Business credit card for rehabbers?

Question

Hey all,

We're just getting started in the flipping and BRRRR world.  We have an LLC with its own checking account to use when paying for stuff.  We'd like to get a credit card that's specific to this business.  Are there any cards that have perks which are particularly well suited to rehabbing investment properties?  We don't plan to travel as a business expense, so we really don't need airline miles.  Would a cash back card be best?

Kyle J. · Answer

@Ben Hollingsworth  I like the Chase Ink Business cards.  There's a couple good ones (Business Unlimited with 1.5% cash back on everything, or Business Cash with 1% cash back on everything + 5% back on select categories).  Both have no annual fee, allow you to put in job names/numbers when making purchases, give you the option to get extra cards with different card numbers for authorized users/employees (so you can track who made which purchases), and they don't report the balances on your personal credit report (so it won't count against your DTI ratio for future lending purposes).  The cash back you accumulate for your purchases is a nice bonus too.   :)

Christopher Charles · Answer

I know this is an old thread but I am too now looking to get business line of credit, business credit cards, etc. I heard Chase is hard to get approval for credit if LLC is new, I have been doing rentals as a sole proprietor for 3 years, I would think it would help on the approval process. what you guys think?

Gregory Ng · Answer

@Ben Hollingsworth Hey Ben I had the same exact situation happen to me. Ran my credit twice as well. And then told me my limit was $4500. At the moment I was pretty upset. But anyways I ended up using the card anyways. Every time I got close to maxing it out I would just pay it off right away. And then use it again. I literally did that for my length of my flip. Over the course of 3 months I’ve prob spent 170k on that card. But now I have $800+ in cash back, food, gift cards or travel. I’m hoping this next time around chase will be able to raise my limit since I showed them that I can pay off 170k.

Scott Titus · Answer

They did this to me on my second card, I have multiple LLC’s and decided to open a card for each. The second one I opened, they hit me with a $4500 limit, I dropped $4,000 on it the first month and paid it back in full as soon as it was due. I did this for about 3 months and called them and told them it was getting silly for me to use the card with such a small limit. After some back and forth they went to $10k and another 6 months later I called them again and now it’s $20k.  Just be proactive, once they see you’re responsible they’ll raise it.

Lyndon Timbang · Answer

@Ben Hollingsworth

Hi, try Amex Amazon, Amex Lowe’s and Amex Blue Cash.  I tried other Credit Card companies but those 3, we got lucky and gave us even a higher credit limit.

Good luck.

Shawn M. · Answer

@Ben Hollingsworth

Go with the projected sales and of your houses for the year if you think you will do 2 or 3 homes put it down. If you have a couple hundred thousand in revenue you should be able to get a credit line between 20-30k.

Keep in mind you only want to use 1/2 of the credit limit so you don’t ding your credit score.

Chase ink, capital one spark and Amex have good terms.

No cc company has ever followed up with the data I’ve entered. Just write it down somewhere so if they ask you can remember what you said ;)

Zander Kempf · Answer

I use a home depot commercial revolving card. They gave me a high limit and 60 day payment terms. That helps float a lot of the costs. Also with the pro account you get discounts when your purchases are above $1500.

I also use a commercial credit account with Sherwin Williams. They offer big discounts, free delivery, and an account manager who will coordinate directly with my contractors.

Aaron McGinnis · Answer

Another vote for Chase ink. We have a corporate card and rack up buku points, which I then transfer to my personal chase sapphire preferred card and use to book airfare on skyteam airlines (United, Singapore Air, All Nippon, Lufthansa, Southwest

Steven Foster Wilson · Answer

@Ben Hollingsworth Chase Business Ink, you get mega bonus points on travel, and that the whole point of a card right? to pay for your trip to thailand? I got this card a year ago and used it to pay for my ski trip to France!

Justin Phillips · Answer

I think the Chase Ink card is your best bet. No annual fee, and 1.5% cash back. The Capital One Spark card gives 2% cash back, but it has an annual fee starting in year 2, and a higher APR.

Business credit card for rehabbers?

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