Two construction workers in construction site with blueprints and cellphone. Concept: Store credit cards for construction companies
Maja Mirosavljevic
By: mmirosavljevic
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Best Store Credit Cards for Your Construction Company

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If you run a construction company, you probably get your some of your building materials and equipment at large retailers, specialized in home improvements and construction tools. Naturally, you’ve noticed that they offer store credit cards to be used in their stores, and now you’re wondering whether it is the best option for your construction company.

Luckily, you are in the right place. After reading this article, you’ll get your answer and even more options perfect for your construction company financial situation and needs.

Pros and Cons of Store Credit Cards for Construction Companies

Store credit cards are very similar to regular credit cards, so it’s not difficult to understand how they work. They are usually issued by a retailer with the purpose to pay with credit for the goods your construction company needs. In other words, you use this card to purchase building materials or equipment that you can pay off over time, making a minimum payment every month.

Pros:

  • Easy way to make purchases and track your expenses. You always have funds in your pocket to make purchases, even if you currently don’t have the cash. This is a great benefit for construction companies, that have some of the longest payment terms (they have to wait longer than most industries to get paid by clients for finished projects). Credit cards, in general, can be a good solution for the lack of cash flow faced by many construction companies.
  • You can get discounts and earn points to redeem on future purchases. Construction retailers offer discounts and perks only for people who use credit store cards. For instance, you can get up to 20% off and save some money on your purchases.
  • 0% Intro APR in some of them. This means that you won’t be charged interest on your purchases for a year. That’s why it’s important to check what your APR (annual percentage rate) will be and how it will affect your debts.
  • You don’t need to have a high credit score required to qualify. Therefore, you can quickly get a store credit card without a hitch.

Cons:

  • They can only be used in the brick and mortar store or in the online one. Their use is pretty limited if you need to buy some supplies for your construction company somewhere else.
  • They don’t build your credit. Remember that having a solid credit history will increase your chances to qualify for other types of financing, like a business loan.
  • Higher interest rates than regular credit cards. This means that you will pay more interest when you carry a balance and it will probably take you longer to pay back your debts.
  • They tend to have low credit limits. Therefore, store credit cards are not very helpful for you to make a big purchase.

Best Store Credit Cards for Your Construction Company

If you still think that a store credit card is a right choice for your construction company, then keep on reading to discover the best ones.

Lowe’s Advantage Credit Card

  • Ideal for construction companies that usually go to Lowe’s for buying materials and light equipment.
  • Minimum credit score required to qualify:
  • Regular APR:99% (variable).
  • Late payment fee: up to $38.
  • No annual fee.
  • How it works: The credit card offered by Lowe’s, one of the main home improvement retailers in the US, gives you 5% off each purchase. However, this discount can’t be combined with other discounts or coupons. For purchases of $299 or more, instead of a 5% discount, you can opt for six months of deferred-interest financing. Meaning that there is no interest if you pay the full amount within six months. Also, for purchases of $2,000 or more, Lowe’s Advantage Credit Card gives you:
    •           36 fixed monthly payments at 3.99% APR
    •           60 fixed monthly payments at 5.99% APR
    •          84 fixed monthly payments at 7.99% APR

Just have in mind that this isn’t automated services but on request.

Home Depot Store Credit Cards

 Home Depot offers two types of store credit cards.

Home Depot Project Loan Card

  • Ideal for: construction companies that often shop at Home Depot.
  • Minimum credit score required to qualify: 600.
  • Regular APR: 7.99%.
  • No late payment fees.
  • No annual fee.
  • How it works: This card doesn’t offer any rewards or discounts, but it gives you a loan amount of up to $55,000 and a six-month window to spend that money. During that period, you need to pay interest on the funds you borrow. After that period, you have seven years to pay the balance off.
  • Check the Home Depot Project Loan Card website for more info.

Home Depot Consumer Card

  • Ideal for: individuals who make regular mid-size purchases at Home Depot.
  • Minimum credit score required to qualify: above 600.
  • Regular APR: 7.99%.
  • Late payment fee: up to $38.
  • No annual fee.
  • How it works: this card provides you six months of deferred interest on purchases of $299 or above. Besides, it makes you eligible for more extended deferred-interest periods during special promotions.
  • Check the Home Depot Consumer Card website for more info.

