Being an independent contractor can seem to be challenging initially but there are many benefits too. An independent contractor can set their schedule, no tension of having a boss, and can earn more in some cases too.
Any person, business, or organization providing goods or services through a written or verbal agreement is referred to as an independent contractor. Frankly speaking, they are freelancers. It can be any industry where you can start your career as an independent contractor.
Irrespective of the industry, the primary thing to do here is to manage the finances. This finance management will never take into account the personal finances though most independent contractors commit this mistake.
So, the best way to manage your business finances is to apply for a credit card. That’s the main reason we have compiled the 5 best credit cards for independent contractors.
Thus, take a look at the below best credit cards we have picked up!
Also Read: Best Business Credit Cards For Construction
List of The Top 5 Best Credit Cards For Independent Contractors
A lot of credit cards are available in the market that independent contractors can use based on their needs and preferences. Below is the list of the top 5 ones:
- The Blue Business Plus Credit Card from American Express
This is one of the best credit cards that independent contractors can use to earn rewards. It can be an ideal fit for you if you prefer redeeming points that can be utilized for traveling. Even you can earn 2x membership rewards for everyday purchases.
The card owners are also offered the flexibility to buy more and even earn rewards above the credit limit. However, there is a limit of that too that is mainly determined based on the credit history, payment history, and more.
You don’t need to pay any sort of annual fees that is another advantage of using this card. Using this card, you can earn 15k membership reward points by spending $3k on eligible purchases.
Also Read: What Happens To Your Life Insurance When A Factory Closes
- Ink Business Cash Credit Card
Featuring no annual fee, this is another best credit card for small businesses. After opening the account, you can earn $750 cashback on spending $7500 within the first quarter. Besides, for the first $25k spent on office supplies, cable, and internet, this card offers you the flexibility to earn 5% cashback.
For gas stations and restaurants also, you can earn 2% cashback on the first $25k spent in the first year. Moreover, card owners can also earn various rewards in the form of gift cards, travel, etc. The card is also equipped with proper fraud protection due to which you will never be held responsible for any unauthorized charges.
- American Express Business Gold Card
Although American Express Business Gold Card charges a small annual fee, it is one of the best credit cards to earn maximum rewards. It offers the flexibility to earn 4x Membership Reward points on two selected categories where your business spent the most for the first $150k in the purchases combined annually.
After that, you can earn 1x points on all the other purchases. This includes:
- Airfare purchased directly through airlines,
- Social media ads,
- Buying from selectable technology providers of hardware, software, or cloud,
- Gas station/restaurants,
- Shipping for the US only.
These points hold the most worthwhile if you redeem them for award flights on AmexTravel or some retail gift cards. For award flights, you can also get 25% cashback points.
There is also a pay overtime option through which you can decide whether you want to pay full each month or pay over time with interest. After registering for the credit card, owners can earn 70k points in the first quarter for spending $10k.
- Ink Business Preferred Credit Card
This Ink Business Preferred Credit Card also holds a small annual fee but it can also be one of the preferred choices for travel contractors. For every $1 spent, you can earn 3 points on the first spending of $150,000 in combined purchases of travel, shipping, internet, cable, and phone services.
For other kinds of purchases, you can 1x point with no limit. The points will get 25% more valuation if you redeem them through the Ultimate Rewards travel.
Also Read: How To Save Money – Couples Financial Planning Worksheet
- The Plum Card by American Express
Independent contractors face the challenges of variable income and hence, paying bills during slow months can be a bit problematic. This credit card can be a valuable asset then because it offers you the flexibility of 60 days to repay without any interest.
There is an annual fee of $250 but if it can save more than $250 interest charges yearly, then why not pay a small amount to own this credit card!
Also Read: How To Become Financially Independent By Investing In Real Estate ?
Final Words !
There are many factors that you need to check for getting the best independent contractor’s credit cards. Just picking up any random credit card will not be helpful. So, decide your requirements and then go through all the specifications and offers of a credit card before linking them with your business account.
The above-mentioned credit cards are the best ones available in the market though there are more of them.
Thanks for taking out your time and staying till the end!