Best credit cards for new homeowners of October 2024
It’s never fun when something goes wrong with your home, but the right credit card can help make repairs less painful. CardRatings editors reveal the best credit cards for homeowners, DIYers, and people who are still renting, too. … View More
Looking for the best credit cards for new homeowners? Or maybe you’re on the hunt for the best credit cards for home improvement? Nobody could blame you, which is why we’re bringing you our top picks for the best credit cards for new homeowners from our partners.
It isn’t a secret that houses are expensive, but many homeowners are likely caught off guard by how costly it is to own a home beyond the mortgage. In the beginning, you’re buying a ton of furniture and maybe a lawn mower or some appliances, if the house didn’t already have some.
But even after that, it isn’t exactly always smooth sailing. Those appliances could eventually break. You may decide you want to remodel. Or maybe you’ll have to remodel because your basement has flooded, and homeowner’s insurance won’t pay for all of it. Perhaps your roof needs to be replaced, and homeowner’s insurance won’t pay for that either. Or maybe your dog has chewed a hole in your carpet, and you need to fix that.
You get the idea. There are a lot of reasons you might feel the need to look for the best credit cards for new homeowners – or best credit cards for home improvement. Either way, we have you covered. Read on for some ideas on the type of cards you may want to keep in your wallet now that you’re embarking on the journey of home ownership. View Less
List of Winners
- CardName – Best for no Annual Fees
- CardName – Best for Flexibility
- CardName – Best for Online Shopping
- CardName – Best for Home Improvement Projects
- CardName – Best for Intro 0% APR
- CardName – Best for Putting Your Kitchen to Use
- CardName – Best for Ordering In
- CardName – Best for Bulk Purchases
- CardName – Best for Escaping Chores
card_name discontinued_disclaimer
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Intro Offer: Earn an additional 1.5% cash back on everything you buy (on up to $20,000 spent in the first year) - worth up to $300 cash back! Plus, enjoy 0% intro APR for 15 months from account opening on purchases and balance transfers, then RegAPR.
The Annual Fee: AnnualFees
The Rewards: Enjoy 6.5% cash back on travel purchased through Chase Travel℠, our premier rewards program that lets you redeem rewards for cash back, travel, gift cards and more; 4.5% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service, and 3% on all other purchases (on up to $20,000 spent in the first year). After your first year or $20,000 spent, enjoy 5% cash back on Chase travel; 3% cash back on drugstore purchases and dining; and unlimited 1.5% cash back on all other purchases.
Credit Needed: CreditScoreNeeded
PROS:
- Combine points earned with this card with points earned through other Chase Ultimate Rewards cards to see your points back balloon more quickly.
- Unlimited 1.5% cash back is just the beginning of what you can earn.
- If you need to carry a balance, the intro 0% APR for 15 months on new purchases and on balance transfers is an added bonus. After the intro period, RegAPR APR applies.
CONS:
- The 1.5% rate on all non-bonus purchases is good, but to really make the most of your rewards this card requires a bit of strategy.
- If you travel internationally, be aware that a 3% foreign transaction fee is applied to all purchases made in a foreign currency.
Current Scores | Past Scores | |
---|---|---|
Overall Score | 78.9 | 85.0 |
Rewards Program Satisfaction | 7.8 | 8.4 |
Customer Service | 7.7 | 8.6 |
Website/App Usability | 8.0 | 8.9 |
Likelihood of Continuing to Use | 8.6 | 9.0 |
Recommend to a Friend/Colleague | 7.9 | 8.1 |
*Scores above reflect the results of surveys with actual cardholders. Full methodology below.
