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Best Credit Cards for New Homeowners

Best Credit Cards for New Homeowners

*Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It may not have been reviewed, approved or otherwise endorsed by the credit card issuer. This site may be compensated through a credit card issuer partnership.

This article was last updated Dec 30, 2019. Terms and conditions may have changed. For the most accurate information, please consult the issuer website.

If you’ve just closed on a new home, your first thought was probably one of celebration. Your second might have been about how you’re going to manage your new mortgage payment alongside other financial obligations — but don’t stress out just yet.

The right credit card, used wisely, can help you face the challenges of homeownership more easily, whether you need to buy furniture to spruce up your new place or purchase some much-needed appliances, without sinking you into unnecessary debt. We’ve picked some of the top cards that can help you save on any upcoming household purchases.

In this article:

Best for 0% APR on purchases

Once you’ve bought your new place, it’s time to make it feel like a home. Whether you’re shopping for kitchen appliances, furniture or an entertainment system, you may need to break down those expenses into more digestible payments. A card that offers a 0% introductory APR on purchases can give you an opportunity to pay off those big-ticket items over time without accruing interest charges.

The Wells Fargo Platinum card comes with an intro APR of 0% for 18 months on purchases. After that, it’s 15.49%-24.99% (variable).

More card details:

Regular purchase APR Annual fee Foreign transaction fee
15.49%-24.99% (variable) $0 3%

Best for a big sign-up bonus

  • 0% for 14 months on purchases and Balance Transfers, then 11.99% - 22.99% Variable.

  • Earn 5% cash back on everyday purchases at different places each quarter like Amazon.com, grocery stores, restaurants, gas stations and when you pay using PayPal, up to the quarterly maximum when you activate. Plus, earn unlimited 1% cash back on all other purchases – automatically. *

  • Get a dollar-for-dollar match of all the cash back you've earned at the end of your first year, automatically*

Highlights
  • INTRO OFFER: Unlimited Cashback Match – only from Discover. Discover will automatically match all the cash back you’ve earned at the end of your first year! There’s no minimum spending or maximum rewards. Just a dollar-for-dollar match.
  • Earn 5% cash back on everyday purchases at different places each quarter like Amazon.com, grocery stores, restaurants, gas stations and when you pay using PayPal, up to the quarterly maximum when you activate.
  • Plus, earn unlimited 1% cash back on all other purchases - automatically.
  • Redeem cash back in any amount, any time. Rewards never expire.
  • Use your rewards at Amazon.com checkout.
  • Get an alert if we find your Social Security number on any of thousands of Dark Web sites.* Activate for free.
  • No annual fee.
  • Discover is accepted nationwide by 99% of the places that take credit cards.
  • See Rates & Fees

See additional details for Discover it® Cash Back

More Info

When you know you’re going to have to spend more than you usually do, that’s a great time to take advantage of a generous credit card sign-up bonus — and the one from Discover it® Cash Back is one of the most rewarding we know of. For new cardmembers, Unlimited Cashback Match – only from Discover. Discover will automatically match all the cash back you’ve earned at the end of your first year! There’s no minimum spending or maximum rewards. Just a dollar-for-dollar match.

If you put the bulk of your spending on this card during the first year (especially if you’re making big purchases to improve your new house), this bonus can put a lot of cash back in your pocket. Check out the 2020 cashback calendar to get an idea of where you can earn the highest rewards.

More card details:

Regular purchase APR Annual fee Rewards program
11.99% - 22.99% variable $0 Earn 5% cash back on everyday purchases at different places each quarter like Amazon.com, grocery stores, restaurants, gas stations and when you pay using PayPal, up to the quarterly maximum when you activate. Plus, earn unlimited 1% cash back on all other purchases – automatically.

Best for home improvement/furnishings

One thing that’s almost guaranteed once you’ve bought a house is that you’re going to have to furnish it. With the Bank of America® Cash Rewards credit card, you can earn 3% cash back in the category of your choice, 2% cash back at grocery stores and wholesale clubs for the first $2,500 in combined choice category/grocery store/wholesale club quarterly purchases, 1% cash back on every purchase.

The categories you can choose from for the 3% rate are gas, online shopping, dining, travel, drug stores and home improvement/furnishings. It’s that last one we’re interested in — it includes hardware stores, furniture, plumbers, electricians, landscapers, carpenters and more.

