Putting your next home renovation on a credit card could cost you


Suzanne Kreiter | The Boston Globe | Getty Images

A construction worker remodels a home in Cambridge, Massachusetts.

Plastic might be a trendy component of your next home remodeling project. No, not as a design element — as a source of funding.

Last year, 1 in 3 homeowners paid for at least part of a renovation project with a credit card, according to a new report from home remodeling and design platform Houzz and financial services provider Synchrony.

The typical card payer spent a median $10,000 on renovations, and charged $1,500 to $4,800 of that total. Just 5 percent of homeowners used a credit card for their entire remodeling tab.

(The report was based on credit card usage data from Argus, as well as consumer responses from the annual Houzz & Home Study conducted this spring with Synchrony. That survey subset comprises 72,384 homeowners who renovated their primary residence last year, 10,602 of whom paid for a portion of their project with one or more credit cards.)

All told, the companies estimate, consumers used credit cards for $141 billion in home improvement products and services during 2017, a 13 percent increase from 2016.

Source : CNBC