Should I use a 0 APR credit card for financing a rehab?

Question

Hi,

My plan is to close the property, sign up for a new credit card offer, and use that line of credit to finance the rehab. After 6-12 months, I would like to refinance and pay off the debt + interest then. However, one thing I am worried about is that since this would be a new credit card, it would have a low credit limit (not enough to fully finance a rehab).

What would you say is the best credit card to use for financing a rehab? I have read about a lot of credit cards that provide 0% APR for the first 15 - 18 months, which would be perfect for financing a rehab! In your opinion, which credit card would you say the best offer?

I would love to hear your guys input on if you use this strategy and if it's a viable to do. And if you do use it, how do you overcome the small credit limit? Or do you ask for a higher credit limit in the beginning?

Thanks.

David de Luna · Answer

Without capital, I would use multiple cards, get a Paypal, Discover, you-name-it loan with, yes, high interest. You do what you can to make it happen. Just spend wisely and get the cards paid down when you sell. Credit cards change all the time and lately they've been dropping limits due to so many out of work. You'll have to go to Nerd Wallet or some such to find the best cards. And nothing wrong with contacting a new card to ask to raise the limit. The answer is always no if you don't ask.

Should I use a 0 APR credit card for financing a rehab?

1 Reply