Using Credit Cards for Home Improvements and Remodels
When it comes to remodeling your home, most people don’t think about using credit cards. However, using home improvement credit cards to finance home improvement projects can be a good thing. There are several ways you can make using a credit card for home improvements work for you. We’ll talk about several ways how using credit cards to finance home remodeling can work for you. We’ll also touch on a few home improvement credit cards that you should check into.
Financing home remodeling seems to be the new trend, with more and more people using credit cards. Responsible use is the key when it comes to using credit cards to finance home remodeling. As long as you’re careful, using credit for home improvements can pay off in a big way.
Using Home Improvement Credit Cards for 0% Interest Financing
When it comes to remodeling, you usually have large projects on your list. These large projects can take a large portion of your budget. However, credit for home remodels can get you 0% interest financing. Many home improvement credit cards offer 0% interest-free financing as a sign-up offer. The Home Depot credit cards offer 0% interest-free financing for six months on purchases over $299. This is an excellent offer for large purchase you can’t pay off in a month. Just make sure you pay them off before the six-month promotional period ends.
Stay Within the Promotional Period
Once you’ve put your purchases on a card with a 0% introductory period, check the date it expires. Many home improvement credit cards come with high APRs, and they kick in the day after your 0% offer ends. Additionally, it could backdate to the day you made the original purchase. You could instantly get six months’ worth of interest added to your balance.
Extended Financing Programs
Financing home remodeling can be a very expensive process, even if everything goes as it should. Using credit for home improvements can allow you to draw out your payments. A few home improvement credit cards offer an extended financing option. The Lowe’s credit card is a good example of this. You can purchase $2,000 or more for your project on credit and sign up for the Project Financing program. This program allows you to pay fixed payments for up to seven years. You will have to pay interest, and this goes up depending on the length of your repayment term. However, it is a good way to use credit cards for DIY projects and home remodels.
Using Reward Credit Cards to Pay for Smaller DIY Home Remodeling Purchases
Purchase smaller items with your reward credit cards. Home improvement credit cards and rewards cards like the Citi® Double Cash Card can help you buy your smaller items. This Citi card offers you 1% every time you charge an item. You also get 1% each time you pay the balance off. You can use these cashback rewards to buy other items for your remodel or project. Using a credit card for home remodeling has the potential to add up with rewards quickly. Make sure you pay your smaller purchases off each month to avoid interest.
Purchase Items on Your Card and Pay Them With Savings
This item may make you delay your project until you get your savings built up, but it’s a safety net. When you start using a credit card for home improvements, you want to pay it off to avoid interest charges. One way to do this is stockpiling your savings and pay your card off each month. You won’t have to worry about interest charges this way. If you’re on an extended financing plan, pay the monthly amount off each month with your savings. You’ll have an emergency fund in case anything goes wrong, and you’re less likely to miss payments.
Check for Balance Transfer Options
If you finance home improvement projects and you run out of time during your promotional period, check into balance transfers. You may be able to transfer your existing balance to another credit card and start the 0% financing clock over. This will help you avoid getting backdated interest added to your balance. The Citi Double Cash will give you 18 months of 0% financing. You can pay the balance transfer fees and transfer your existing balance to the Citi card. The Chase Slate® balance transfer credit card is another option to consider. This will give you more time to pay it off, and you shouldn’t have a problem doing so.
Home improvement credit cards are an excellent option when you use them responsibly. They give you a way to pay for any additional costs that may come up. They also give you a faster way to start your remodel or project. It is important to do your research and find the best home improvement credit cards to suit your needs. Always consider your financial situation before you use credit for home remodel projects.
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