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Credit card recommendations

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  • Posts 1
  • Votes 0

Lior Cohen

posted 4 months ago

Can anyone recommend a credit card they find useful (perhaps a good one with cash back and or other benefits) in using for the purpose of rehabbing homes to buy material, appliances,etc...?

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Zach Westerfield
from Warner Robins, GA

replied 4 months ago

i use credit cards as a strategy. i look first for 0% interest for as long as possible. then any points are a benefit. once the period ends, if they wont extend it i open another. 

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Zach Westerfield
from Warner Robins, GA

replied 4 months ago

i use credit cards as a strategy. i look first for 0% interest for as long as possible. then any points are a benefit. once the period ends, if

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Walter Key
Realtor from Charlottesville, VA

replied 4 months ago

NONE. Find better avenues for working capital.

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Walter Key
Realtor from Charlottesville, VA

replied 4 months ago

I suppose I should caveat my prior post...if you're absolutely set on using a credit card for your rehab, look for the ones with the best interest rate for the longest period. In the grand scheme of it, that's really all that matters. Keep the interest low (ZERO ideally) for long enough that you can fund the rehab, flip the property, and pay off the card with the smallest amount of average monthly interest accrued. 

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Bob Okenwa
Real Estate Agent/Investor from Peoria, Arizona

replied 4 months ago

The most important thing will be card with 0% interest for a prolonged period. Bank of America Cash Rewards and the American Express Blue Cash Everyday card give you cash back for spending something like $1000 in the first 3 months and have 12 or 15 months 0% APR. Go to creditcards.com or thepointsguy.com to find cards that offer the best combination of points/cash back and 0% interest.

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Jim Scandola
from Cypress, TX

replied 4 months ago

Try Fund and Grow.  They offer business credit cards with 0% interest for up to 12 months.  The debt will obviously need to be paid back but it could be a more economical option over hard money loans.  https://www.fundandgrow.com/

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Brett Tvenge
Rental Property Investor from Phoenix, AZ

replied 4 months ago
Originally posted by @Walter Key :

NONE. Find better avenues for working capital.

How do you figure? I use my AMEX for ALL purchases and generate approx $1500 in cash back annually. I pay 0 interest because my balances are paid in full each and every month.  

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Walter Key
Realtor from Charlottesville, VA

replied 4 months ago
Originally posted by @Brett Tvenge :
Originally posted by @Walter Key:

NONE. Find better avenues for working capital.

How do you figure? I use my AMEX for ALL purchases and generate approx $1500 in cash back annually. I pay 0 interest because my balances are paid in full each and every month.  

Just my personal opinion. I've been teaching debt management and personal finance for many years. I've found that the VAST majority of credit card users loose money because the teaser "0% for xxx months" turns into 18+% with a balance still remaining in the long run. Good on you and those few that are disciplined enough to use a CC in the manner you described. You are few and far between. That's why I recommend folks look for a more stable long-term option that doesn't require the discipline you have. 

 

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Kyle J.
Rental Property Investor from Northern, CA

replied 4 months ago

@Lior Cohen   If you're looking for a card with good perks like cash back, it's hard to beat the Citi Double Cash card which gives you 2% on everything you buy.  It can really add up if you put all your spending on it, especially big rehab projects.  If you do a lot of spending, 2% unlimited on everything usually beats out 5% limited on very select rotating categories that some other cards offer (often by a long shot too).

Of course, to benefit from cards like these that offer cash back and other perks, you can't carry a balance or it completely defeats the purpose.  So I'm assuming, since you asked about it, you don't plan to carry a balance (in which case the interest rate won't matter much to you like it matters nothing to me).

Also, it's worth mentioning that there are other cards (such as the Chase Ink Business Unlimited card) that pay slightly less cash back but still a decent amount (1.5%) on every single purchase. However, because it's a business card, it does not report to, or show up on, your personal credit report. This can be good if you're going to do a lot of charging and don't want the balance counted against your DTI ratio. Just something to consider.

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Jeremy Filer

replied 16 days ago

Some lean towards the obvious.... a home depot or lowes credit card they can build up points with to help with the reno. 


I like to use the credit card as  reward. When paying off before any interest accrues, I opt for cards geared towards travel.  I typically like using a hotel card and taking a trip or two nearly expense free at the end of a long renovation.

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