Using a Personal Loan for Home Improvement Projects

Our goal is to give you the tools and confidence you need to improve your finances. Although we receive compensation from our partner lenders, whom we will always identify, all opinions are our own. By refinancing your mortgage, total finance charges may be higher over the life of the loan.
Credible Operations, Inc. NMLS # 1681276, is referred to here as “Credible.”

Updating your home can quickly become expensive. Just renovating your kitchen carries an estimated cost of $80,000, according to the National Association of Realtors’ 2022 Remodeling Impact Report.

With that cost comes an increased home value and greater enjoyment of your home, but how do you get the money to pay for it? A personal loan for home renovations can be a way to get the cash you need without using your home as collateral.

Here’s what you should know about personal loans for home improvement projects:

What is a home improvement loan?
Pros and cons of a personal loan for home improvement
How to apply for a home improvement loan
Alternative ways to finance a home improvement project

What is a home improvement loan?

A home improvement loan is a type of personal loan that you can use to finance almost any home-related expense, such as home renovations, repairs, and even emergencies.

Installing solar panels, remodeling a kitchen, replacing siding, or something as simple as replacing carpet can all be done with money from a personal loan. You can even use a personal loan to repair damage from a flood if you don’t have insurance or sufficient coverage.

Here are some reasons why a home improvement loan can be a good option:

Usually requires no collateral: Personal loans are usually unsecured, which means they don’t require collateral. You’ll pay a slightly higher interest rate than with a secured loan, but you won’t lose your home if you miss a payment or can’t afford to pay back your loan. Remember that defaulting on a personal loan will negatively affect your credit score, so it’s not a good idea to take one out if you don’t think you’ll be able to pay it back.
Fixed rate and monthly payments: A personal loan has a fixed interest rate, which means you’ll have the same monthly payment for the life of the loan. By contrast, credit cards and home equity lines of credit (HELOCs) typically have variable interest rates, meaning that your monthly payments can fluctuate significantly from month to month based on market conditions.
Fast funding: You can often receive your personal loan funds within one or two business days, though exact funding times vary by lender. Other financing options, such as cash-out refinancing or home equity loans, have stricter underwriting requirements and may require an appraisal.

The personal loan companies in the table below compete for your business through Credible. You can request rates from all of these partner lenders by filling out just one form (instead of one form for each) and without affecting your credit score.

