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How to finance water storage tanks

Look at turnaround time, cost and requirements before you pick an option.

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Fact checked

Installing a water storage tank can cost as much as $2,500. And if you need to replace it now, it’s one of those home improvement projects that can’t wait until you’ve saved up. When you have a time-sensitive project, pay attention to the turnaround time when comparing financing options.

To find the top financing options, we compared loan amounts, interest rates, requirements and the overall performance of the lender or marketplace.

Top picks for financing a water storage tank

LightStream personal loans logo

Best renovation loan

LightStream personal loans

★★★★★
Citi® Double Cash Card logo

Best cashback credit card

Citi® Double Cash Card

★★★★★
LendingTree logo

Best HELOC marketplace

LendingTree

Not yet rated
Credible personal loans logo

Best for all credit types

Credible personal loans

★★★★★

5 types of water storage tank financing

These are your main options for financing a new water storage tank and its installation.

1. In-store financing for water storage tanks

Many companies that sell water tanks offer in-store financing. For example, Home Depot offers loans to finance home improvement projects, including water tanks.

This is one of the quickest options available — it’s right there when you check out and might not necessarily require good credit.

But it might not always cover installation costs if you need to hire an outside contractor. And interest rates and fees are often on the high end when compared to personal loans and home equity financing.

2. Personal loans for water storage tanks

Personal loans can fund your entire water storage tank installation project without locking you into a specific contractor or company. They usually don’t require collateral and if you apply online, you can get your funds as soon as the next business day.

But often you need a good credit score of at least 670 to qualify with most lenders. And in most cases, you need to know the full cost of your project ahead of time.

Lender Min. credit score Finder rating Starting APR

LightStream

Good to excellent credit ★★★★★ Varies

GreenSky

640 ★★★★★ 3.99%

Alliant

640 ★★★★★ 6.24%

3. HELOCs for water storage tanks

Home equity lines of credit, or HELOCs, use your home as collateral for home improvement projects. Since you’re backing your loan with collateral, these can be easier to qualify for than an unsecured personal loan. And they may come with lower rates.

Another advantage is that you can draw from your credit line as needed rather than applying for a fixed loan amount. But these can take more time to get approved for than other options. It may be better to seek this type of financing out if your water storage tank is part of a bigger project.

And using your home as collateral can be a risky move. If you can’t pay it back on time, you could face foreclosure.

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    4. Credit cards for water storage tanks

    Credit cards can be a good financing option in two situations. The first is when your project cost is likely under $1,000, a credit card or in-store financing might be your only choice. That’s because most lenders don’t offer loans under $1,000.

    The second situation comes into play if you think you can pay off your project within a year. New cards might offer a promotional 0% APR for the first six to 18 months. Pay off your balance before the promotion is up and you’ll finance your water storage tank without paying interest.

    But watch out: Credit card interest rates are higher than personal loans or HELOCs, and the cost can build up quickly once interest starts accruing.

    5. USDA loans and grants

    The US Department of Agriculture (USDA) has a loan and grant program of up to $7,500 for low-income families that need help covering the cost of general home improvements.

    To qualify, you must show that you were unable to get credit elsewhere and have an income that’s lower than 50% of your surrounding area, and live in an eligible rural area — as defined by the USDA.

    If you’re over 62 or are unable to repay the loan, you can qualify for a grant. Otherwise, you’ll repay it at a 1% interest rate over a term of up to 20 years. Contact your local USDA Rural Development office to learn how to apply.

    This option might be the most affordable for those who can qualify, but it could take weeks to see your money.

    Average water storage tank costs

    A water storage tank itself can cost you as little as $100. But the whole project can set you back between $1,500 and $2,500, according to users on Home Advisor. With larger tanks, the whole process can be a lot like installing a septic tank.

    That’s because unless you’re a professional, you probably need to hire a contractor for the installation. If you can install it yourself — something like a small tank that fits under your sink — the whole project might only cost you a few hundred dollars.

    Factors to consider for water storage tank installations

    These factors can influence how much your water tank installation costs you.

    • Above-ground or underground tanks. Typically larger tanks — think 5,000 gallons or more — need to be installed underground. This is more expensive than above-ground tanks since you’ll have to dig on your property.
    • Removal costs. Sometimes contractors will include the cost of removing an old tank in their quotes. But that’s not always the case. Ask about this when you’re getting estimates for the installation cost.
    • Tank size. Smaller tanks cost around $100 or less, while larger tanks can run into the thousands.
    • Other materials. If you’re installing a new tank, you might need to buy the pumps, piping and other materials to get the water from one place to another — especially if you have an underground tank.
    • Protection from the elements. Above-ground water tanks might need special coating to keep your water from freezing or protect it from wind, rain and snow. This can add to the cost of your tank installation.

    Can I qualify for water storage tank financing with bad credit?

    You can, though it might not always be cheap. If you get approved for a personal loan, you’ll likely pay around 36% APR.

    Residents of rural areas should look into USDA loans or grants — that’s often your best option if you don’t have the credit score to qualify for a loan. Otherwise, consider backing a personal loan with collateral or getting a secured credit card to help you qualify for a lower rate.

    Compare other personal loan options

    Data indicated here is updated regularly
    Name Product Filter Values APR Min. Credit Score Max. Loan Amount
    Credible personal loans
    4.99% to 35.99%
    Fair to excellent credit
    $100,000
    Get personalized rates in minutes and then choose an offer from a selection of top online lenders.
    LightStream personal loans
    Varies
    Good to excellent credit
    $100,000
    Borrow up to $100,000 with low rates and no fees.
    Monevo personal loans
    3.49% to 35.99%
    None
    $100,000
    Quickly compare multiple online lenders with competitive rates depending on your credit.
    Upstart personal loans
    8.27% to 35.99%
    580 or 600 depending on state of residence
    $50,000
    This service looks beyond your credit score to get you a competitive-rate personal loan.
    LendingTree personal loans
    Starting from 2.49%
    Good to excellent credit
    $50,000
    Receive up to five loan offers in just minutes through LendingTree’s simple online form.
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    Compare up to 4 providers

    When water storage tank financing isn’t a good idea

    Water tank storage financing generally isn’t a great idea if you have the time to save up for the cost.

    While home improvements can increase the value of your home, it’s usually less expensive to save than take out a loan, line of credit or a new credit card. Save the financing for when you need to replace your water storage tank as soon as possible.

    You can try to prepare for the cost next time by asking your contractor for an estimate of when the tank needs to be replaced. This can vary depending on where it’s installed, the material and the weather patterns in your area.

    Bottom line

    The type of financing that’s right for you depends on your budget and what you can qualify for. Credit cards can be great for small water tank purchases, while a HELOC could be a good choice if you’re doing several other improvements.

    Visit our guide to financing home improvements to learn more about your options.

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