EDITOR'S NOTE
You might consider holding both CardName and CardName to maximize rewards. CardName earns cardholders unlimited 1.5% cash back while CardName earns 5% back up to $1,500 quarterly in combined purchases in bonus categories each time you activate, and 1% on non-bonuses categories. Since the rotating categories are usually popular everyday expenses, these two cards can go hand-in-hand as they allow you to maximize on the amount of cash back you can earn. Information related to Chase Freedom FlexSM has been collected independently by CardRatings and was neither reviewed nor provided by the card issuer
If you want to take things one step further, you might consider adding the CardName discontinued to your wallet as well. With this card, rewards are worth 25% more when redeemed through Chase Travel℠, and because Chase lets you combine all of your rewards into the account of whichever card makes them the most valuable, when you pool rewards under your Preferred® account all rewards will be worth extra when redeemed for travel.
card_name discontinued_disclaimer
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Welcome Bonus: Earn $200 cash back after you spend $1,500 on purchases in the first six months of account opening. This bonus offer will be fulfilled as 20,000 ThankYou® Points, which can be redeemed for $200 cash back. Additionally, enjoy an intro period of 0% APR for 18 months on balance transfers (then, RegAPR.
The Annual Fee: AnnualFees
The Rewards: Earn 2% on every purchase with unlimited 1% cash back when you buy, and an additional 1% as you pay for those purchases. To earn cash back, pay at least the minimum due on time. Plus, a special travel offer, earn 5% total cash back on hotel, car rentals and attractions booked on the Citi Travel℠ portal through 12/31/25.
Credit Needed: CreditScoreNeeded
PROS:
- With a 0% intro APR for 18 months on balance transfers, this is one of the top balance transfer cards available. After the intro period, a regular APR of RegAPR applies.
- The potential 2% total cash back offered by this card make it one of the most rewarding no-annual-fee flat-rate cash back cards on the market.
- Should you make a late payment, you won't have to worry about paying a fee the first time.
CONS:
- This card doesn't offer an introductory interest rate for purchases.
- Rewards will expire if you go 12 months without earning any cash back.
Current Scores | Past Scores | |
---|---|---|
Overall Score | 77.2 | 84.7 |
Rewards Program Satisfaction | 7.9 | 8.5 |
Customer Service | 7.5 | 8.4 |
Website/App Usability | 6.9 | 8.3 |
Likelihood of Continuing to Use | 8.2 | 8.8 |
Recommend to a Friend/Colleague | 7.7 | 8.4 |
*Scores above reflect the results of surveys with actual cardholders. Full methodology below.
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The Bonus: Earn a $200 statement credit after you spend $2,000 in purchases on your new card within the first six months.
The Annual Fee: AnnualFees
The Rewards: Earn 3% cash back at U.S. supermarkets, U.S. gas stations and on U.S. online retail purchases (up to $6,000 spent in each category per year, then 1%), and 1% back on other eligible purchases
Credit Needed: CreditScoreNeeded
PROS:
- Might as well take advantage of your new kitchen by whipping up a feast at home! Enjoy 3% back at U.S. supermarkets, up to $6,000 spent annually (then 1%).
- Online shopping can yield some truly unique finds, but it also offers access to great home decor and appliances. Shop for these items with this card and earn 3% cash back at on U.S. online retail purchases up to $6,000 spent annually.
- The welcome offer is solid for a card with no annual fee.
CONS:
- If you're counting on the card for high earning on online purchases, make sure you read the fine print. For instance, purchases that you order from a website, but pay for in-store don't qualify.
- Earning 3% back at U.S. supermarkets is a nice rewards rate, but if you spend heavily in this category you might want to consider the sister CardName discontinued instead. It charges an annual fee, but also earns a bit more on U.S. supermarket purchases.
- This isn't a great card for international travel as it charges a foreign transaction fee.
Current Scores | Past Scores | |
---|---|---|
Overall Score | 82.2 | 78.0 |
Rewards Program Satisfaction | 8.2 | 7.8 |
Customer Service | 8.1 | 8.1 |
Website/App Usability | 8.4 | 7.9 |
Likelihood of Continuing to Use | 8.8 | 7.7 |
Recommend to a Friend/Colleague | 8.1 | 7.6 |
*Scores above reflect the results of surveys with actual cardholders. Full methodology below.
