How to use a credit card to finance home improvements
Using a credit card to finance a large purchase can be a smart move, as long as you pay it off in time. Not only can you avoid paying interest, but you can earn valuable travel rewards or cash back.
But when does it make sense to use a credit card to finance large-scale home improvements, like a bathroom renovation or a new appliance? Here's our guide to when — and how — to go about it.
Find a card to maximize home improvement savings
Before you spend, find the card that best suits your spending habits. This will allow you to maximize the value of your home improvements.
For some, that will mean a cobranded store credit card associated with a particular retailer or brand. Others may want a general cash-back credit card if they plan to shop at multiple stores. Another option is a card offering an introductory 0% annual percentage rate, so you can pay off your purchase over several months without incurring interest.
The key is to weigh your options — considering where you shop, how much you're spending and how you plan on paying off your purchase.
Have a payment strategy in mind
Once you've found the right card, how do you plan to pay off your purchase?
Ideally, we could all pay off our full credit card balance within the first billing cycle. But there are ways to avoid paying interest if you need to make an urgent purchase.
As mentioned, several cards offer things like 0% introductory APR and deferred payment plans so that you can pay off a major purchase over time. Pairing the right card with a payment plan you can afford will ensure you aren't compounding your losses by paying lots in interest or other fees over time.
Pay it off before the promotional period ends
It goes without saying that you should generally not buy anything on a credit card you couldn't afford to buy with a debit card. If you are taking advantage of a 0% APR offer, plan to pay off the balance in full before the promotional period ends. Above all, avoid paying interest on any purchase, large or small.
Bottom line
As with other large purchases, using a credit card to fund home improvements can be useful if you've found the right card for your purchase and can pay off your balance before the high interest rate kicks in.
Whether you're looking for a cobranded store card, a regular cash-back card or a card with an introductory low APR, there are plenty of options for your next big purchase.
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Rewards Rate
| 2X miles | 2 miles per dollar on every purchase |
| 5X miles | 5 miles per dollar on flights and vacation rentals booked through Capital One Business Travel |
| 10X miles | 10 miles per dollar on hotels and rental cars booked through Capital One Business Travel |
Intro Offer
Earn 200K miles when you spend $30K in the first 3 months, and an additional 200K miles when you spend $150K in the first 6 monthsLIMITED-TIME OFFER: Earn up to 400K bonus milesAnnual Fee
$395Recommended Credit
Credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.740-850Excellent
Why We Chose It
The Capital One Venture X Business Card has all the Capital One Venture X Rewards Credit Card has to offer and more. It offers an incredible welcome bonus and requires an equally impressive spend to qualify. In addition, the card comes with premium travel perks like annual travel credit. (Partner offer)Pros
- The Capital One Venture X business card has a very lucrative welcome offer.
- In addition, the card comes with many premium travel perks such as an annual $300 credit for bookings through Capital One Business Travel.
- Business owners are also able to add employee cards for free.
Cons
- The card requires significant spending to earn the welcome offer.
- Another drawback is that the annual travel credit can only be used on bookings made through Capital One Business Travel.
- LIMITED-TIME OFFER: Earn up to 400K bonus miles: 200K miles when you spend $30K in the first 3 months, and an additional 200k miles when you spend $150k in the first 6 months
- Earn unlimited 2X miles on every purchase, everywhere—with no limits or category restrictions
- Earn 10X miles on hotels and rental cars and 5X miles on flights and vacation rentals booked through Capital One Business Travel
- With no preset spending limit, enjoy big purchasing power that adapts so you can spend more and earn more rewards
- Empower your teams to make business purchases while earning rewards on their transactions, with free employee and virtual cards. Plus, automatically sync your transaction data with your accounting software and pay your vendors with ease
- Redeem your miles on flights, hotels and more. Plus, transfer your miles to any of the 15+ travel loyalty programs
- Every year, you'll get 10,000 bonus miles after your account anniversary date. Plus, receive an annual $300 credit for bookings made through Capital One Business Travel
- Receive up to a $120 credit for Global Entry or TSA PreCheck®. Enjoy access to 1,300+ airport lounges worldwide, including Capital One Lounge locations and Priority Pass™ lounges, after enrollment
- Enjoy a $100 experience credit and other premium benefits with every hotel and vacation rental booked from the Premier Collection
- This is a pay-in-full card, so your balance is due in full every month