Finance Your Home Improvement

07/07/2017 0 Comment

It has come the time for your home to be renovated. Perhaps you have picked up the new designs yourself or hired a designer. All you know is that it is time for a change. There are many options out there; however, to finance your home improvement and you might be confused about what the best alternative is. Maybe a zero-interest rate loan is good or going for the traditional all cash approach is better?

I am not going to lie to you, whatever you choose it is going to come out a hefty sum amount in the end, but then again you are completely changing the outlook of your home, not going for grocery shopping. So, let us get down right to it.

Traditional Cash Approach

In ninety-nine percent of the time going for the all cash expenses is the best option. The only time which something else would be better is if you know that a huge inflation increase is coming, you should definitely go for a bank loan before that happens, as you will pay back much less money than you’ve taken in sense of purchasing power of the money. Then again if you are able to predict something like that, you most likely won’t be wondering on how to finance your home improvement.

I am aware that this is not possible for most. A kitchen, bedroom, and bathroom remodel would cost well within the mid-range five figure sums. That is a lot of money to take out and going into your savings accounts might not be the best idea either. You could, however, go for a mix of part cash, part loan financing. Paying everything cash remove the nuisances of having monthly charges on your debit card, however, it might be quite hard to pull out such amount of money.

Credit Cards with No Interest Rate or a Loan

Now, these might seem practically the same but are not. Credit cards with zero interest rate do indeed allow you to get a certain amount of money for a certain period of time to manage your home improvement. The “trap” here is that you should certainly cover the taken amount in the given period otherwise the charges you will receive will by sky high. That is why I recommend you use that only for small projects.

Loans you could utilise for bigger projects, their only negative part is that the interest rates could somewhat fluctuate and become higher, but it is a risk you are made aware of when obtaining the loan (or if the loan manager does not inform you, ask him that yourself).


Home Improvements depending on their size could be quite expensive, and it could be pretty hard to save up enough money to pay the full amount of the project in cash. The other financing methods, however, should be decided upon after being fully aware of what exactly you are renovating and within what price range you are aiming.

What you also need to bear in mind is the trader you hire to carry out the work. The last thing you’re going to want to do spend a lot of time gathering the funds to finance a project, only for the work undertaken to be of poor quality. Use a directory like TrustATrader to make sure the trader you are hiring is a professional.