home improvements

Compare home improvement loans

Interested in getting a loan for home improvements? Here’s what to look for and what to avoid.

Home renovations can improve your lifestyle and add to the value of your property. If your family’s growing, it could also be a necessity. Unfortunately, home improvements are expensive.

If don’t have the money to finance this investment, you can consider a home improvement loan to cover the costs. In this guide, we’ll take you through some of the financing options available and what you need to know to find a home improvement loan that’s right for you.

LendingClub Personal Loan

LendingClub Personal Loan

LendingClub offer you the chance to borrow up to $40,000 as alternative to bank personal loans. Rates from 5.99% to 35.89%%* APR based on your credit score.

  • Recommended Credit Score: 660 or higher
  • Min. Loan Amount: $1,000
  • Max. Loan Amount: $40,000
  • Loan Term:
  • Turnaround Time: Up to 7 days
  • Total Costs: Depends on your credit score.
  • Consolidate loans or pay off high interest debt
  • Confidential and secure online application!

    Personal loans you can apply for

    Rates last updated October 18th, 2017

    Reveal your potential loan offers and rates

    Answer two quick questions to filter the loan offers and get the best one for you.

    Let's get started

    Select your credit score range

    I don't know my credit score

    Finally, select where you live.

    To get your credit score:

    Experian logo

    Experian is a leading provider of personal and business credit reporting. Find out your FICO score now for less than the cost of a cup of coffee.

    Unfortunately, none of the personal loan providers offer loans for that credit score. If you are in urgent need of a small loan, you might want to consider a short term loan.
    Name Product Product Description Min. Credit Score Max. Loan Amount APR Requirements
    Laurel Road Personal Loans
    Get a personal loan with no application or origination fees and a rate discount for autopay.
    680
    $45,000
    From 5.5% (fixed)
    Must be a US citizen or permanent resident with a valid I-551 card
    Even Financial Personal Loans
    Get matched to the best loan offer instantly from top online consumer lenders.
    580
    $100,000
    From 4.99% (fixed)
    Must have a minimum credit score of 580+. Must be 18+ years old and be an American citizen or permanent resident.
    Prosper Personal Loan
    Borrow only what you need for debt consolidation, home improvements, special occasions and more — with APRs based on your credit score.
    640
    $35,000
    From 5.99% (fixed)
    Must be 18+ years old, an American citizen or US permanent resident and have a 640+ credit score.
    SoFi Personal Loan Fixed Rate (with Autopay)
    Borrow up to $100,000 with a competitive APR and no fees.
    Good to excellent credit
    $100,000
    From 5.49% (fixed)
    You must be a U.S. citizen or permanent resident, and 18 years or older.
    LendingPoint Personal Loans
    Get a personal loan with reasonable rates even if you have a fair credit score in the 600s.
    600
    $25,000
    From 15.49% (fixed)
    Must have a fair credit score of 600 or better and verifiable income. Must live in a state where LendingPoint services.
    NetCredit Personal Loan
    Check eligibility in minutes and get a personalized quote without affecting your credit score.
    550
    $10,000
    From 34 - 155% (fixed)
    Varies depending on your state of residence.
    LendingClub Personal Loan
    Borrow up to $40,000 with rates from 5.99% to 35.89% APR based on your credit score.
    660
    $40,000
    From 5.99% (fixed)
    You must be over 18 years of age, a permanent resident of the US or an American citizen and have a steady source of income.

    Compare up to 4 providers

    How does a home improvement loan work?

    Depending on the type of changes or updates you want to make on your property, there’s a variety of loans available for home improvements. These loans all have key features and differences, so it’s important to compare your options to find the best one to suit your needs and situation.

    • Secured or unsecured. If you have some equity in your house, you can consider getting a home equity loan. This option uses your home equity as collateral for the money you borrow. If you don’t have enough equity in your home, or if you don’t want to use it as collateral, you can get an unsecured loan.
    • Fixed or variable rate. Providers of home improvement loans may offer you a choice between a fixed and variable (or “floating”) interest rate. With fixed rate loans, your repayments remain the same throughout the loan term. If you opt for a variable rate loan, your rate may start lower but can fluctuate over the life of your loan. The interest rate for variable rate loans depend on either the Prime Index or the London Interbank Offered Rate (LIBOR). Check if your bank has a cap for how high your variable rate can climb.
    • Protection against losses. If you have limited equity in your home, you can think about getting a National Housing Act authorized FHA Title I loan. With these loans, FHA insures lenders against possible losses.

