People looking to make home improvements are eager to find the best way to finance their projects. Still, home improvement contractors also have a reason to care about their customers’ financing options. Paying in cash is the most common, but providing the flexibility of multiple payment options opens your business up to more customers. Equipped with knowledge, you can open up the best avenues and help them know which option might be best for them. Concerning financing with credit vs. debit, one should know the following.
What Is a Credit Card?
A customer builds debt when using a credit card, although it is an efficient way to pay for something quickly and pay back in increments or in full. On the contractor’s side, you will be charged a fee from your payment processing company, and a lender will give you the cash. The customer must pay back the lender.
What Is a Debit Card?
A debit card is the same as cash, except that it takes money directly from the customer’s bank account. The convenience of a card instead of cash makes debit cards handy. Like credit cards, debit cards have the same extent of fraud protection.
Financing Home Improvements with a Credit Card
Financing with a credit card is doable and one of the top options if the customer is not paying in cash. One can use one or more credit cards to finance home improvement projects. Customers who finance with a credit card are more likely to pay more and may use it to build their credit or gain rewards. The ultimate danger is that the credit card holder will not pay back on time.
Financing Home Improvements with a Debit Card
A person is usually more careful about how much they spend when using cash or debit, helping keep them within their budget. Given that debit cards have the same amount of fraud protection, it is an equally safe choice. Customers and contractors can exchange funds in one step without monthly payments or lenders in between.
Financing with Credit vs. Debit
According to Ramsey Solutions, paying with debit is a better choice for the customer. Although it is a common suggestion to finance with a credit card, paying with debit is a sounder solution. If you are interested in opening up the options to pay with debit, credit, or both, contact Pure Finance Group!
Pure Finance Group Is Here to Help!
Thank you for your interest in Pure Finance Group. We’re so excited you’re here. For more information on how our lending services can help you with your home financing needs, give us a call (410-401-4957) or fill out the form on our contact page today. If you have a question about any lending services we provide including home improvement loans, we are here to help answer all your questions. Just give us a call (410-401-4957) or contact us today. To keep up-to-date with the latest financing tips and solutions, keep in touch with us on Facebook and LinkedIn!