Best Credit Cards for Home Improvement for 2024

If you're gearing up to make some home improvements, you're not alone. According to a Harvard University study, Americans spent nearly $420 billion on home improvements in 2020, much of it on do-it-yourself projects. Once you commit to updating and beautifying your home, it's a matter of determining how you want to pay for it all. Do you take money from savings, take out a personal loan (or another type of home improvement loan), or would you prefer to use a credit card to cover the costs? And if you do use a credit card, where can you find the best credit cards for home improvement?

Before diving deeper into which credit card works best for home improvement projects, make sure you've had the cash vs. credit card debate with yourself. Saving up for home improvements is the best way to complete the project without owing interest, but that's not always possible. For example, if part of your home renovation includes work that must be done to keep the property safe, you may not feel you have the time to save up. Or, you may be concerned about taking money from your family's emergency savings fund. Whatever the reason for deciding to use credit cards, let's look at the ways it can be done at little expense to you.

How to pick the best credit card for home improvement for you

Choosing the right credit card (or credit cards) for your home improvement project is a matter of figuring out which will cost you the least to use and which will return the most via rewards. Here, we'll cover some of your options.

Interest rate

Ideally, you want to pay as little interest as possible while still creating the home you desire. There are a couple of ways to do this. First, look through your current credit cards. Are there any with a good annual percentage rate (APR)? Precisely what constitutes a "good" APR is subjective, but let's look at what it's not.

An recent average APR for cardholders carrying a balance is around 16.61%. That means that you're going to owe a boatload of interest if you don't get the balance paid off quickly. Let's say you have a credit card with a high spending limit and use that card to make combined purchases of $15,000. Here's a quick peek at how much you'll pay for borrowing that money on a card charging an APR of 16.61%, even if you make more than the minimum payment due each month:

Unless your credit cards carry a very low interest rate or offer an introductory financing rate, a personal loan to pay for renovations may be a better bet. Again, though, you'll be tied up in making interest payments, and that's what we're hoping to avoid -- or at least minimize. Keep reading to learn more about better options.

0% intro APR interest

Make a list of the credit cards you currently hold. One by one, log into your online account and look for any current, special offers. While credit card issuers frequently advertise a 0% introductory APR on everyday purchases to lure new customers, some card issuers offer the same intro 0% APR rate to current customers willing to transfer a balance from another credit card. If one of your existing cards is making this offer, you may just have found the way to finance home renovations without paying interest. Here's how you can do it:

• Decide which credit card you'll use to make the initial purchase. We'll call this "Card No. 1." Double check to ensure the spending limit is high enough on this card to cover the expense.
• Check the spending limit on the card offering the 0% balance transfer. We'll call this "Card No. 2." The limit on Card No. 2 needs to be high enough to cover the amount you want to transfer and the balance transfer fee (typically between 1% and 3% of the amount transferred).
• Make home improvement purchases using Card No. 1.
• Once the purchases posts to Card No. 1, transfer the balance to Card No. 2.
• As long as you pay the card off in full before the intro period expires, you'll be able to make a significant purchase without spending any of your hard-earned cash on interest.

Because most intro APR periods range from 12 to 18 months, you have that long to pay it off without incurring interest. For example, if your balance is $15,000 and you have an 18-month intro period, monthly payments of $833 would ensure the debt is paid in full, and you won't owe any interest.

Rewards

The savviest way to use a credit card is to make sure you get more from the credit card than the credit card issuer gets from you. Credit card companies make their money through the interest you pay and charging things like an annual fee.

Let's say you own a business and fly to visit customers or have family living far away and board a flight each time you want to see them. The best credit card for your home renovations is likely to be a card offering generous travel rewards. For example, the Bank of America® Travel Rewards credit card makes it easy to earn benefits just by using the card. Here's a sampling of what this card offers:

• 25,000 bonus points after making at least $1,000 in purchases within 90 days of opening the account
• Can be used to book trips how and where you want and is not limited to specific websites, blackout dates, or restrictions.
• No annual fee
• No foreign transaction fee
• Points never expire

What credit score do you need to qualify for a credit card for home improvement?

If you're looking for a credit card with all the bells and whistles, including cash back offers, 0% introductory offers, and low standard interest rates, you'll likely need a credit score of 670 or better to be in the running. It's possible to qualify for a credit card through a home improvement store with a lower score.

If your score is not as high as you would like it to be (or high enough to land a great card), take steps to build your credit fast. After all, a strong credit history will not only help you snag a useful credit card, it will also help you qualify for consumer loans when you need them and may even be a factor when you're applying for a new job.

Should I get a store credit card for home improvement?

Some home improvement stores offer their version of a credit card. Here are some of the pros and cons associated with home improvement credit cards:

There's more than one way to finance home renovations, so don't lose hope if using a credit card does not work out for you. In addition to credit cards, renovations can be financed through a home equity loan, home equity line of credit (HELOC), personal loan, refinancing your mortgage, or even through a government loan. As always, it's about figuring out what works best for you.

Best home improvement credit cards