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Let's say I can't afford the work the contractor recommended... chipping out the whole basement floor, digging down, putting in a vapor barrier, stone and then 4" of concrete. 50's house. foundation OK

No water in basement, but damp, moisture in the floor and majorly cracked floor with a couple places of slight heaving. No recommendation for sump pump or drain tile around house (walk out on one side).

I'm going to look for floor covering, carpet, vinyl, cork or rubber.. definitely not tile. Any suggestions / ideas from the floor guru's on here?

Thanks

Dampness in the basement indicates moisture underneath and that it is coming up through the cracks. I'm guessing the contractor told you that. About the only floor covering I would recommend is indoor/outdoor carpet. Standard carpet will probably rot out quickly.

I would talk to a flooring store that installs all types of flooring. (NOT a Home Depot type flooring department, in a store)

There may be a heavy vinyl (or rubber) that can be put down over some floor leveling compound (where needed).

Plastic will not rot, at least.

There are snap-together rubber tiles that you can get for your garage or exercise area. I've even seen a variation at the Dollar Store, meant to be used in a child's room. Walmart has some listed as "Foam Flooring" that are water-resistant and cost about a dollar a square foot.