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The Bonus: Earn a $200 online cash rewards bonus when you spend at least $1,000 on purchases in the first 90 days.
The Annual Fee: AnnualFees
The Rewards: Earn 3% cash back in the category of your choice - now with expanded categories, automatic 2% at grocery stores and wholesale clubs (up to $2,500 in combined choice category/grocery store/wholesale club quarterly purchases) and unlimited 1% on all other purchases. Choose 3% cash back on gas and EV charging station, online shopping/cable/internet/phone plan/streaming, dining, travel, drug store/pharmacy or home improvement/furnishings purchases.
Credit Needed: CreditScoreNeeded
PROS:
- The flexibility to choose the category in which you earn top rewards is potentially quite lucrative.
- Bank of America Preferred Rewards clients can earn 25%-75% more on each purchase depending on their Preferred Rewards tier.
- Besides choosing your 3% category, there's no need to "activate" in order to earn top rewards; in fact, any month you don't change your category, it will just stay the same as its been.
CONS:
- The option to chose your category for 3% earning is great, but you can only change it once per calendar month. If you forget to change it or your spending changes mid-month, you could miss out on top rewards.
- This card charges foreign transaction fees, so don't use it to make purchases in foreign currency or when you travel abroad.
Current Scores | Past Scores | |
---|---|---|
Overall Score | 81.1 | 80.2 |
Rewards Program Satisfaction | 8.1 | 8.1 |
Customer Service | 7.9 | 8.1 |
Website/App Usability | 8.6 | 8.1 |
Likelihood of Continuing to Use | 9.0 | 7.9 |
Recommend to a Friend/Colleague | 7.7 | 7.8 |
*Scores above reflect the results of surveys with actual cardholders. Full methodology below.
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The Bonus: While they aren't traditional rewards bonuses, you can think of the intro periods as a kind of bonus. Take advantage of 21 months of 0% intro APR on balance transfers from the date of the first transfer (transfers must be completed within four months), and for 12 months on new purchases (then, RegAPR).
The Annual Fee: AnnualFees
Balance Transfer Fee: BalanceTransferFees
The Rewards: This isn't a traditional rewards card, but the intro 0% APR periods are a huge reward in and of themselves.
Credit Needed: CreditScoreNeeded
PROS:
- If you need to transfer a balance, it's hard to beat this card's 21 month intro 0% APR offer (then, RegAPR).
- New cardholders also get a 0% intro APR on purchases for 12 months (then, RegAPR).
- This card doesn't charge an annual fee, and its regular APR has the potential to be quite low (RegAPR).
CONS:
- While one of the best zero-interest cards on the market, this card doesn't come with any traditional ongoing rewards.
- BalanceTransferFees
- Be aware of the foreign transaction fee if planning to travel overseas.
Current Scores | Past Scores | |
---|---|---|
Overall Score | 74.3 | 76.6 |
Features Satisfaction | 7.3 | 7.4 |
Customer Service | 7.4 | 7.8 |
Website/App Usability | 7.7 | 7.9 |
Likelihood of Continuing to Use | 8.2 | 8.2 |
Recommend to a Friend/Colleague | 7.2 | 7.6 |
*Scores above reflect the results of surveys with actual cardholders. Full methodology below.
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The Bonus: Earn a $250 statement credit after you spend $3,000 in eligible purchases on your new card within the first six months. You can also enjoy 0% intro APR on purchases and balance transfers for 12 months from the date of account opening, then RegAPR.
The Annual Fee: AnnualFees
The Rewards: Earn 6% cash back at U.S. supermarkets (on up to $6,000 in purchases each year, then earn 1%) and on select U.S. streaming subscriptions such as Spotify, Netflix, Hulu, and Pandora; 3% back at U.S. gas stations and on ground transit including trains, ferries, subways, taxis, ride shares, and parking fees; and 1% on other purchases.
