Using your credit card for renovations

This is the perfect time of year to consider renovation plans.

09:16 04 June 2013

London’s oldest train station is set for partial rebuild to the tune of about £10million. If you’re deciding to rebuild your home, or part of your home, the cost should be just a fraction of this planned rebuild.

 

If you have a credit card and prefer to use that for your home renovations, there are a few things you can do to try and manage everything through your credit card. 

 

• Credit limit-since you have a large project in mind, first of all contact your credit card company to ask about the possibility of a credit limit increase if you feel you need one. Have an estimate handy if possible so you know how much to ask for. Also have your financial data since that will be requested as well. 

 

• Coupons-whether it is coupons, or a special discount day, you can’t be too careful. Have patience and try to use the discounts available to you so that you can be sure to complete your project rather than having to stop because you have no more funds on your credit card. 

 

• Increments-if you do have an extensive project it might make more sense to break your plan into increments such as mini-projects. If the work is not necessary, you could even do some renovations and then pay down the credit card again so you can reuse it for the next phase of your project. 

 

• Rewards-if you have the ability, try to use a credit card that also gives you rewards like frequent flyer miles, dining points, or other benefits. Some people have multiple credit cards, but if you can use one that also gives you additional rewards, make the most of it. 

 

• Loans-if you put a lot on your credit card for a project, but decide later than you need more work or you could get a better interest rate, you could try obtaining a bank loan to pay off the credit card, and the home renovations you did could increase your equity.