Opening credit cards for remodeling purchases.

[Tim Coppola]

Greetings BPers,

What is everyones thoughts on opening a rewards credit card and charging remodeling costs (about $15k) on it? I know interest rates are higher on these cards and my credit score would take a hit (as opposed to using my existing card) but does anyone have any experience doing this? Is it worth it? Has anyone does this and had it affect them later?

Thanks in advance for your replies,

Tim

[Kyle J.]

You mention "rewards" but also "interest rate", so I'm just curious what is your intent is in opening a new card?  Is it to earn rewards or pay a low interest rate?  I have several rewards credit cards that I use for all my purchases, but the interest rate is very high.  However, that doesn't concern me because I always pay the balance in full and have never paid any interest.  If you are opening the card and charging on it just to earn rewards, but also plan on carrying a balance and paying interest, I think you'll end up losing money in the end.