Credit Needed: CreditScoreNeeded
PROS:
- By offering 6% cash back on up to $6,000 worth of U.S. supermarket purchases each year, this is considered by many to be the best rewards card for groceries.
- This card offers 0% intro APR on purchases and balance transfers for the first 12 months after opening an account (then RegAPR).
- The welcome bonus is easy to earn and could go a long way towards future grocery purchases.
CONS:
- American Express doesn't consider Walmart or Target to be a supermarket so you won't get 6% cash back on grocery purchases there.
- To get all the card's great benefits, you'll need to pay a AnnualFees
- Be aware of the foreign transaction fees: foreign_fee
Current Scores | Past Scores | |
---|---|---|
Overall Score | 78.5 | 78.2 |
Rewards Program Satisfaction | 7.6 | 7.8 |
Customer Service | 7.7 | 8.0 |
Website/App Usability | 8.1 | 7.7 |
Likelihood of Continuing to Use | 8.3 | 8.2 |
Recommend to a Friend/Colleague | 8.2 | 7.5 |
*Scores above reflect the results of surveys with actual cardholders. Full methodology below.
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The Bonus: Earn a one-time $200 cash-back bonus after you spend $500 on purchases in the first three months your account is open.
The Annual Fee: AnnualFees
The Rewards: Earn unlimited 3% cash back on dining, entertainment, popular streaming services and at grocery stores (excluding superstores like Walmart and Target); unlimited 5% cash back on hotels and rental cars booked through Capital One Travel (terms apply); 8% cash back on Capital One Entertainment purchases; and 1% cash back on all other purchases.
Credit Needed: CreditScoreNeeded
PROS:
- If you enjoy dining out (or ordering in), you probably won't find a better no-annual-fee card. This card offers unlimited 3% cash back on dining and entertainment.
- What's food without a show? You will earn 3% cash back on all entertainment purchases, including sporting events, concerts, etc., too. This is a great perk for those nights you need to get out of the house.
- This card has flexible redemption options, including the opportunity to use cash back to make purchases on Amazon.
- Enjoy intro 0% APR on new purchases and balance transfers for the first 15 months (then, RegAPR; balance transfer fee applies).
CONS:
- This card is a great choice for dining, entertainment, streaming, and grocery purchases, but you'll only get 1% cash back on everything else.
See our full CardName.
Current Scores | Past Scores | |
---|---|---|
Overall Score | 79.2 | 84.5 |
Rewards Program Satisfaction | 8.0 | 8.4 |
Customer Service | 7.5 | 8.4 |
Website/App Usability | 8.8 | 9.0 |
Likelihood of Continuing to Use | 8.7 | 8.5 |
Recommend to a Friend/Colleague | 7.5 | 8.4 |
*Scores above reflect the results of surveys with actual cardholders. Full methodology below.
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The Bonus: NA
The Annual Fee: AnnualFees
The Rewards: Earn 4% cash back on eligible gas purchases for the first $7,000 per year, and then 1%; 3% on restaurant and eligible travel purchases; 2% on anything you buy from Costco and Costco.com; and 1% on everything else.
Credit Needed: CreditScoreNeeded
PROS:
- This is the only co-branded consumer credit card for Costco customers, and it offers 2% cash back on Costco purchases.
- Even if you don't regularly shop at Costco, this card can be an excellent choice for gas rewards. Cardholders receive 4% cash back on up to $7,000 of eligible gas purchases each year, including those made at Costco.
- There is no annual fee for this card.
CONS:
- Rewards are issued only once a year and sent in the form of a certificate that can be redeemed for cash or merchandise at Costco.
- Cardholders forfeit rewards if they close their account prior to a rewards certificate being issued or if they fail to redeem a certificate by December 31 of the year it was issued.
