dailystarx

News and Magazine


Insider’s experts choose the best products and services to help make smart decisions with your money (here’s how). In some cases, we receive a commission from our our partners, however, our opinions are our own. Terms apply to offers listed on this page.

home improvement project father son family

Earning a credit card bonus or extra rewards can take the sting out of an expensive home-improvement project.

MoMo Productions/Getty Images



  • If you’re sprucing up your space, make sure to think long and hard about how you’ll pay for the project.
  • Paying for your home or landscaping remodel with a credit card can yield some significant benefits, including 0% APR, cash back, or travel rewards. 
  • Some of the best rewards credit cards let you earn a significant sign-up bonus as well, which can help you rack up more points for travel, gift cards, statement credits, and more. 
  • See Insider’s guide to the best rewards credit cards.

Are you one of the folks bitten by the home remodeling bug during the last few years? Home improvement was an enormous industry during the pandemic, as many were stuck at home and hankering to complete long-deferred projects.

No matter the type of home upgrade you’re dreaming of, you should know that some credit cards offer rewards and perks that can make using them more beneficial than paying with cash or using a home equity loan or home equity line of credit (HELOC). Of course, that is all predicated on the idea you can use credit to pay for your indoor or outdoor project, reap the benefits, and pay your credit card balance off before any interest accrues.

Insider’s Featured Rewards Credit Cards

Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.

Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.

Earn unlimited 3x points on restaurants, travel, gas stations, transit, popular streaming services and phone plans. Earn 1x points on other purchases.

30,000 bonus points when you spend $1,500 in purchases in the first 3 months from account opening

Earn 3x ThankYou® points at restaurants and supermarkets. Earn 3x ThankYou® points at gas stations, air travel, and hotels. Earn 1x ThankYou® points on all other purchases

80,000 bonus ThankYou® Points after you spend $4,000 in purchases within the first 3 months of account opening

Earn 5x points on all travel purchased through Chase Ultimate Rewards. Earn 3x points on dining, including eligible delivery services, takeout, and dining out. Earn 3x points on select streaming services. Earn 3x points on online grocery purchases (excluding Target, Walmart, and wholesale clubs). Earn 2x points on other travel. Earn 1x point per dollar on everything else.

60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening

We looked up the average cost of three home remodeling projects — an asphalt roof replacement ($31,535), vinyl siding replacement ($18,662), and a garage door replacement ($4,041) — to see how much you could benefit from a few top rewards cards. All information on pricing comes from Remodeling Magazine’s 2022 cost versus value study

If you’re considering a new deck, new windows, or an outdoor landscaping overhaul this year, the following credit cards could be your best bet.

We’re focused here on the rewards and perks that come with each card. These cards won’t be worth it if you’re paying interest or late fees. When using a credit card, it’s important to pay your balance in full each month, make payments on time, and only spend what you can afford to pay.

Comparison: Best credit cards for home improvement projects

Chase Sapphire Preferred® Card


Intro offer

60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening


Rewards

Earn 5x points on all travel purchased through Chase Ultimate Rewards. Earn 3x points on dining, including eligible delivery services, takeout, and dining out. Earn 3x points on select streaming services. Earn 3x points on online grocery purchases (excluding Target, Walmart, and wholesale clubs). Earn 2x points on other travel. Earn 1x point per dollar on everything else.

Chase Chase Sapphire Preferred® Card

Chase Sapphire Preferred® Card


Intro offer

60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening


Rewards

Earn 5x points on all travel purchased through Chase Ultimate Rewards. Earn 3x points on dining, including eligible delivery services, takeout, and dining out. Earn 3x points on select streaming services. Earn 3x points on online grocery purchases (excluding Target, Walmart, and wholesale clubs). Earn 2x points on other travel. Earn 1x point per dollar on everything else.


