How to finance home renovations with a credit card

How to finance home renovations with a credit card

Using a credit card to finance a major purchase can be a wise decision, as long as you make your payments on time. Not only can you avoid paying interest, but you can also earn valuable travel rewards and cashback.

But when should you use a credit card to finance major home improvements, like a bathroom renovation or new appliances? Here’s a guide on when and how to do it. It is as follows.

Find the card that maximizes your home improvement savings

Before you spend your money, find the card that best fits how you want to spend your money. This will help you maximize the value of your home renovation.

For some, that means a co-branded business credit card tied to a specific retailer or brand. If you want to shop at multiple stores, you may need a popular cashback credit card. Another option is a card with an introductory interest rate of 0% per year. This allows you to pay back your purchase interest-free over several months.

The key is to weigh your options. Consider where you shop, how much you spend, and how you repay your purchases.

Think about your payment strategy

Once you find the right card, how do you want to pay for your purchases?

Ideally, they should all be able to pay off our credit card balances in full within our first billing cycle. However, if you need to buy quickly, there are ways to avoid paying interest.

As mentioned earlier, some cards offer things like 0% introductory APR or payment deferral plans to help you pay off big purchases over time. The right card, combined with a payment plan that you can afford, can prevent you from paying higher interest rates and other fees over time that will compound your losses.

Pay before the promotional period ends

Of course, you generally shouldn’t buy something with a credit card that you couldn’t buy with a debit card. If you take advantage of the 0% APR offer, plan to pay off the balance in full before the promotional period ends. Above all, avoid paying interest on any purchases, large or small.


As with any major purchase, using credit cards to finance home improvements can make sense if you can find the right card for the purchase and pay off the balance before high interest rates kick in.

Whether you’re looking for a co-branded rewards card, a regular cash back card, or a card with a low APR, there are plenty of options for your next big purchase.

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