Do you need to fix up your home? Saving a little money before you use your credit card might be the way to go.

Repairs can get you if you’re not careful. We know that repairs can be unseen and some might not even have you prepared for them. You can find out how much you should save up for them by taking your property tax bill and dividing that by 12 this should give you an idea. With home repairs being so expensive a credit card can be tempting for payment.

How to look at credit and loans for home repairs

You may look at your credit card as a safety net but here is why you should look elsewhere for money to cover the expenses.

A personal loan – a credit card can get you with the interest making that repair you said you pay off in 12 months just a bit more expensive. With a personal loan, you can get a lower interest rate, and if you have good credit even better.

Home equity loans – might be even lower interest and if you have bad credit this might be the better option for you. And with the home equity, you have already you might see that your interest rate is low and the amount you can borrow is good.

Home equity line of credit – this can be useful because the line of credit stays open for about five to ten years. You don’t have to get a lump sum you have an open line of credit that you can use as little or as much as you want. You will only pay interest on the amount that you actually use.

In a nutshell, your credit card should be looked at as a last resort option with home repairs. It might be tempting with the cashback but the interest you will probably be paying back outweighs the rewards.

Save for home repairs

Honestly, the best way to deal with paying for home remodels or repairs is to save up and do the projects as you save the cash.

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