- Gas purchases made at other supermarkets, superstores, convenience stores or other warehouse clubs will only earn 1% cash back instead of 4% cash back.
Current Scores | Past Scores | |
---|---|---|
Overall Score | 83.3 | 86.3 |
Rewards Program Satisfaction | 8.3 | 8.6 |
Customer Service | 7.7 | 8.5 |
Website/App Usability | 8.1 | 8.8 |
Likelihood of Continuing to Use | 9.5 | 9.3 |
Recommend to a Friend/Colleague | 8.6 | 8.4 |
*Scores above reflect the results of surveys with actual cardholders. Full methodology below.
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The Bonus: Earn 75,000 miles once you spend $4,000 on purchases within three months from account opening, equal to $750 in travel.
The Annual Fee: AnnualFees
The Rewards: Earn two miles per every dollar spent on every purchase, and five miles per dollar on hotels, vacation rentals and rental cars booked through Capital One Travel.
Credit Needed: CreditScoreNeeded
PROS:
- This is a solid all-purpose travel rewards card, offering an unlimited two miles per dollar spent on every purchase, and five miles per dollar spent on hotels, vacation rentals and rental cars booked through Capital One Travel.
- Among the perks offered is up to $120 credit for Global Entry or TSA PreCheck® applications.
- Frequent International travelers will appreciate that there are no foreign transaction fees.
CONS:
- Although the Venture Rewards program offers some transfer partners, your options are limited if you want to move miles to another loyalty program.
- It's manageable, but there is an annual fee to keep in mind.
Current Scores | Past Scores | |
---|---|---|
Overall Score | 83.3 | 76.0 |
Rewards Program Satisfaction | 8.2 | 7.7 |
Customer Service | 8.0 | 7.2 |
Website/App Usability | 8.4 | 8.2 |
Likelihood of Continuing to Use | 8.9 | 7.9 |
Recommend to a Friend/Colleague | 8.5 | 7.2 |
*Scores above reflect the results of surveys with actual cardholders. Full methodology below.
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What Are the Best Credit Cards for New Homeowners?
From decorating costs to yard upkeep, homeowner expenses can be all over the place, which is why we often recommend a good flat-rate cash-back credit card such as the CardName to new homeowners. It’s a no-annual-fee card, so that’s one less cost you have to worry about, and it offers rewards on all purchases made, so no matter what your expenses look like, you can rest easy knowing you’re getting rewarded for them.
Every homeowner will have specific needs though, so what’s best for one homeowner might not be ideal for another. When shopping for a credit card, evaluate your needs, and stick with a card that meets them. It doesn’t make much sense to apply for a card with great travel rewards if you hardly ever leave home, nor does it make any sense to choose a card just because it has a great balance transfer offer if you have no balance to transfer. These may sound like obvious things, but choosing a credit card can be an overwhelming process, and added perks can be distracting. Pick a card that rewards you for your spending habits, instead of trying to match your spending habits to a card’s rewards.
Which Credit Card Has the Best Rewards for Home Improvement?
The best card for your home improvement projects will depend on your needs, but it’s worth noting that the CardName does offer home improvement/home furnishings as one of the category options in which you can earn 3% cash back (on up to $2,500 spent quarterly in combined choice category/grocery store/wholesale club purchases).
Otherwise, any of the cards on this list could be helpful toward your home improvement project. Just take a look at the details, so you know you find the one that works best for your specific rewards goals and home improvement needs.
Can You Pay for Home Repairs With a Credit Card?
Absolutely. Now, if you’re hiring a professional to do your home repairs, some contractors may not take a credit card, and so it wouldn’t be a bad idea to ask, but these days, many professionals do.
In fact, it’s often a wise idea to pay for home repairs with a credit card because some credit cards will have cash back categories that say “home improvement and furnishings,” and that could include contractors like plumbers, electricians, landscapers and carpenters.
