Compared to renters; homeowners are often faced with additional expenses related to maintaining or updating their property. In many cases, some of these expenses are unavoidable such as replacing a leaking roof or your property taxes, but in some cases they may be elective such as a new kitchen. Either way, it’s worth exploring how credit cards can help you earn some extra benefits while spending on your home.

Get Rewarded

Consumers often use reward credit cards for everyday purchases to help rack up points for free flights or hotels. As a homeowner, you can rack up rewards points or cashback even faster by using your rewards credit card to pay for usual home expenses such as your property taxes, insurance and maintenance. Not all municipalities will let you pay by credit card; check your tax bill for your options. Services such as Paytm and Plastiq let your get around this issue, but charge a fee. Additionally, some credit cards come with welcome offers with spending requirements in exchange for a hefty reward; this is a great way to meet those requirements without altering your spending habits.

Buy yourself some time

As a homeowner you can find yourself facing unplanned expenses such as a furnace or appliance replacement. If you’re not covered under a warranty plan, you’re often stuck with a big bill to pay. This is where a credit card with a no interest or low interest period can help tide you over until you can afford to pay the bill. As long as you make the minimum payments, you won’t accrue high amounts of interest expense. In some cases, retail credit cards can even offer a deferred payment plan with no monthly payments for the duration of the offer.

A word of caution

Using credit cards to earn some extra rewards or defer an expense are great ways for homeowners to benefit. It’s worth mentioning that as a homeowner you should only use your card with the intention of paying off the balance within the grace period to avoid high interest charges. These charges can quickly diminish any benefits you may accrue from the rewards and make paying off your card difficult. For longer term loans, it’s always better to consider home equity lines of credit or other lower interest products.

Sean Cooper is the bestselling author of the book, Burn Your Mortgage: The Simple, Powerful Path to Financial Freedom for Canadians, available now on Amazon and at Chapters, Indigo and major bookstores, and as an Audiobook on Amazon, Audible and iTunes.