Home improvement projects can significantly enhance the value and enjoyment of your home. However, they often come with substantial costs. Using the right credit card can help you finance these projects while earning rewards, taking advantage of promotional financing offers, and managing your expenses effectively. This guide will explore the best credit cards for home improvement in 2024, helping you make an informed decision.
| Credit Card | Key Benefits | Why It's Great for Home Improvement |
|---|---|---|
| Chase Freedom Unlimited® | 1.5% cash back on all purchases, 5% on travel purchased through Chase Ultimate Rewards, 3% on dining and drugstores, 0% Intro APR. | Simple cash back structure for everyday purchases including home improvement supplies; Intro APR offers potential savings on interest charges. |
| Blue Cash Preferred® Card from American Express | 6% cash back at U.S. supermarkets (on up to $6,000 per year, then 1%), 6% on select U.S. streaming subscriptions, 3% at U.S. gas stations and transit, 1% on other purchases. | Potential for high rewards if you're buying materials from supermarkets that also carry home goods; Good for gas and transit related to project logistics. |
| Wells Fargo Active Cash® Card | 2% cash back on all purchases. | Straightforward rewards structure suitable for all types of home improvement spending; No need to track bonus categories. |
| Citi® Double Cash Card | 2% cash back on all purchases (1% when you buy, 1% when you pay). | Similar to Wells Fargo Active Cash, provides a flat-rate reward for all home improvement expenses. |
| Lowe's Advantage Card | 5% off eligible purchases at Lowe's. | Direct discount at a major home improvement retailer; Ideal for frequent Lowe's shoppers. |
| The Home Depot Consumer Credit Card | Up to 6 months special financing on purchases of $299 or more; Exclusive offers and discounts. | Provides financing options to spread out payments, especially beneficial for larger projects; Offers specific to Home Depot shoppers. |
| Discover it® Chrome Gas & Restaurant Card | 2% Cash Back at Gas Stations and Restaurants on up to $1,000 in combined purchases each quarter. Unlimited 1% Cash Back on all other purchases – automatically. | While not directly home improvement focused, the gas rewards can be beneficial for travel to and from stores; Discover often has rotating categories that could include home improvement retailers. |
| U.S. Bank Shopper Cash Rewards™ Visa Signature® Card | 6% Cash Back on your first $1,500 in combined eligible purchases each quarter at two retailers you choose. Unlimited 1% Cash Back on all other eligible purchases. | Ability to choose a home improvement retailer as one of your 6% cashback categories. Very beneficial if you do most of your shopping at a single retailer. |
| Capital One Venture Rewards Credit Card | 2x miles on every purchase, every day; 5x miles on hotels and rental cars booked through Capital One Travel. | Miles can be redeemed for travel or as a statement credit, offering flexibility. Could be used to offset expenses for travel related to sourcing materials or hiring contractors. |
| Bank of America® Customized Cash Rewards credit card | 3% cash back in a category of your choice (including home improvement); 2% cash back at grocery stores and wholesale clubs; 1% cash back on all other purchases. | Allows you to choose home improvement as your 3% cash back category, maximizing rewards for relevant spending. |
Detailed Explanations
Chase Freedom Unlimited®: This card offers a straightforward rewards program with 1.5% cash back on all purchases, making it a solid choice for general home improvement spending. The 5% on travel purchased through Chase Ultimate Rewards and 3% on dining and drugstores are added bonuses. A key advantage is the 0% introductory APR period which can help you manage large purchases over time without incurring interest charges.
Blue Cash Preferred® Card from American Express: This card stands out for its high cash back rates in specific categories. You'll earn 6% cash back at U.S. supermarkets (on up to $6,000 per year, then 1%), which could be beneficial if you purchase home goods at supermarkets. The 6% on select U.S. streaming subscriptions is a nice perk, and the 3% at U.S. gas stations and transit can help with project-related transportation costs.
Wells Fargo Active Cash® Card: With 2% cash back on all purchases, this card simplifies the rewards process. It's excellent for home improvement because you don't need to track rotating categories or bonus spending – every purchase earns the same high reward rate. This is a great option if you want a hassle-free cash back experience.
