Home renovations not only improve the look of your home but also change the whole feel. Adding your personal touches make a house a home. However, creating a home that’s a joy to surround yourself with can be costly, and most of us aren’t fortunate enough to be able to whip out the cash to complete the renovations we need and want.
So, which credit card is the best for completing your much needed and most necessary home renovations? In this article, I’ll give you a comparison of your options. When you break it down, you have two options when it comes to financing your home renovations. Using a major credit card or the store card from the home improvement store where you’ll be buying your supplies and materials. For the most part, store credit cards don’t even come close to offering you the best interest rates or fees that a major credit card does. However, especially in regards to home building and decorating supplies, some store credit cards can be pretty competitive when it comes to the benefits they offer you to use their card.
Take a Look at Home Improvement Options
When it comes to home renovations chances are you’ll be doing your shopping at one of two different home improvement stores, Lowe’s or Home Depot, there are no other comparable retailers. Since both stores offer a wide assortment of all the supplies you’ll need to complete those DIY home renovations, your decision may come down to, which store offers you the best financing options. With that in mind, we’ll take a look at the credit cards both stores provide to see which works better for your situation.
Home Depot’s Credit Card
Home Depot is one of the “go to” stores for everything to do with home improvement, remodeling, and renovation. With its reputation of catering to do-it-yourselfers, as well as a home improvement professional’s one-stop retail outlet for all the merchandise needed to perform any size home improvement, it only makes sense to look into their credit card options. With a Home Depot credit card, you’ll receive financing for six months with 0% financing on purchases of $299 or more. No finance charge is always an attractive benefit, especially if you know you’ll be able to pay the total balance off within those six months. This allows you to finance your renovation with “free” money, the same as you would if you paid for the project with cash. For amounts that need financing over time, the annual percentage rate (APR) is a variable of 17.99% to 26.99%. These rates are based on your credit score, and there isn’t an annual fee for the use of the card. It pays to research your options with the Home Depot credit card because cardholders are sometimes offered up to 24 months of no interest financing during special promotions throughout the year.
Home Depot Loan for Large Projects
When considering a major home improvement project, Home Depot offers consumers the option of applying for a project loan. With the project loan, you can borrow up to $55,000 for up to 84 months to pay it off. The first six months of the loan are considered a purchasing period during which your payments go toward the interest on the money you borrowed with an interest rate of 7.99% APR. The APR remains the same after this period, however, when the six months are over you then begin to pay off the principle of the loan. Here again, Home Depot offers beneficial promotions throughout the year so you should consider them when planning your home improvement project.
Lowe’s Credit Card Options
Lowe’s credit card provides an assortment of financing options. One option provides you with an overall 5% discount on all purchases made at the store. This option offers an excellent opportunity for people who frequently shop at Lowe’s, or for the person who knows they won’t be able to purchase all of their supplies and materials for a project in one visit. However, if you need short-term financing, you can choose six months with a 0% APR on purchases over $299.With this option, you’ll be charged deferred interest if you don’t pay off the balance in full within the 6-month period. If you decide the 6-month financing period isn’t an option for you, you can finance more expensive projects for 84 months with fixed monthly payments at 5.99% APR. These three options can’t be used together, so you need to figure out which option will benefit your specific needs the most.
Which Card is Best for Your Specific Home Renovation?
I don’t suggest ever carry a balance on any of your credit cards if necessary, in the case of home renovations, it can be challenging to stick to this rule. The final bill usually winds up being relatively expensive, and if you do have the money saved up for your project, it may be a better option to just pay for it in full. However, as I said, this is rarely the case. Debt isn’t a bad thing as long as you remain in complete control of it and you’ve done your homework (pun intended). With that said, the choice between the two cards comes down to what your specific needs are. There are good points to each of the two credit cards. You will be able to make an informative decision after you come up with a plan for your project after taking into consideration all of the variables.