Hey folks! I just bought a home and we're getting a new roof and flooring put in. While we have the cash to pay for everything upfront, I'm more curious about the protections that credit cards offer, especially when it comes to handling contractors who might not uphold warranties or deliver quality work. Does using a credit card give us any protection against shady contractors? We're using AMEX for our payments, if that matters. Appreciate any insights!
6 Answers
Just a heads up, some contractors might not take credit cards, especially AMEX. In my experience, they often prefer checks or cash, so it's worth asking upfront!
When it comes to home improvement work, I really don't think credit cards provide additional protection beyond what's in the contract. Be careful—you can’t just charge back a huge amount if things go wrong. Focus on having a clear agreement with your contractor instead.
If you have concerns about the contractor potentially bailing on you, using a credit card could be beneficial. It allows you to dispute charges in the event they don’t fulfill their side of the contract. Just do your homework on the contractor and possibly consider milestone payments instead of upfront, especially if they ask for a large deposit like 50%—that can be a red flag!
If you're thinking about using a card, keep in mind there might be extra fees (like 3%). However, if you have one that gives you 2% cash back, it could help offset some of those costs!
As a professional in the field, I really believe the payment method itself isn't the key to getting protection. The real important thing is having a solid contract. Make sure it covers everything and consider having it reviewed by someone knowledgeable. You can also use your cash to negotiate lower labor costs. Just remember to ask your contractor for written warranties on their work as part of the contract.
Before you decide to pay with AMEX, check if your contractor accepts it, and see if they’ll offer you any protection for the specific work you need. Just be ready for possible extra fees for using your card, usually around 3% or more!
Totally agree, but I think asking about labor vs. materials can be a bit much and may raise red flags with contractors. They usually won't want to share that info.