Couple renovating a new house, sitting on ground planning their bathroom

Best Credit Card for Home Improvement

Last Updated: October 17, 2024

4 min read

Table of contents

Key Points:

A credit card can help you finance home improvement projects like renovations or emergency repairs.
Cash back rewards credit cards can offer cash back as a percentage of your spending on home renovation purchases.
If you need time to pay for your purchases, consider saving on interest with a low intro APR card.

If you just bought a new house, it might take some renovations to transform it into your dream home. For those who entertain, you might want to expand your kitchen to host dinners and add a new backsplash to impress your guests. On the other hand, if you've had your home for many years, changes like transforming a spare bedroom into an office might help you meet your family's changing needs. For others, your home might need some basic repairs to address life's wear and tear.

Whatever your reason for home improvement projects, the right financial tool can help you get the job done.

How to make use of a credit card for home improvement

A credit card can help you with both emergency and planned home renovations. You can't always predict when your home will need a repair, so you might not always have room in your budget. If you need to patch your roof after a big storm or fix a flooded basement, a credit card can help you make repairs right away. Even if you're starting a substantial renovation that you've budgeted for meticulously, you might uncover unexpected repair needs. For some, it might also make sense to finance your entire project with a credit card from the start. That way, you can pay for supplies and labor as you need them.

The type of credit card you use for home improvement projects can make a major difference. Set yourself up for success by using a rewards credit card. Purchases with a rewards credit card give you cash back or other rewards as a percentage of your spending.

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How to choose the best credit card for home renovations

Factors like interest rates, fees, reward types, and reward amounts all influence which credit card best fits your home renovation needs. If you need to spread payments out over several months, you may want to choose an option with a low introductory APR on purchases, so you can pay little to no interest as long as you pay your balance before the end of the introductory period. Discover has no annual fee on any of our cards, including the Discover it ^® Cash Back Credit Card.

With the Discover it^® Card, you can also earn 5% cash back on everyday purchases at different places you shop each quarter like grocery stores, restaurants, gas stations, and more, up to the quarterly maximum when you activate. Plus, earn 1% cash back on all other purchases—automatically.

Did you know?

You can reap the benefits of your renovation long after you finish your project. We’ll automatically match all the cash back you’ve earned at the end of your first year. There is no limit to how much we’ll match.¹ That means if you earn $150 cash back, we’ll give you another $150.¹

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Alternatives to using a credit card for home repairs

The best financial tool for your home improvement project depends on your unique situation. Using a credit card for your renovations and repairs is a sensible option if you know you can repay the balance before interest starts to accrue. Otherwise, you might consider a loan or saving toward your home improvement goals.

Home equity loans

If you've owned your home for a while, you could consider a Home Equity Loan (HEL). An HEL is a secured loan with your home as collateral. If you can't repay your HEL monthly payments during the loan term, your lender may foreclose on your home, so it's important to assess your financial situation before applying.

Home equity line of credit

A home equity line of credit (HELOC) isn’t the same as a home equity loan. An HEL is a one-time loan amount that you pay back. A line of credit is open-ended for a set period, and you can borrow repeatedly against your home equity during that time.

Personal loans

If you haven't yet built your home equity, you may be able to use a personal loan to pay for home improvements. Unlike home equity loans, personal loans are unsecured. Unsecured loans mean you don't provide collateral, like your house. A personal loan doesn’t necessarily put your property at risk, but you might pay more interest.

You could also use your savings account to cover renovations and repairs, especially if your renovation needs aren't urgent and you can gradually save.

The bottom line on selecting the best credit card for home improvements

If you decide to fund your home renovations or repairs with a credit card, a cash rewards credit card could be the option that suits you best.

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