Couple renovating a new house, sitting on ground planning their bathroom

Best Credit Card for Home Improvement

8 min read

Last Updated: October 10, 2025

Table of contents

Key Takeaways

A credit card may help you finance home improvement projects like renovations or emergency repairs.
Cash back rewards credit cards offer a percentage of your spending on home renovation purchases back as cash.
If you need time to pay for your purchases, consider saving on interest with a low introductory APR card.

If you just bought a new house, it might take some renovations to transform it into your dream home. For those who entertain, you might want to expand your kitchen to host dinners and add a new backsplash to impress your guests. On the other hand, if you've had your home for many years, changes like transforming a spare bedroom into an office might help you meet your family's changing needs. For others, your home might need some basic repairs to address life's wear and tear.

A credit card may help you cover unexpected repairs or partially finance a large project, like building a home theater or remodeling a kitchen. Whatever your reason for home improvement projects, the right financial tool could help you get the job done while staying on top of your financial goals.

Why use a credit card for home improvement

A credit card may help you with both emergency and planned home renovations.

You can't always predict when your home will need a repair, so you might not always have the money you need on hand. If you need to patch your roof after a big storm or fix a flooded basement, a credit card might help you make repairs right away. Even if you're starting a substantial renovation that you've budgeted for meticulously, you might encounter unexpected expenses that a credit card could help you cover.

In the case of some smaller renovations, it might make sense to finance your entire project with a credit card from the start, paying for supplies and labour as you need them. A credit card may also be useful if your project requires just one or two transactions that you pay off over time. For example, you might use your card to break down a large purchase like new hardwood floors into monthly payments.

Using a credit card with a low introductory annual percentage rate (APR) may mean you pay less interest. Alternatively, paying for high-value home renovations with a rewards credit card may help you maximize your cash back.

The type of credit card you use for home improvement projects may make a major difference. You could set yourself up for success by using a rewards credit card. Purchases with a rewards credit card give you cash back or other rewards as a percentage of your spending.

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If you use credit for home renovations, make sure you don’t miss a monthly payment or exceed your credit limit. Using a large portion of your available credit on expensive renovation costs may increase your credit utilization ratio and hurt your credit score, so it‘s important to have a plan for paying down your balance as quickly as you can.

How to choose the best credit card for home renovations

Before you apply for a credit card, assess your credit history and credit score. Typically, a financial institution reviews your credit report, along with information from your application, to determine your eligibility for credit approval.

Once you have an idea of your financial standing, you should compare your credit card options. Factors like interest rates, fees, reward types, and reward amounts all influence which credit card may best fit your home renovation needs.

Credit card rewards

A home renovation can be expensive. The good news is that with a rewards credit card, you may earn a percentage of each transaction back as cash back or miles.

Depending on your financial institution’s terms, you may be able to put those rewards toward a future home improvement project by redeeming them as a statement credit, a gift card, or even a direct deposit into your bank account.

To make the most of your rewards, you might look for a card with a higher rewards rate on purchases from home improvement stores. Or consider a card that lets you earn cash back on everyday purchases.

With the Discover it^® Cash Back Credit Card, you can earn 5% cash back on everyday purchases at different places you shop each quarter like grocery stores, restaurants, gas stations, and more, up to the quarterly maximum when you activate. Earn unlimited rewards on all your other purchases—automatically.

Credit card welcome offers

Some credit card issuers provide introductory offers to new cardmembers that may boost your rewards.

In some cases, you may have to spend a certain amount on your card within a set time frame to earn the bonus. Using your card for a large purchase related to your home renovation, like new kitchen appliances, may help you reach the minimum spending requirement.

Did you know?

You may reap the benefits of your renovation long after you finish your project. Discover^® automatically matches the cash back you’ve earned on your credit card at the end of your first year.¹

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Introductory interest rate offers

If you need to spread a major expense out over several months, you may want to apply for a credit card with a low introductory APR on purchases. Any balance you carry during the introductory period accrues interest at the lower promotional rate, making it easier to pay down your debt.

But budget wisely: To make the most of the introductory rate, you may need to make more than the minimum monthly payment during the promotional period in order to pay off your balance before the standard interest rate kicks in.

Credit card fees

Credit card fees may increase the cost of your home improvement project. Before you choose a credit card, weigh the potential benefits against the annual fee. Discover^® has no annual fee on any of our cards.

Other fees to keep in mind include balance transfer fees, cash advance fees, foreign transaction fees, and late fees.

Alternatives to using a credit card for home repairs

The best financing solution for your home improvement project depends on your unique situation. Using a credit card for your renovations and repairs may be a sensible option if you know you have the means to repay the balance before interest starts to accrue. Otherwise, you might consider home loans or a savings account for your home improvement goals.

Home equity loans

If you've owned your home for a while, you may consider a home equity loan (HEL). The National Credit Union Administration (NCUA) defines a home equity loan as a secured loan that uses your home as collateral. With a home equity loan, the borrower receives a lump sum of money and repays the loan in instalments over a set term.

If you can't repay your HEL monthly payments during the loan term, your lender may foreclose on your home, so it's important to assess your financial situation before applying.

Home equity line of credit

A home equity line of credit (HELOC) isn’t the same as a home equity loan. Like a home equity loan, a HELOC requires your home as collateral. But unlike a home equity loan, a HELOC is an open-ended line of credit rather than a lump sum, according to the NCUA. You may borrow from the credit line as needed throughout the draw period of the loan. You then repay the money you borrowed from your HELOC over a set repayment period after the term ends. As with a home equity loan, your lender may foreclose on your home if you don’t repay your HELOC.

Cash-out mortgage refinance

If you’ve lived in your home for a few years, you may qualify for a lower interest rate than when you bought the property. If so, you may consider refinancing your home. Refinancing involves taking out a new home loan to pay off your existing mortgage, according to the Consumer Financial Protection Bureau. The new loan terms replace your previous terms, so your interest rate, monthly payment, and the length of your loan may change.

If you refinance with a larger mortgage, you may be able to cash out a portion of the remaining amount along with some money from your home equity, which may help you pay for repairs, remodels, or renovations.

Refinancing your mortgage means resetting the clock on your loan term. So, it may take longer than you anticipated to pay down the debts from your home improvement project.

Personal loans

If you haven't built much home equity yet, you may be able to use a personal loan to pay for home improvements. Unlike home equity loans, some personal loans may be unsecured. Unsecured loans don’t require collateral, like your house. While secured loans tend to have lower interest rates, an advantage of unsecured personal loans is that they don’t necessarily put your property at risk.

Savings

Maybe a home renovation project is a longer-term financial goal for you and your family. In that case, you may want to open a savings account specifically for your home improvement goals. Build your funds by automatically transferring a portion of each paycheck into your home improvement account. By being consistent, you’ll be able to grow the money you need to bring your vision to life.

The bottom line

A home improvement project is often a major financial endeavor, but the right kind of financing may make it easier. The best choice for you depends on the scope of your project, your credit history, and your financial goals.

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