Home Improvements - Loan or Credit Card?

djmccabe

Hi MSE

My wife and I are going to be making some modest home improvements to the tune of around £5000.

We will need to finance these improvements and I would like to know whether you think it is better to do this through a Credit Card or Loan?

Which will work out better financially and which provider to go with?

HappyMJ

If your credit is good and you can get a 0% on purchases credit card that would be the cheapest in the short term. You won't be able to pay any labourers using the card as they tend to want cash but you can buy all the materials on it. If you can't pay it off by the time the interest rate increases you can get a loan to pay off the credit card and reduce the interest payable....but then close the card down so you can't run up any further debt on it.

PeacefulWaters

0% purchase credit card. If you can pay for the work on card and repay the debt within the interest free period.

Super Balance Transfer credit card at 0% subject to a fee. If you can pay for the work on card and repay the debt within the interest free period.

Low rate unsecured loan below 5%. See Zopa, Sainsburys and the like.

Or delay and save up.

Weird_Nev

PeacefulWaters wrote: »

Or delay and save up.

This.

If it's not urgent, then it's 'planned maintenance' and can be budgeted and saved for.