Home renovations are a big deal. Many people renovate to update their homes and increase property values. There are several ways you can pay for home renovations. There are secured home improvement loans or unsecured personal loans. Or you can use your savings if you have a lot of money saved up. If your renovations are smaller, you may consider placing the charge on your credit card.
Get a Home Improvement Loan
If you do not have enough savings to fund your renovation project, you can consider a personal home improvement loan. This option allows you to get money without leveraging your house. If you opt for an unsecured personal loan, you’ll likely get more than you can on a credit card. It’s important not to borrow more than you need. It’s also important you know how much your monthly payments are.
Using Your Savings for Home Improvements
If you’ve saved over the years, it could be a smart decision to use your savings to avoid monthly payments and interest.
If you intend to make use of money from an investment you made, consider seeking advice from a financial adviser so you can avoid withdrawal penalties. It is a good idea to set money aside for unplanned projects if you can afford to.
Using a Credit Card
In some cases, you may decide to use a credit card to fund your home renovations. Getting a credit card that has a 0% interest introductory period could be the best choice you make for funding your home renovations. This gives you some time to make payments on the card without paying interest.
You’ll also find that there are numerous other benefits to using a credit card for your home improvement projects. A lot of credit cards have rewards programs, so you can earn cash back, miles, or points. If you spend thousands of dollars and are able to make the payments, this could be a great opportunity to earn lots of rewards!
It’s also easy to keep track of your expenses. You can review your statements at any time to see how much you’re spending. This can help you make sure you’re staying on budget.
Keep Your Renovations Within a Budget
Because the cost of most home improvement plans can increase quickly, it’s important to plan your budget before you go shopping. Here are some ways to help you budget:
You can begin by researching the cost of materials you need for your projects. Also, if you’re not the DIY type of person, then you also need to research how much it will take to hire a contractor.
Does it Add Value to Your House?
A good way to think about the cost of your home renovation is to think about how much it could possibly add to your home’s value. Simple singular additions like towel rails or sinks may not make as much difference. On the other hand, renovating the kitchen can increase the property of your value.
Include a Buffer with Your Budget
Usually, home renovations cost more than you think. Including a buffer into your budget will provide you with money if you face unexpected expenses. When creating your budget, it’s a good idea to do your research on how much everything will cost.
Seek the Right Builders and Craftsmen
Getting an accurate quote can help you keep an eye on renovation costs. You can reach out to friends and family or do research online to find a reputable contractor. You can also give your contractor your budget upfront to see if you can afford them and the work that they’ll do.
Home renovations can be expensive, but luckily, there are several ways to pay for them. Loans, savings, and credit cards can all be used.
It’s also important to set a budget that you can stick to, and to do your research. Consider whether the renovations will raise your home’s value.
Lastly, if you use a loan or a credit card, remember to check your credit score. A higher credit score will help you get lower interest rates and can even help with getting a higher credit limit. Check your credit score today with Credit.com. We offer two free credit scores that are updated every 14 days.