Should You Use a Credit Card for Renovation Projects?

renovation projectIf you’re thinking about taking on a renovation project, there is no better way to spend for it than using a credit card. Using a credit card for these projects, without a doubt, is the most convenient way to buy the materials you need. It is easy to use, and purchases are a lot easier to track, especially when you have one dedicated to just your renovation project.

Credit cards, for sure, are not without their disadvantages. There’s always the lure of easy spending, which could lead you to buy building materials that cost way beyond your budget. Even if you do use your credit card responsibly, there’s always the risk of forgetting a monthly payment due date, which could have costly consequences.

Still, no one can argue how valuable credit cards can be as long as you use credit cards responsibly and wisely. When used strategically, many renovators have found credit cards to be quite the powerful tool.  Here are some benefits of using a credit card for your renovation project.

1. With credit cards you’re eligible for buyer protection

One thing that credit cards have over cash or cheque purchases is that they may offer purchase protection for their customers. Once you avail of this feature, you are essentially protected from purchases that go bad, particularly from suppliers that go out of business before they can deliver what you’ve bought from them.

2. You have a safety net

There are a lot of things that could go wrong during renovations, and these unforeseen things could make you fail to pay your credit card bill on time. This is where balance transfer cards come in. Offered by many credit card companies, balance transfer cards allow you to transfer, for a certain period of time, all your outstanding debt into a no or low interest card. Balance transfer cards come with certain conditions though, and you have to follow them to the letter to avoid penalties or fines.

3. Holding costs are reduced when you use your credit card responsibly

Using a credit card for your renovation can actually put money back into your pocket, that is, if you pay the bill in full on or before the due date, and have actually budgeted for your purchases in full. That’s because if you do this, you will have had nearly two months where those purchases were not chipping away at your holding costs. Therefore, your holding costs are reduced.

4. Rewards

There are many credit cards that offer great reward systems. So if you just make sure that the credit card you are planning to get and dedicate for your renovation project has an awesome rewards program, your next vacation may just be courtesy of your renovation. With the amount of purchases you have to make for your renovation, that kind of reward or anything similar to it would be simply within reach.

No matter how you use your credit card, it is always essential that you be smart about it. Use your credit card responsibly and even more importantly, pay your credit card bill on time.

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