Don’t automatically reach for your credit card when it’s time to buy new windows! Yes, your credit card is probably the easiest way for you to pay for those new windows, but in the long run it will most likely also be the most expensive. Instead, take the time to research other means of financing. For example, the company that you purchase your new windows from will most likely have their own financing or your local utility company may have special financing available if you are purchasing energy-efficient windows.
Don’t want to do that extra research to find other options? Here are a couple reasons why it may just be worth your time.
High Interest Rates
If you are like most Americans, the interest rate on your credit card is most likely between 13%-16% (bankrate.com). For those that have less than perfect credit, the credit card interest is around 20%-27% on average. Now, if you look for other ways to finance your windows you are definitely going to be able to find much lower interest rates.
How much lower? Well, we are talking 0% to 5% interest.
Isn’t that much better than 13% – 27%?
To start, talk to the company you are purchasing your windows through to see if they offer financing. You may be surprised to find that they may not only offer financing, but it may also be interest-free financing. Also contact your bank about financing your windows with a home equity line of credit. Finally, your utility company may also offer or can at least direct you to the right local government entity that can help you get special financing for energy-efficient windows.
All of these options are most likely going to get your much better interest rates than your credit card company.
Your New Windows Could Take A Long Time to Payoff
By charging your new windows to your credit card, you have essentially entered into a long-term loan with your credit card company. You do have the option of paying whatever amount you want, as long as it is the minimum they are asking for. However, if you are only paying the minimum payment requested it could take you close to 30 years to pay off the windows. Wow!
Not only could it take you that long to pay off the windows, can you imagine the final amount you will have paid for your windows after you have paid all that interest?
So do yourself a favor and put your credit card back in your wallet, and start looking at other ways to pay for those new windows.