Home improvement financing with gift cards is a great way to give friends and family a chance to help you with your home improvements, whether it’s a much-needed home repair or simply a house upgrade you’ve been planning and saving a long time for.

Giving gift cards for home improvement projects is becoming common practice when people buy a new home or have a house warming party. Holidays and birthdays are close behind in reasons people buy gift cards to home improvement stores, but the reasons are really unlimited. As housing equity falls and people are stuck in the middle of home improvements without any way to pay for them, it makes sense to ask for gift cards that can help.

Obviously gift cards to places like Lowe’s hardware stores and The Home Depot are only good at those stores, but even if you give someone a gift card to one store they can easily be traded and exchanged for gift cards to other places for the same amount at numerous other places.

I’ve seen entire home improvement projects financed with gift cards from hardware stores. I know a woman who moved into a new home with a bathroom that was in terrible need of an upgrade. She had a house warming party and she purposely asked that people bring gift cards to the Lowe’s hardware store instead of bring bottles of wine or candles or anything else. She used all her gift cards and combined with the discounts she received from applying for a Lowe’s credit card she financed her bathroom upgrade and completely paid off the entire home improvements in just two months!

The best part of about using gift cards to help you with home improvement financing is that you can use the money for materials, labor, home improvement books or just about anything else those large hardware stores sell.

This means that you can not only use gift cards as part of your home improvement financing plan, but also as a way to buy new home improvement tools and materials. If you’re going to save some money on your home improvements then you’re probably going to plan to do it yourself and you probably don’t want your Aunt Bertha going out and picking a table saw for you. If she gives you a home improvement gift card, though, you can pick out exactly the saw you want without worrying about her picking the wrong model.

Financing a home improvement with gift cards is clearly another great way to help someone, or have others help you, easily pay for a home improvement

Let’s examine the problems we have now. Housing values were high for a long time, but the housing bubble burst and values began dropping, leaving a lot of people without extra equity in their home. This meant that home improvements and home improvement loans stalled, which put a strain on a lot of companies rely on providing materials and products for new and upgraded homes. While the banks were losing money on the defaulted mortgages, the home improvement companies and the production facilities that make products for homes also started failing due to the slowdown. Stock prices are tied to company performance, so they obviously went down, too. Everything was tied together and it all started with the housing market grinding to a standstill.

Now we’re in a credit crunch and banks still don’t want to loan large amounts of money for home sales, but small loans, like those used to pay for and finance small home improvement projects, are still readily available from a number of places. You can still go down to your local Lowe’s and get a credit card and you can always finance your small home improvements through a personal loan from a local bank. And since these small personal home loans are still available, it means you can play a major part in reviving the economy and helping the housing market grow again.

Here’s how this will work:

The one way you can make sure that your home sells for more money is to put more upgrades and improvements into it. While some people may have cash on hand or even some home equity to do this, a better way is to finance your home improvements with a small loan. By using a small loan to pay for your home improvement you are helping to move money around and you will likely be able to afford more upgrades initially.

These upgrades and home improvements will raise your home value, but they will also increase the need for home products and services, which will increase the need for manufacturing to increase and will increase the number of jobs that need to be created to keep those companies meeting the demand for their products. As the demand for home products and services continues to rise, more people will have better jobs and more money and will be able to put more money towards buying a home! Your home, with all of its improvements, will naturally be worth more money and can be sold for a higher price and will have more equity built up in it if you need to borrow again in the future.

Imagine if every homeowner in America started upgrading their homes with money borrowed from some of the many home improvement financing options available out there! We’d suddenly have thousands of jobs and lots of home equity and value being created!

In fact, President-Elect Barak Obama recently announced his plans to form a large public works package which will essentially do exactly this, but on a larger scale. Instead of focusing on home improvements, he’s focusing on city and state infrastructure improvements. The more improvements that are done the more jobs there will be and with more jobs comes a stronger economy.

By financing that home improvement you’re not only increasing the value of your own home, but potentially helping other people keep their jobs and actually helping the entire world’s economy to grow stronger.

Some Home Improvements Help You Sell Your Home For More Money

A home improvement that requires a loan to complete will definitely make your house a more comfortable place to live but a truly worthwhile home improvement will also increase the value of your home in one of two ways.  It will either make your home more desirable on the resale market or it will in some way save you enough money to make up for the loan itself.

Some of the home improvements that will increase resale value are fairly obvious.  Updating bathrooms and kitchens always help a home look more attractive and help it sell for more money.  Even minor things such as a fresh coat of paint, crown molding and new window treatments can give a house the perception of being worth more money when it is being sold.