Amazon Store Credit Card

  • Ideal for: construction companies that prefer getting their supplies online.
  • Minimum credit score required to qualify:
  • Regular APR:24%.
  • Late payment fee: up to $38.
  • No annual fee.
  • How it works: this credit card offers 5% cashback on Amazon purchases for Prime members and special financing period on purchases of $149 and more. To become a Premium member, you need to subscribe to Amazon Prime, which costs $99.
  • Check the com Store Credit Card website for more info

Local retailers credit cards

Apart from Amazon and the two national big chains dedicated to home improvement and construction materials, there are probably local stores and suppliers near you that may also offer credit card programs, so make sure you look into it.

Other Credit Cards Ideal for Your Construction Company

If you thought that would be all, you are wrong. There are some other credit cards that could be a perfect solution for your construction company, so scroll down.

Chase Freedom Unlimited offers 1.5% cashback on general purchases. Besides, you will get a sign-up bonus of 1.5% additional cashback on all purchases within the first year, which is a great money saver.

  • Ideal for: usual business expenses.
  • Minimum credit score required to qualify:
  • Intro APR: 0% on purchases and balance transfers for 15 months.
  • Regular APR:24-25.99% (variable).
  • No annual fee.

American Express Cash Magnet Card has a convenient introductory bonus that offers $150 back if you spend $1,000 in first 3 months. Apart from standard 1.5% cashback on all purchases, there is a reward program, “Plan It, Pay It”, which allows you to pay off a qualifying purchase at determined monthly payments with no interest over a set time.

  • Ideal for: general business expenses.
  • Minimum credit score required to qualify: 700.
  • Intro APR: 0% on purchases and balance transfers for 15 months.
  • Regular APR: 15.24-26.24%.
  • No annual fee.
  • Late payment fee: up to $39.
  • Balance transfer fee: $5 or 3% of the amount of each transfer.

Discover it Cash Back allows you to get 5% cashback at various places every quarter like Amazon.com, gas stations, grocery stores and more. Plus, you can earn unlimited 1% cashback on all other purchases.

  • Ideal for: constructors who need more cashback.
  • Minimum credit score required to qualify:
  • Intro APR: 0% on purchases and balance transfers for 14 months.
  • Regular APR:24-25.24
  • No annual fee.
  • Late payment fee: None the first time you pay late. After that, up to $39.
  • Balance transfer fee: 3% of the amount of each transfer for transfers that post to your

Refer to this article if you want to check more options for the best best credit cards for your small business.

Tips for Using your Credit Card

Last but not least, it’s essential to learn how to use your credit card:

  1. Always pay your credit card bills on time to avoid late payments and additional fees.
  2. Maintain the usage of your credit card below 30% of the total credit limit.
  3. Use your credit card for smaller business purchases since with expensive assets come high-interest rates.
  4. Don’t get carried away with shopping just to get rewards.
  5. Don’t use a business credit card for your personal expenses.
  6. Research carefully terms and fees to avoid unnecessary expenses.

For more useful tips on the proper use of your credit cards, read this comprehensive guide Do’s and Don’ts When Using a Business Credit Card.

Are There Better Alternatives to Finance Your Construction Company? 

Still, maybe a credit card won’t be the right option for every construction company given that they come with high interests and different fees. Moreover, if they aren’t used properly, credit cards can hurt your credit and harm your business in the long run.

For all of those who are looking for another alternative, a business loan could be a better option, especially if you find a reliable lender and affordable terms. One such lender is most certainly Camino Financial. We can offer you business loans with:

  • A wide range of options in loan amounts and payment terms, to match the unique needs of your business.
  • Fixed monthly payments, so you can avoid the unpleasant surprises often associated with credit cards.
  • Only the closing fee.
  • Reasonable interest rates.
  • No SSN or credit history required.
  • Possibility to upgrade to a second loan for a larger amount and at a lower interest rate after only9 months of timely payments.
  • Safe and quick loan process: you can get the funds for your construction company in just 2 days.

Learn here how Camino Financial small business loans compare to credit cards, and check for yourself we can be a better alternative!

If this sounds like the financing solution your company needs, then it’s time to inform yourself on how to get a business loan for your construction company and ensure the growth of your business.

 

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