When you need something for your home, it is always so easy just to reach for the credit card rather than take the time and research other means of financing. The credit is right within reach, you have already been approved, and you don’t have to ask anyone else for money.
But is it really the best way to go?
Reason #1: New Windows Don’t Have to Have High Interest Rates
The interest rate on your credit card most likely hovers around 14.5% (bankrate.com), if you have decent credit. For those that have less than perfect credit, most likely you are looking at 20-27% on your credit card interest.
If you pretended that you didn’t have a credit card and had to look for other financing, you would find there are much better rates out there. The simplest example is right here with us, the ones that are replacing your windows for you. If you qualify, you could finance your windows with a measly 2.99% interest.
You can also get a home equity line of credit to pay for your windows with an interest rate of around 5%. At the very least, check with your utility company for special government programs that provide low interest loans for homeowners that are installing energy-efficient windows.
Reason #2: New Windows Shouldn’t Take 30 Years to Payoff
By charging your new windows to your credit card, you have essentially entered a long term loan with your credit card company. If you are only paying the minimum balance on the credit card you used to purchase your windows, it could take you 30 years to pay off the windows. You probably won’t even be living in the same house by the time you finally pay them off.
And if you have other purchases on your card and are only paying the minimum balance each month, it will take years before your payment will even start going towards the amount you charged for the windows. This also means that the interest you are charged for that credit card will have increased the balance owed on the windows much higher than you originally charged before you even get a chance to make payments on it.
So do your research, and talk to your Renewal by Andersen representative about other financing options before you decide to say, “Charge it.”
