Should I finance my renovations via credit card?

[Lisa Marie]

Dear BP,

I closed on my first home/investment property. An old, out-dated home with a ton of potential. The max I want to go is $15-20K.

Rather than using my own cash, I was thinking about financing the project for a year with a 0% interest credit card for the first 12 months. Seems to be better than taking out a loan from a bank. Also, I'll need minimum contracting work (they'll only be hired to do finishing touches). Everything else I plan to DIY with two guys that have knowledge in contracting and purchasing material from Home Deport/Lowe's and having them install it for me (flooring, countertops, ect).

Before I get anyone jumping on my case, I just want to mention that I am meticulous with personal finance. I've never paid interest once in my life to a credit card company, and my credit score is excellent. I won't have any issues getting a high limit either. In other words, I'm responsible.

Has anyone done this before?

The card I have in mind is the Discover double cash back (ex: you earn $100 back, they double it to $200), but I'm also thinking that some places don't take Discover so I may look into a new card.

Details that caught my eye:

• We'll DOUBLE all the cash back you've earned at the end of your first year. So if you earned $101 cash back, we'll double it to $202—Automatically. Only for new cardmembers.*

• 5% cash back in categories that change each quarter like gas, restaurants, home improvement stores and more -up to the quarterly maximum when you sign up.

[Will Barnard]

Let's see, borrow from credit card at zero interest or borrow from bank it private lender at a high interest rate? After careful consideration, I will go with free interest.

All kidding aside, anytime you can get low or no interest, use it, of course it goes without saying that using leverage prudently is key.