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Remodeling With a Credit Card May Not be Such a Good Idea — Here’s Why

Getting your house remodeled could be a good and a bad thing. It is of course good since that means you will be able to make your house feel more like a home. One of the most common reasons for remodeling a house is when you purchase it and it is not exactly something that you could call as your own if you don’t really put an effort and have it remodeled into your own preferences.

41 percent of millennial homeowners paid off their renovation fees with credit card in 2017

The downside of remodeling however is the inconvenience since obviously you cannot stay in the house if you are doing a major remodeling. At some point you would need to move out for a few days or weeks until all things are taken care of. Then again, remodeling a house would not be possible if the owner of the house cannot afford it.

Which is why more and more people nowadays, especially young adults who are purchasing their own houses, are turning into their credit cards for help in the hopes of making their houses exactly the kind of home they want to live in.

Cash or Credit

It is definitely not easy to get your house renovated, especially if you have money issues. Then again, the number of people who are actually deciding to pay off their remodeling with their credit cards have increased in the last year.

According to a recent report by the financial service provider Synchrony, together with the platform deigned Houzz, people are actually opting to pay with their credit cards rather than saving money and using the cash when they remodel. $10,000 is usually the average amount people pay for their house remodeling, they will then be charged almost half of that on their credit cards.

Out of the 72,384 people who renovated their houses last year, 10,602 of them chose to pay with their credit cards. According to experts, some of the best credit cards to use when you are planning to do a remodeling, would be the Home Depot Consumer Credit Card.

It is widely known as Home Depot, and it is literally one of the biggest stores when it comes to everything you need for your home. They would most likely have all the tools and materials that you would have to buy anyways. The store has a very special credit card for people like you who want to use it on remodeling.

An average credit card holder spends around $10,000 on home renovation and is charged up to $4,800 to their cards

Another credit card would be from Lowe’s, which is another place you would most likely go to if you are renovating. They offer a Lowe’s Consumer Card’s standard APR that comes with amazing rewards as well as some promotional financing option and you’ll even have 5 percent off of all the purchases.

Using a Credit Card

For some it may be such a convenience when it comes to remodeling with the help of their credit cards, but some finance experts think that this may be just one of those roads that may lead them to an even deeper debt.

According to a senior credit card analyst for ValuePenguin named Robert Harrow, all it takes is one little emergency and all those plans would totally fall apart.

People who use credit cards for such massive purchases and things like remodeling a house, may not be thinking of what are the things that may happen if they face an emergency that would require them to spend a lot of money in a short period of time. There are always end-dates and failing to pay would obviously lead to debt and a not-so-great credit score.

Experts say that paying for hoe renovations with certain credit cards may actually earn the holder some significant rewards

This is why considering a home renovation is such a huge decision to make. People are always advised to have this done wife they are actually financially stable and are living comfortably. That is because it would mean they would have extra money even after all the expenses on the remodeling are done.

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