Home renovation can significantly improve your quality of life and cause your home’s value to skyrocket. However, home improvement projects with the highest ROI are quite costly. With the help of a credit card, you can get started on your home improvement projects without having to pay out-of-pocket. Read on for the best tips to fund your home improvement projects with a credit card.
1. Find a 0% APR Credit Card
When on the hunt for the right credit cards to use for home improvements, it’s best to search for a card charging 0% interest for a period of time. During this 0% APR period, you’ll be able to spread out the expenses involved in your home remodel over several payments as this will help alleviate your budget. Additionally, many of these types of credit cards offer benefits like reward points and purchase protection. As long as you’re able to pay the card balance off before your 0%. APR period ends, you can take advantage of the perks and avoid paying additional fees or interest.
2. Pay off the Credit Card Before Your Promotional Period Ends
After the 0% APR period is over, credit card interest rates often climb to 15% or higher. These interest rates are the most challenging aspect of using credit cards for home renovations. If you hope to use a credit card to pay for home improvement projects, experts from Golden State Partners warn to only use credit cards that you are certain you can pay back during that period. For example, before embarking on a pricier remodeling project, be sure you’ll have enough money by the end of the promotional period, or avoid using a credit card to fund this project.
3. Use Reward Points with Home-Related Items
In addition to paying for the more costly aspects of home renovation projects like construction and new appliances, you can use your credit card to pay for smaller home-related expenses as well. Many credit card companies offer their users the opportunity to turn their rewards points into gift cards at home improvement stores in their area. When selecting what credit card to use for your home improvement projects, find one with a similar rewards system. This way, you can use your credit card reward points to cover relatively inexpensive items from stores like Lowe’s or Home Depot.
4. Research Discounts for Store-Specific Cards
When looking into the best credit cards to use for remodeling, projects don’t discount store-specific cards. Before signing up for these cards, be sure to research the details and discounts offered. According to Golden State Partners, it’s best to search for cash-back credit cards as they offer the most rewards flexibility. Moreover, these cards often feature lower interest rates as well as a higher credit limit.
Using credit cards to cover the cost of home improvement projects will help any homeowner make the necessary renovations to boost their home’s market value. As you get ready to take on certain home improvements, be sure to keep this information in mind