Meanwhile, if you’re getting supplies from a home improvement store, not only can you use a credit card, it’ll really pay off if you use one that gives you cash back or rewards points. Some credit cards offer more cash back– like 3% or 5%– if you spend money in certain categories, like home improvement stores.
You may also want to use a credit card with a 0% APR offer, if it’s a big home repair that you’d like to take several months to pay off without having to worry about incurring interest.
So in many cases, not only can you pay for home repairs with a credit card, you could save money by doing so.
How to Best Use a Credit Card for Home Repairs
Ideally, if you have to buy a lot of supplies from a home department store, you’ll want to use a credit card that is going to give you some cash back or rewards points when you make your purchase. Granted, you want to do that no matter what you buy.
That said, there are other tricks of the trade you might want to employ. Let’s say you have a really big home improvement project, like you’re renovating your kitchen, which, yeah, is a little more than a “home repair.” But in that case, you may want to apply for a credit card with a 0% intro APR period. Then you could at least pay for some, if not all, of the repairs and renovations with your credit card – but take your time paying it back within the introductory 0% APR period.
Also keep in mind that many credit cards have some really nice welcome bonuses. So if you are looking for a credit card around the time you’re going to be fixing up your home, things could work out very well if you get a card that pays you, for instance, $300 after you spend $500 in the first three months. You could spend $500 on a contractor or at a home improvement store and receive $300 cash back, which could then go towards more home repairs when needed.
Which Credit Card Bonus Categories Are Best for New Homeowners?
When you see that a credit card offers cash back or rewards points on a category that mentions wholesale clubs (like Costco and Sam’s Club), you’ll want to pay attention, since those stores can often have great deals on home supplies and home improvement tools.
You’ll also want to look for credit cards that have cash back categories that say, “home improvement and furnishings,” and that often includes more than home improvement and hardware stores. It might give you cash back if you employ a plumber, electrician, carpenter or even a landscaper. Even a florist might rate under “home improvement and furnishings.” It depends on each credit card and how they define their categories, but if you check the contract’s fine print, you’ll get a quick sense of what counts and what doesn’t.
Another not quite as obvious but helpful category is grocery purchases. Many supermarkets offer basic home repair and cleaning supplies, as well as storage products and decor items. Plus, because you probably don’t have as much money to eat out as you maybe did before buying your new house, it’s likely you’re eating at home a lot more, so you might as well earn rewards on your food purchases, too.
What’s the Best Way to Charge a Big Purchase for Your Home?
You want to go at this strategically. If it’s a big purchase, there may be no way around spending a lot of money, but it doesn’t mean you should go down without a fight.
If you know how to use them, credit cards can be an excellent tool for saving money. You could, for instance, use a credit card that offers you a decent amount of cash back for your purchases. If you have a credit card that pays more than typical for purchases made at home improvement or department stores for example, you could earn big on your purchase. You could also use a card that earns bonus rewards on all purchases, so you’ll benefit no matter where you shop.
Credit card welcome bonuses are another way you can benefit from a large purchase. These offers usually require you to spend a certain amount of money within a specific time frame, so applying for a new credit card with a mega welcome bonus right before you need to make a large purchase, could pay off.
Finally, introductory 0% APR offers could really benefit you if you’ve either just made a large purchase, or are about to. If you’ve already done the damage, focus on a card offering a 0% intro APR period on balance transfers. If it’s a new, upcoming purchase, it’s an intro 0% APR on new purchases offer that you’ll want to look for.
