Home improvement projects can be quite costly on their own. If you’re hoping to remodel your home and are planning to use credit cards to do so, there are a few best practices to consider before using credit cards to finance your upcoming projects. Read on for the best strategies for paying for home improvement projects with credit cards.
Putting Large Expenses on Credit Cards
Remodeling can drastically boost your home’s market value, which is a good enough reason for other homeowners to invest in expensive remodeling projects. When it comes to financing such an endeavor, credit cards are often considered the go-to choice for homeowners that don’t want to pay out-of-pocket. If you’re considering putting large expenses on your credit cards, be sure to carefully consider the impact of such a decision.
Experts from White Mountain Partners share that homeowners that rely on credit cards for massive home improvement projects often end up paying for these costly projects years after the renovation is completed. The best way to use credit cards for any remodeling project is to have a repayment plan in place and save up as much as you can to ensure that you can pay off your cards’ balance before they have the chance to accrue too much interest.
Advantages and Disadvantages of Using Credit Cards for Home Renovations
Homeowners can successfully fund their home improvement projects using credit cards. Responsible credit card users can reap the benefits of using credit cards to finance these renovations. Credit cards offer homeowners a certain immediacy and convenience that can make the process of completing remodeling projects far easier.
Moreover, many homeowners take advantage of their credit cards’ rewards system when remodeling their properties. Whether they cash in their points for a gift card to their local home improvement store or they use these benefits on hotel rooms while their homes are under construction, working with credit cards during this process has its benefits.
Worried about the downside of using credit cards for home improvement projects? Keep in mind that putting such significant expense on your credit cards will result in late fees, high interest, and more should you miss one or more credit card payments or after the introductory period ends. If you find yourself unable to make your payments on time or are only paying the minimum each month, you’ll be in the unfortunate situation of paying off a large balance and, in the case of late or missed payments, a declining credit score. Avoid this situation by staying on top of your credit card payments or using other options to finance your remodeling projects.
The Best Credit Cards for Remodeling
Homeowners that are set on using credit cards for home improvement projects should be sure to research all their options. Homeowners with good credit should apply for credit cards that offer 0% interest during the first year. This will make it easier for homeowners to pay off their balance before the interest has a chance to kick in.
In addition to using popular cards from credit companies or your bank, White Mountain Partners suggest that homeowners consider using credit cards from local big box home improvement stores. Stores like IKEA, Lowe’s, and Home Depot offer shoppers credit cards featuring special discounts, 5% back with purchases, monthly payments, and more.
Think twice before turning to credit cards to finance your renovation. Use these tips to make sure your decision to use credit cards to fund your remodeling projects is a financially savvy one