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Americans have already spent billions of dollars on home improvement since the start of the pandemic — and experts are forecasting a whopping $433 billion in home improvement spending in 2021 alone, according to research from Harvard University’s Joint Center for Housing Studies.
But many homeowners could be missing out on added savings for their renovation projects. Of homeowners taking on projects with a cost between $1,000 and $5,000, just 30% opt to pay with a credit card, while 85% use cash from savings, according to the 2021 U.S. Houzz & Home Study from Houzz, a home renovation site.
If you use your card strategically and avoid carrying a balance, a cash back credit card with home improvement rewards can help you maximize every dollar you spend at home improvement stores or on contract work. And with cash already saved to immediately pay off the charge, you can avoid any risk of carrying over high-interest credit card debt.
Many cash back cards even offer 0% APR periods on new purchases so you can finance your project and pay it off over time, without interest, as well as rewards on everyday spending in other categories, to help you save even after you wrap up your project.
Our top pick for cash back on home improvement right now is the Bank of America Customized Cash Rewards Credit Card. Before you gear up to renovate the master bath or reconfigure your landscaping, here’s how this card can add value to your next project:
Before Using a Credit Card for Home Improvement:
Rewards on home improvement purchases are a great way to save on renovation costs, but understand the risks before you sign up. If you don’t have cash to pay down your balance when your statement is due (or after the introductory 0% APR period), you’ll risk taking on high-interest debt, which can make your project much more expensive.
If you’re not sure you’ll be able to pay your balance off, consider holding off on your project until you can save more money, or look into options with potentially lower, fixed rates, like a personal loan or home equity loan.
Why the Bank of America Customized Cash Rewards Credit Card is Good for Home Improvement
There are a few features that boost the no annual fee Bank of America Customized Cash Rewards Credit Card above other cash back options …….