If you are thinking about renovating your bathroom in the near future, the first question that comes to mind is “how are we going to pay for this?” When you start the process, stores will often attempt to get you to apply for a store or ‘retail’ credit card. This has become more and more common over the last several years. Unfortunately, most retail credit cards come at a very high interest rate.
Some retail credit cards can have an interest rate of 25% or higher. What makes a retail credit card so dangerous is the fact that you can continue to spend more money even if you don’t necessarily need to. It is very tempting to go grab a few extra tools and supplies even though they are not needed to complete the job. “Why not go get some more tiles, tools and accessories since the credit limit has not been maxed out?”
When you borrow money with a personal loan, you know exactly how much you have and how much you can spend. If you budgeted $7,000 to remodel your bathroom, a personal loan will give you access to exactly $7,000 in cash. This will help you to stay within your budget. If you go beyond your budget, you know that you have to stop and assess the project. This is easy to do with a personal loan but very difficult to do with a credit card.
It is also easy to make the minimum payment on a credit card every single month. If you do this, you will end up paying off the credit card for several years and potentially decades. With Nectar personal loans, we have a set amount of time in which you will pay back your loan. Once it is paid off, you do not have to worry about further interest charges or potential late fees because you forgot to make a payment by a specific date. To learn more about our rates and terms, click this link.
While a retail credit card is enticing, it is often much better to take out a personal loan if you are thinking of remodeling your bathroom this summer. This will keep you under budget and on track to pay the loan back in a specific amount of time.
*Nectar’s lending criteria and responsible lending checks apply.