them in predicting your likelihood of repaying your debt on time and in full. A high credit score indicates that an individual has had few late payments or defaults over the years. In contrast, a low credit score means that the borrower has difficulty borrowing at higher-than-average interest rates due to the borrower's perceived riskiness.
- A credit card can help buy a home: A credit card can be a helpful tool for your real estate investment business. Many people are unaware that the interest is tax-deductible if you purchase real estate with a credit card. You also get all of the advantages of having a credit card, such as reward points and purchase protection. If you need to finance a portion of your real estate transaction, using your credit card may be a viable option.
- You can use credit cards for emergencies or unexpected expenses: The best part about this type of financing is that you can use it to cover unexpected costs without having to worry about running out of money when money is tight. The advantage of using credit cards as a form of financing is that you can get a purchase limit of up to $50,000 per transaction, and you won't have to worry about interest charges until your bill is due. Furthermore, using a credit card protects you from fraud or theft if an item is not delivered.
- Credit cards may offer low introductory interest rates: Real estate investing can be a lucrative endeavor, but it is not without risk. One of the most significant issues that most people face when it comes to property investment is that they end up paying interest on both their mortgage loans and their credit card debt at the same time. On the other hand, credit card companies have recently begun to offer low introductory rates on balance transfers from other cards or new purchases made with these cards, allowing borrowers to take advantage of this opportunity. At the same time, it lasts and saves money on interest rates.
- You can use credit cards for down payments, renovations, and more: Down payments and renovations for your real estate business aren't always easy to come by, but there are options. Using a credit card is one of them. You can use your credit cards to make these purchases and earn points in return if you choose the right rewards program. For instance, if you want to buy a foreclosure and need $20,000 for a down payment, you can use your credit card. The money you put in will come back to you in the form of points or cash back.
- There are no income restrictions when applying for the card: This is ideal for real estate investors who haven't had a job in a while or are just starting. If you carry a balance from month to month, the card also offers a 0% introductory APR on balance transfers and purchases, which will save you money in interest payments. If you're looking to buy a house with cash, this card could be ideal.
What to Look for in a Business Credit Card for Real Estate Investors
Find a Credit Card With No Annual Fee
If you're a real estate investor, you've probably got a lot of financial transactions to keep track of. The amount of paperwork required to keep track of all of these transactions can be overwhelming, and if something gets lost in the shuffle, your finances could get jeopardized. A credit card with no annual fee can help alleviate some of your stress by giving you one less thing to think about.
Look for the Lowest Interest Rate Possible
The more money you pay in finance charges, the less profit you will make on your real estate investments. So it's essential to find a card with an interest rate that won't eat into your bottom line too much.
Consider If You Want Rewards Points, Cash Back, or Airline Miles
Many credit cards have bonuses available only to certain types of businesses. Reward points are a fantastic choice for companies in these industries, but it would be disastrous for someone who isn't in either. Other cards may offer lower interest rates on purchases, making them less appealing to real estate investors. However, some people use them in conjunction with another account to earn rewards points or gain more flexibility.
Consider Whether You Need an EMV Chip-Enabled Credit Card
EMV chip-enabled credit cards may be unfamiliar to you, but they are the way of the future. And if you don't already have one, you should get one right away. They make it much more difficult for others to steal your data and use it fraudulently. If you plan to buy a house with an EMV chip-enabled card shortly, this could be critical to ensure that your information is not stolen and used illegally later.
Compare Different Cards
First, it's essential to know that there are two types of business cards: revolving credit cards and installment credit cards. Although revolving credit cards usually charge an annual fee, they allow you to pay off your balance in full each month or make minimum payments without incurring interest charges. Installment credit cards usually don't have an annual fee. Still, if you don't pay off your entire monthly statement by the due date, you'll get charged interest on any outstanding balances at a predetermined APR (Annual Percentage Rate). The first step is to compare different options side by side to determine which one best meets your requirements.
Find Out If the Card Has Any Restrictions on How Much You Can Spend
When looking for a business credit card for real estate investors, it's essential to determine if the card has any limitations on how much you can spend or charge. Some cards, for example, limit your monthly spending to $5,000 and require that you make purchases from a specific list of vendors. Other cards don't have a spending limit, but they do limit the total amount of interest you can get charged.