• Hey there! Welcome to TFC! View fewer ads on the website just by signing up on TF Community.

Credit Card usage in House Construction

  • Thread starter Thread starter deepak7
  • Start date Start date
  • Replies Replies 13
  • Views Views 3K
deepak7

deepak7

TF Buzz
Hi Guys, I am planning to start the construction of my house. I will be paying for all the raw materials involved in house construction. It would be super helpful if you can suggest ways to use credit card at different places to earn maximum reward points. I am currently holding Axis Magnus Credit Card. Thanks in Advance.
 
Apply For LTF IndusInd Bajaj Tiger Credit Card
Sort by date Sort by votes
deepak7 said:
Hi Guys, I am planning to start the construction of my house. I will be paying for all the raw materials involved in house construction. It would be super helpful if you can suggest ways to use credit card at different places to earn maximum reward points. I am currently holding Axis Magnus Credit Card. Thanks in Advance.
Click to expand...
Use magnus to buy raw materials till 1 lakh everymonth. Use infinia, ultimate or atlas after that. But genuinely this is a weird idea. as too much transaction will lead to flag. Just use it carefully.
 
Apply For LTF Scepia Credit Card
Upvote 0 Downvote
deepak7 said:
Hi Guys, I am planning to start the construction of my house. I will be paying for all the raw materials involved in house construction. It would be super helpful if you can suggest ways to use credit card at different places to earn maximum reward points. I am currently holding Axis Magnus Credit Card. Thanks in Advance.
Click to expand...
Do you have merchant to accept the raw materials in Credit card payment? I doubt that, because this merchants most of them prefer in cash or bank transfer in rtgs.
 
Upvote 0 Downvote
deepak7 said:
Hi Guys, I am planning to start the construction of my house. I will be paying for all the raw materials involved in house construction. It would be super helpful if you can suggest ways to use credit card at different places to earn maximum reward points. I am currently holding Axis Magnus Credit Card. Thanks in Advance.
Click to expand...
I guess the merchant who sells raw materials at a cheap price won't let you use CC
 
Upvote 0 Downvote
Apply For LTF Axis Bank Credit Card
I am into the construction business and more often than not, have huge spends (upwards of 15 lakhs pm) on my Magnus and DCB on construction materials - from plumbing material to electrical to paint. everything is put on the card.. for the last 3-4 years.. no question asked reward points are given by both.
 
Upvote 0 Downvote
I'm my personal experience from 1-2 years ago at Bangalore:-
You can use credit card during construction or renovation only in certain use cases since most local shops prefer cash or atleast online transfers which don't incur additional fees for them + some smaller merchants don't even have card machines. CC usually means around 2% in transaction fees to the merchant and they'll usually ask us to bear that fee, if we still prefer credit card over other options.
I experienced this with even Premium shops with Jaquar or even higher. Even hard negotiations don't work because the discounts they offer will be irrespective of card usage and so they'll offer a 12% instead of 10% if you use cash or other online methods that don't incur additional fees.
There are however some online sites that may allow you to do so. Example in Hettich branded Fittings and Schneider Electric (for home automation etc).
With local merchants it usually comes down to negotiations and the kind of (reward) return you get on your credit. If it's greater than the charge of 2-3%, then it makes sense
 
Upvote 0 Downvote
mad.technomaniac said:
I'm my personal experience from 1-2 years ago at Bangalore:-
You can use credit card during construction or renovation only in certain use cases since most local shops prefer cash or atleast online transfers which don't incur additional fees for them + some smaller merchants don't even have card machines. CC usually means around 2% in transaction fees to the merchant and they'll usually ask us to bear that fee, if we still prefer credit card over other options.
I experienced this with even Premium shops with Jaquar or even higher. Even hard negotiations don't work because the discounts they offer will be irrespective of card usage and so they'll offer a 12% instead of 10% if you use cash or other online methods that don't incur additional fees.
There are however some online sites that may allow you to do so. Example in Hettich branded Fittings and Schneider Electric (for home automation etc).
With local merchants it usually comes down to negotiations and the kind of (reward) return you get on your credit. If it's greater than the charge of 2-3%, then it makes sense
Click to expand...
Reality speaks in this comment.
 
Upvote 0 Downvote
Hi all,
I am in the exact same situation and have the same question, so I am not creating a new thread. Just adding on top of this.
We are going to do a renovation/reconstruction of our house and the expected expenses are around 25-30L that spreads across the next 6-8 months.

My question is how to use credit cards to get good (if not the best) returns?

There are various stages of construction and credit card payment will not be possible in all stages.
The labor charges are paid to the workers on a daily/weekly basis. This is mainly done as a cash transaction
But how to pay for cement, sand, stone, metal, etc in the initial phase?
Then comes electircal, paint, carpentry (wooden materials), interiors, electrical appliances, furniture and all others.

I have the following cards and plan to use them: Axis Atlas, Amex Plat Travel, HDFC Marriott Bonvoy, and HDFC Tata Neu Infinity.
Another thing would be to apply for a new card - but that would take time, and I am not sure if it will happen or not.

Any views or personal experiences would be helpful.
 
Upvote 0 Downvote
You must log in or register to reply here.
Back
Top