What’s the best way to finance your upgrades?


According to Bank of America's 2021 Homebuyer Insights Report, 24% of homeowners intend to charge their home improvements on a credit card. And that could be a very poor choice that backfires.

There are plenty of good reasons to renovate a home. Doing so might make your living space more comfortable, which could greatly improve your quality of life. Also, home renovations can lead to higher resale value, so you might get back some, if not all, of the money you put in.

There are plenty of cost-effective ways to finance home renovations. But according to Bank of America’s 2021 Homebuyer Insights Report, 24% of homeowners intend to charge their home improvements on a credit card. And that could be a very poor choice that backfires.

The dangers of charging renovations on a credit card

If you have a credit card with a generous spending limit, you may be inclined to charge your home improvement projects since you already have access to that credit line. But credit cards commonly charge more interest than any other loan type. So if you use your credit card to finance home renovations, it could cost you a lot more money than you really need to spend.



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