With large-scale home improvement projects steadily on the rise for the past few years, more people than ever are making serious renovations to their home. Whether it’s a simple re-decorating job or an entire kitchen re-vamp, making some form of home improvement is something almost all homeowners will do in their lifetimes.
But whilst the thought of improving the look of your home is exciting, the cost can be enough to stop projects before they’ve even got off the ground! But there are multiple ways to finance home fixes and upgrades that almost everyone can apply for, meaning you can have the home of your dreams as long as you keep up with repayments. So, if you’re desperate to re-vamp your home but are put off by the potential cost, here are some financial solutions to consider.
Most suitable for smaller, less expensive projects, credit cards can be a great way of financing your home improvements. If you have an excellent credit score, you’ll likely qualify for a credit card with a very low-interest rate meaning that, when the time comes to start paying the card’s balance, interest won’t give you a nasty surprise!
But making the decision to use a credit card must be done with caution. Analyze your budget and if you’re not 100% sure you’ll be able to make every single repayment back and pay for your home improvements in full, don’t take the risk as you could end up in serious debt if you’re not careful.
Unsecured personal loan
More suitable than a credit card for medium-size projects that cost up to $50,000, unsecured loans are a good option. One of two types of personal loan (we’ll get onto the second type in just a moment!), unsecured loans don’t require collateral, are relatively easy to apply for, and you can make your repayments over a period of years if you wish. If office or business-related improvements are what you’re looking to do, compare business loans to find the right option for you.
However, unsecured loans often come with high-interest rates simply because the lender is at risk. So again, in a similar way to credit cards, analyze your budget beforehand and ensure you can meet both the payments and the accompanying interest rates.
Secured personal loan
Unlike unsecured loans, these loans require collateral that the lender will take ownership of if you’re unable to make the repayments. But, because this significantly reduces the lender’s risk, secured loans often have the lowest interest rates of all!
But, as you’ll have collateral on the line, taking out a secured loan if you’re not 100% sure you can handle it is deadly. So, before signing on the dotted line, make sure your finances can manage.
When your home needs an upgrade, making the necessary improvements are often much easier said than done when on a budget. But by analyzing your finances and project cost, you’ll be able to make the best possible decision specific to your circumstances, giving you the dream home without the financial worry!