Using credit for home improvements: the best way for customers to buy

For most homeowners, taking the decision to go ahead with a home improvement project is a major purchasing decision.  Some customers will have a couple of repayment options open to them, but buying on consumer credit has several benefits and could be the most attractive and convenient way for them to buy.

Why using credit for to pay for home improvements can be the best option for your customers…

Let’s look at the options available to customers and compare them against finance products provided by Consumer Credit Solutions.

Personal savings vs consumer credit

Some customers will have the disposal income to save up and then pay for a major purchase, such as a new bathroom, replacement windows, or hot-tub. But research shows that for most people relying on savings is not an option. Figures for savings vary, some studies show the average household has just a few hundred pounds while others have the amount as being closer to £2000. Either way, this is substantially less than the money required to pay for most home improvements.

Using credit for home improvements allows your customers to buy without compromising on what they want or need – and it allows them to make affordable monthly repayments. If they do have any savings then they can hold on to them for a ‘rainy day’.

Credit card vs consumer credit

It’s true that using a credit card will give customers the same protection under the Consumer Credit Act that they get when buying on finance. But using a credit card is not always practical. Interest rates can be higher, much higher, than buying on finance, and the customer may need to have savings in place in order to clear the outstanding balance quickly.  There might be a limit on how much can be spent on the card too.

Personal loans vs consumer credit

When making a large purchase taking out a personal loan could be an option, but it does means that customers will need to go to the effort of shopping around to get a good rate.

The downside for you, as a retailer, is if they haven’t already sorted out the loan then there may be a delay in the customer being able to complete the sale.  And once they have the funds there’s no guarantee they’ll spend the money with you because they’re not tied in.

Consumer credit can be an easier, quicker and better option for your customers. There are some great rates available – we have APRs as low as 4.9% which is extremely competitive against high-street lenders.  And if you add a deferral period to your credit option, then you’ll be offering customers something they can’t get from a personal loan!

Re-mortgaging vs consumer credit

Borrowing against a house is not to be taken lightly – borrowers can be charged at a higher rate than their mortgage rate, it’s likely to extend the term of their mortgage, in addition the lender may require a tie-in period from the customer.

Similar to a personal loan, it can take time to secure funds, which is not good if you’re looking to close a sale quickly, and there’s no obligation for the customer to buy from you once they have the funds.

All finance products from Consumer Credit Solutions are unsecured and interest rates are fixed or capped for the term of the loan – which is reassuring for customers and it allows them to budget for repayments.


If you’re a retailer looking to offer your customers credit for home improvements contact CCS today on 0845 120 6666

Find out more about finance for your sector:

Finance for Glass & Glazing

Finance for KBB

Finance for Heating Systems

Finance for Hot-tubs, Spas & Cabins