Should You Charge Home Renovations to a Credit Card

Changing the vibe, making repairs, or improving your house to increase property value, home revamping is expensive. While using it seems the easiest option, should you charge home renovations on a credit card? Find out if you should or shouldn't in this post.

Should You Charge Home Renovations to a Credit Card?

Yes, you should charge home renovations to a credit card if you don't accrue high debt. Paying for low-expense projects like painting with your card is feasible. However, you need a solid payment plan to cover expensive improvements. 

Although paying through a card seems convenient, large renovation projects can incur significant debt. Besides considering your financial situation, you can look into alternate options, i.e., loans. They might offer lower interest rates.

Possible Cards You Can Use

Home stores like IKEA offer dedicated cards with in-store benefits. However, you may do better with a conventional card if you don't use their services regularly.

Below is a list of cards to cover your home-related projects. If you need more clarity, we recommend Expensivity to read more about credit cards and finances.

  • Chase Sapphire Preferred® Card

  • Citi® Double Cash Card

  • U.S. Bank Cash+® Visa Signature® Card

  • Capital One Venture Rewards Credit Card

  • Discover it® Cash Back Card

Benefits of Paying With Your Card

Using your card for home revamping can offer advantages like promotional bonuses and warranty protection. Also, it is more convenient than getting a loan.

0% APRs

Several issuers offer introductory 0% APRs on new purchases for a limited time, often up to 18 months. Paying off refurbishment costs during this period lets you carry a monthly balance without incurring interest. 

Rewards and Bonuses

You often get rewards programs and sign-up bonuses that can include statement credits. These can offset most or some of the renovation costs.

Purchase and Warranty Protection

We suggest you look for these amenities if you are buying expensive materials or appliances for remodeling.

Purchase protection can cover items paid with your card if damaged or stolen. Extended warranties add an extra year to the manufacturer's warranty. 

Risks of Paying With Your Card

You can easily fall prey to a debt trap if you do not plan a payment strategy with your card. So, you must consider these factors to avoid a financial decline.

Card Overuse

Continuous card swiping can mask the real cost of renovations, leading to overspending. High balances may take years to pay off and increase the project's total cost. 

Missed Payments

Late payments result in huge late fees and accrue APR. Gradually, this can lead to a cycle of debt that's difficult to break. 

Related Questions

Can I Pay for a Kitchen on a Credit Card?

Yes, you can pay for a kitchen renovation on your card. It offers convenience and rewards, i.e., cash back or points. However, you must have a repayment plan to avoid high-interest charges.

What Is a Home Improvement Credit Card?

A home improvement card is designed for financing renovation projects. These cards often offer discounts at specific retailers. They can be an excellent choice for large projects if paid off promptly.

What Is the Easiest Home Improvement Credit Card to Get?

The easiest home improvement cards to get are Lowe's or Home Depot. These usually require a low credit score and fewer eligibility protocols for regular customers. 

Conclusion

You can use your card to pay for home renovations if you don't carry a monthly balance to avoid an APR. You can get more benefits with it, like a 0% APR period, than a home store card. Alternatively, you can consider getting a loan if you believe you might overuse your card.