How to Maximize Credit Card Rewards
Smartly using a rewards credit card is an excellent way to put more money back in your pocket (something we imagine you’ll really appreciate now that you have a mortgage payment on your hands). Whether you’re taking advantage of a 0% intro APR offer, a card with no annual fee, or a card that offers rewards, there are a number of things you can do to ensure you’re making the most of your credit card:
- Use the right credit card. Seems redundant to even mention it, but you’d be surprised how often people stick to just one credit card, forgetting that they actually have another that would be better suited for the situation. If you have a credit card that earns you extra rewards on gas purchases, make sure you’re using that credit card each time you fill your car up. If you have a card that earns you more at supermarkets, use that card when you stock up on groceries. Etc. Different cards maximize different things. Be aware before you swipe and always use the best credit card for the situation. And on a similar note…
- Actually use your card. Again, it feels a bit silly evening mentioning it, but if you don’t use your card, you won’t earn rewards. Channeling every single purchase on your card and then paying your balance off each month only benefits you. If you have a credit card that earns you 4% cash back on dining purchases, don’t just stash it away when dinner is done. Use it for gas, groceries, new furniture, airfare, clothes, etc. (unless you have another credit card that’ll earn you more on those categories – see point one). Just because it offers a bonus in one category doesn’t mean you won’t earn in other categories as well. Remember, most rewards cards offer at least 1% back on all “other” purchases, and 1% back is better than none.
- Make sure you meet the bonus spending threshold before the introductory period expires. This goes hand in hand with actually using your card. If you sign up for a card that offers you a welcome bonus and you must spend a certain amount of money within a certain amount of time to receive this bonus, make sure you do just that. Even if you don’t think you’ll spend that much with your card every month, try and do it at least during the introductory period so you don’t miss out on the bonus.
- Pay close attention to offer period details. Some of the rewards cards we mention in this post offer a number of time frames you’ll want to be aware of. Whether it’s a rewards bonus period like we just covered above, a zero-interest introductory period for purchases and/or balance transfers, or rotating rewards categories, you’ll want to be sure to pay close attention to your card details. For example, the CardName card offers 5% cash back in rotating quarterly categories. If you’re looking to make a large purchase at a home improvement store, and the 5% cash back bonus is offered at home improvement stores between, say, January and March, you won’t benefit as much if you stock up on paint and other home supplies in April. Or say you want to use your CardName to refurnish your living room, but you need a little extra time to pay the cost off. It won’t help you much if you rack up a lot of interest-free debt, let it sit for 12 months (the length of the 0% APR intro period on purchases) and then decide to pay it all off at month 13 when the intro period is over and the regular rate of RegAPR applies. You’ll find yourself worse off than you started if that ends up being the case. Most issuers make these type of details pretty transparent to users. Just make sure you’re paying close attention.
Can a Credit Card Extend Your Purchase Warranty?
Often, yes. That’s one of the really wonderful benefits of many credit cards. Let’s say you buy a washing machine with a credit card, and it offers an extended warranty program, you’ll probably get a year of additional coverage on that appliance.
This won’t always be the case though so you’ll want to be sure you check the fine print. Some expensive items may be excluded, and of course, your credit card may not offer purchase warranty. Many do; some don’t. So, anyway, if that washing machine breaks down after, say, 14 months, two months after the manufacturer’s warranty has expired, you might be in luck. If you have an extended warranty thanks to your credit card, and you could get your money back or have your repairs paid for.
If you bought the same washing machine with a debit card, however, you’d be out of luck. Such is the magic of (many) credit cards.
Should I Apply for a New Credit Card Before I Buy a House?
Probably not. Of course, it depends what we’re talking about. An entire year before buying a house? Two years? Sure, go for it. But if you’re in that stage of home buying where you’re touring homes and lining up financing for a mortgage, it’s probably best to not apply for a new credit card.
Why? Because as a rule, mortgage lenders are a nervous group, and if they see that you’re looking to buy a house – which may well be the most expensive thing you purchase in your lifetime – and you’ve also just applied for a credit card, it could cause some hesitation. You could be the most responsible person in the world, but lenders aren’t just nervous – they have good imaginations. They start thinking (okay, really, it’s usually computer algorithms programmed to do the heavy thinking) that maybe this borrower is about to become overextended and will max out on the credit card and won’t be able to pay the mortgage. So once you’re getting close to buying a house, you will want to not make any sudden financial moves. A new credit inquiry could cause a slight dip in your credit score, and assuming you’re trying to get the best rates possible on your new home loan, you’ll want to steer clear of any risks that could jeopardize that. It’s best to not apply for a credit card or take out a car loan just before buying a home, and of course, make sure you pay all of your bills on time. In general, keep your credit record as spotless as you can.
