$300 – $400 a window? Sure, not bad. But if you’re trying to improve your home’s energy performance or just swapping out aging, failing windows, often a single window replacement is not going to cut it. And when you multiply that $300 – $400 by all the windows in your home – not to mention installation costs, things can get expensive very quickly.
You might have some money stashed away or not, either way, you do have some options at your disposal to help you cover the cost of this project. In fact, Discount Windows has a lending program available that can get your windows installed fast.
Here is what you need to know about window financing.
Paying Cash for Your Replacement Windows
Benefits
- You avoid paying interest if the loan is not paid off within the Free Financing Terms.
- Credit history and FICO scores do not limit your options.
Disadvantages
- Depleting your savings account means you’ll have less cash on hand for emergencies.
- If your money is earning substantial interest, you’ll forfeit the interest income until you build up your account again.
- Missing out on some tax benefits.
- Are you planning on buying big-ticket items coming up in the near future? Are you planning an extended vacation? Thinking about buying a new car? What about emergencies?
- If you think you might have to resort to using credit cards to pay for expensive items in the near future, consider how that will impact your finances. Credit cards typically have higher interest rates than personal loans. Either way, draining your savings account now could impact your budget in the future.
Paying Using a Personal Loan
Benefits
- You won’t need to offer your home as collateral. Since a personal loan is unsecured, your loan amount will be backed by your credit history and risk. That means you won’t have to forfeit your home if something goes wrong.
Disadvantages
- Your interest rates may be higher. Like any unsecured loan, personal bank loans tend to have higher interest rates.
- You may need to have outstanding credit to be eligible. Banks don’t give out loans lightly. Typically, lenders like your score to be in the high 600’s or better, and other factors, like the portion of debt you have on your credit cards, may also factor in, too.
Using Your Existing Credit Cards
Benefits
- You won’t need to apply for a new credit line. Having a credit card cuts out the approval process—and means you won’t have to open a new credit line, which can sometimes affect your credit score.
Disadvantages
- Carrying too much debt on your credit cards can harm your credit. Depending on the number of windows you need to replace, and the types of options you choose to go with, a full window replacement could run you in the tens of thousands of dollars. Most finance experts recommend that you only use about 30 percent of your credit card’s credit line to keep your credit in good health.
Financing Through Discount Windows
Benefits
- Great time to borrow, 0% interest available for 18 months through Discount Windows.
- You can take advantage of tax deductions for interest on home improvement loans.
Disadvantages
- Adding another monthly payment might strain the family budget and you’ll have less disposable cash from each paycheck.
No matter what kind of method you choose to finance your project, though, try to pay it off as quickly as possible so you can save—and enjoy your new windows debt-free!
