This is Andre Banks coming today from banks credit check discussing when and if you choose a credit card to fund a home improvement project now I might have talked about this in the video in the past but it's worth updating especially the 2023 where a lot of Home Improvement projects are going to go on and you may be not and.
Especially if you don't have access to home equity line of credit you may not want to utilize that and you you've got an introductory rate of zero percent for a credit card you're thinking hey I can use this for a home project I'm going to cost you about that because of just for a couple of different reasons one.
I mean if you have a zero percent interest rate for a credit card and you want to use it for a home project if you don't have the available cash at that interest rate introduction is over you're going to find yourself with a pretty hefty bill because usually when they give you a zero percent interest rate for a period of time let's say it's.
For 12 months it's going to Skyrocket go up to 29 after that introductory rate is over and if you don't have available cash to put down on that uh you're going to find yourself with a pretty hefty bill is there any other time you can use even if you have a credit card can you utilize it to do a home program project.
Yes if your account if the credit if the project is under three or four thousand dollars you can handle that kind of expense but typically if you're doing a bath remodel or some of the larger project it's going to acquire you to do ten thousand dollars or more that's the time you're trying to look at a home equity line of credit.
And you should use the credit card but people look people with people and you may be tempted and you might be one but people are not very disciplined as a whole so those zero percent introductory rates sound appealing especially if you want to utilize it for a home improvement project but if that if that project is.
Pretty large and you don't have the available cash to pay it you might find yourself in a situation where you're gonna you're gonna fall on that card you're gonna be struggling to pay aspects for that and that can happen as a negative aspect on your credit report and overall just Financial stress.
So if you can if you if you can use a HELOC Loom suggest using that credit cards can be utilized for home improved projects for small small projects two three thousand dollars you can cover that even if it goes to a higher interest rate and is away from the introductory so those are.
The couple ideas if you if you're thinking about using a credit card to do a home improvement project keep in mind that zero interest rate wants that especially if you got a zero percent rate offer and you're tempted to utilize it know it's going to increase after that that introductory offer is over and that's usually a Year's term and you.
Have to have enough cash available to do that um you may not want to put something on your heel you know on a HELOC loan to put any more debt on your home and utilize it to fix the project but I would strongly recommend trying to go that route uh and and instead of using a credit card because credit cards have.
Annual fees rates will fluctuate and change they could close balances out which makes it much more difficult for me at that point I'd even recommend a personal loan before using the credit card so you can use a credit card if you're going to you for a home improvement project if.
The project is not going to be not going to be more than three to four three to five five thousand at most anything over five thousand you get into a tricky territory and you might find yourself in a situation where it's not favorable and you've got the items on on the account and you having a troubled time paying that back which affects you.
Overall financially next affects your credit as a whole this video has been any value to you please subscribe leave some comments until my next video for banks credit chat I'm out
source https://ihomenews.com/credit-cards-home-improvement-projects-users-beware/
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