Some Home Improvements Pay for Themselves

Not so obvious are the improvements that will save you money over time and actually pay for themselves.  Most of these sort of house upgrades are improvements designed to help your home use energy more efficiently so that you have much lower utility bills.

One of the most expensive home improvements, but also one that has the most potential to save you money in the long run is installing solar panels on your roof and generating your own electricity. The initial cost for solar panels can run into the thousands, so a home improvement loan is almost always in order, but over the life of the solar panels you may generate so much electricity that you’ll not only not have any electric bills, but the electrical company may actually send you a check if you sell your electricity back to them.

Of course, solar panels won’t work for every home or in every climate.  On a much smaller scale you can move from generating your own electricity to at least trying to save some money on your heating and cooling bills.

New insulation in the ceilings and walls of an older home can go a long way towards reducing utility bills.  Depending upon your home’s current energy efficiency a few thousand dollars worth of new insulation can reduce your bills dramatically and save you hundreds every year on electricity and heating fuel.  The same goes for replacing old drafy windows and doors.

Yes, the cost up front for new insulation or replacing windows and doors is not cheap, but you could take out a small home improvement loan to pay for the projects and probably begin seeing utility bill savings almost immediately!

That being said, many local banks are still an excellent place to borrow money from because many smaller banks did not make the risky investments in real estate and financial mortgage products that larger banks did.  Even if you don’t have any equity in home, you can still look into borrowing money for your home improvement through an unsecured home improvement bank loan.

Again, smaller local banks are your best bet for this because they have a vested interest in helping the community that surrounds them become more desirable.  Many small local banks also have slightly looser lending practices when it comes to unsecured loan, especially those designed to fix up a house.  Some banks give their loan officers much more autonomy when it comes to making decisions about who gets a loan and who doesn’t.  This is especially helpful if you want a home improvement loan but have a bad credit rating.

When you go to apply for an unsecured loan for a home improvement you’re going to want to do a few things to improve your chances of getting the loan.

Have A Detailed Construction Plan: When you go to the bank and ask for an unsecured loan you’re going to want to have as much information as possible about the improvements you hope to do to your home.  You’ll want to have photos of your home, include a reason for why you need or want the work to be done and you’ll want to try to compare your home to the others around it.  If three of your neighbors replaced their roofs in the last two years and you need to do the same then mention that, especially if all your homes were built around the same time.

Have Home Improvement Quotes From Contractors: Most banks won’t just give you a large unsecured personal loan based on your word of what a job will cost.  You’ll want to have at least two or three complete price quotes from contractors who are willing to do the job.  It may be helpful to also have them include the full scope of work, ranges of pricing, references they’ve worked for in the past and even include an approximate time frame for the work to get done.  All of this will help a bank decide if the unsecured loan they’re going to give you will be used wisely.

Dress Well: This seems like an obvious one, but you’re going to be asking someone for a large amount of money so that you can improve your house.  The least you can do is dress well, speak well and generally try to give a good impression.

Bring Proof of Income: This will probably be required anyway, and you’ll probably have to fill out plenty of paperwork just to apply for the loan.  Having a steady job, living in the neighborhood for an extended period of time and even using the bank for your own savings anc checking accounts are all things that may convince a bank to give you a loan to improve your home.

Generally, try to be prepared and ready for questions when you apply for your unsecured loan from a bank.  Don’t be discouraged if the first bank you meet with turns you down.  Call another bank, making an appointment with a loan officer and try again.  Each time you give your presentation and explain your need you’ll be more confident and more prepared to answer the loan officer’s questions.

Whether you have a small or large home improvement job planned you’ll be much better off and greatly improve your chances of getting that loan if you present your need well and show how improving your home is a solid investment for the bank you’re working with.

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The simple fact is that many people lost a lot of their home equity with the collapse of the housing bubble and now many larger banks are stuck in a cycle of distrust when it comes to lending money to consumers and even each other.  This means that if you need financing for a home improvement project or you need to borrow money to fix something in your house you may find that traditional big name mortgage and equity companies as well as national banks may not be able or willing to work with you.

There is hope, however.  There are still some ways you can borrow the money you need to improve or add to your home without having to worry too much about the economic crisis that is hitting many institutions across the country.

Local Banks: Many of the national banks have been hit hard because they either directly or indirectly invested in subprime lending products which are now evaporating in value.  Many small local banks avoid investing in risky enterprises and therefore are still doing very well.  Local banks are more willing to help customers with home improvement loans because it’s helping community members improve the neighborhood and overall community, which leads to more people staying near the bank and using its services in the future.