Lender	Fixed rates	Loan amounts
Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.	9.95% – 35.99% APR	$2,000 to $35,000^**
Fixed APR: 9.95% – 35.99% APR Variable APR: N/A Min. credit score: 550 Loan amount: $2,000 to $35,000** Loan terms (years): 2, 3, 4, 5* Time to fund: As soon as the next business day (if approved by 4:30 p.m. CT on a weekday) Fees: Origination fee Discounts: Autopay Eligibility: Available in all states except CO, IA, HI, VT, NV NY, WV Customer service: Phone, email Soft credit check: Yes Loan servicer: Avant Loan Uses: Debt consolidation, emergency expense, life event, home improvement, and other purposes Min. Income: $1,200 monthly
Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.	7.99% – 15.19% APR	$10,000 to $50,000
Fixed APR: 7.99% – 15.19% APR Variable APR: N/A Min. credit score: 700 Loan amount: $10,000 to $50,000 Loan terms (years): 3 to 6 Time to fund: Next business day Fees: No prepayment penalty Discounts: None Eligibility: Available in all 50 states Customer service: Phone Soft credit check: Yes Min. Income: Does not disclose Loan Uses: Debt consolidation, home improvement, self-employment, and other purposes
Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.	7.99% – 35.99% APR	$5,000 to $50,000
Fixed APR: 7.99% – 35.99% APR Variable APR: N/A Min. credit score: 600 Loan amount: $2,000 to $50,000 Loan terms (years): 2, 3, 4, 5 Time to fund: As soon as 1 to 3 business days after successful verification Fees: Origination fee Discounts: None Eligibility: Available in all states except DC, IA, VT, and WV Customer service: Phone Soft credit check: Yes Loan servicer: Best Egg and Blue Ridge Bank Min. Income: None Loan Uses: Credit card refinancing, debt consolidation, home improvement, and other purposes
Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.	6.99% – 24.99% APR	$2,500 to $35,000
Fixed APR: 6.99% – 24.99% APR Min. credit score: 660 Loan amount: $2,500 to $35,000 Loan terms (years): 3, 4, 5, 6, 7 Time to fund: As soon as the next business day after acceptance Fees: Late fee Discounts: None Eligibility: Available in all 50 states Customer service: Phone Soft credit check: Yes Loan Uses: Auto repair, credit card refinancing, debt consolidation, home remodel or repair, major purchase, medical expenses, taxes, vacation, and wedding
Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.	7.99% – 29.99% APR	$7,500 to $50,000
Fixed APR: 7.99% – 29.99% APR Min. credit score: Does not disclose Loan amount: $10,000 to $50,000 Loan terms (years): 2, 3, 4, 5 Time to fund: As soon as 2 business days Fees: Origination fee Discounts: No Eligibility: Available in all states except CO, CT, HI, KS, NH, NY, ND, OR, VT, WV, WI, and WY Customer service: Phone Soft credit check: Yes Min. Income: None Loan Uses: Debt consolidation, home improvement, wedding, travel, medical expenses, and other purposes
Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.	7.99% – 29.99% APR	$5,000 to $40,000
Fixed APR: 7.99% – 29.99% APR Min. credit score: 600 Loan amount: $5,000 to $40,000 Loan terms (years): 2, 3, 4, 5 Time to fund: As soon as 2 to 5 business days after verification Fees: Origination fee Discounts: None Eligibility: Available in all states except MA and NV Customer service: Phone, email, chat Soft credit check: Yes Min. Income: None Loan Uses: Debt consolidation and credit card consolidation only
Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.	8.3% – 36.0% APR	$1,000 to $40,000
Fixed APR: 8.3% – 36.0% APR Min. credit score: 600 Loan amount: $1,000 to $40,000 Loan terms (years): 3, 5 Time to fund: Usually takes about 2 days^† Fees: Origination fee Discounts: None Eligibility: Available in all 50 states Customer service: Phone, email Soft credit check: Yes Loan servicer: LendingClub Bank Min. Income: None Loan Uses: Debt consolidation, paying off credit cards, home improvement, pool loans, vacations, and other purposes
Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.	7.99% – 35.99% APR	$2,000 to $36,500
Fixed APR: 7.99% – 35.99% APR Min. credit score: 580 Loan amount: $2,000 to $36,500 Loan terms (years): 2, 3, 4, 5, 6 Time to fund: As soon as the next business day Fees: Origination fee Discounts: Autopay Eligibility: Available in all states except NV and WV Customer service: Phone, email Soft credit check: Yes Min. Income: $20,000 Loan Uses: Home improvement, consolidate debt, credit card refinancing, relocate, make a large purchase, and other purposes
Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.	5.73% – 19.99% APR	$5,000 to $100,000
Fixed APR: 5.73% – 19.99% APR Min. credit score: 660 Loan amount: $5,000 to $100,000 Loan terms (years): 2, 3, 4, 5, 6, 7* Time to fund: As soon as the same business day Fees: None Discounts: Autopay Eligibility: Available in all states except RI and VT Customer service: Phone, email Soft credit check: No Loan servicer: LightStream Min. Income: Does not disclose Loan Uses: Credit card refinancing, debt consolidation, home improvement, and other purposes
Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.	6.99% – 24.99% APR¹	$3,500 to $40,000²
Fixed APR: 6.99% – 24.99% APR¹ Min. credit score: 660 (TransUnion FICO®️ Score 9) Loan amount: $3,500 to $40,000² Loan terms (years): 3, 4, 5, 6 Time to fund: Many Marcus customers receive funds in as little as three days Fees: None Discounts: Autopay Eligibility: Available in all 50 states Customer service: Phone Soft credit check: Yes Loan servicer: Goldman Sachs Min. Income: $30,000 Loan Uses: Credit card refinancing, debt consolidation, home improvement, major purchase, and other purposes
Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.	18.0% – 35.99% APR	$1,500 to $20,000
Fixed APR: 18.0% – 35.99% APR Min. credit score: None Loan amount: $1,500 to $20,000 Loan terms (years): 2, 3, 4, 5 Time to fund: As soon as the same day, but usually requires a visit to a branch office Fees: Origination fee Discounts: None Eligibility: Must have photo I.D. issued by U.S. federal, state or local government Customer service: Phone, email Soft credit check: Yes Min. Income: Does not disclose
Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.	7.74% – 17.99% APR	$600 to $50,000 (depending on loan term)
Fixed APR: 7.74% – 17.99% APR Min. credit score: 660 Loan amount: $600 to $50,000* Loan terms (years): 1, 2, 3, 4, 5 Time to fund: 2 to 4 business days after verification Fees: None Discounts: None Eligibility: Does not disclose Customer service: Phone, email Soft credit check: No Min. Income: Does not disclose Loan Uses: Debt consolidation, home improvement, transportation, medical, dental, life events
Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.	6.99% – 35.99% APR	$2,000 to $50,000
Fixed APR: 6.99% – 35.99% APR Min. credit score: 640 Loan amount: $2,000 to $50,000 Loan terms (years): 2, 3, 4, 5 Time to fund: As soon as one business day Fees: Origination fee Discounts: None Eligibility: Available in all states except IA, ND, WV Customer service: Phone, email Soft credit check: Yes Min. Income: None Loan Uses: Debt consolidation, home improvement, vehicles, small business, new baby expenses, and other purposes
Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.	5.99% – 35.99% APR	$3,500 to $40,000
Fixed APR: 5.99% – 35.99% APR Min. credit score: 600 Loan amount: $3,500 to $40,000 Loan terms (years): 2, 3, 4, 5 Time to fund: 90% funded within a day¹³ Fees: Origination Fee, $15 Late Fee, $25 NSF Fee Discounts: None Eligibility: Available in all states except CO, CT, ME, NV, NH, TN, VT, WV, WY, and all U.S. Territories Customer service: Phone, email Soft credit check: Yes Loan servicer: Reach Financial Min. Income: $1,000 monthly Loan Uses: Debt consolidation, credit card refinancing
Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.	7.99% – 23.43% APR¹⁰	$5,000 to $100,000
Fixed APR: 7.99% – 23.43% APR¹⁰ Min. credit score: Does not disclose Loan amount: $5,000 to $100,000 Loan terms (years): 2, 3, 4, 5, 6, 7 Time to fund: 3 business days Fees: None Discounts: Autopay Eligibility: Available in all states except MS Customer service: Phone, email Soft credit check: Yes Min. Income: Does not disclose Loan Uses: Solely for personal, family, or household uses
Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.	11.69% – 35.93% APR⁷	$1,000 to $20,000
Fixed APR: 11.69% – 35.93% APR⁷ Min. credit score: 560 Loan amount: $1,000 to $50,000 Loan terms: 3 to 5 years ⁸ Time to fund: Within one day, once approved⁹ Loan types: Debt consolidation, pay off credit cards, home improvements, unexpected expenses, home and auto repairs, weddings, and other major purchases Fees: Origination fee Discounts: Autopay Eligibility: A U.S. citizen or permanent resident; not available in DC, SC, WV Customer service: Phone, email Soft credit check: Yes
Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.	7.46% – 35.97% APR	$1,000 to $50,000
Fixed APR: 7.46% – 35.97% APR Min. credit score: 560 Loan amount: $1,000 to $50,000* Loan terms (years): 2, 3, 5, 6 Time to fund: Within a day of clearing necessary verifications Fees: Origination fee Discounts: Autopay Eligibility: Available in all states except West Virginia Customer service: Email Soft credit check: Yes Min. Income: Does not disclose Loan Uses: Debt consolidation, credit card refinancing, home improvement, and other purposes
Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.	5.4% – 35.99% APR⁴	$1,000 to $50,000⁵
Fixed APR: 5.4% – 35.99% APR⁴ Min. credit score: 580 Loan amount: $1,000 to $50,000⁵ Loan terms (years): 3 to 5 years⁴ Time to fund: As fast as 1 business day⁶ Fees: Origination fee Discounts: None Eligibility: Available in all 50 states Customer service: Phone, email Soft credit check: Yes Min. Income: $12,000 Loan Uses: Payoff credit cards, consolidate debt, take a course or bootcamp, relocate, make a large purchase, and other purposes
Compare rates from these lenders without affecting your credit score. 100% free!Compare Now
All APRs reflect autopay and loyalty discounts where available \| LightStream disclosure \| ¹⁰SoFi Disclosures \| Read more about Rates and Terms