Rewards

Earn 5x points on all travel purchased through Chase Ultimate Rewards. Earn 3x points on dining, including eligible delivery services, takeout, and dining out. Earn 3x points on select streaming services. Earn 3x points on online grocery purchases (excluding Target, Walmart, and wholesale clubs). Earn 2x points on other travel. Earn 1x point per dollar on everything else.


Intro offer

60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening


Recommended Credit

Good to Excellent

Recommended credit score. Note that credit card lenders may use many different variations of credit score models when considering your application.

Show more


Regular APR

18.24% – 25.24% Variable

Editor’s Rating

4.8/5

Our editor’s ratings analyze fees, bonuses, rewards, and benefits to highlight the simplest and most valuable credit cards available.

Show more

Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.

Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.

Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.

Discover Discover it® Cash Back


Intro offer

Unlimited Cashback Match – Discover will automatically match all the cash back you’ve earned at the end of your first year


Rewards

Earn 5% cash back on everyday purchases at different places each quarter like Amazon.com, grocery stores, restaurants, gas stations and when you pay using PayPal, up to the quarterly maximum when you activate. Earn unlimited 1% cash back on all other purchases automatically.

Discover Discover it® Cash Back


Intro offer

Unlimited Cashback Match – Discover will automatically match all the cash back you’ve earned at the end of your first year


Rewards

Earn 5% cash back on everyday purchases at different places each quarter like Amazon.com, grocery stores, restaurants, gas stations and when you pay using PayPal, up to the quarterly maximum when you activate. Earn unlimited 1% cash back on all other purchases automatically.


Rewards

Earn 5% cash back on everyday purchases at different places each quarter like Amazon.com, grocery stores, restaurants, gas stations and when you pay using PayPal, up to the quarterly maximum when you activate. Earn unlimited 1% cash back on all other purchases automatically.


Intro offer

Unlimited Cashback Match – Discover will automatically match all the cash back you’ve earned at the end of your first year


Recommended Credit

Good to Excellent

Recommended credit score. Note that credit card lenders may use many different variations of credit score models when considering your application.

Show more


Regular APR

14.99% – 25.99% Variable


Intro APR

0% intro APR for 15 months on purchases and balance transfers

Editor’s Rating

4.42/5

Our editor’s ratings analyze fees, bonuses, rewards, and benefits to highlight the simplest and most valuable credit cards available.

Show more

Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.

Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.

Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.

Chase Chase Freedom Flex℠


Intro offer

$200 after spending $500 on purchases in the first three months from account opening


Rewards

5% cash back on up to $1,500 in combined purchases in bonus categories each quarter you activate. 5% cash back on travel purchased through Chase Ultimate Rewards®. 3% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service, and unlimited 1% cash back on all other purchases.

Chase Chase Freedom Flex℠


Intro offer

$200 after spending $500 on purchases in the first three months from account opening


Rewards

5% cash back on up to $1,500 in combined purchases in bonus categories each quarter you activate. 5% cash back on travel purchased through Chase Ultimate Rewards®. 3% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service, and unlimited 1% cash back on all other purchases.


Rewards

5% cash back on up to $1,500 in combined purchases in bonus categories each quarter you activate. 5% cash back on travel purchased through Chase Ultimate Rewards®. 3% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service, and unlimited 1% cash back on all other purchases.


Intro offer

$200 after spending $500 on purchases in the first three months from account opening


Recommended Credit

Good to Excellent


Regular APR

17.24% – 25.99% Variable


Intro APR

0% intro APR on purchases and balance transfers for the first 15 months

Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.

Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.

Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.

