Best Credit Cards for Home Improvement or New Homeowners
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When you're renovating a home or buying a new one, you face a lot of new costs: Everything from floor tiles to furniture to food is suddenly on your shopping list.
Choosing the right credit card for those expenses can help you get the most out of your spending in the form of rewards. Here are our favorite credit cards for new homeowners:
Top credit cards for home improvement or new homeowners
Bank of America® Customized Cash Rewards credit card
Our pick for: Fixer-uppers
CARD DETAILS
Rewards:
3% back on a category of your choice and 2% back on grocery stores and wholesale clubs on the first $2,500 spent per quarter in these categories combined (1% after).
1% back on all other purchases.
Welcome offer: $200 online cash rewards bonus after you make at least $1,000 in purchases in the first 90 days of account opening..
Annual fee: $0.
APR: 0% intro APR on Purchases for 18 billing cycles and 0% intro APR on Balance Transfers for 18 billing cycles for any balance transfers made in the first 60 days, and then the ongoing APR of 18.24%-28.24% Variable APR.
WHY WE LIKE IT
The Bank of America® Customized Cash Rewards credit card allows you to choose a 3% category from a list of six, and the biggie for new homeowners will be "home improvement and furnishings." That doesn't just cover a weekend trip to Home Depot and Williams-Sonoma. Bank of America® notes "this category also includes contractors like plumbers, electricians, landscapers and carpenters." From air conditioning repair and antique shops to florists and floor covering stores, the list of what qualifies here is lengthy indeed, so take a look. You can change your 3% bonus selection up to once a month, and you'll also earn 2% back at grocery stores and wholesale clubs, on up to $2,500 in combined spend across 3% and 2% categories each quarter. If you're already a Bank of America® customer, you may qualify for even higher rewards rates through Bank of America® Preferred Rewards. Enjoy a lengthy 0% intro APR period, too.
DRAWBACKS
The $2,500 quarterly spending cap in bonus categories can be a bummer, especially if you're taking on large and expensive home improvement projects.
U.S. Bank Cash+® Visa Signature® Card
Our pick for: Filling and powering your home
CARD DETAILS
Rewards:
5% cash back on two categories of your choice from a list of several options (on up to $2,000 spent per quarter on combined purchases).
2% back on an everyday category of your choice, such as gas, groceries or restaurants.
1% back on other purchases.
Sign-up bonus: $200 bonus after spending $1,000 in eligible purchases within the first 120 days of account opening.
Annual fee: $0.
APR: 0% intro APR for 15 billing cycles on purchases and balance transfers, and then the ongoing APR of 18.99%-28.99% Variable APR.
WHY WE LIKE IT
With the U.S. Bank Cash+® Visa Signature® Card, you get to choose two 5% back categories from a list of several — and among the choices as of November 2021 were furniture stores; home utilities; TV, internet and streaming services; select clothing stores; and sporting goods stores. That covers a lot of ground for a new homeowner with a house to fill and power bills to pay. Plus, there's a nice 0% intro APR period if you need to finance that new couch or wardrobe. It's also worth noting that you'll get 2% back in a useful "everyday" category of your choice, including groceries for your new kitchen.
DRAWBACKS
Spending in 5% bonus categories is capped, and you'll need to opt in to bonus categories each quarter.
Citi Custom Cash℠ Card
Our pick for: Lower-cost appliances and home-repair projects
CARD DETAILS
Rewards:
5% cash back on up to $500 spent in your highest spend category per billing cycle.
1% back on all other purchases.
Welcome offer: Earn $200 cash back after you spend $1,500 on purchases in the first 6 months of account opening. This bonus offer will be fulfilled as 20,000 ThankYou® Points, which can be redeemed for $200 cash back.
Annual fee: $0.
APR: 0% intro APR on Purchases and Balance Transfers for 15 months, and then the ongoing APR of 18.49%-28.49% Variable APR.
