How New Credit Cards Can Help New Homeowners

The advantages of new credit card accounts may benefit homebuyers

How New Credit Cards Can Help New Homeowners
November 3, 2016

Research shows that new homebuyers usually spend more than existing homeowners who have lived in their home for a while, as there are typically additional expenses that go with making your new house a home. Take advantage of available credit card offers to help you manage these costs.

The National Association of Home Builders research revealed that new homeowners often spend around $3,600 more after the first year of purchase than those settled in their property for longer. Costs may be even higher for first-time buyers, who will have to furnish their homes. Although these purchases can be spread across store credit promotions, credit cards and savings, it's a good idea to take advantage of zero-interest introductory offers, which would give you more time to pay them off before interest starts racking up.

Many credit providers offer deals with free financing for a year or more. For customers with a good credit rating, these are relatively easy to get. However, credit expert John Ulzheimer warns that if you don't pay off the balance before the introductory offer expires, you may end up paying retroactive interest for the full period. Also, if you are making small repayments on a large balance, it's important to realize that having a high credit utilization ratio could negatively affect your credit score.

Buying a new home is an exciting prospect. It often comes with a lot of unexpected costs, particularly if a nasty surprise lurks within the building. Taking advantage of introductory credit card deals may make paying off these expenses more manageable.

If you want more credit, check out MoneyTips' list of credit card offers.

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Saving in WI | 11.03.16 @ 14:56
A better idea is save and pay cash for items as you go. Why do Credit Card companies offer "free" financing for a period of time? Because they know on average most people will not pay off the balance and the Credit card companies know they will make huge money on the interest. The worst thing new homeowners can do is open credit cards!
$commenter.renderDisplayableName() | 11.24.20 @ 09:57