Americans pay a pretty penny to upgrade their homes every year.
In 2020 alone, homeowners spent an average of $8,305 per year on home improvement renovations, according to a Home Advisor 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
Best home improvement store card
Lowe’s Advantage Card
Information about the Lowe’s Advantage Card has been collected independently by Select and has not been reviewed or provided by the issuer of the card prior to publication.
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Rewards
5% off eligible purchases
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Welcome bonus
For a limited time, new accounts get 20% off a qualifying purchase, up to $100
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Annual fee
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Intro APR
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Regular APR
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Balance transfer fee
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Foreign transaction fee
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Credit needed
Who’s this for? Though store cards can have their drawbacks, such as low credit limits and high interest rates, homeowners who find themselves visiting home improvement stores often may want to take advantage of the benefits offered by the Lowe’s Advantage Credit Card.
The Lowe’s credit card offers an everyday 5% discount on eligible in-store and online purchases. It can’t be combined with other promotions and discounts, nor can it be used to pay for service charges like delivery and installation fees. Yet, this 5% can go a long way when you’re racking up a large bill on expensive items like light fixtures, tiling and cabinets.
If you have a larger project to finance, the Lowe’s Advantage Credit Card can also provide a decent 84-month fixed payment plan that acts similar to what you may get with a personal loan. If your project is not large enough for such a long financing period, you can opt for a more basic option of no interest on purchases of $299 or more when paid in full within six months.
Like every promotional financing period, in order to reap the full benefits of this card you must be diligent with your repayment plan. Make sure you pay the balance in full before the six-month offer ends to avoid interest charges. Continuing to carry a balance after six months will cause you to incur deferred interest, which is a charge for all the interest you accrued since the date you made your purchase.
Though this card has no annual fee, it has a high 26.99% APR, making it crucial that you pay your balance on time and in full each month.
Check out how the Lowe’s Advantage Card compares to the Home Depot Consumer Credit Card.
Best for buying tools and appliances
Citi Double Cash® Card
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Rewards
Earn 2% on every purchase with unlimited 1% cash back when you buy, plus an additional 1% as you pay for those purchases. To earn cash back, pay at least the minimum due on time. Plus, for a limited time, earn 5% total cash back on hotel, car rentals and attractions booked on the Citi Travel℠ portal through 12/31/24
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Welcome bonus
Earn $200 cash back after you spend $1,500 on purchases in the first 6 months of account opening. This bonus offer will be fulfilled as 20,000 ThankYou® Points, which can be redeemed for $200 cash back.
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Annual fee
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Intro APR
0% for the first 18 months on balance transfers; N/A for purchases
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Regular APR
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Balance transfer fee
For balance transfers completed within 4 months of account opening, an intro balance transfer fee of 3% of each transfer ($5 minimum) applies; after that, a balance transfer fee of 5% of each transfer ($5 minimum) applies
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Foreign transaction fee
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Credit needed
Who’s this for? Whether you’re painting a room or installing an extra light fixture, buying all those new supplies can add up. A card that lets you earn cash back no matter where you go and how frequently you shop can help you offset those small but consistent costs.
The Citi Double Cash® Card has an easy-to-use rewards program that lets you earn on each dollar you spend. Cardholders earn 2% cash back on all purchases, 1% when you make a purchase and an additional 1% when you pay your credit card bill. It doesn’t require quarterly activation and there’s no limit to how much cash back you can earn.
Although the Citi Double Cash Card doesn’t come with a ton of additional perks, it encourages good financial behavior since you lose half of your cash back when you forget to pay off your balance. This is certain to benefit you in the long run.
Best for financing a big-ticket remodel
Chase Freedom Unlimited®
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Rewards
Enjoy 3% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery services, 5% cash back on travel purchased through Chase Ultimate Rewards®, our premier rewards program that lets you redeem rewards for cash back, travel, gift cards and more; and 1.5% cash back on all other purchases.
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Welcome bonus
Special Offer: Unlimited Matched Cash Back. Use your card for all your purchases and at the end of your first year, Chase will automatically match all the cash back you earned! There is no limit to how much you can earn. Every dollar in cash back rewards you earn is a dollar Chase will match.
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Annual fee
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Intro APR
0% for the first 15 months from account opening on purchases and balance transfers
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Regular APR
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Balance transfer fee
Intro fee of either $5 or 3% of the amount of each transfer, whichever is greater, on transfers made within 60 days of account opening. After that, either $5 or 5% of the amount of each transfer, whichever is greater.
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Foreign transaction fee
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Credit needed
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Member FDIC. Terms apply.
Who’s this for? Credit cards with an introductory 0% APR offer buy you time to pay off large home improvement projects, such as remodeling a kitchen, gutting an old bathroom or finishing a basement.
