I Put $40,000 of Renovation Costs on a Credit Card. Here’s What I Got Back
When I tell people I put renovation costs on a credit card, I usually get one of two reactions.
Either they look at me like I’m reckless. Or they lean in and ask how.
Let me explain how.
First, the obvious warning
I am not suggesting you carry a balance on a credit card while renovating a property. Credit card interest rates — typically 20% to 28% annually — will destroy any rewards you earn and then some. This strategy only works if you pay your balance in full every single month.
If you can’t do that, stop reading here. This isn’t for you yet.
If you can, keep going.
Why renovation spending is a rewards opportunity
Fix-and-flip investors and landlords spend significant money on materials, contractors, appliances, and supplies. Most of that spending happens in a concentrated period of time — during the renovation itself.
That concentrated spending is exactly what credit card sign-up bonuses are designed to reward.
Most premium travel and cash back cards require you to spend a certain amount within the first 3 to 6 months to earn a sign-up bonus. A renovation project can hit those thresholds easily — sometimes in the first few weeks.
What I actually earned
On a recent renovation project, I was able to put approximately $40,000 of costs on credit cards. Here’s what that looked like across two cards:
Card 1 — Cash back card with 2% on everything: $25,000 in renovation spend × 2% = $500 cash back Sign-up bonus (after meeting spend threshold): $200 Annual fee: $0 Net reward: $700
Card 2 — Travel card with 3x points on select categories: $15,000 in renovation spend × 3 points = 45,000 points Sign-up bonus: 60,000 points (worth approximately $600 in travel) Annual fee: $95 Net reward: approximately $505 in travel value
Total across both cards: approximately $1,200 in value on spending I was going to make anyway.
That’s not life-changing money. But it’s not nothing either. On a deal where margins matter, $1,200 back on $40,000 in spend is meaningful.
What contractors and suppliers will actually accept
Not everything can go on a card. Some contractors charge a processing fee — typically 2% to 3% — for credit card payments. If the fee is higher than your rewards rate, it doesn’t make sense.
Here’s what typically works well for card payments:
- Home Depot and Lowe’s purchases
- Appliances
- Permit fees (some municipalities)
- Smaller contractors who don’t charge processing fees
- Property management software and tools
Here’s what usually doesn’t work:
- Large contractors who only take check or ACH
- Material suppliers with card surcharges higher than your rewards rate
The cards worth looking at for renovation spending
I’m not going to tell you exactly which card to get because the best card depends on your specific situation, credit score, and whether you prefer cash back or travel rewards. But here’s what to look for:
For cash back: Look for flat-rate 2% cards with no annual fee, or cards with higher rates on home improvement spending specifically.
For travel: Look for cards with large sign-up bonuses that you can hit through renovation spending, and points that transfer to airline or hotel programs you actually use.
For 0% APR: If you need short-term financing for a renovation and are confident in your repayment timeline, some cards offer 0% introductory APR for 12 to 18 months. This is not a long-term strategy, but it can bridge a gap.
The bigger picture
Real estate investors are running businesses. Businesses optimize every cost center they can. If you’re spending $30,000, $50,000, or $100,000 on a renovation and putting none of it on a rewards card, you’re leaving money on the table.
The math is simple. The discipline required — paying the balance in full every month — is not complicated. It just requires treating your renovation spending like business spending, not personal spending.
Run your own numbers before you decide which card makes sense for your next project.
Use the free Credit Card Rewards Calculator for Home Renovation below to see exactly what you could earn on your next project.