Bank of America Bank of America® Customized Cash Rewards Credit Card

Bank of America® Customized Cash Rewards Credit Card


Intro offer

$200 cash rewards bonus after you spend $1,000 on purchases within 90 days of account opening


Rewards

Earn 3% back in a category of your choosing among gas, online shopping, dining, travel, drug stores, or home improvement/furnishings, 2% back at grocery stores and wholesale clubs and 1% back on other purchases; bonus rewards in 3% and 2% categories are capped on the first $2,500 spent each quarter, after which you’ll earn 1%

Bank of America Bank of America® Customized Cash Rewards Credit Card

Bank of America® Customized Cash Rewards Credit Card


Intro offer

$200 cash rewards bonus after you spend $1,000 on purchases within 90 days of account opening


Rewards

Earn 3% back in a category of your choosing among gas, online shopping, dining, travel, drug stores, or home improvement/furnishings, 2% back at grocery stores and wholesale clubs and 1% back on other purchases; bonus rewards in 3% and 2% categories are capped on the first $2,500 spent each quarter, after which you’ll earn 1%

On Bank of America’s website


Rewards

Earn 3% back in a category of your choosing among gas, online shopping, dining, travel, drug stores, or home improvement/furnishings, 2% back at grocery stores and wholesale clubs and 1% back on other purchases; bonus rewards in 3% and 2% categories are capped on the first $2,500 spent each quarter, after which you’ll earn 1%


Intro offer

$200 cash rewards bonus after you spend $1,000 on purchases within 90 days of account opening


Regular APR

16.24% – 26.24% variable


Intro APR

0% intro APR on purchases for the first 18 months and for any balance transfers made within the first 60 days of opening your account

Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.

Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.

Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.

Citi Citi® Double Cash Card


Intro offer

$200 cash back after spending $1,500 on purchases in the first 6 months of account opening


Rewards

Earn 2% on every purchase with unlimited 1% cash back when you buy, plus an additional 1% as you pay for those purchases.

Citi Citi® Double Cash Card


Intro offer

$200 cash back after spending $1,500 on purchases in the first 6 months of account opening


Rewards

Earn 2% on every purchase with unlimited 1% cash back when you buy, plus an additional 1% as you pay for those purchases.


Rewards

Earn 2% on every purchase with unlimited 1% cash back when you buy, plus an additional 1% as you pay for those purchases.


Intro offer

$200 cash back after spending $1,500 on purchases in the first 6 months of account opening


Recommended Credit

Good to Excellent

Recommended credit score. Note that credit card lenders may use many different variations of credit score models when considering your application.

Show more


Regular APR

16.99% – 26.99% Variable


Intro APR

0% intro APR on balance transfers for 18 months

Editor’s Rating

5/5

Our editor’s ratings analyze fees, bonuses, rewards, and benefits to highlight the simplest and most valuable credit cards available.

Show more

Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.

Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.

Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.

If you want to parlay your home remodeling project into a big welcome bonus offer, consider the Chase Sapphire Preferred® Card. This card starts you off with 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening (worth $1,080 in travel, per Insider’s valuations). You’ll also earn:

  • 5x points on Lyft rides through March 2025
  • 5x points on all travel purchased through Chase Ultimate Rewards
  • 3x points on dining, including eligible delivery services, takeout, and dining out 
  • 3x points on select streaming services
  • 3x points on online grocery purchases (excluding Target, Walmart, and wholesale clubs)
  • 2x points on other travel 
  • 1 point per dollar on everything else

You’ll be charged a $95 annual fee, but you can redeem your rewards in a ton of different ways. For example, you can use Chase points to book travel through Chase, transfer them to airline and hotel partners at a 1:1 ratio, redeem them for cash back or merchandise, or cash them in for gift cards from an array of popular retailers, dining establishments, and more.

You can even redeem your rewards for gift cards to places like Lowe’s or Home Depot, where you can use them to buy more supplies for projects around the home.

Factoring in the welcome bonus, here are the rewards you’d earn on three different types of home-improvement projects, based on the pricing from Remodeling Magazine’s cost versus value study:

  • Asphalt roof replacement ($31,535): 91,535 Chase points, worth an average of $1,647.63 in travel
  • Vinyl siding replacement ($18,662): 78,662 Chase points, worth an average of $1,415.92 in travel
  • Garage door replacement ($4,041): 64,041 Chase points, worth an average of $1,152.74 in travel

Review: Chase Sapphire Preferred card review

Discover it® Cash Back: Best if you’re buying with Amazon or via digital wallet

The Discover it® Cash Back rewards you with 5% cash back on up to $1,500 spent in rotating quarterly bonus categories after activation (then 1% back) as well as 1% back on all other purchases (from October 1 to December 31, 2022, you can earn 5% cash back at Amazon.com and on digital wallets on up to $1,500 in purchases after enrollment, then 1%).

