Is there any reason not finance home improvements with a 0% credit card?

[Anonymous]

I think this is totally fine, but would recommend you pay it off much faster than the nearly 4 years you plan on taking.

[Anonymous]

Anonymous wrote:Ridiculous. I would never finance renovations.

most people don't have the luxury you have. hope your roof doesn't need to be replaced in the same year as your HVAC and water heater! good luck!

[Anonymous]

With your credit, apply for a personal loan at 6-7%. Yes, you will pay interest but no anxiety.

[Anonymous]

Anonymous wrote:Ridiculous. I would never finance renovations.

Dave Ramsey has joined the chat…

[Anonymous]

Anonymous wrote:You never know what can happen. You can lose your job. Get into an accident or have terrible health. What if a tornado touches down and damages your home and you need additional repairs? What if you get into a car accident and now you gotta buy a new car and take on a car loan? So many things happen in life.

All of the sudden your plans for paying off the debt in 48 months turn into 90 months and then your fees or rates start skyrocketing and youbdrien in debt.

I have the cash. I just do not want to spend it all up front when I can do 0%; seems better to grow it.

[Anonymous]

We did this…we had $$ in investments we didn’t really want to pull out. That was our backup plan, but we ended up paying it down using our checking account/paychecks within the year. It also was helpful to have all the renovation expenses on one card that was only for the renovation.

[Anonymous]

It's fine to maintain some extra liquidity for 18 months but I wouldn't plan to bounce through multiple card transfers. Too many ways for that to go wrong and the card companies to screw you on fees.

[Anonymous]

Anonymous wrote:We did this…we had $$ in investments we didn’t really want to pull out. That was our backup plan, but we ended up paying it down using our checking account/paychecks within the year. It also was helpful to have all the renovation expenses on one card that was only for the renovation.

Not OP, but do contractors, cabinet companies, etc generally accept credit cards? Our architect doesn't so we weren't sure if it was going to be an option.

[Anonymous]

Most of the mom and pop contractors may pass along the credit card cost to you so it may be a wash.

[Anonymous]

i would do it but only for th epoints and if I had the cash to pay for it outright. Meaning, I'll take the free loan until I have to pay t off when it isn't free anymore. No way would I do it if it could put me in a spot where I'm owning 25% on 40k.

[Anonymous]

Using a 0% interest credit card to finance home improvements can be a viable option, but there are several factors to consider:

Balance Transfer Fees: While you might save on interest, be aware of balance transfer fees, which typically range from 3-4% of the transferred amount. These fees can add up, especially on a large balance like $45,000.

Credit Limit: Ensure that the credit card has a high enough limit to cover the cost of your home improvements. It’s important to keep your credit utilization low to maintain a healthy credit score.

Promotional Periods: Keep track of the 0% introductory period. If you don’t pay off the balance before the promotional period ends, you’ll be charged interest on the remaining balance, which can be high.

Impact on Credit Score: Opening multiple credit cards or transferring balances frequently can impact your credit score. Ensure you manage your credit responsibly and maintain a good credit history.

Monthly Payments: Committing to a monthly payment of $1,000 is a solid plan. Just be sure to stay disciplined with your payments to avoid accruing interest or falling into debt.

For a more structured approach and to explore additional financing options, consulting with a Texas mortgage lender can help you find solutions tailored to your financial needs and goals.

[Anonymous]

Could you pay for a portion up front and finance the rest? I think several years is risky. And I think you should stick to the 18 month 0% period, not transfer the balance after.

Please don’t take a 401K loan out.

[Anonymous]

what credit card company is giving you $45K line of credit on a 0% card? I have that on my Chase Sapphire Reserve but never got that on a 0%.

[Anonymous]

We did this. It was fine and I'd do it again. There are some contractors who won't take credit though.

[Anonymous]

Anonymous wrote:

Anonymous wrote:You never know what can happen. You can lose your job. Get into an accident or have terrible health. What if a tornado touches down and damages your home and you need additional repairs? What if you get into a car accident and now you gotta buy a new car and take on a car loan? So many things happen in life.

All of the sudden your plans for paying off the debt in 48 months turn into 90 months and then your fees or rates start skyrocketing and youbdrien in debt.

I have the cash. I just do not want to spend it all up front when I can do 0%; seems better to grow it.

Yeah, then no reason not to do this or to take a loan from your 401k. A 0% loan is a no brainer when your savings can earn interest.