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Why Hardware Store Credit Cards Can Be A Good Idea

Jul 7, 2008
If you're looking at making home renovations or considering a large-scale home improvement project, you know how expensive it can be so. Construction supplies, hiring a qualified contractor and paying the various fees for permits can quickly add up.

You could borrow money from a bank to help pay for all the work, but banks always expect you to pay back not only the loan, but also the interest. A $10,000 bathroom remodel may actually end up costing you $15,000 by the time you've paid back all the interest.

Instead of going for a bank loan, why not look into some of those credit cards offered by the larger home improvement store chains? As long as you have decent credit and a plan to pay them back, it's usually an option worth considering.

Those credit cards have several distinct advantages:

Zero Interest for a Limited Time: Many of those hardware store credit cards give you a period of 6 to 12 months with no interest charges as long as you use the credit card in their store. A year without interest accruing could save you thousands of dollars in payments depending on the size of your project!

In-Store Discounts: When you initially use hardware store credit cards you will often get a small discount as well. You might save 5% - 10% on the total cost of the project, which could be a pretty good chunk of change at the end of the day.

All-In-One-Solution: There is something to be said for buying all your materials and even labor from one store. Instead of visiting a dozen stores to find a kitchen faucet you can go to one store and buy a faucet, a sink, a refrigerator, all the cabinets and even hire and schedule the installers all at one time. You don't need a big hardware store credit card to necessarily do this, but things do seem to go much smoother this way.

Why do home improvement stores offer these cards with such great rates? Normal banks make their money by giving you a loan and charging you interest. These home improvement stores don't have to make money on interest because they will make a profit on you buying items from their store for retail price. These hardware stores are essentially giving you a no-interest loan for a short period of time so that you can buy more of their items!

These hardware credit cards can end up being a win-win for both the customer and the store. The store sells more inventory and makes more profit while the customer is able to "borrow" more money to make home improvements without having to pay any interest for a limited time!

A limited time of no interest payments, possible discounts and the ease of ordering everything in one store makes those large home improvement store credit cards a pretty good idea in many cases!
About the Author
Visit the Home Improvement Financing Site to learn more about receiving home improvement financing and applying for home improvement loans.
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