Redecorating your home with a credit card can be cheap
It is no news that one of the main purposes for which personal loans are requested is to reform and redecorate homes. So much so that according to the Illusion Barometer prepared by ConfiNote last year, throughout 2015, 12% of the loan applications went to make a reform and 8% to redecorate the home .
In fact, many banks and financial credit institutions have loans with specific conditions for these purposes. However, as indicated by the MakeMyCash comparator , if you do not have enough capital to redecorate your home and need financing, before applying for a loan it is advisable to assess the possibility of using a credit card . With these plastics you can buy different products to give a new image to your home at the best price and if you know how, even, for free. However, you should not forget that the interests of any card will most often be higher than those of a loan, so it is essential to know how to use them.
In any case, both products can be very useful to finance certain products depending on their price, the need you have and the situation in which you are. These are designed for a change of look of your house , but you can also think bigger and make comprehensive reforms and transform your home.
When is a card convenient and when is a personal loan?
We have already commented that many people choose to apply for a loan to finance the redecoration of their home, however, it is important that you know that if you use a card in certain situations, you can get better off standing.
However, first, it is essential that you know how the payment methods of these plastics work to make sure you are using them in the way that benefits you most . Credit cards allow you to have an amount of money (determined by the issuing entity) instantly and return it using two different payment methods. On the one hand, the total payment, that is, return the entire amount at the beginning of the following month at no cost and, on the other hand, the fractional payment with which we will reimburse the capital in different monthly installments that will include interest.
If, for example, you need to buy different products such as lamps, carpets, pictures, etc. that do not have a very high price, you can select the total payment method and you will only return the money you have used, without costs, at the end of the month. In this way, you can postpone the payment of the purchase a few days and deal with the following payroll. On the other hand, if we prefer small credits, we will probably have to resort to mini-credits that have a daily cost of around 1.1%, that is, for every 100 dollars requested to be returned after one month, we will have to return 133 dollars on average in total.
On the other hand, if you want to buy products of high amounts with a card, it will be better to resort to the fractional payment , since it will allow you to return the capital in comfortable monthly installments. However, in this situation you should consider the option of choosing a loan, since the interests of plastics tend to be higher. However, with the cards we will have the capital instantly and with the loan, probably not.
As we have said, both options may be appropriate, as long as we know how to use them and how each product can benefit us more in different situations .
What features should the perfect card have?
If you have decided to hire a card to meet the costs of redecorating your home , it is important that you also know what features to look for and identify which ones will benefit you .
First, it is important that you inform yourself about the commissions that the card may include , although the two most important are the commission for issuance and the maintenance fee (annual), since if they are not included, the card will be free year after year.
Secondly, you should look at the cost that will be applied to reimburse the money through the fractional payment method . The most convenient will be to hire a card with a lower than average interest rate, which is usually around 21%.
It is also important that you look at the possible discounts or returns that they include in different establishments, since you can save money on household products that you decide to finance.
Finally, if you do not want to change banks, it may be advisable to hire a card that does not require changing entities. In addition, this type of “plastics” do not usually require bonding.