Using a credit card to pay for a home remodel, repair or upgrade is one of the easiest and quickest ways to get a home improvement loan, but it’s not always easy picking out the best home improvement credit card for you. There are lots of credit cards available that are specifically geared towards home improvements, but it’s sometimes difficult to decide which credit card is the best one to you for your particular home project or even if you should use a credit card at all.

The advantages to using a home improvement credit card are usually pretty obvious: you usually can get credit card points or special financing rates for using your credit card on certain types of home improvement purchases, including home appliances, tools, materials and more.  And you can often get a credit card with an initial interest rate of around 7 or 8% depending on your credit history. With a home improvement credit card you usually have a fixed credit limit like $5,000 but you don’t have to use that entire amount of money.  You can only charge what you need at the time and then pay off that amount, leaving the credit card open for other home improvements down the line.

When you go looking for a home improvement credit card online you’ll immediately notice that a lot of sites try to sell you a card right there or promote a certain card that they get a commission on.  Instead of doing that we’re going to give tell you about the things you should consider when you are looking at home improvement credit cards.  Ultimately the best home improvement credit card for you is the one that fits your individual situation and needs.  Here are the different types of home improvement credit cards available in no particular order:

Home Improvement Reward or Points Credit Cards: There are lots of these “rewards” credit cards available from thousands of different banks.  They generally work in one of two ways.  They either give you credit card “points” which can be redeemed for home improvement items such as appliances or home contractor services or they give you special rates and incentives to use the card for home improvement projects and purchases.  Most bank home improvement cards do a mix of both.  Most bank home improvement credit cards are ultimately just Visa or MasterCard cards that can really be used anywhere and not just at home improvement or hardware stores.  These reward cards can be good for home improvements, but you have to read the fine print to see what sort of fees are involved, whether or not the points “expire” after a certain period of time and what the rate of point accrual really is.  If you need to spend $5,000 to receive a $10 gift certificate then that home improvement credit card is hardly worth it.

You also have to be careful to pick a rewards card that has rewards you actually want.  I have a neighbor who signed up for a GM Rewards card thinking that he’d remodel his kitchen with the credit card and then use the points to get a discount on a new truck.  After his kitchen was done being upgraded he want truck shopping and ended up buying… A used Chrysler PT Cruiser! All those GM points went to waste because he was tied into those points and ultimately didn’t want to use them.  Most reward credit cards now have multiple options for rewards so you can still get gift certificates and travel bonuses even if that’s not your primary reward point system.  A rewards card could be the best home improvement credit card for you if your project is big enough to earn points and rewards that you know you will use.

A Money Back Credit Card: Some credit card, like the Discover Card, will actually send you a check for a percentage of the money you spent in a certain time period. These are good cards if you know you’re going to use your credit card for a home improvement project and don’t want to bother accumulating points or worrying about whether or not you’ll be able to actually use your reward in the future. Most money back credit cards send you money either when your rebate hits a certain limit or after a specified period of time. The percentage you get back can also vary based on what you purchase. Some credit cards give you more money back for buying things like auto supplies, gas, groceries or other items with it. A cash back amount of 1% or 2% is usually pretty good for these money back credit cards. It may not sound like much, but it adds up quickly!

A Home Depot Credit Card: If you happen to have a Home Depot nearby that you can use for your home improvement, then this might be a better choice than a rewards card because you may save more money in the end.  The Home Depot offers a lot of different home contractor services, so you may be able to actually have someone come in and do all the work and buy all the materials from The Home Depot. The Home Depot card is a popular home improvement credit card because they have a zero interest and no payments policy for six months on purchases of $299 or more.  You just use the The Home Depot credit card for your entire home improvement or remodeling project and then pay the balance off as you see fit.  This could be the best home improvement credit card for you if you think you’ll be able to pay off most of the balance in six months and like the idea of getting an interest-free home improvement loan during that time.

A Lowe’s Home Improvement Store Credit Card: If you typically shop at the Lowe’s Home Improvement Store chain rather than The Home Depot then you may want to consider several different credit card options from Lowe’s.  They have a regular consumer Lowe’s credit card as well as a Lowe’s Project credit card.  Each are aimed towards home improvement purchases for the consumer, but they have different payment terms and options, including a six month no interest option just like the Home Depot card.  Like the Home Depot, Lowe’s offers a number of home improvement and remodeling contractor services as well as home improvement materials and tools.  A credit card from Lowe’s may be the best option for you if you have a Lowe’s nearby and you plan to do most of your home upgrade purchases there.

Other Home Improvement or Hardware Store Credit Cards: Lowe’s Hardware Store and The Home Depot are obviously not the only home improvement and hardware stores in town.  Many smaller hardware store chains offer their own credit cards and home improvement financing plans that can be just as competitive as the big stores.  Some smaller home improvement store credit cards offer very low rates with longer zero interest payment terms.  I’ve seen small hardware store chains offer 10%-20% off large purchases just for using their home improvement credit cards.  Deals like this are not uncommon because it helps the smaller hardware and home improvement stores undercut the larger chains and bring in more business.  If you’re going to use a small local store or if you can get some decent deals at a chain hardware store in your area then a home improvement credit card from that hardware store chain may be your best option.

Obviously knowing how much your home improvement will cost and where you’re going to purchase most of the materials and labor from will be very helpful.  I strongly suggest going to different stores and getting free quotes on your home improvement project before applying for any specific home improvement credit card.

A home improvement credit card is essentially an unsecured loan that’s easy to use for home repairs and improvements where you don’t know exactly how much money you’ll need.  If you have good credit and you’re looking for a home improvement loan of a specific amount, then you might want to try a low rate Lending Club home improvement loan.

It’s a quick and easy loan service that can get you the money you need quickly and easily. They’re free to join and have an online application, so you don’t have anything to lose.  They’re a safe and secure company to deal with and they’ve won a lot of rewards for their loan service. If you want more information you can read our mini review of Lending Club.

Now you know what to consider when looking for the best home improvement credit for your situation.  You can now weigh the pros and cons and ultimately feel confident when you fill out that credit card application that you are getting the best home improvement credit card for you!