    Features to consider when exploring home improvement loans

    If you’re interested in getting a loan for home improvements, make sure you consider the following factors:

    • Security. You need to have enough equity in your home to get a secured loan. Alternatively, you may be able to use a vehicle as security for the loan, providing the value of the car is sufficient. You can also apply for an unsecured loan.
    • Interest rate. This is the amount of interest you will pay on the money you have borrowed for your home improvements. Secured loans tend to come with lower interest rates than unsecured loans because it’s less of a risk for the lender. Interest rates can vary even with these kind of loans, so paying attention to this aspect is crucial. Some lenders offer interest rate discounts if you sign up for automatic repayments.
    • Loan term. A longer loan term will give you lower ongoing repayments, but at the end of the loan term you will have paid more interest. This adds to the overall cost of getting the loan. In contrast, higher repayments and a shorter loan term help keep the overall cost of the loan down.
    • Processing time. Depending on the kind of credit you’re looking for, you can receive your loan funds one business day from approval, but in some cases the process may take a week or more.

    The benefits and drawbacks of getting finance for home improvements

    • Carry out time-sensitive repairs. A home improvement loan lets you carry out repairs as soon as possible. Postponing repair work until you’ve saved the money can result in more damage, which can also lead to more expensive repairs.
    • Various loan options. No matter what type of home improvement you’re looking at doing, you have a range of loan options to choose from. These include home equity loans, home equity lines of credit, unsecured or secured personal loans and personal lines of credit.
    • Taking on too much debt. If you apply for a loan you can’t afford to pay off, you run the risk of taking on debt you can’t manage. Make sure you budget for your repayments based on your financial situation before you apply.
    • Finance doesn’t account for renovation budgets or schedule changes. If anything happens that affects the budget or schedule of your renovations, it could impact on your ability to make loan repayments. Make sure you leave room to move in your budget so that you can still make repayments if anything unexpected happens and you need extra funds.

    Is there anything to avoid when deciding on your loan?

    Unplanned or poorly considered renovation projects should be avoided at all costs. This is especially true if you’re planning to finance it with a loan. Home improvements often involve long and expensive processes, and you need to be financially prepared to cover it.

    If you think you may have problems in repaying the loan, avoid taking it. If you don’t make your repayments on time, your credit score will be negatively affected – and if your loan is secured you could lose your home.

    Frequently asked questions

    With a home improvement loan, you receive all of the funds as a lump sum payment. You then have to pay interest towards the entire amount borrowed.

    A line of credit gives you access to a credit limit. You’re then able to draw on the funds up to that limit when you pay for your renovations. You only pay interest on the funds you use, and if you make repayments on your credit limit, you can then use those funds again.

    Home improvement loans are available for people with low credit scores. However, you might have a better chance of being approved if you apply for a secured loan.

    Most banks and credit unions in the US provide home improvement loans. You can start by comparing some of your options on the page above. Once you find a loan you’re eligible for and that you want to apply for, click “Go to Site” to complete and submit your application.

    A home improvement loan can be used for either your investment property or your primary place of residence. According to Trip Advisor Vacation Rentals, simple improvements can help your place stand out from the pack to bring in ample return on investment. Check out their suggested tips on best upgrades for your vacation property.

    Image: Shutterstock

    Was this content helpful to you? No  Yes

    Ask an Expert

    You are about to post a question on finder.com:

    • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
    • finder.com is a financial comparison and information service, not a bank or product provider
    • We cannot provide you with personal advice or recommendations
    • Your answer might already be waiting – check previous questions below to see if yours has already been asked

    Finder only provides general advice and factual information, so consider your own circumstances, read the PDS or seek advice before you decide to act on our content. By submitting a question, you're accepting our Terms and Conditions and our Privacy Policy.

    US Personal Loans Offers

    Learn about our information service
    Prosper Personal Loan

    Borrow only what you need for debt consolidation, home improvements, special occasions and more — with APRs based on your credit score.

    LendingClub Personal Loan

    Borrow up to $40,000 with rates from 5.99% to 35.89% APR based on your credit score.

    SoFi Personal Loan Fixed Rate (with Autopay)

    Borrow up to $100,000 with a competitive APR and no fees.

    Upstart Personal Loans

    This newer service looks beyond your credit score to match you with accredited investors for low-rate personal loans.