Many big-name home improvement stores, like The Home Depot, Lowe’s and IKEA, all offer credit cards. Here are some tips for finding the perfect credit card to meet your needs. Finding a credit card to lift heavy with you can be a major financial support to your project.
HOME ADVISOR HOW TO
How To Finance Projects Using Credit Cardsįinancing a home improvement project often comes with a hefty price tag-not to mention the time and labor involved. If you make a budget and follow it, avoid overspending, pay your balance on time (ideally in full) and generally practice good money-managing habits, credit cards can carry much lower risk. Used Correctly, Credit Cards Are Low Risk
Many cards also permit cardholders to track and sort purchases online or in mobile banking apps-this makes it convenient to keep track of your budget and expenses in one place without doing much work sorting (and un-crumpling) receipts. With credit cards you can easily transact in-store and online and receive fraud protections-legally, consumers are only responsible for up to $50 of a fraudulent purchase when a card is stolen and many cards offer a $0 fraud liability benefit where this $50 liability is reduced to nothing. You can make large purchases without having to withdraw and carry around large amounts of cash or write checks and you don’t have to take out a loan every time you need to borrow money for a short period of time. Be careful, though: These opportunities can wind up hurting when the other shoe drops-when the period ends, a standard APR will apply to any purchases made during the low introductory APR purchase period and your balance will accrue interest (often at a high rate) until you pay it off in full.Ĭredit cards are convenient. Low or 0% introductory APR periods can offer consumers an opportunity to buy now and pay later-without interest. Co-branded cards from Lowes, Home Depot, IKEA and more may be used to earn rewards in-store at a higher rate than many other cards and can be utilized to earn extra rewards on your tools, furniture and supplies. Some cards offer rewards for shopping at home improvement stores-or even with a specific brand. RewardsĬredit card bonus rewards are generally sorted by merchant category. Both can be good options, but make sure that you know which kind of rewards you’re accumulating ahead of time. Other cards may reward cash back but only as a statement credit against future balances. Some cards earn points and miles instead of cash back and only offer redemptions in the form of hotel nights or flights. The best welcome bonuses can provide rewards worth up to 15% or 20% of the value of the spending required to earn them-meaning you can buy materials to build a deck for $2,000 and earn $300 in cash back.īefore you jump at this opportunity to save (or to expand the size of your deck by 15%) ensure the reward redemption options support your preferred method. Welcome bonuses offer new credit cardholders an opportunity to earn rewards-usually for meeting a minimum spending requirement by using the card in the first few weeks or months of account ownership. Take Advantage of Credit Card Welcome Bonuses But with great risk comes great opportunity, and when the risk is properly mitigated, you can save money and earn rewards by financing your DIY projects with credit cards. Improper usage can have socioeconomic consequences for you and your family that extend far beyond the duration of any home remodel. Like a buzz saw might remove a finger, credit card debt can come for its pound of flesh, too. While there’s no lack of ideas for home improvements, there’s also no shortage of risk when financing with a credit card. Reasons To Use Credit Cards For Home Improvement With rewards programs, bonus offers and opportunities for 0% introductory Annual Percentage Rate (APR) periods, utilizing credit cards can-when managed correctly-help make your house the home you want. Financing the little things your home needs to become the house of your dreams may seem impossible when you’re already paying a mortgage, HOA fees and more. Whether you’re trying to increase your property value, make repairs or simply want a change, altering your home is often expensive and ambitious.
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