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TheLucille2
Yayicanpickmyowntitle!
Member since 6/11 1058 total posts
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Financing Reno with 0% APR credit cards
DH and I have been in the planning stages of a huge home renovation for well over a year. We are FINALLY ready to begin demo in the next few weeks.
Has anyone ever used credit cards with a 0 percent APR to finance a major home renovation? We *should* have enough in savings to cover everything, but I know the unexpected will happed. We would like to avoid taking out a home equity loan but obviously will if we decide the credit card isn't the way to go.
Thoughts?
ETA: If you know of any exceptionally good credit cards out there with extended billing cycles for the 0 APR that would be great, too.
Message edited 4/3/2014 9:50:49 AM.
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Posted 4/3/14 9:47 AM  |
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Prudential Douglas Elliman Real Estate
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cake2013
LIF Infant
Member since 9/13 52 total posts
Name:
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Financing Reno with 0% APR credit cards
Chase Freedom offers 0% APR for 15 months plus cash back. They also offer 5% cash back at Lowes purchases between April 1 and June 30. I use this as my primary credit card and am happy with it.
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| Posted 4/3/14 10:51 AM |
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MegZee
My bunny
Member since 5/06 8777 total posts
Name:
Meaghan
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Re: Financing Reno with 0% APR credit cards
I just got an offer from BOA for 0% for 18 no but a 4% fee...I'm going to call and see if they can lower it.
We are also about to start construction and have the cash but would rather keep it in the bank considering we can pay it off in 12 mo.
Still cheaper than a home equity or refinancing. As long as you are disciplined to not miss any payments I think it's a good idea
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| Posted 4/3/14 11:50 AM |
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jams92
Member since 1/12 6105 total posts
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Re: Financing Reno with 0% APR credit cards
i would highly highly highly recommend a discover card
i have one and love it - great rewards and amazing customer service
i believe a new account is 14 months of 0% apr (but you should confirm that)
since i already have a discover card, and we just purchased a home and decided we needed 0% financing since we have a ton to buy, our new card is the chase freedom. they do offer 0% for 15 months possibly (I cant recall)
they offer rewards too but the discover rewards are a lot better. for example, chase freedom is 5% cash back at lowes in april, while discover is 5% cash back at all home improvement stores (includes home depot and bed bath and beyond) from april - june
Message edited 4/3/2014 1:21:19 PM.
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| Posted 4/3/14 11:57 AM |
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LovesMike
LIF Adult
Member since 8/10 978 total posts
Name:
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Re: Financing Reno with 0% APR credit cards
During our home reno I took out a Citi Diamond Card, which gave us 18 months with 0% APR. I ended up putting our kitchen appliances on there and our PVC fence, then just paid it back incrementally until the 0% was up! It was great!
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| Posted 4/3/14 12:50 PM |
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Bearcat
Love my little girls!!! <3
Member since 6/10 10818 total posts
Name:
E
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Re: Financing Reno with 0% APR credit cards
IMO discover is the best for this with the 3% fee.
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| Posted 4/3/14 2:50 PM |
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NYCGirl80
I love my kiddies!
Member since 5/11 10413 total posts
Name:
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Re: Financing Reno with 0% APR credit cards
Just want to state the obvious...that financing your renovation on a credit card, and not paying it all back at once, will hurt your credit score. If you need to apply for more credit, refinance, etc, in the near future, this is probably not a good idea.
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| Posted 4/3/14 3:00 PM |
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blu6385
Member since 5/08 8351 total posts
Name:
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Re: Financing Reno with 0% APR credit cards
Posted by NYCGirl80
Just want to state the obvious...that financing your renovation on a credit card, and not paying it all back at once, will hurt your credit score. If you need to apply for more credit, refinance, etc, in the near future, this is probably not a good idea.
Why would not paying it all back at one hurt your credit. I have gotten myself into debt before and it never hurt my credit. I always paid on time unless you don't pay it all or are late that's when it hurts your credit.
With credit card debt I was able to buy a car and house
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| Posted 4/3/14 6:50 PM |
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TheLucille2
Yayicanpickmyowntitle!
Member since 6/11 1058 total posts
Name:
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Re: Financing Reno with 0% APR credit cards
Posted by blu6385
Posted by NYCGirl80
Just want to state the obvious...that financing your renovation on a credit card, and not paying it all back at once, will hurt your credit score. If you need to apply for more credit, refinance, etc, in the near future, this is probably not a good idea.
Why would not paying it all back at one hurt your credit. I have gotten myself into debt before and it never hurt my credit. I always paid on time unless you don't pay it all or are late that's when it hurts your credit.
With credit card debt I was able to buy a car and house
Yeah, that's what I thought as well. In any event, it would be paid off before the 0 percent term expires.
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| Posted 4/3/14 7:53 PM |
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NYCGirl80
I love my kiddies!
Member since 5/11 10413 total posts
Name:
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Re: Financing Reno with 0% APR credit cards
Posted by blu6385
Posted by NYCGirl80
Just want to state the obvious...that financing your renovation on a credit card, and not paying it all back at once, will hurt your credit score. If you need to apply for more credit, refinance, etc, in the near future, this is probably not a good idea.
Why would not paying it all back at one hurt your credit. I have gotten myself into debt before and it never hurt my credit. I always paid on time unless you don't pay it all or are late that's when it hurts your credit.
With credit card debt I was able to buy a car and house
A lot of things go into your credit score. How much you owe is 30% of your FICO score. So carrying a balance on a credit card (not paying it off in full every month) will impact your credit score, especially if your balances are near your credit limit. That means that you're using most of your available credit, with little in reserve. It's basically seen as how you manage your money - if you are using most of your available credit, lenders don't consider you a good credit risk. Mortgages or other loans, car financing, etc. is an exception to this since it's expected that you will carry a high balance on them.
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| Posted 4/4/14 8:57 AM |
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TheLucille2
Yayicanpickmyowntitle!
Member since 6/11 1058 total posts
Name:
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Re: Financing Reno with 0% APR credit cards
Posted by NYCGirl80
Posted by blu6385
Posted by NYCGirl80
Just want to state the obvious...that financing your renovation on a credit card, and not paying it all back at once, will hurt your credit score. If you need to apply for more credit, refinance, etc, in the near future, this is probably not a good idea.
Why would not paying it all back at one hurt your credit. I have gotten myself into debt before and it never hurt my credit. I always paid on time unless you don't pay it all or are late that's when it hurts your credit.
With credit card debt I was able to buy a car and house
A lot of things go into your credit score. How much you owe is 30% of your FICO score. So carrying a balance on a credit card (not paying it off in full every month) will impact your credit score, especially if your balances are near your credit limit. That means that you're using most of your available credit, with little in reserve. It's basically seen as how you manage your money - if you are using most of your available credit, lenders don't consider you a good credit risk. Mortgages or other loans, car financing, etc. is an exception to this since it's expected that you will carry a high balance on them.
That's good to know. I have never carried a cc bill ever (a combination of good planning and sheer luck) so I never considered that. Thanks!
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| Posted 4/4/14 9:03 AM |
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