Looking to give your home a serious makeover? Whether it's in preparation for selling your home or just making your house into your dream home, it's possible to get a loan to help you realize your grand redecorating dreams.
And you have several financing options, especially if you just need to give a room or two a quick facelift. Each financing option has its own pros and cons, so make sure you do your research and pick the right one for your needs.
1. Home Equity Loans & Lines of Credit
Owned your home for awhile and built up some equity? You may be able to tap into that equity and pay for your redecorating plans with a home equity loan or line of credit.
With a loan, your lender gives you the total loan amount upfront. With a line of credit, you get a credit line that you can draw on little by little as your home makeover takes shape. This can be a better option if your redecorating plans lean more toward a remodel than just a quick sprucing up since they can be bigger budgets.
2. Personal Loans
If you don't want to touch your home's equity (or if you are a renter), a small personal loan from your bank or credit union may cover your redecorating costs. With just a few thousand dollars, you can transform your home with furniture or home improvements that will last many years. This can be a good option if you don't have enough equity in your home but have a relatively large budget.
3. In-Store Financing
Do you need a new bedroom or dining room set? Has your kitchen table seen better days? Or are you living without one? Many furniture stores and retailers offer their own financing plans for major purchases.
Before you buy that new dining room set, take a close look at the financing terms. How long do you have to pay off your purchase before a hefty financing rate kicks in? Six months? A year or more? Before agreeing to the financing, make sure you have a plan for paying off your purchase in full before any sky-high interest gets applied.
4. A Credit Card With a 0% Intro Rate
Another affordable way to borrow for your redecorating dream is to use a credit card with a 0% interest rate for a year or more. Again, good planning is key. Swipe your card only when you are certain you've found the best decorating deal. And then sit down and make a plan for paying off the balance before the card's much higher standard annual percentage rate kicks in. Keep in mind that maxing out a credit card, even if you pay it off at the end of the 0% financing term, could have a negative impact on your credit in the short term.
Keep an Eye on the Bottom Line
To keep redecorating costs from breaking your budget, use a mix of new and used furnishings. Shop thrift stores for unexpected bargains and shop clearance, end-of-the-season and holiday sales for big discounts on new items from department stores and other major retailers.
Got your heart set on specific item? You may be able to find it for less online. Just make sure you are dealing with a reputable seller.
Borrow only what you need. And pay as agreed on your loan, credit card or in-store financing.
Before you apply for financing, it's a good idea to check your credit score. (You can see two of your scores for free every month on Credit.com.) Personal loans, home equity loans, credit cards and in-store financing all come complete with a credit check and that credit check will determine your interest rate. If you can check your credit scores before you apply for these loans, you can save hundreds (maybe even thousands) of dollars over the life of the loan by improving your score (you can calculate the lifetime cost of your debt with this nifty tool).
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