Just because someone owns their own home, doesn’t mean they have credit cards. Many people get rid of their credit cards after they pay down their debt, only to find out that they might need them again to do renovations or remodeling on their home. Now they have to go back and apply for a card that will suit their needs. If they weren’t happy with the cards they had before, researching the new cards that are available now is the smart thing to do.
Once you make the decision to apply for a credit card, you need to know your credit score. Free credit score.com can help you with that in just a short amount of time. The best credit cards to apply for, are the ones that are compatible with your lifestyle. For instance, if you don’t travel a lot, you wont need a frequent flyer miles card.
Rewards cards are really great for people who make large purchases. If you are remodeling or renovating your home, you will be making large purchases and the rewards would be worth you having one of these cards, especially if you are going to be doing a DIY renovation/remodel. Since DIY typically takes longer then having a professional come in, your purchases will not be all at once.
However, if you have decided that you don’t have to time for a DIY job, and are going to hire someone to do it, then you might want a low interest rate or balance transfer card. Don’t get stuck with too many cards. If you have a lot of credit cards, you can end up in a lot of debt if you are not careful. Using a balance transfer card can help you consolidate all of your debt to one low rate card, but you have to read the fine print.
Of course there are other ways to pay for your renovation. You can use the home’s equity to pay for the upkeep, take a personal loan or just use cash. This however, can create a lot of paperwork in the case of the first two and who honestly has that much cash on hand to use. You can use online tools to keep track of your budget or an online debt reduction calculator to test out your finances first and see if what you have planned is feasible. Make sure to research fully before committing yourself to whatever card you apply for.
Take your time with finding a credit card and if the rewards are worth it. That renovation may wait a little longer if you need it to. Also, don’t over extend yourself. Be sure that you can afford to do that remodel before you begin it. The last thing you want is to get halfway through it and run out of cash and credit to do it. Then you will be stuck in home that is only half finished. You don’t have to have the most expensive items to have your home look good. Moderation is always a good thing when working with a budget.