Should I Use a Credit Card for Home Improvements? A deep dive…

 Before we dive in properly, at Eco Tech, our resounding answer is always ‘YES’! — Simply put, it gives you peace of mind that the company/ person you are paying can be trusted. With so many cowboy tradesmen out there you need to look out for yourself and protect your hard-earned money!

One way we build trust with our customers from the beginning of their relationship with us is to recommend they pay using their credit card. That way they know that we are going to turn up and do the job they’re paying us to do!

In this blog we’ll go into the details of why in a bit more detail so let’s dive in…

Embarking on a home improvement project is an exciting prospect, offering the opportunity to enhance your living space and increase property value. However, the financial aspect of these endeavors can often pose a considerable challenge. With so many financing options and means of making payments available, one question frequently echoed by homeowners is, “Should I use a credit card for home improvements?” In this blog, we’ll explore the various aspects of this decision and provide our essential tips to help you navigate the intricacies of financing your home upgrades through credit cards.

What Protection is Given When Purchasing with a Credit Card?

Safety and protection are paramount when investing in home improvements and credit cards DO offer protection compared to cash, bank transfers and debit cards. This is because, Under the Consumer Credit Act, Section 75 you can raise a claim against your bank or lender for a breach of contract or misrepresentation by the supplier of goods or services.

Pros of Using Credit Cards for Home Improvements

• Consumer Protection: As mentioned, credit cards offer substantial consumer protection under the Consumer Credit Act, Section 75, for purchases between £100 and £30,000. This protection means if the work isn’t completed or doesn’t meet the promised standards, you may be able to get your money back from the card issuer.
• Rewards and Cashback: Many credit cards offer rewards, cashback, or points for spending, which can be particularly beneficial for large purchases like home improvements.
• Flexibility: Credit cards allow for immediate payment without waiting for loan approvals, providing flexibility to start your projects sooner.
• Interest-Free Periods: Some credit cards offer 0% introductory APR on purchases for a limited time, allowing you to finance your project interest-free if you can repay the balance within the promotional period.

How to Finance Home Improvement Projects With Credit Cards

Understanding how credit cards can be wielded as a financial tool for home improvement is crucial. Do your research online and explore the benefits, including welcome bonuses, rewards programs, and the allure of low or 0% introductory APRs. A great resource for all things credit cards and home improvement financing is The Money Saving Expert.

Cons of Using Credit Cards for Home Improvements

As with everything there are two sides to every story. Here are some of the potential downsides of using a credit card for your home improvements…

• High-Interest Rates: If you’re unable to pay off the balance before the end of the introductory period, you could be facing high interest rates, significantly increasing the cost of your improvements.
• Credit Score Impact: High utilisation of your credit limit can negatively impact your credit score. Moreover, carrying a large balance for extended periods can also be detrimental. Again, this is dependant on how the card is used as using a credit card properly (ie paying it off in full on time) can positively impact your credit score.
• Budgeting Challenges: Without a fixed repayment plan, it can be tempting to spend more than you can afford, leading to potential financial strain.

Is Paying Cash to a Tradesman Safe?

Paying in cash might seem like a straightforward option, but it raises safety concerns especially if you don’t know the person/ company personally. The main risks associated with cash transactions are that you have limited legal recourse in the case of disputes. Once you’ve handed the cash over you are entirely at the mercy of that tradesman to complete the job in full and to the standard they promised. Sadly, we have encountered endless amounts of customers who have been burned by dodgy ‘professionals’ who left them in the lurch after taking customer’s money.

How Do Eco Tech Take Payments?

At Eco Tech we accept all major payment methods however, as previously stated, we always recommend paying by credit card for everyone’s peace of mind.

Do Eco Tech Offer Financing Options?

Yes! We are thrilled to be able to offer various financing options across all of our services through our partner Kanda.

If you have any questions surrounding any of our services then please get in touch and we would be happy to help!