This card has a $0 annual fee, and Discover will even match all the rewards you earn after the first 12 months. In other words, you’re guaranteed at least 2% back during your first year of card membership — and the card’s 5% categories effectively become 10% cash back.

Occasionally, we’ll see home improvement stores make it as a rotating bonus category. That’s currently not the case — but from October 1 to December 31, 2022, Amazon.com and digital wallets earn 5% cash back. Amazon.com has tons of home renovation items, and nearly all brick-and-mortar stores nowadays accept payments from digital wallets. If you open the card now, you could earn an effective 10% back on up to $1,500 — and then an effective 2% back on everything else during your first cardmember year. Here’s what that could amount to:

  • Asphalt roof replacement ($31,535): $750.70 in cash back
  • Vinyl siding replacement ($18,662): $433.24 in cash back
  • Garage door replacement ($4,041): $200.82 in cash back

When it comes to redeeming your rewards, you can cash in for statement credits to your account, money in your bank account, or purchases made through Amazon.com or PayPal.

This card also comes with a 0% intro APR for 15 months on purchases and balance transfers, followed by a 14.99% – 25.99% Variable APR. The card’s 0% intro APR on purchases can give you some breathing room from paying interest if you can’t pay off your balance all at once.

Review: Discover it Cash Back card review

Chase Freedom Flex℠: Best for buying supplies from Walmart or via PayPal

The Chase Freedom Flex℠ earns Chase Ultimate Rewards® points, which you can redeem for cash back at a rate of 1 cent per point. You can also use them for gift cards, travel, merchandise, and more through the Chase Ultimate Rewards portal. And, if you also hold an annual fee-incurring Ultimate Rewards card, such as the Chase Sapphire Preferred® Card, you can transfer those points to valuable airline and hotel partners, receiving an average value of 1.8 cents per Chase point. You can read Insider’s points valuations guide to learn more.

Like the Discover it® Cash Back, the Chase Freedom Flex℠ does not charge an annual fee and earns 5% cash back on up to $1,500 spent in quarterly bonus categories after activation(then 1%) and 1% back on all other purchases. You also start off with a welcome bonus of $200 after spending $500 on purchases in the first three months from account opening.

This quarter’s Chase Freedom bonus categories (through December 2022) include Walmart (which offers a wide range of home remodeling products and supplies) and PayPal (widely accepted by most stores). Here’s what you could earn with this card by using it to finance your home renovation (including the welcome bonus) — and the value you’d get if transferring points to travel partners:

  • Asphalt roof replacement ($31,535): 57,535 Chase points, worth an average of $1,035.63 in travel
  • Vinyl siding replacement ($18,662): 44,662 Chase points, worth an average of $803.92 in travel
  • Garage door replacement ($4,041): 30,041 Chase points, worth an average of $547.38 in travel

Another bonus? The Chase Freedom Flex℠ offers a 0% intro APR on purchases and balance transfers for the first 15 months (then a 17.24% – 25.99% Variable APR), which is great if you need some time to pay off your home-improvement expenses.

Review: Chase Freedom Flex card review

For a lucrative combo of a long intro APR, decent bonus, and strong rewards rate on home improvement purchases, the no-annual-fee Bank of America® Customized Cash Rewards Credit Card is a great choice. Along with a welcome bonus offer of $200 cash rewards bonus after you spend $1,000 on purchases within 90 days of account opening, cardholders can take advantage of a 0% intro APR on purchases for the first 18 months and for any balance transfers made within the first 60 days of opening your account (then a 16.24% – 26.24% variable APR).

