Best Airbnb Credit Cards For Hosts

Quick Answer

We believe that the best credit cards for Airbnb hosts arethe American Express Blue Business Cash Card, Chase Ink Business Preferred Credit Card, and the Capital One Spark Cash Plus. All of them are great picks, depending on your needs.

Introduction

Choosing the right credit card is crucial for Airbnb hosts looking to maximize rewards and benefits on their hosting expenses. The best credit cards can help you earn valuable points on things like furniture, supplies, and utilities for your rental property. They can also provide helpful perks like purchase protection and easier expense tracking to simplify your bookkeeping as a host.

In this comprehensive guide, we'll break down the top credit card options for Airbnb hosts, explaining their reward structures, benefits, and potential drawbacks. By the end, you'll have all the information needed to pick the perfect card for your Airbnb business.

Benefits of Using Credit Cards for Airbnb Hosting

Earning Rewards on Airbnb Expenses

One of the biggest advantages of using a credit card for your Airbnb hosting business is the ability to earn valuable rewards on your everyday expenses. By strategically using the right rewards credit card, you can accumulate points, miles, or cash back on things like furniture, linens, cleaning supplies, utilities, and other regular costs of operating your rental. These rewards can add up over time, giving you a nice return on the money you would be spending to maintain and improve your property. Some of the best credit cards for Airbnb hosts offer bonus rewards in categories that align well with common host expenditures.

Keeping Business and Personal Finances Separate

Another key benefit of having a dedicated credit card for your Airbnb business is its clean separation between your business and personal finances. Keeping all of your Airbnb-related purchases on a separate card makes tracking expenses much easier and less time-consuming than sorting through a single card statement and trying to categorize each transaction. This clear delineation is also very helpful in the event of a tax audit of your STR. Being able to quickly pull complete and accurate records of your hosting expenses can save you a major headache.

Building Business Credit

Using a business credit card responsibly is also an excellent way for Airbnb hosts to establish and build their business credit profile. Even if you operate your rental as a sole proprietor, having good business credit can open up better financing opportunities if you want to scale up your operation in the future. Showing a history of on-time payments and credit utilization can make it easier to secure business loans with favorable rates and terms down the road.

Key Factors to Consider When Choosing a Credit Card

Rewards Structure

When evaluating credit card options for your Airbnb business, one of the most important things to look at is the rewards structure. Ideally, you want a card that offers bonus points or cash back in spending categories that match up with your most frequent expenses as a host. Some cards offer extra rewards on things like travel, gas, dining, or office supplies. Take a look at your hosting expense records and see if you spend a lot in any of those areas. If so, a card with bonus rewards in those categories could help you rack up points faster. Pay attention to any spending caps or limits on bonus rewards, too.

Sign-Up Bonus

A generous sign-up bonus can give your rewards balance a nice boost right off the bat. Many of the best credit cards for Airbnb hosts offer welcome bonuses worth hundreds of dollars, either as a lump sum of points or as a statement credit after you spend a certain amount within the first few months. Just make sure you can comfortably meet the spending requirement without stretching your budget. Also, keep in mind that some cards restrict you from earning the bonus if you've previously had the same card.

Annual Fee

Lots of great rewards credit cards charge annual fees, but they're not always worth it. In general, cards with higher annual fees offer more lucrative rewards and benefits. However, you'll want to be sure you'll earn enough rewards and use the perks often enough to offset the yearly cost. Some cards waive the annual fee for the first year, which can be a good way to test out a card and see if it's a good fit. Always crunch the numbers based on your own spending habits before applying for a card with an annual fee.

0% Intro APR Offers

If you're planning any large purchases for your Airbnb, like new furniture or appliances, a card with a 0% introductory APR on purchases can save you a lot of money on interest. These offers typically last 12-15 months, allowing you to pay off your balance gradually without accruing finance charges. Just be sure you have a plan to pay off the full balance before the promotional period ends, and the regular APR kicks in.

Top Credit Card Picks for Airbnb Hosts

American Express Blue Business Cash Card

The American Express Blue Business Cash Card is a solid choice for Airbnb hosts who want to earn straightforward cash back on their business spending. This card offers 2% cash back on all eligible purchases up to $50,000 per year, with no bonus categories to keep track of. After hitting the $50,000 threshold, you'll earn 1% cash back on purchases. The cashback automatically appears as a statement credit each billing cycle, so you don't have to worry about redeeming rewards. The card has no annual fee, which is great for budget-conscious hosts. As an added perk, you'll get access to Amex's Expanded Buying Power feature, which may allow you to spend beyond your credit limit if needed.

One potential drawback of the Blue Business Cash Card is that it does charge a 2.7% foreign transaction fee. If you frequently host international guests and incur expenses abroad, this fee can add up quickly and negate some of your cash-back earnings. Also, keep in mind that the 2% cash-back rate only applies to the first $50,000 in purchases each year. If your Airbnb hosting expenses exceed that amount, you might earn more with a different card.

Chase Ink Business Preferred Credit Card

If your Airbnb business involves a lot of travel, the Chase Ink Business Preferred Credit Card could be a great fit. This card earns 3 Ultimate Rewards points per dollar on travel, shipping, internet/cable/phone services, and advertising purchases (up to $150,000 in combined purchases each account anniversary year). All other purchases earn 1 point per dollar. When redeeming your rewards is time, you'll get 25% more value by booking travel through the Chase Ultimate Rewards portal. That means the 100,000-point sign-up bonus (after spending $15,000 in the first 3 months) is worth $1,250 in travel. The card has a $95 annual fee, but the lucrative rewards can easily compensate for it.