Merchants that qualify for the home improvement/furnishing category include the following:

  • Ace Hardware
  • IKEA
  • Sherwin-Williams
  • Bed Bath and Beyond
  • Lowe’s
  • The Home Depot
  • Crate & Barrel
  • Menards
  • TruGreen
  • Harbor Freight Tools
  • Pottery Barn
  • Williams-Sonoma

More card details:

Regular purchase APR Annual fee Sign-up bonus
15.49% - 25.49% Variable APR on purchases $0 $200 online cash rewards bonus after you make at least $1,000 in purchases in the first 90 days of account opening

Best for grocery shopping

  • $300 statement credit after you spend $3,000 in purchases on your new Card within the first 6 months.*

  • 6% Cash Back at U.S. supermarkets on up to $6,000 per year in purchases (then 1%). 6% Cash Back on select U.S. streaming subscriptions and 1% Cash Back on other purchases.

  • 1% back on other purchases*

Highlights
  • Limited Time Offer: Earn a $300 statement credit after you spend $3,000 in purchases on your new Card within the first 6 months. Offer Expires 12/10/2020
  • Limited Time Offer: $0 introductory annual fee for one year, then $95. Offer Expires 12/10/2020
  • 6% Cash Back at U.S. supermarkets on up to $6,000 per year in purchases (then 1%).
  • 6% Cash Back on select U.S. streaming subscriptions.
  • 3% Cash Back at U.S. gas stations and on transit (including taxis/rideshare, parking, tolls, trains, buses and more).
  • 1% Cash Back on other purchases.
  • Plan It® gives the option to select purchases of $100 or more to split up into monthly payments with a fixed fee and no interest.
  • Cash Back is received in the form of Reward Dollars that can be redeemed as a statement credit.
  • Terms Apply.
  • See Rates & Fees

See additional details for Blue Cash Preferred® Card from American Express

More Info

As a new homeowner, you may find yourself cooking at home more frequently — whether to save money on dining out or just because you enjoy a good home-cooked meal.

Read: Best Grocery Credit Cards

In that case, the Blue Cash Preferred® Card from American Express is a card that rewards you generously for supermarket shopping. It offers 6% Cash Back at U.S. supermarkets on up to $6,000 per year in purchases (then 1%). 6% Cash Back on select U.S. streaming subscriptions and 1% Cash Back on other purchases.

If you spend approximately $1,585 per year on purchases eligible for the 6% cashback rate, you’ll recoup the annual fee. Everything you spend after that will earn net cash back.

More card details:

Regular purchase APR Annual fee Purchase intro rate
13.99%-23.99% variable $0 introductory annual fee for one year, then $95 0% on purchases for 12 months

To see rates & fees for Blue Cash Preferred® Card from American Express please click here.

Best for simple cash back

Maybe you don’t need anything fancy — you just want a credit card that offers flat-rate cash back on every purchase. In that case, the Citi® Double Cash Card – 18 month BT offer can make your life a bit easier. Earn 2% on every purchase with unlimited 1% cash back when you buy, plus an additional 1% as you pay for those purchases.

This card also has a good deal for those looking to transfer debt from a high-interest card and pay it off during a 0% intro APR period. Pay 0% for 18 months on balance transfers, then an APR of 13.99% – 23.99% (variable) applies. The balance transfer fee is 3% of each balance transfer; $5 minimum.

More card details:

Regular purchase APR Annual fee Foreign transaction fee
13.99% – 23.99% (variable) $0 3%

Other cards worth considering

The Lowe's Advantage Card is a store card that offers Save 5% off your eligible purchase, or get 6 months special financing with purchases of $299 or more, or get 84 fixed monthly payments with a minimum purchase of $2,000 at 7.99% APR. Terms apply. at Lowe’s. On purchases of $299 or more, you’ll have the chance to choose either the discount or 6 months of special financing, where you’ll pay no interest if you pay the purchase off in that time. Be aware that if you don’t pay off the purchase within the special financing time frame, you’ll be charged interest from the date of the purchase. This is known as deferred interest and can be expensive.

If you shop at Lowe’s a lot for home improvement needs, this can be a good card to have on hand.

More card details:

Regular purchase APR Annual fee Sign-up bonus
26.99% variable $0 Limited Time Only! One-time 20% off your Lowe’s Advantage Card purchase when you open and use a new Lowe’s Advantage Card and make a purchase between 7/9/20 and 1/31/21.

Read our review of the Lowe's Advantage Card.

The Target RedCard Credit Card is another store card worth considering. It offers a 5% discount on Target and Target.com purchases, which is applied when you check out.

If you’re planning to visit Target to fill your new home with everything from kitchenware to bedding, this card can help you save on your purchases.

More card details:

Regular purchase APR Annual fee Foreign transaction fee
22.90% variable $0 N/A

Read our review of the Target RedCard Credit Card.

The bottom line

Buying a new home can be an exciting but also stressful time. By using the right card for your expenses, you’ve got an opportunity to save money and even put a little extra back in your wallet. And to stay out of debt, only charge what you can afford to pay off at the end of the month.


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