GreenSky Direct home improvement loans review
Borrow up to $55,000 with this financing solution tailored to home improvement.
Finishing your basement or renovating your master bathroom? Most home improvement projects need a little extra cash. If you’re looking for a home improvement loan with no luck, a loan from GreenSky may be the answer. But with the possibility of a higher interest rate, you may be stuck with hefty monthly payments if go over budget.
Max. Loan Amount
4.99% to 23.99%
Min. Credit Score
What is GreenSky Direct?
GreenSky Direct, part of the GreenSky family of programs, offers home improvement loans through BrandBank. But rather than deposit a lump sum into your bank account like with most home improvement loans, you instead receive a GreenSky payment card with a spending limit.
GreenSky Direct gives you six months to spend up to your credit limit on whatever you need during your home improvement project, including paying for contractor services or at any retailer of your choice. After six months, the money you spent will be converted into a loan where you’ll start making monthly payments based on the terms of your agreement.
How does borrowing through GreenSky Direct work?
Home improvement loans from GreenSky Direct are like a mix between installment loans and lines of credit. You can borrow between $3,500 to $55,000 for terms of 42, 66 or 90 months — this includes the six-month purchase period. And while you won’t be able to re-borrow the money you pay back like you would with a line of credit, you won’t be charged interest on the money you don’t spend.
GreenSky Direct also offers a promotional period where you only make minimum monthly payments based on the interest accrued on the loan, not the purchase balance. Once your promotional period ends, you’ll start making full payments against your balance for the remainder of your loan term.
Interest rates are determined by your credit profile and range from 4.99% to 23.99% . Depending on your provider or merchant, you may have access to a 0% interest period lasting 18 months. Your account won’t accrue interest during this time, and if you pay your loan in full before the end of the first 18 months, you won’t pay any interest on your loan. However, if you’re carrying a balance at the end of the promotional period, interest will begin to accrue and you’ll start making fixed monthly payments toward your loan.
What are the benefits of GreenSky Direct?
- No down payment required. You won’t be required to put up any money when you take out your loan.
- Coapplicants welcome. You can include another person on your application if they plan to share responsibility for the loan or to simply improve your chance of approval.
- Not a credit card. Even though you’ll be receiving a card, your loan functions more like a line of credit. It has a set end period and may have lower interest rates than some credit cards, depending on your credit history.
- 0% interest promotional offer. Interest won’t be billed to your account for the first 18 months, and GreenSky Direct waives your interest if you pay off your loan within the promotional period. This helps keep costs low if you can pay your loan off early.
What to watch out for
- Six-month purchase window. Unless you know exactly what you need to buy and who you need to hire, the six-month purchase window may not be long enough for your needs. Once it closes, you won’t be able to access your loan funds again.
- Payments start immediately. You won’t have a grace period during the six-month purchase window. While your monthly payments are only based on interest during the promotional period — provided you don’t qualify for the 0% APR offer — you’ll still have to start paying down your loan right away.
- Not a lender. GreenSky Direct services your loan, but it isn’t a lender and won’t fund your loan directly. Instead, your loan is financed by BrandBank.
Compare more providers to finance a home improvement project
What does the Internet say about GreenSky?
GreenSky has an A+ rating and is accredited by the Better Business Bureau (BBB). However, the majority of reviews left on the BBB website and other review sites are negative. Many customers had issues with their GreenSky payment card being declined at retailers, while others complained about the way interest was charged and had problems with GreenSky processing payments near the end of their interest-free period.
Borrowers also had problems with customer service representatives, stating that some were misleading and provided the wrong information. Many of these borrowers got financing through their contractor, rather than applying for a loan with GreenSky, so some problems could be caused by issues with the contractor.
As always, when comparing loans, be sure to read both positive and negative reviews and do your research before borrowing with a lender.
What contractors accept the GreenSky payment card?
Provided your funds are used for home improvement, GreenSky has a referral program you can use to find a contractor for your project. Some big box home improvement stores may also accept GreenSky payment cards, but you’ll need to check with the retailer to be sure.
There are also contractors who offer funding for your project through GreenSky. If this is the case, you can apply through yours to finance their services. However, remember to confirm that your contractor is above board and actually working with GreenSky.
Am I eligible?
To qualify for a GreenSky Direct home improvement loan, you must:
- Have a credit score of at least 640
- Be at least 18 years old
- Be a US citizen or permanent resident
How do I apply?
- Click the Apply Now button on GreenSky Direct’s website.
- Provide your personal information and the loan amount you’re requesting.
- Enter your coapplicant’s information, if applying with another person.
- Agree to the Application Disclosures and submit your application.
Your application will be processed and, if you receive approval, you’ll be able to finalize your loan with GreenSky Direct.
What happens after I get a GreenSky Direct home improvement loan?
After you accept your loan, your six-month purchase window will begin and GreenSky Direct will mail you a payment card. As you start making purchases, you’ll need to start making interest-only payments according to the schedule set out by your loan agreement. Once the purchase period ends, your payments will increase to cover both the interest and principal of your loan. If you don’t make any purchases, you won’t have to make any payments.
When you receive your loan agreement, it will outline a monthly payment based on your interest, the length of the loan and the full use of your credit limit. However, if you use less than this amount, your payments will be lower. You’ll have the ability to pay your loan online, via check or over the phone.
If you repay your loan within the interest-free period of 18 months, your interest will be refunded to you. If you don’t, you’ll continue making regular monthly payments until your balance is repaid.
GreenSky Direct services loans for home improvement projects across the US. Unlike its competitors, you receive a payment card and a six-month buying period, giving you the flexibility of a line of credit without the temptation to overspend by paying down your balance. You can pay for any home improvement project or service, then take your time paying back your loan.
However, before deciding on a provider, compare your personal loan options to find the best one for you.