Citi® Double Cash Card: Similar to the Wells Fargo Active Cash, the Citi® Double Cash Card offers 2% cash back on all purchases (1% when you buy, 1% when you pay). This dual-stage reward system encourages responsible spending, as you only receive the full 2% after paying your bill. It's another solid choice for consistent, uncomplicated rewards on all your home improvement expenses.
Lowe's Advantage Card: This card provides a direct 5% discount on eligible purchases at Lowe's. This is a significant benefit if you frequently shop at Lowe's for your home improvement needs. The discount is applied at the time of purchase, making it easy to see your savings instantly.
The Home Depot Consumer Credit Card: The Home Depot Consumer Credit Card offers special financing options like up to 6 months on purchases of $299 or more. This can be incredibly helpful for larger projects where you need to spread out payments. Additionally, you may receive exclusive offers and discounts tailored to Home Depot shoppers.
Discover it® Chrome Gas & Restaurant Card: Although not specifically designed for home improvement, this card can still be useful. It offers 2% Cash Back at Gas Stations and Restaurants on up to $1,000 in combined purchases each quarter. The gas rewards are helpful for travel to and from stores. Discover also frequently has rotating bonus categories that could include home improvement retailers, so it's worth checking.
U.S. Bank Shopper Cash Rewards™ Visa Signature® Card: This card offers a unique benefit: 6% Cash Back on your first $1,500 in combined eligible purchases each quarter at two retailers you choose. The ability to select a home improvement retailer as one of your bonus categories can result in substantial savings, particularly if you concentrate your shopping at a single store.
Capital One Venture Rewards Credit Card: The Capital One Venture Rewards Credit Card offers 2x miles on every purchase, every day. While not a direct cash back card, the miles can be redeemed for travel or as a statement credit, offering flexibility in how you use your rewards. You could use the miles to offset expenses for travel related to sourcing materials or hiring contractors.
Bank of America® Customized Cash Rewards credit card: This card allows you to choose a 3% cash back category, including home improvement. You'll also earn 2% cash back at grocery stores and wholesale clubs, and 1% cash back on all other purchases. Selecting home improvement as your 3% category allows you to maximize rewards on relevant spending.
Frequently Asked Questions
What is the best type of credit card for home improvement projects?
The best type depends on your spending habits. Flat-rate cash back cards are good for simplicity, while store-specific cards offer discounts at major retailers.
Should I get a 0% APR credit card for home improvement?
If you anticipate needing to carry a balance, a 0% APR card can save you money on interest charges during the promotional period. Be sure to pay it off before the APR increases.
How do I choose the right credit card for my project?
Consider your spending habits, preferred retailers, and whether you need financing options. Compare rewards programs and APRs to find the best fit.
What are the benefits of using a store credit card for home improvement?
Store credit cards often offer discounts, special financing, and exclusive offers at that particular retailer. However, they may have higher APRs and limited usability outside of the store.
Can I use a balance transfer to finance my home improvement project?
Yes, transferring a balance from a high-interest card to a 0% APR balance transfer card can save you money on interest while you pay off your project expenses. Be aware of balance transfer fees.
What is a good credit score to get approved for a home improvement credit card?
Generally, a credit score of 670 or higher (good to excellent) will increase your chances of approval for most credit cards with attractive rewards and financing options.
Are there any hidden fees I should be aware of?
Yes, be aware of annual fees, late payment fees, and balance transfer fees. Read the terms and conditions carefully before applying.
Can I earn rewards on contractor services with a credit card?
Yes, if your contractor accepts credit card payments, you can earn rewards on these expenses. However, some contractors may charge a fee for credit card transactions.
How can I maximize rewards on my home improvement spending?
Use a credit card that offers bonus rewards in the home improvement category, or a flat-rate cash back card for all purchases. Consider using store-specific cards for purchases at those retailers.
What should I do if I can't afford to pay off my balance immediately?
Look for a credit card with a 0% APR introductory period or consider a personal loan with a fixed interest rate and repayment plan. Avoid making minimum payments, as this can lead to high interest charges over time.
Conclusion
Choosing the best credit card for home improvement depends on your individual needs and spending habits. By carefully evaluating the rewards programs, financing options, and fees associated with each card, you can find the perfect tool to finance your projects while maximizing your savings.