Check Out: How to Get a Personal Loan

Pros and cons of a personal loan for home improvement

Taking out a personal loan to pay for a home improvement project can be a great option if you need money quickly or don’t want to risk losing your home if you can’t afford to pay back your loan. But a personal loan for home improvements has pros and cons to consider:

Pros	Cons
No risk of losing the home if you can’t pay off the loan	Interest rates can be higher, especially for poor credit scores
Fast funding	No tax benefits like a HELOC or home equity loan might have
Fixed monthly payments	Taking on additional debt
Flexible funding amounts, sometimes as much as 100K	Lower maximum loan amounts compared to HELOC

How to choose a home improvement loan lender

If you decide to take out a home improvement loan, it’s important to compare multiple personal loan lenders to find one that works for your situation. Here are some things to consider as you’re comparing home improvement loans:

APR/Interest rate: The interest rate on your loan is how much you’ll pay the lender to borrow money. The annual percentage rate (APR) includes the cost of any fees in addition to the interest rate. If you’re looking to see how much borrowing money costs you, the APR is a better number to focus on when comparing rates between lenders.
Fees: Some personal loan lenders charge fees, but some don’t. It’s a good idea to check so you can make a proper comparison.
Repayment terms: Personal loan repayment terms can vary from less than a year to up to 12 years for a home improvement loan, depending on the lender. A longer loan term will lower your monthly payment but cost you more in interest over time.
Payment options: If you’re comfortable with autopay or prefer it, some lenders will give you a discount on your interest rate if you sign up for automatic payments.
Credit score requirements: Most lenders require a good credit score, but some work with borrowers who have low credit scores. You’ll pay a higher interest rate for a personal loan if you have bad credit, so you may want to consider adding a cosigner with good credit. This could increase your chances of loan approval, or of getting a better interest rate. Just make sure your cosigner understands that they’ll be on the hook for the loan payments if you default.

Loading widget – embedded-prequal

How to apply for a home improvement loan

If you want to apply for a home improvement loan, follow these four steps:

Review your credit report. You can request free copies of your credit report from each of the main credit bureaus by visiting AnnualCreditReport.com. Check for any errors and dispute them directly with the credit bureaus to potentially boost your score and qualify for a better interest rate.
Shop around and compare lenders. You can apply for prequalification from multiple lenders without affecting your credit score. Getting prequalified lets you see the rate and terms a lender is likely to offer you. Compare loan options from at least three to five different lenders to make sure that you’re getting the best deal.
Apply. Pick a lender and follow its steps to apply. You may need to verify your identity and income with a copy of your driver’s license, pay stubs, and tax returns.
Receive your loan funds. If you’re approved, you’ll sign a loan agreement and the lender will disburse your loan funds, typically through direct deposit to your bank account. This can take anywhere from one to seven business days, depending on the lender.

Ready to find your personal loan?
Credible makes it easy to find the right loan for you.

Free to use, no hidden fees
One simple form, easy to fill out and your info is protected
More options, pick the loan option that best fits your personal needs
Here for you. Our team is here to help you reach your financial goals

Find My Rate
Checking rates won’t affect your credit

Alternative ways to finance a home improvement project

The cheapest way to finance a home improvement project is to delay it and save up for it in advance. If you can’t wait, depending on your financial situation, there may be a better option to finance a home improvement project than a personal loan.

Home equity loan or home equity line of credit (HELOC)

A home equity loan or HELOC both use the equity you’ve built up in your home as collateral. But they have a couple differences:

Home equity loan: A home equity loan is essentially a second mortgage. With a home equity loan, you apply for and receive a fixed amount with a fixed interest rate that you pay back with equal monthly payments. These loans have lower interest rates than personal loans because they’re backed by your home.
HELOC: A HELOC is a type of credit line also backed by your home. You can draw as much or as little as you need, up to your credit limit. HELOCs typically have a draw period where you only have to make interest payments, followed by a repayment period where you pay back what you’ve borrowed.

Keep in mind: Both home equity loans and HELOCs take longer to be approved for than a personal loan. They also carry two main risks: You could lose your home to foreclosure if you can’t keep up with your payments, and you could become underwater on your loan if you tap too much equity and your home’s value drops.

FHA Title 1 loan

An FHA Title 1 loan is a special type of loan backed by the U.S. Department of Housing and Urban Development. FHA Title 1 loans will have a fixed rate similar to mortgage rates in your area. You must use the loan funds to finance alterations, repairs, and improvements that must substantially improve the basic livability or utility of the property.

The maximum amount you can borrow without using your home as collateral is $7,500. If you secure the loan with your home, you can borrow up to $25,000 for a single-family home and pay it back between six months and 20 years and 32 days.

Good to know: This type of loan is a good option if you don’t need to borrow more than $25,000, or if you need a long repayment period and are willing to deal with the paperwork and waiting of applying for a government-backed loan.

0% APR credit card

Credit card interest rates are typically much higher than the rate you could get with a personal loan, so putting your home improvement expenses on a credit card is generally not a good idea.

But there’s one exception to this rule: If you get a new credit card that’s offering a promotional interest rate of 0% APR, you’ll pay zero interest on your balance until the promotional period is up. This can be anywhere between nine and 21 months, depending on the card.

Keep in mind: A 0% APR credit card could be the best option for you if you have good credit and can pay off the balance before the 0% interest period is up. If you can’t pay the balance off in time, you’ll start accruing interest at the card’s regular rate, which can be much higher than a personal loan.

Learn More: How to Pre-Qualify for a Personal Loan

About the author

Rae Hartley Beck

Rae Hartley Beck is a Credible authority on personal finance. Her work has been featured in Bankrate, MoneyWise, and Investopedia.

Home » All » Personal Loans » Using a Personal Loan for Home Improvement Projects