House flipping is a popular investment strategy for those looking to make profits in the real estate market. To help house flippers manage their finances effectively and make the most of their investments, choosing the right credit card is crucial.
In this guide, we’ll explore the best credit cards for house flippers, including those for landlords and rental property owners. Whether you’re a seasoned flipper or just getting started, we’ve got you covered.
Here’s what’s in store:
- What to Look for in a Credit Card for House Flippers
- The Best Credit Cards for House Flippers
- Consumer Credit Cards for House Flippers
- Elevate Your House Flipping Venture With Business Credit
- Frequently Asked Questions
Now, let’s roll!
What to Look for in a Credit Card for House Flippers
Before diving into the best credit cards, you need to know what to look for in a card to meet your needs as a house flipper.
First of all, you should search for the best rewards – Look for cards with rewards or cashback programs tailored to real estate-related expenses.
Next, see what introductory offers are available – Some cards offer attractive sign-up bonuses or introductory APRs, which can be beneficial during the initial stages of a house flip.
Then, make sure you’re getting a card with the lowest fees, or that the rewards offset the fees – Avoid cards with excessive fees that can eat into your profits.
Finally, you’ll want a high credit limit – A higher credit limit can provide more financial flexibility for property renovations and purchases.
The Best Credit Cards for House Flippers
Here are the top five credit cards for house flippers and rental property owners, with a focus on their benefits and drawbacks.
Sure, here’s a summary of each of the credit cards you provided and how a house flipper could potentially use them to their advantage:
1. Amex Business Platinum Card
The Amex Business Platinum card offers extensive travel benefits, rewards on purchases relevant to house flipping, and various insurances that can help manage risks associated with travel and business expenses.
- Travel Benefits: Earn 5X Membership Rewards® points on flights and prepaid hotels when booked through AmexTravel.com. Access to the Global Lounge Collection with over 1,400 airport lounges.
- Airline Fee Credit: Up to $200 in statement credits per calendar year for incidental fees charged by a selected qualifying airline.
- CLEAR Membership Credit: Up to $189 in statement credits per year for CLEAR® membership.
- Airline Bonus: Get 35% of points back when using Membership Rewards® Pay with Points for eligible flights through American Express Travel.
- Fine Hotels + Resorts Program: Receive perks and earn 5X points on prepaid stays.
- Global Entry or TSA PreCheck® Fee Credit: Statement credit for Global Entry or TSA PreCheck® application fees.
- No Foreign Transaction Fees: No foreign transaction fees on purchases made outside the U.S.
- Rewards: Earn 1.5X points on eligible purchases at U.S. construction material & hardware suppliers, electronics, software & cloud providers, and shipping providers, plus on purchases of $5,000 or more elsewhere.
- Other Benefits: Premium Private Jet program, premium car rental privileges, Business Platinum travel service, trip delay and cancellation insurance, and more.
2. Chase Ink Business Unlimited Card
The Chase Ink Business Unlimited card provides straightforward cash back on all purchases, which can help offset various expenses related to house flipping, including supplies, renovations, and transportation.
- Unlimited Cash Back: Earn 1.5% cash back on all purchases.
- Intro APR: 0% intro APR for 12 months on purchases.
- Bonus: $750 bonus cash back after spending $6,000 in the first 3 months.
- Other Benefits: Employee cards at no additional cost, 5% cash back on Lyft rides.
3. Amex Business Gold Card
The Amex Business Gold card’s bonus categories cover a wide range of business expenses, making it useful for various aspects of house flipping. The Pay Over Time option provides flexibility in managing cash flow.
- Rewards: Earn 4X Membership Rewards® points on the top 2 categories where your business spends the most each billing cycle from a list of options.
- Cash Flow Flexibility: Pay Over Time option, No Preset Spending Limit.
- Other Benefits: Expense management tools, Employee cards, Connect to QuickBooks®, Vendor Pay by Bill.com, and more.
4. Chase Ink Business Preferred Card
Chase Ink Business Preferred’s bonus categories and high point value for travel redemption can be beneficial for a house flipper’s various expenses and travel needs.
- Rewards: Earn 3X points on shipping and select business categories, 1X on other purchases.
- Bonus: 100,000 bonus points after spending $8,000 in the first 3 months.
- Redemption: Points are worth 25% more when redeemed for travel through Chase Ultimate Rewards.
- Other Benefits: Employee cards, 5X points on Lyft rides.
5. Amex Blue Business® Plus Credit Card
The Amex Blue Business Plus card offers simple rewards on all purchases, and its expense management tools can help house flippers efficiently manage their business finances.
- Rewards: Earn 2X Membership Rewards® points on the first $50,000 spent in purchases each year, 1X points thereafter.
- Cash Flow Flexibility: Expanded Buying Power, No Preset Spending Limit.
- Expense Management Tools: Employee cards, Connect to QuickBooks®, Vendor Pay by Bill.com, and more.
