Personal loans or credit cards, which is a better financial product for making big purchases?
By: Hitesh Khan/
Image credit: Hloom via Flickr
Should you use a personal loan or credit card when making major purchases? Assuming that you have good credit and can qualify to borrow money, here are some things to consider when choosing between the two financial products.
Best interest would determine the financial product you should use for big purchases
The first thing most people look at when borrowing money is the amount of interest being charged. It usually isn’t a problem to find personal loans with fixed rates. Having a fixed interest rate means there won’t be any surprises when you receive your loan statement. You’ll always know exactly how much to set aside each month for your loan payments.
Credit card interest rates sometimes fluctuate. While you may initially be offered a low introductory
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Americans pay a pretty penny to upgrade their homes every year.
In 2019 alone, homeowners spent an average of $7,560 per year on home improvement renovations, according to a HomeAdvisor report.
It’s inevitable — no matter how careful you are with your budget, unexpected costs will always arise with renovation projects large and small. But, if you use the right credit card, you can save on these expenses and even benefit from added perks like cash back, promotional financing and more.
Below, CNBC Select rounds up the best credit cards for home improvements so you can earn rewards while remodeling your home (and potentially raising the resale value) — no matter what kind of project you have planned.
Best credit cards for home renovations
A fraudster admitted to using fake credit cards in multiple states – specifically Connecticut – to steal thousands of dollars from Lowe’s.
New York City resident Larell David, 30, of Manhattan, pleaded guilty in Bridgeport this week to a scheme through which he defrauded the home improvement store out of more than $183,000.
Specifically, David was charged with one count of access device fraud.
U.S. Attorney John Durham said that between July 2017 and March 2018, David produced more than 100 counterfeit credit cards in the name of “Kevin Douglas,” which were encoded with legitimate credit card numbers belonging to other people.
David then used the fraudulent credit cards to make more than 350 purchases of gift cards and merchandise at Lowe’s home improvement stores in Connecticut, Rhode Island, New York, New Jersey, Pennsylvania, Virginia, West Virginia, and Florida.
Durham said a typical fraudulent transaction involved the purchase of one
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- If you’re sprucing up your space, make sure to think long and hard about how you’ll pay for the project.
- Covering for your home or landscaping remodel with a credit card can yield some significant benefits, including 0% APR, cash back, or travel rewards.
- Some of the best rewards credit cards let you earn a significant sign-up bonus as well, which can