Can I Get a Credit Card After I Buy a House?
Yes. That doesn’t mean you should though– but it also doesn’t mean you shouldn’t.
This is a tricky question to answer because everybody’s financial situation is different, and lenders can be a fickle bunch, and so if you apply for a credit card right after buying a house, you could easily find yourself denied a credit card, or you may find that getting approval is a breeze.
Most experts will tell you to wait at least a full business day before applying after your closing. As unlikely as it may seem, you don’t want to do anything that might cause your mortgage to fall through. Mortgage lenders get nervous if they think that, just as you’re buying a very expensive home, you’re about to put a lot of merchandise on credit.
But there are plenty of reasons to consider getting a credit card after you buy a house, which is why you may not want to wait too long. After all, you now have a house that you probably will need to fill with furniture. Maybe you need a bed, or sheets. You may need to buy a lawn mower. You may have a very empty house without another credit card.
That said, there’s also a good argument that you just bought a house, and you’re getting used to making the mortgage payments, and your credit score needs a little time to readjust to your new situation. So if you can wait a few months before applying for a new credit card, why not? Still, if you feel like your credit score is solid, and you want to get a new credit card a few days after closing, that’s entirely your call.
Can I Pay My Mortgage Payment With a Credit Card?
In theory, you can, but it’s probably better not to. You would think it would be easy as pie to pay your mortgage payment with a credit card. You can pay for everything else with a credit card, including pie. But not every company will accept credit cards, and that, as a general rule, includes mortgage lenders. They don’t like the idea of consumers paying off debt with another form of debt.
Now, is it possible to pay a mortgage payment with a credit card? Yes, there are third-party payment processors – Plastiq is a popular one – and you can probably use one to make a mortgage payment with your credit card. That said, they all charge fees to make those payments. So if you’re using a third-party payment processor to pay your mortgage with your credit card basis to, say, get cash back and save money, that doesn’t really make sense if you’re paying a third-party money. Even if you come out ahead, it isn’t going to be by much.
It may make sense to pay your mortgage using your credit card sometimes. If you need to make that mortgage payment immediately, because you’re late with the payment, and a credit card is the only way you can do it, for instance. But as a general rule, you should make payments for your mortgage directly from your bank account.
Personal Loans vs. Credit Cards
If you’re a new homeowner, chances are, you just took out the most substantial loan you may ever take in your life, and the thought of taking out another loan sounds unbearable. Life is full of unexpected surprises though, and finding yourself with a new financial burden (in addition to your mortgage) so quickly after buying a home can feel overwhelming.
If you’re looking to finance a project or to pay for an emergency situation, and you don’t quite have all the funds you need yet, you might want to see if you qualify for an intro 0% APR credit card. We talk about a few of our favorites above, but there are a plethora of other 0% intro APR credit card options to consider as well. Some of these cards offer 12, 15, and even 18 month introductory periods where you won’t have to pay interest on new purchases during that time frame. Pick the right card and you can easily spread out your payments over a year to a year and a half without paying interest or fees.
If You take this route though, you’ll want to be sure to pay off your balance before your zero-interest introductory period ends, as the standard APR will then kick in, and standard credit card rates are rarely cheap forms of a loan.
Jennifer Doss is a credit card analyst and the executive editor of CardRatings.com. She has worked as both a print and online journalist and has over a decade of experience in the media industry. Her published work has covered a broad range of topics, from finance and technology to travel and dining. Through extensive travel experiences and her personal interest...Read more
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