Note that these offers can change over time – check the official website for each card to see the most accurate information about each offer.
Consumer Credit Cards for House Flippers
In addition to the top five business credit cards, here are two alternative credit cards worth taking a look at as you start on your house flipping journey – These cards aren’t categorically for business owners, but they provide relevant offers.
1. Chase Freedom Unlimited® Card
- Cash Back Rewards: Earn unlimited 1.5% cash back on all purchases. Get 3% cash back on dining and drugstore purchases, and 5% cash back on travel booked through Chase.
- Intro APR: Enjoy a 0% intro APR for 15 months on purchases and balance transfers. After the intro period, a variable APR of 20.49%–29.24% applies.
- Annual Fee: There is no annual fee for this card.
- Bonus Offer: Earn a $200 bonus after spending $500 on purchases within the first 3 months of account opening. Additionally, earn 5% cash back on combined gas station and grocery store purchases (excluding Target and Walmart) up to $12,000 spent in the first year.
- Special Features: Cash back rewards don’t expire as long as your account is open. No minimum redemption requirement.
2. Lowe’s Advantage Card
- 5% Off: Enjoy a 5% discount on eligible purchases with the Lowe’s Advantage Card.
- Special Financing: Get 6 months special financing on purchases of $299 or more. Also, avail of 12 months special financing on appliances and installed heating, ventilation, and air conditioning.
- 84 Fixed Monthly Payments: For purchases of $2,000 or more, take advantage of reduced APR financing with 84 fixed monthly payments.
- Lease to Own Option: Choose a no-credit-needed purchase option with a 90-day purchase period, early purchase option, or a 12-month standard lease agreement.
- Additional Offers: Receive 20% off your purchase when opening and using a new account, and various other special financing options for different purchases.
- Advantages Explained: The Lowe’s Advantage Card offers 5% off eligible purchases, special financing for larger purchases, and fixed monthly payments at a reduced APR for even bigger investments.
- Online Account Management: Conveniently manage your Lowe’s Advantage Credit Card through an online portal, with options for AutoPay and customer service support.
- Progressive Leasing: Lease-to-own service provided by Progressive Leasing, offering options for select items at participating locations.
Elevate Your House Flipping Venture With Business Credit
Establishing solid business credit is an invaluable asset for a thriving house flipping venture. Let’s look at key steps to build business credit fast so you can open doors to enhanced funding opportunities and favorable insurance rates.
- Step 1: Set a Strong Foundation – Select a business name and category that allow diverse funding options, maintaining consistency over time. Decide on your preferred method of business entity establishment, considering legal services, online platforms, or local government channels.
- Step 2: Ready Your Business for Credit – Secure a physical address, acquire essential business insurance, and obtain required licenses. Create a professional online presence, list your business in relevant directories, and establish a local landline number and business checking account.
- Step 3: Forge Financial Relationships – Attend local Chamber of Commerce events or network online to connect with potential financial partners. Identify local banks and credit unions, researching their financing programs and underwriting processes to gain insights into securing business credit.
- Step 4: Set up Strong Business Credit Profiles – Obtain a DUNS number from Dun & Bradstreet and monitor Equifax and Experian business credit scores. Utilize Nav for free business credit monitoring, ensuring a robust credit profile to access favorable financing options.
Learn more: Everything You Need to Know About a DUNS Number
- Step 5: Establish Effective Trade Lines – Utilize trade lines of credit, like gas and store cards, to embellish your business credit profile. Begin with tradelines before exploring revolving lines of credit, fostering stability and growth in your house flipping journey.
By following these steps, you’ll be equipped with essential business credit to propel your house flipping endeavor to new heights, securing funding and resources for a successful venture.
→ We teach the full, 7-step process in Business Credit Workshop.
Frequently Asked Questions
Which home improvement credit card is easiest to get?
The Home Depot Consumer Credit Card is often considered one of the easiest home improvement credit cards to get due to its lenient approval requirements. Lowes has some great offers too.
What is the average income of a home flipper?
The average income of a home flipper can vary widely depending on location and market conditions. However, successful flippers typically earn at least six-figure incomes.
Can you use business credit to flip houses?
How successful are house flippers on average?
House flipping success rates vary, but according to industry data, successful flips can generate profits that range from 20% to 50% of the property’s purchase price.
What is the easiest credit card to get approved for?
The Capital One Spark Cash for Business card is often regarded as one of the easiest business credit cards to get approved for, especially if you have good personal credit.
Choosing the right credit card can significantly impact your success as a house flipper. By understanding the best credit cards for house flippers and considering factors like rewards, fees, and credit requirements, you can make informed decisions that boost your profitability.
Amex and Chase tend to have the best offer, in my opinion – but don’t forget to see what Lowe’s and Floor & Decor have to offer.
Remember to build and maintain good credit habits to ensure a bright future in the real estate market. Happy flipping!Are you interested in learning how to obtain up to $150K in business credit in as few as 30 days? Join Business Credit Workshop today!