Another standout benefit of the Ink Business Preferred card is cell phone protection. When you pay your monthly cell phone bill with the card, you'll get up to $600 in coverage per claim for damage or theft (subject to a $100 deductible). This perk can save you a lot of money if your phone is lost, stolen, or damaged while managing your Airbnb property. Just be aware that you must pay your entire cell phone bill with the card to get the coverage.

Capital One Spark Cash Plus

The Capital One Spark Cash Plus is a top pick for Airbnb hosts who want to earn unlimited 2% cash back on every purchase, with no caps or bonus categories to worry about. This card is a charge card, meaning you must pay your balance in full each month. However, that also means it has no preset spending limit, giving you more flexibility for large purchases. You can also get free employee cards to earn rewards for your team's spending. The card has a $150 annual fee, but it's waived for the first year. You can also earn up to a $1,000 cash bonus - $500 after spending $5,000 in the first 3 months and another $500 after spending $50,000 in the first 6 months.

One thing to note about the Spark Cash Plus is that it does not offer a 0% introductory APR on purchases. If you're planning to finance any large expenses over time, you might be better off with a different card that has a 0% intro APR offer. However, the Spark Cash Plus is hard to beat if you always pay your balance in full and want a simple, unlimited 2% cash-back card.

Maximizing Credit Card Rewards as an Airbnb Host

Put All Eligible Expenses on Your Card

To maximize your credit card rewards as an Airbnb host, it's important to use your card for as many business expenses as possible. This includes things like cleaning supplies, toiletries, linens, furniture, and utility bills for your rental property. By consolidating all of these purchases on your rewards credit card, you'll be able to rack up points or cash back much faster than if you spread them out across multiple payment methods. Just be sure to only charge what you can afford to pay off each month.

Pay Your Balance in Full

One of the biggest mistakes you can make with a rewards credit card is carrying a balance from month to month. When you don't pay your statement balance in full, you'll start accruing interest charges on your purchases. These finance charges can quickly negate any rewards you've earned and put you in a cycle of debt. To avoid this, make sure you're only charging what you can afford to pay off each billing cycle. Treat your credit card like a debit card, and only spend what you have available in your bank account.

Take Advantage of Welcome Offers

Many of the best credit cards for Airbnb hosts come with generous sign-up bonuses that can give your rewards balance a big boost. These welcome offers typically require you to spend a certain amount within the first few months of opening your account. If you have any large purchases coming up for your rental property, timing them with a new credit card application can help you meet the bonus spending requirement more easily. Just be sure to read the fine print and understand the terms of the offer before applying.

Alternative Financing Options for Airbnb Hosts

Business Loans and Lines of Credit

While credit cards can be a great tool for managing short-term expenses, Airbnb hosts may need to explore other financing options for larger purchases or renovations. Business loans and lines of credit can provide access to more substantial funds with longer repayment terms. These options may also offer lower interest rates than credit cards, making them a more affordable choice for big-ticket items. However, qualifying for a business loan or line of credit typically requires a strong credit score and a solid business plan.

Airbnb-Specific Financing Programs

Some lenders offer financing programs specifically designed for Airbnb hosts. These loans may have more flexible underwriting criteria and take into account your rental income and booking history. Airbnb itself has partnered with select lenders to offer host-friendly financing options in certain markets. These programs can be a good fit for hosts who may not qualify for traditional business loans.

Conclusion

In conclusion, selecting the right credit card is crucial for Airbnb hosts looking to maximize their rewards and benefits. Hosts can find a card that aligns with their business needs and spending habits by considering factors like rewards rates, sign-up bonuses, annual fees, and additional perks. The top credit card picks outlined in this guide offer a range of valuable features for Airbnb hosts, from bonus points on travel purchases to flexible payment options.

Ultimately, the best credit card for your Airbnb business will depend on your unique circumstances and financial goals. By comparing your options and implementing smart spending strategies, you can leverage credit card rewards to boost your bottom line and grow your hosting business.

FAQs

What Are the Best Credit Cards for Earning Rewards on Airbnb Expenses?

Some of the top credit cards for Airbnb hosts to earn rewards on business expenses include the Chase Ink Business Cash Credit Card (best overall with 5% cash back on select categories), the American Express Blue Business Plus Credit Card (2x points on all purchases up to $50,000 per year), and the Capital One Spark Cash Plus (unlimited 2% cash back on all purchases). Compare the rewards, fees, and perks to find the best fit for your hosting business.

How Much Debt Is Reasonable to Start an Airbnb?

Taking on excessive credit card debt to start an Airbnb can be risky. Creating a realistic budget is crucial, factoring in startup costs, ongoing expenses, and potential income. Avoid overextending yourself financially. Consider starting small and reinvesting profits to grow your business over time. Consult with a financial advisor to develop a responsible funding strategy.

What Additional Benefits Should I Look for in a Business Credit Card?

When choosing a business credit card for your Airbnb, consider additional perks like purchase protection, extended warranty coverage, employee cards, and compatibility with accounting software like QuickBooks. Some cards offer valuable sign-up bonuses, 0% intro APR periods, or travel benefits that can enhance your overall value as a host. Evaluate your specific needs and spending habits to find the card with the most relevant benefits.