WHY WE LIKE IT
The Citi Custom Cash℠ Card can earn you a 5% discount on supplies for your more minor home-maintenance and repair projects, as well as less costly appliances.
That’s because the card offers 5% cash back on up to $500 spent in your highest spending category for the billing cycle, and home-improvement stores is an eligible category. The great thing is you don’t have to think about it. Your top eligible spending category automatically earns 5% cash back.
DRAWBACKS
The $500 limit per billing cycle on 5% back isn’t ideal for big-ticket items like most new refrigerators or washer-dryer sets. Your spending over $500 in the top category earns just 1% cash back.
U.S. Bank Shopper Cash Rewards™ Visa Signature® Card
Our pick for: Savings at specific merchants
CARD DETAILS
Rewards:
Earn 6% cash back on up to $1,500 in combined eligible purchases each quarter with two retailers you choose, including Ace Hardware, Crate & Barrel, Home Depot, Ikea, Lowe's, Wayfair.com and more. (See full list below.)
Earn 3% cash back on up to $1,500 each quarter in purchases on your choice of one everyday category, including wholesale clubs, gas and EV charging stations, bills and utilities.
Earn 1.5% cash back on all other purchases.
Welcome offer: Get a $250 bonus after you spend $2,000 in eligible purchases within the first 120 days of account opening.
Annual fee: $0 intro for the first year, then $95.
APR: The ongoing APR is 18.74%-28.74% Variable APR.
WHY WE LIKE IT
The U.S. Bank Shopper Cash Rewards™ Visa Signature® Card earns a super-high cash-back rate at retailers where it’s easy to drop a pretty penny when you’re fixing up your house. In the 6% categories alone, you have the potential to earn up to $90 in cash back per quarter, which you can put right back into another home project (the to-do list never ends). And eligible retailers include not just the home improvement and furniture merchants mentioned above, but also Best Buy for home appliances, Bed Bath & Beyond for linens and kitchen gear, and Target and Walmart for, well, everything.
DRAWBACKS
You have to do some work to earn that 6% cash back — namely, picking the two retailers each quarter, or else you’ll earn only the base cash-back rate of 1.5%. Unless you have specific purchases in mind, it can be tough to anticipate where you’ll spend the most in the next few months. It can also be easy to exceed the quarterly $1,500 limit when you’re tackling a major renovation or buying rooms full of furniture.
And, of course, there’s the annual fee, which is $0. Other cards with customizable rewards feature no annual fee.
Blue Cash Preferred® Card from American Express
Our pick for: Stocking the pantry
CARD DETAILS
Rewards:
6% back at U.S. supermarkets on up to $6,000 per year in purchases (then 1%).
6% cash back on select U.S. streaming subscriptions. (Full list here).
3% back on transit including taxis, rideshare services, parking, tolls, trains, buses and more.
3% back at U.S. gas stations.
1% back on everything else.
Terms apply (see rates and fees).
Welcome offer: Earn a $250 statement credit after you spend $3,000 in purchases on your new Card within the first 6 months. Terms Apply.
Annual fee: $0 intro annual fee for the first year, then $95.
APR: An intro 0% intro APR for 12 months on purchases and balance transfers, and then the ongoing APR of 18.49%-29.49% Variable APR.
WHY WE LIKE IT
With the Blue Cash Preferred® Card from American Express, you can rack up an industry-leading cash-back rate while stocking your kitchen and setting up your entertainment center with streaming services. Plus, if you're driving more to get to and from your new neighborhood, you'll appreciate the 3% back at gas stations, or perhaps benefit from the 3% back on transit during your commute. Terms apply. Those are a lot of homeowner-friendly categories that will put more money back in your wallet.
DRAWBACKS
The annual fee can be a turnoff, and the $6,000 spending cap in the U.S. supermarket category can be frustrating, especially if you have a large family and spend a lot on food.
