Most approved builders and contractors will accept a credit card as a method of payment – although they may prefer payment in cash for smaller jobs. Even the Federal Trade Commission (FTC) states that using a credit card is a recommended way to pay contractors. Homeowners trust consumer protection authorities like the FTC, and may only accept bids from contractors who let them pay by credit card.
Credit Card Payments and Fees
One thing to be aware of with credit card payments is that they come with a small processing fee. But the benefit far outweighs the cost! If you have other loan options available (like a home equity loan), you’ll save extra money over time compared to using a higher interest credit card.
These transaction fees can range from 3% – 5% depending on the card you’re using, which adds up to a significant amount when you’re talking about a $10,000 price tag.
For this reason, almost all roofers who accept credit cards will pass these fees on to the buyer if this method is selected. However, using a credit card to finance your roof or other major home improvement project may still be optimal if there are related rewards and/or bonuses to be earned.
Financing Options and Considerations
If you anticipate paying off the full amount in a month you don’t have to worry about the interest rate. If you have to replace your roof and have no insurance coverage, your choices are limited to financing through the contractor, the bank or a credit card. Try to find financing that you can both afford and has a low-interest rate.