3 Smartery Ways To Pay For That New Kitchen

Are you tired of your old, outdated kitchen and ready to start cooking in an upgraded masterpiece with stainless steel appliances, granite counter tops and country-white cabinets?

If so, it’s time to start thinking about remodeling your kitchen and, more importantly, how you’re going to pay for it. With the average cost of a kitchen remodel being just under $20,000, it’s an expense that shouldn’t be taken lightly. Luckily, a kitchen remodel doesn’t just make you happier with your home; it also increases the value of your home significantly when you go to sell, making that $20K just a little bit easier to swallow.

Don't let costs deter you from getting the kitchen you really want. Learn about these three smart ways to pay for your kitchen remodel, whether you need $5,000 or $35,000.

1. Home Equity

Tapping your home equity is one of the best options for people that live in a quickly appreciating area or for people that have lived in their home for a while. Home equity often times is the cheapest way to borrow money, simply because you are using your own home as collateral to secure the loan. This allows lenders to offer incredibly low interest rates. You can also deduct the interest payments on your taxes, making the loan even more cost-effective. Because your loan is backed by your home, though, it is important to make sure you stay on top of the loan payments so you don’t risk losing your home.


  • Usually cheaper than other forms of borrowing money because your home is used to secure the home.
  • Usually the payment period is quite a bit longer (10 – 20 years) which will make monthly payments more budget friendly.


  • Equity financing reduces your equity cushion. If your property value goes through a decline period, this could potentially cause you to be upside-down on your home.
  • If you don’t pay the loan responsibly, the lender could take the title to your home.

Get Started With Home Equity

2. Personal Loan

Personal loans are a great choice to fund your kitchen remodel, especially with how low today’s interest rates are. With a personal loan, you can borrow $1,000 to $35,000 for whatever you would like to use it for. Personal loans are ideal for people who don’t have much equity in their home and who can afford taking on a monthly payment for one to 10 years.


  • Usually cheaper than credit cards, meaning that the interest on money borrowed is usually significantly lower.
  • Applications are usually processed quicker than most other financial products.
  • Chances of losing your home if you default on this loan are slim.


  • More expensive than home equity loans with a shorter payoff period.
  • There is potential for monthly payments to increase as some personal loans come with adjustable interest rates.
  • Fees vary widely between lenders and credit scores, which could cause this option to be very expensive.

Get Started With A Personal Loan

3. Credit Cards

Using a credit card is another great way to pay for a kitchen remodel—if you do it right. While using a credit card for expensive projects can seem counter intuitive, there are actually dozens of new cards on the market that have a 0% APR period, meaning you will not pay interest on your purchases until the intro period is up. In some cases, the card will even pay you back for spending through a credit cards rewards program. The drawback to using a credit card is the 0% APR period will only last for so long, so you want to make sure you pay off the card in its entirety as quickly as possible.


  • Credit cards are the cheapest option as long as you can pay off your debt before the end of the 0% APR period.
  • Credit cards come with benefits for spending money on them, which, depending on the card, could give you significant rewards points that you could cash in for cash back or traveling.


  • Credit cards get are the most expensive option after the 0% APR period ends. This could be trouble for people that are unable to pay off the borrowed money in that short of a time period.
  • To secure a great credit card with great benefits, you often need a stellar credit score.
  • Depending on your income, your approved credit limit may not be large enough to pay for a kitchen remodel. Most people will likely need some cash to supplement the money borrowed on credit.

Browse 0% Intro APR Credit Cards

What Loan Type Is Best For Me

Scenario 1

personal loan for kitchen

​Joanne and Steve have been living in their home for 10 years. Their home is in a good area and they got in at the right time, so their home has appreciated quite a bit. The kitchen in the home has not been updated, mainly due to the prohibitive costs of the job. Joanne wants the kitchen gutted and completely remodeled. Every time they get an estimate though, Joanne’s dream is crushed by high prices that a kitchen remodel comes with. In this case, the appreciation of the home coupled with the length of time Joanne and Steve have lived in the home make them the perfect candidates for a home equity loan.

Sound Like You? Tap Your Home Equity

Scenario 2

personal loan for kitchen

John and Amy just bought their first home a few years ago. The kitchen is looking a little drab, and Amy has been convinced since day one that they needed an upgrade. John, however, wanted to wait until they could save up enough money to pay for it. Recently, the kitchen floor has been sagging more than usual to the point where John is questioning its safety. The time has come that they NEED that updated kitchen, but are short on their savings to pay to get the job done right. In this case, a personal loan is a great choice for the couple, as they do not have a ton of equity in their home and the project is likely too costly to put on a credit card.

Sound Like You? Apply For A Personal Loan

Scenario 3

update kitchen appliances

Derek recently bought a home and specifically requested that the previous homeowners leave the kitchen appliances in the house as part of the deal. He knew they were old, but thought that they would last for a few more years. Unfortunately, that was not the case and Derek now needs all new kitchen appliances. In this case, Derek should likely use a new credit card with a 0% APR, that way he doesn’t have to worry about paying interest as long as he can pay off the credit card bill before the intro APR period ends. The best credit card for people with good credit is the Discover IT Double Cash Back credit card. Keep in mind you only get cash back for the first year, but the goal here is to pay it off before then. This card will give you 0% APR for 12 months and 5% cash back on home improvement store purchases.

Sound Like You? Apply for Discover IT