No Interest No Payments Financing Or Put It All On Credit Card?

No Interest No Payments Financing Or Put It All On Credit Card?

There are all sorts of obstacles that come along home improvements and one of the most daunting can be finding the right financing. It can be tempting to take the no interest, no payment loan from the contractor for convenience sake, but this isn’t always the best option. Oftentimes, contractors are in cahoots with a third party financing company and sneak their costs into the price of your estimation.

Why shouldn’t you finance through your contractor?

Though no interest and no payments for [x] amount of time seems like an amazing deal, they often get you back for this later through interest fees and the price of the product becomes higher. How? The financing companies the contractors use (they don’t finance you out of pocket) charge a fee for offering their services to the contractor. Rather than eat this expense, the contractor then adds it to the cost of the product, costing you more money. There may be other hidden fees, as well, contributing to the price hike.

Is taking out a credit card just for this really a better option?

If the no interest, no payments option is what you are after, then a credit card is a much better financing option than getting ripped off by your contractor. You can have the same opportunity without the hidden fees hiking your starting price up. Instead, you get the lowest price your contractor offers with potentially less interest. If you do take out a credit card, be sure the interest rate is acceptable and, if it’s a new account, look for the credit card company with the best starting bonus or discounts.

What to Consider

There are a lot of factors to take into account when deciding on your financing options for your home improvements. Your income, budget, the amount you need, and time-frame to receive it all play a role in this decision, as well as many other things. If you aren’t concerned with the no interest, no payments option, a loan through a bank or credit union might be a better option for you. However, if that is a necessity to you, it would be wiser to receive that from a credit card company than be ripped off by the marketing ploy your contractor is trying to pass off as a good loan.

Home improvements can be stressful from the construction and the planning to the financing. The financing option offered through the contractor can then seem convenient and acceptable when offered, however, accepting this financing would be a mistake. With so many loan options available, there’s few reason to pay extra to your contractor because he made a deal a financing company on your behalf. The research can seem tedious, but, with our help, you can find the perfect loan option for you, even if it’s just funding it through a credit card.

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