Have you found yourself looking at the walls and thinking “I could repaint these a nicer color” at some point? Some home improvement ideas like these are actually relatively simple and affordable; minor repair, or painting a room with a fresh coat in a new color, won’t set you back too much.
However, a home design project can also be a big undertaking. Whether you’re adding nice new furniture to the living room, redoing your kitchen, or setting up a Hollywood bathroom, it tends to be a big effort –– and a big cost. The good news is, if you can’t simply pay out of pocket for a whole project, there are a number of ways to finance it instead.
Use a Credit Card
If you’re the proud owner of a credit card that has enough of a credit line to cover the costs of a home project, you might want to consider this option. For one thing, many credit cards now offer rewards and points that can be redeemed for goodies. Additionally, there’s essentially no wait time if you already have the card; you can hop on over to your nearest hardware store and start shopping.
This is also becoming a more popular solution, with a piece on WBTV noting that more people are starting to feel more confident about using their credit cards. This means that the economy is starting to look stronger, but also more people are racking up credit debt. To avoid that, set a budget for your project. Use your credit card if you can, but be sure not to take it too far.
Get a Personal Loan
A personal loan is another common option. And if you have a strong enough credit score and proof of income, it should be relatively easy to obtain one, even in amounts up to tens of thousands of dollars. AskMoney lists credit scores of 740 to 799 as “Very Good,” and 800 to 850 as “Excellent.” Really, anything in this range puts you in good shape for loan qualification (and even a score in the 650-739 range is respectable).
The amount of money you get from the loan depends entirely on the financial institution, your income, and what you choose to ask for –– so it’s a good idea to shop around in order to find out about the requirements, how much you can get, and what the interest rate and repayment plan will look like.
Home Equity Line of Credit (HELOC)
Another financing option is a home equity line of credit, or HELOC. Basically, you can borrow up to a certain amount based on the equity you have in your property. One of the main advantages of borrowing money this way is that the interest rate is much lower than that of a credit card payment. You can thus borrow only what you need and pay it back when you can without worrying about the amount inflating due to burdensome interest.
Look for Off-the-Shelf Furniture
Sure, that custom-made pantry you’ve mocked up would look beautiful, but furniture bought “off the shelf,” or as-is from a hardware store, can be just as gorgeous. Look for options that are already made. Sometimes they just seem to fit perfectly into your design plan, and as Real Homes explains you can also touch them up yourself and save even more money.
Funding a home redesign can be an expensive, overwhelming process. But with a strategic approach, it’s not as bad as it might seem on paper. There are plenty of ways to finance and save money for your home improvement ideas –– and ultimately get closer to making your vision a reality.