To view rates and fees of the Blue Cash Preferred® Card from American Express, please visit this page.
Citi® Double Cash Card
Our pick for: Simplicity
CARD DETAILS
Rewards:
2% cash back on all purchases: 1% when you make a purchase and 1% when you pay it off.
Sign-up bonus: None
Annual fee: $0.
APR: 0% intro APR on Balance Transfers for 18 months, and then the ongoing APR of 18.49%-28.49% Variable APR.
WHY WE LIKE IT
If you’re so busy managing your new household that you don’t want to also spend time thinking about maximizing different spending categories, the Citi® Double Cash Card might offer the simplicity you want. You'll get a high flat rate back on everything you buy, and you can redeem for statement credit, check or gift cards — all useful ways of purchasing items for your new home.
DRAWBACKS
The card's standard offer does not include a sign-up bonus, so at times its power rests on its ongoing benefits alone. And several credit cards outearn this one specifically for home-improvement and furnishing purchases.
Lowe's Advantage Card
Our pick for: Lowe's loyalists
CARD DETAILS
Rewards:
5% off eligible Lowe's purchases.
Special financing on purchases of $299 or more.
Sign-up bonus: N/A.
Annual fee: $0.
APR: The ongoing APR is 26.99% Variable.
WHY WE LIKE IT
If you shop at Lowe's a lot, this card's automatic 5% discount on almost all Lowe's purchases could hold significant value for you, especially as you make improvements to your new home. The special financing offer may also be useful for expensive items, but since it's a deferred-interest offer, you'll want to exercise caution. (Read on for more about why.)
DRAWBACKS
The offer of deferred-interest financing on larger purchases of $299 and up can be useful, but just be aware that deferred interest means that if you don't pay off the balance within the given time period (either six or 12 months), you'll be on the hook for all of the interest that accrued during that period, too. (If you do pay it off within the time frame, then you don't pay any interest.)
IKEA Visa® Credit Card
Our pick for: Ikea fans
CARD DETAILS
Rewards:
5% back on Ikea purchases (including Traemand kitchen installation and at-home assembly services from TaskRabbit, which Ikea owns).
3% back on dining, grocery and utility spending.
1% back on all other purchases.
Sign-up bonus: None.
Annual fee: $0.
APR: The ongoing APR is 21.99%, Variable APR.
WHY WE LIKE IT
The IKEA Visa® Credit Card can offer rich rewards if your new home seems to require endless trips to the megastore known for its Swedish meatballs and ready-to-assemble furniture. And if you don't feel like assembling that furniture yourself, the 5% reward rate extends to the assistance you pay for via TaskRabbit. Plus, the 3% reward category can be helpful to homeowners, whether they're paying energy bills or putting food on the table.
DRAWBACKS
Rewards are redeemable only at Ikea.
Amazon Prime Rewards Visa Signature Card
Our pick for: Amazon and Whole Foods fans
CARD DETAILS
Rewards:
5% back at Amazon.com and Whole Foods Market.
2% back at restaurants, gas stations and drugstores.
1% cash back on all other purchases.
Sign-up bonus: None.
Annual fee: $0, but you must be an Amazon Prime member. Membership costs $139 annually ($69 a year for students).
APR: The ongoing APR is 16.24% - 24.24% Variable APR.
WHY WE LIKE IT
If you have an Amazon Prime membership and plan to use it as you stock up on purchases for your new home, the Amazon Prime Rewards Visa Signature Card could help stretch your budget. Amazon sells essentially everything, so the 5% back rate could apply to a wide range of items, from furniture to food. Speaking of food, if you're a whole-hearted Whole Foods fan, you'll earn that same 5% rate as you shop for your pantry.
DRAWBACKS
If you're more of a Costco, Target or Walmart shopper than an Amazon one, you should consider one of those store credit cards instead. Each offers a competitive rewards structure that earns you bonus rewards or discounts for shopping at that particular retailer.
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