Home Improvement Store Credit Cards: Big box hardware stores are suffering and need people to buy their products and keep their stores in business.  One way they can sell more items is to offer competitive rates on their credit cards to keep people coming into their stores.  Because these cards can often only be used at the stores that issued them these cards basically ensure that the hardware store will do well. Some hardware store credit cards like The Home Depot credit card even has a 0% interest rate for a limited time, so they are definitely worth looking into.

Financing Through Private Contractors: When the number of home improvements are down due to a slow economy some of the people who suffer the most are the people who make a living working and improving homes.  Roofers, electricians, plumbers and even landscapers are all reporting lower sales.  Many of these contractors and self-employed workers will gladly offer payment plans to you for their services.  They would rather be paid a little bit over each month and get the job of working on your home than risk not getting any work at all because no one can afford their services outright.  Each contractor is different, obviously, but you’d be amazed at how flexible some home improvement professionals can be when it comes to payment.

Just because the economy is taking a downturn doesn’t mean you can’t still improve your house and live in the home of your dreams.

Larger home improvement projects that require financing could including adding an addition to your home, remodeling your home, upgrading the appliances and kitchen or bathroom, installing a new central air conditioner or furnace, replacing a roof or installing siding or simply putting in a new swimming pool.

There are two general types of home improvement financing.  There is an unsecured home improvement loan and a secured home improvement loan.  When you are first looking at home financing you will have decide if you want a secured or unsecured loan.  The differences are many, but here’s a general breakdown:

Unsecured Home Improvement Financing: An unsecured loan of any type is a loan you are taking out without any sort of collateral.  Only your credit rating and income level are really considered for loan of this type.  Home improvement credit cards fall into the unsecured home improvement financing category.  Unsecured home improvement loans are meant to be paid back over a short period of time and will generally have a higher interest rate.  The advantage to unsecured home improvement financing is you don’t need to have a home that has a lot of equity or “value above the purchasing price” to get this type of home improvement loan.

Secured Home Improvement Financing: A secured loan of any type is a loan which is backed with collateral, or something to trade, in exchange for the loan.  For home improvement financing purposes that is almost always your home itself and any equity or extra value the home may now have.  If you purchased a home for $100,000 but it will now easily sell for $150,000 then you have $50,000 in equity or value that you can use to finance home improvement projects.  Secured home improvement loans have a lower interest rate and usually have a longer payoff period.

Don’t despair if you have bad credit and wish to finance a home improvement project.  Even people with bad credit can get a home improvement loan if they follow a few common sense steps and are willing to pay a higher interest rate or borrow a little less money than they might normally want to borrow.

If you’re serious about borrowing some money for those needed home improvements, then you should definitely consider using a free no-obligation home improvement loan calculator to find out exactly what kind of loan terms you may qualify for. The process doesn’t cost you any more than a few minutes of your time and it helps you get an idea of how big of a home project or remodeling you can afford.

Small Home Improvement Project: A small home improvement project may not actually end up costing you all that much.  Simple things like having your home painted or replacing a screen door or even some very basic landscaping may only cost one or two hundred dollars.  While that is still an expense worth considering, it probably isn’t enough to really warrant the time and energy to be spent on getting a personal loan or even a home improvement credit card to pay for.  You may be able to work out a schedule payment plan with the contractor doing the work or if you’re doing it yourself you may be able to buy the materials over time, softening the financial impact on your wallet. There are lots of online resources for Do-It-Yourself (DIY) home improvement projects.

You Have the Cash to Pay for Your Home Improvement Project: If the home improvement project you have in mind is fairly expensive but you happen to have the money on hand or in savings then you may want to consider skipping the home improvement project financing and simply paying for the project out of your cash reserves.  Remember that any sort of financing or loan you get for a home improvement actually increases the cost of your project with application fees and interest collected over time.

Your Monthly Home Improvement Loan Payments Are Too Expensive: Let’s face it, if you can’t afford the monthly payments on your home improvement loan then it probably isn’t worth going for financing.  You need to consider all your monthly expenses and try to figure out if you have enough money at the end of a typical month to make regular payments on the loan you took out.  It is important that you consider several different types of loans because each loan will have different advantages, disadvantages and monthly payment amounts.  You can use a free, no-obligation home improvement loan calculator to figure out exactly how much your payments might be and to see different financing scenarios.

You’re Selling Your House or Moving Soon: If you plan on selling your house or you’ve already sold your house then there is usually not a need to spend a large amount of money on home improvement projects unless you think the home improvement will help sell your house.  A lot of people take out small home improvement loans to fix up their home just enough to help it sell in this tough housing market.  The idea of using popular home improvements to sell your home is a not a new one.

