Taking on any Type of Loan to Redecorate Needs Careful Consideration

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At times you will need to give your home a serious facelift internally and externally if you plan to sell your home. However, a serious makeover of your home may also be necessary to change the look and feel of the rooms in your home as you continue to live in.

In both the situations you will need money and a fair bit of it. If you do not have the cash in hand ready like most of the homeowners who do not have the habit of saving for such future requirements, there is nothing to worry or give up the idea entirely. This is because:

  • There are lots of sources from where you can get the required fund to make your house into a dream home with proper redecorating ideas.
  • These financing options are very useful and also very affordable which will give you an opportunity to meet with the need to give a quick facelift to one or couple of rooms.

However, before taking on such a loan you are requested to do your research to know the pros and cons of each and make the best choice as you would do by reading the debt consolidation reviews to select the best option. In order to make the right choice i suggest you go on Money Expert and ask the experts for guidance and there are also couple of things that you should keep in mind such as:

  • Match the loan requirements with your ability and affordability
  • Know what your requirements for a home decoration are
  • Make sure that you do not take on an amount that you cannot repay on time with its interests and
  • Have a contingency plan ready always.

It is essential that you borrow only the amount that you need even if you are offered a larger amount than that. Remember, it is not your money at any cost or in any ways and you will be legally obligated to repay it to the lender as per the clauses of the loan agreement between you two, whether it is for in-store financing, credit card purchase or any other.

Check your credit score

Credit Score Screen
Just like any other loan, before taking on a loan for redecorating your home, it is wise to take a look at your credit score. Ideally, by visiting Credit.com you can check two of your scores every month for free. Your credit score is very important because:

  • It is the most significant tool to a creditor to ascertain your eligibility for taking on a loan
  • It also helps the creditor to determine the rate of interest, term and tenure and the amount to be lent
  • It helps significantly to find out how able you are to repay it on time with the interest determined.

Whether it is a personal loan or a home equity loan, credit card or in-store financing, everything will come with a complete and thorough credit check. Checking your credit score before you apply for such loans will give you the chance to improve it if it is low. It will thereby save you hundreds and even thousands of dollars in interest that will be lowered due to your good credit over the life of the particular loan you take out.

Types of loans to consider

Types of loans
Once you are ready to take out a loan, next you should consider the types of loans that are on offer and choose the best one amongst these knowing the characteristics and pros and cons of each.

  • You can try out home equity loans in case you own your home and it has built up quite a bit of equity. You can tap into this equity and use the fund to pay up your home redecorating expenses. In this case the lender will give you the total loan amount upfront.
  • You can also try out a line of credit in which you can draw money in parts as you need during your home makeover project is on. This type of loan is more suitable for remodeling purpose rather than a spruce up redecorating plans as remodeling needs a much bigger budget.
  • Taking out a personal loan is another useful option if you do not want to involve your home or use its equity or even if you are renter. These are small amounts lent out by the banks and credit unions that comes with low interest and can cover your home redecorating costs. A personal loan is even very useful if you do not have a large enough equity in your home but have a comparatively large budget for redecoration.
  • In-store financing is a comparatively new concept but have become highly popular in the consumer market. There are several retailers and furniture stores that offer their own funding plans especially for the major purchases on mostly favorable terms. However, make sure you check out these terms before agreeing to such financing. Check on the time within which you need to repay the loan before the substantial funding rate kicks in. It can be for six months or even for a year or more but make sure you have proper plans to repay it in full before the sky-high interest starts to inflate the bill.
  • You can also fund your redecorating project affordably with a new credit card that comes with a 0% intro rate for a year or more. Once again, you will need to have a good planning here as well. Make sure that you use this card only when you have found the best home decorating deal and you are certain that you will be able to repay the balance well within the interest free period so that the high annual rate of interest does not kick in. Another useful thing to know here is that maxing out your credit card may have a negative impact in the short term on your credit even if you pay the balance off at the end of the 0% funding term.

The bottom line

Keep an eye on it! It includes your budget, redecorating costs, mixing new and used furnishings, shop in thrift stores, clearance and holiday sales, and online shopping and making sure you are dealing with a reliable seller.