Credit cards for rehab

Credit cards for rehab

Member since 2020 · 30 posts · 25 votes

I'm about to start 2 rehab projects. I have 7 credit cards currently. I'm hesitant to open more credit cards to take advantage of 0% APR for 12+ months as this is just more credit cards and I also want to make sure I do what's best for my credit score as well.

If I don't open credit card then I'm borrowing money from heloc. what's best strategy? Any strategies I may be missing? Logic says open another credit card to avoid paying using heloc, but there's got to be better methods. 

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  • Vijay FriedmanBusiness Member
    Miami, FL · Member since 2026 · 766 posts · 123 votes
    2mo
    Quote from @Vitaliy Zima:

    I'm about to start 2 rehab projects. I have 7 credit cards currently. I'm hesitant to open more credit cards to take advantage of 0% APR for 12+ months as this is just more credit cards and I also want to make sure I do what's best for my credit score as well.

    If I don't open credit card then I'm borrowing money from heloc. what's best strategy? Any strategies I may be missing? Logic says open another credit card to avoid paying using heloc, but there's got to be better methods. 

    @Vitaliy Zima
    With two rehabs starting, I'd also compare the HELOC/card route against financing the projects with a rehab loan. Depending on the purchase price, rehab budget and ARV, you may be able to finance a good portion of the rehab and preserve your revolving credit and HELOC for contingencies. I'd look at the total cost and liquidity impact of each option, not just the 0% promo rate.

    DreamPoint Capital
  • Erik EstradaBusiness Member
    Lender · Member since 2022 · 6k+ posts · 1k+ votes
    5d

    The 0% credit cards are not the best strategy for rehabs. There is a lot that can go wrong and getting stuck in one of these after 12 months is killer..

    Getting a line of credit with manageable payments is a better alternative.

    LuxePrivate Investments LLC 572 Reviews
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