Obviously home improvement loans can help you maintain your home’s present value and even increase the current value depending upon the improvements you have planned.  If the project you have planned is a larger project, if you don’t have the money readily available but you know you can definitely afford the monthly payments then a home improvement loan may be your key to making your home a much more comfortable place for you and your family to live!

Slow House Sales Are Hurting Home Contractors: I don’t need to tell you that the housing market is in a slump, which means home sales and new home construction are way down.  This means that contractors aren’t working as much and can’t charge outrageous prices anymore due to the simple law of supply and demand.   Many contractors are beginning to offer their own home improvement project financing.  When home prices gown down then home improvement prices also go down because more contractors have to competitively bid against one another for less jobs.  This is good news if you have a big home improvement job planned because it means you can solicit multiple bids and get a smaller home improvement loan than you may have once needed.

Equity For Home Improvements is Dropping: Many people have homes whose value has actually fallen over the last six months or so, which means people are no longer taking equity out of their home and spending it on cars and boats and other luxuries quite as often.  However, many people do still have lots of equity left over from the housing bubble and home improvement loan lenders may more easily offer home improvement financing on projects that are proven to increase home values over time.

Fall Is A Slow Time For Home Improvement Projects and Financing: Each year home improvement contractors get ready for the slump of projects in the fall.  Kids go back to school, summer is over an the holidays are right around the corner.  Many home improvement stores and contractors start lowering prices to sell off inventory and many also start offering special deals on all sorts of home improvement financing offers.

Home Improvement Stores are Are Offering Zero Percent Financing: Lowe’s and The Home Depot have had lackluster sales, so they are both offering zero percent interest home improvement credit cards.  Lowe’s has a zero percent credit card offer that is for a limited time, while The Home Depot’s credit card always has a zero percent option for six months on purchases over a certain amount.

All these different factors are making home improvement loans and financing much easier to come by for the average American.  As the economy begins to pick up and the housing market begins to strengthen then it will begin to get much more difficult to get great rates like zero percent on home improvement loans.

The Home Depot has two different consumer credit cards which you can use to pay for your home improvement projects. Both credit cards are reliable forms of home improvement financing.

Home Improvement Financing with The Home Depot Consumer Credit Card: This is the credit card that gives you six months of no payments and zero interest on all your home improvement purchases over $299. This zero interest home improvement financing offer is available all the time as long as you use your credit card. There is no annual fee on this credit card, so the zero percent home interest rate for your home improvement financing is a great deal.

Home Improvement Financing With The Home Depot Rewards MasterCard: If you’re not interested in zero percent home improvement financing but would rather get points for your home improvement purchases, then this is the credit card for you. You can improve your home and then use your reward points to buy something fun for yourself such as an HDTV. There is no annual fee on this credit card so it’s also a good choice of financing for a home improvement project.

Remember that the first Home Depot credit card option is not a home improvement financing option with zero interest forever. The zero percent interest rate only last for the initial six months after the initial Home Depot home improvement supply or service purchase. Also remember that this zero percent financing offer is only good on total purchases of $299 or up at one time.

With either of these Home Depot credit cards you need to have fairly decent credit score or you’ll end up paying higher interest once the zero interest period is over. There are some things you can do to help you get a home improvement loan if you have bad credit.

Whether you choose the zero interest home improvement credit card or the card that gives you points for your home improvement purchases the Home Depot consumer credit cards area great source of home improvement financing.

This is unexpected news in the wake of the burst housing bubble and is in fact surprising when you consider that many homes have actually lost equity and value over the past year. What could explain this jump in interest in home improvement financing?

The bank set out to research this trend by talking to customers and agents in its branch offices. It turns out that a large number of the people applying for home improvement loans were actually people who were deciding to use the money from their home improvement financing to fix up and improve their homes in hopes of being able to sell their homes in the future.

The bank learned that about 55% of those people were actually looking at home improvements as a way to help their homes. Another 23% were planning on using the money from a home improvement loan to make their homes more comfortable and more to their liking so that in the future their home value would be greater. And nearly 59% of all those surveyed said they had pulled their home off the market for the moment and chosen instead to concentrate on getting financing for some home improvement projects.

Surprisingly, a large number of these applications for home improvement financing were actually unsecured personal home improvement loans, which is one of the home improvement financing options for people with bad credit.

In the past people were able to rely on their home prices going up automatically and being able to pull the equity out of their home for various personal reasons. Now that home prices are actually dropping people are learning that you need improve your home in order to raise your homes value. In order to make money selling your home you sometimes need to attain some sort of home improvement financing to in order to make your home stand out from the competition.

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