With the Chase Freedom Unlimited®, you get one of the longest intro periods to finance these projects with no interest from account opening on new purchases and balance transfers over the course of 15 months (after, 20.49% – 29.24% variable APR). There’s an intro balance transfer fee of either $5 or 3% of the amount of each transfer, whichever is greater, on transfers made within 60 days of account opening. After that it’s either $5 or 5% of the amount of each transfer, whichever is greater. To really take advantage of savings over a year, we recommend that you make sure you can pay off the full balance before the introductory period ends.
In addition to using this card when planning a big-ticket remodel, it’s also good for everyday use with its 1.5% cash back on most purchases. You can also earn 5% cash back on travel purchased through Chase Ultimate Rewards®, 3% on dining at restaurants, including takeout, and drugstores.
There’s no annual fee, and rewards can be transferred to a Chase Ultimate Rewards® card. The card’s generous welcome bonus lets you earn unlimited matched cash back. At the end of your first year, Chase will automatically match all the cash back you earned.
Best for cash back on purchasing new decor
Discover it® Cash Back
On Discover’s secure site
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Rewards
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. Plus, earn unlimited 1% cash back on all other purchases-automatically.
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Welcome bonus
Discover will match all the cash back you’ve earned at the end of your first year.
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Annual fee
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Intro APR
0% for 15 months on purchases
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Regular APR
17.24% to 28.24% Variable
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Balance transfer fee
3% intro balance transfer fee, up to 5% fee on future balance transfers (see terms)*
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Foreign transaction fee
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Credit needed
Who’s this for? Improving your home usually entails some redecorating to match your fresh new space. For this, credit cards with a rotating calendar of cash-back categories can give you the most bang for your buck.
How? Some cards with quarterly bonus categories reward you for shopping at popular home decor retailers. If you wait to shop for home goods until the correct bonus quarter, you can make your design inspo dreams come true while also earning 5% back.
The Discover it® Cash Back is a no-annual-fee card that offers 5% cash back in rotating categories on up to $1,500 in combined purchases after you activate the bonus every quarter (then 1%). After you reach the $1,500 limit, you’ll still earn 1% on all eligible purchases. And if you maximize your spending in these categories, you could earn $75 cash back each quarter on top of the unlimited 1% cash back you automatically earn in all the other categories.
With this card’s unique welcome bonus for new card members in their first year only, Discover will automatically match all the cash back they’ve earned at the end of their first year. There is no limit to how much Discover will match.
Best for banking other rewards while spending
Chase Sapphire Preferred® Card
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Rewards
$50 annual Ultimate Rewards Hotel Credit, 5X points on travel purchased through Chase Ultimate Rewards®, 3X points on dining, 3X points on select streaming services and online grocery purchases (excluding Target, Walmart and wholesale clubs), 2X points on all other travel purchases, and 1X points on all other purchases
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Welcome bonus
Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That’s $750 when you redeem through Chase Ultimate Rewards®.
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Annual fee
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Intro APR
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Regular APR
21.49% – 28.49% variable on purchases and balance transfers
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Balance transfer fee
Either $5 or 5% of the amount of each transfer, whichever is greater
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Foreign transaction fee
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Credit needed
Who’s this for? Though you may be focused on seeing your home renovation to its end, it’s nice to have a credit card where your spending racks up rewards in other areas that may allow you to catch a break.
The Chase Sapphire Preferred is a travel rewards credit card with a low $95 annual fee and a decent welcome bonus. You can earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening, which is worth up to $750 when redeemed for travel via Chase Ultimate Rewards®. All that spending on your new renovation can help you earn rewards to use to cover the cost of a quick getaway.
You also earn 5X points on travel purchased through Chase Ultimate Rewards®, 3X points on dining and 2X points on all other travel purchases.
Find the best credit card for you by reviewing offers in our credit card marketplace or get personalized offers via CardMatch™.
Our methodology
To determine which cards offer the best value for remodeling a home, Select analyzed 234 of the most popular credit cards available in the U.S. We compared each card on a range of features, including: rewards, welcome bonus, introductory and standard APR, balance transfer fee and foreign transaction fees, as well as factors such as required credit and customer reviews when available. We also considered additional perks, the application process and how easy it is for the consumer to redeem points.
Since the home improvements you plan on completing may have a higher or lower cost than the average $7,560 per year Americans spend on home improvement renovations, we selected cards that have a good overall value in several common categories.
Information about the Lowe’s Advantage Credit Card has been collected independently by Select and has not been reviewed or provided by the issuer of the card prior to publication.
For rates and fees of the Discover it® Cash Back, click here.
Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.