Using a credit card isn’t ideal because the roofing company may incur extra costs when they process your payment. When dealing with a large sum of money like $10,000, the 3-5% transaction fee that your credit card may charge you can really add up.
As a result, practically all roofing companies that take credit cards will charge the customer more to cover their costs if they pay with a credit card. Your credit card’s benefits and bonuses will determine whether or not it’s best to use the card to pay for a roof replacement or other significant home improvement.
Personal Loan
Can I get a personal loan to pay for a vinyl window replacement or a new roof? You might be able to use a personal loan to pay for your roofing job, though the specific terms and conditions of loan acceptance will differ from lender to lender.
Financial institutions like Bank of America, Chase Bank, Wells Fargo, and even your town’s own bank are typically the ones who provide the capital for borrowers seeking personal loans.
If you decide to go this path, it’s in your best interest to compare prices across providers so that you can save costs over time. Before beginning your search for a lender, you should prioritize the criteria for which you have the most flexibility in terms of interest and repayment.
When looking into a personal loan, the two most important considerations are the loan’s terms and the interest rate. Different loans will have different terms, with some lasting only two to six years and others lasting fifteen or more. Lenders set their own interest rates, which can range from around 5% to far over 20%, taking into account borrowers’ credit histories, income levels, and perceived creditworthiness.
Home Equity Loan
Mortgage illustration using a stack of coins and a miniature plastic house model. The Federal Trade Commission defines a home equity loan as “a loan for a fixed amount of money that is secured by your house.”
These loans function similarly to a mortgage in that you make consistent payments over time. If you pay $99 per month for ten years, you will have paid $990 total. If you have equity in your house and prefer a fixed interest rate and regular payment schedule, a home equity loan may be a good option for you.