Where the card really shines is its bonus categories. Cardholders earn 3% cash back in one category of their choice (from a list of six that includes home improvement/furnishings purchases), 2% back at grocery stores and wholesale clubs, and 1% back on all other purchases. The downside is that the 3% (choice category) and 2% (grocery/wholesale club) rates only apply to the first $2,500 in combined purchases per quarter (then 1% cash back). 

If you choose home improvement/furnishings as your 3% category for the quarter, you could potentially earn 3% back on $2,500 in spending (total of $75). Then, after your project is done, you can always switch your 3% category to something that better matches your current spending habits; the other eligible categories are gas, online shopping, dining, travel, and drug stores.

Here’s what you would earn with the Bank of America® Customized Cash Rewards Credit Card for our sample home improvement purchases (assuming home improvement/furnishings is your chosen 3% category):

  • Asphalt roof replacement ($31,535): $565.35 in cash back
  • Vinyl siding replacement ($18,662):  $436.62 in cash back
  • Garage door replacement ($4,041):  $290.41 in cash back

Review: Bank of America Customized Cash Rewards card review

If you want to earn a flat rate of rewards on your home remodeling project without having to worry about where you shop, it’s tough to beat the Citi® Double Cash Card. This card doesn’t charge an annual fee, yet you’ll earn an effective 2% back for each dollar you spend: 1% cash back (1 point per dollar) when you make a purchase and another 1% (1 point per dollar) when you pay it off.

The card technically earns Citi ThankYou points — not cash. But you can redeem points at a value of 1 cent per point as a statement credit, direct deposit, or check. If you also have the Citi Premier® Card or the Citi Prestige® Card
(not available to new applicants), you can transfer your Citi ThankYou points to airline and hotel partners for a bigger value — 1.6 cents per point, on average (per Insider’s valuations). Here’s what you could earn by paying for your home projects with the card:

  • Asphalt roof replacement ($31,535): 83,070 Citi ThankYou points, worth an average of $1,329.12 in travel
  • Vinyl siding replacement ($18,662): 57,324 Citi ThankYou points, worth an average of $917.18 in travel
  • Garage door replacement ($4,041): 28,082 Citi ThankYou points, worth an average of $449.31 in travel

The Citi® Double Cash Card doesn’t always have a welcome bonus offer, but right now you can earn $200 cash back after spending $1,500 on purchases in the first 6 months of account opening. In addition, you can save money on interest by consolidating balances from other cards and taking advantage of its 0% intro APR on balance transfers for 18 months (followed by a 16.99% – 26.99% Variable APR).

Review: Citi Double Cash card review

Best credit cards for home improvement frequently asked questions (FAQ)

It depends on your goals. Is your aim to earn free travel with your spending? Would you prefer cash back? Or maybe you know you won’t be able to pay off your balance within a month or two, and you’d prefer a credit card that offers 0% intro APR.

There really is no “best” credit card for home renovation that covers every situation. However, we recommend opening a credit card (or two!) with a large welcome bonus to help you rack up rewards quickly. You could easily achieve more than $1,000 in value from a single card bonus. Read our post on the credit cards with welcome bonuses of 100,000 points or more for some fun ideas.

Opening a credit card specifically for a home renovation project is an excellent idea. If you’ve got a lot of spending on the horizon, it’s one of the best opportunities to open multiple credit cards and earn welcome bonuses for lots of cash back or rewards that you can either use to effectively discount your purchases or save for future travels.

Just be sure you aren’t going to carry a balance for an extended period of time, as the interest you’ll incur can negate the rewards you earn. At that point, you’re better off taking out a personal loan with low interest rates.

You can almost always pay for home renovations with a credit card — however, the above scenarios we’ve examined are pricey. Not many people have a credit line over $30,000 to pay for a roofing project. Ensure that you can pay in increments if you don’t have the credit line to cover the entire fee. 



Source link

Leave a Reply

Your email address will not be published.