Looking for a loan that can help bring your home improvement ideas to life? We reviewed a lineup of personal loan lenders to find the best home improvement loans on the market. After reviewing loan amounts, interest rates, funding time, fees, discounts, and more, here are the home improvement loans that topped the list.
Compare home improvement loan rates of May 2024
Advertiser DisclosureOverview
Lightstream is one of three Credible partner lenders to offer loan amounts up to $100,000, which makes it ideal for financing large expenses like home improvements or weddings. Funds are available as soon as the same day you apply, and you'll have up to 12 years to repay certain types of loans, including home improvement loans, RV loans, and boat loans. There are no origination fees, and rates are low — Lightstream's lowest APR beats SoFi's advertised lowest APR by 1 percentage point. But you'll need good credit to qualify.
Unlike most lenders, Lightstream does not let you prequalify on its site. Nor does it provide a contact phone number next to its customer service hours on its website.
Repayment terms
2 - 12 years, depending on loan purpose
Eligibility
Available in all states except RI and VT
Time to get funds
As soon as the next business day
Loan uses
Credit card refinancing, debt consolidation, home improvement, and other purposes
Read full reviewOverview
Upstart has one of the lowest available APRs of Credible partner lenders and of all non-partners we reviewed, making it a good choice for well-qualified applicants. However, it's also is one of few lenders that doesn't have a minimum credit score requirement (if you apply on the lender's website), which makes it an option if you have bad credit or no credit history. Upstart may charge an origination fee as high as 12%, but good-credit borrowers may not be charged one at all.
Trustpilot gives Upstart 4.9 stars, which is the highest of all lenders we reviewed.
Time to get funds
As soon as 1 to 3 business days
Loan uses
Pay off credit cards, consolidate debt, relocate, make a large purchase, and other purposes
Read full reviewOverview
Upgrade has a suite of features that make it a very attractive lender: competitive interest rates, discounts for direct pay and autopay, as soon as same-day funding, up to seven-year repayment terms, and nationwide availability. Plus, loans are available to fair-credit borrowers, and you don't need to input your Social Security number to prequalify on the website. Upgrade even offers secured personal loans, which is not common among lenders.
However, Upgrade does charge an origination fee of 1.85% to 9.99%. You must have a FICO score of at least 600 and a minimum income of $25,000 annually to qualify.
Loan amount
$1,000 to $50,000 ($3,005 minimum in GA; $6,600 minimum in MA)
Loan uses
Credit card refinancing, debt consolidation, home improvement, major purchase, other
Read full reviewOverview
SoFi stands out for offering no-fee personal loans with competitive rates, high loan amounts, long loan terms, discounts for autopay and direct pay, and funding as soon as the same day. Plus, SoFi prioritizes convenience for existing and potential customers with features like live chat and an easy prequalification process that doesn't require your Social Security number.
The main catch is that you need to qualify for a loan with SoFi, which can be hard to do if you don't have good credit. You also won't be able to apply with a cosigner, since SoFi doesn't accept cosigners; nor does it offer secured personal loans.
Fees
Option to pay an origination fee (up to 6%) in exchange for a lower rate
Time to get funds
Typically within a few days, given approval and bank account verification, but sometimes within the same day
Loan uses
Solely for personal, family, or household uses
Read full reviewOverview
Best Egg is a solid lender for a wide range of borrowers and, notably, scored second for personal loan satisfaction in J.D. Power's Consumer Lending Study. It offers competitive rates, reasonable loan terms and amounts, and personal loans for fair credit. You'll need a FICO score of at least 600 to qualify, but the lower your score, the higher your APR may be. The APR includes the interest rate and origination fees, which range from 0.99% to 8.99% with Best Egg.
Note that if you successfully prequalify with Best Egg, you may be more likely to be approved for the loan relative to other lenders you prequalify with. Based on Credible data, borrowers who chose to apply for a loan with Best Egg were more than twice as likely to be approved (relative to most other Credible partners).
Fees
Origination fee, late fee, unsuccessful payment fee, check processing fee
Eligibility
Available in all states except DC, IA, VT, and WV
Time to get funds
As soon as 1 to 3 business days after successful verification
Loan uses
Credit card refinancing, debt consolidation, home improvement, and other purposes
Read full reviewOverview
Universal Credit is one of a handful of lenders that offers personal loans for bad credit. If your FICO credit score is at least 560, you may be eligible for a Universal Credit personal loan. It offers loan amounts up to $50,000, repayment terms up to seven years, and discounts for direct pay and autopay. Funds are available as soon as the next business day after loan approval.
Note that rates and fees can be relatively high — you may pay an origination fee from 5.25% to 9.99%, and APRs start at 11.69%. If you get a loan with a high interest rate, consider refinancing your personal loan at a lower rate once you've improved your credit score.
Eligibility
A U.S. citizen or permanent resident; not available in DC, IA, SC, WV
Time to get funds
As soon as 1 business day after acceptance
Loan uses
Debt consolidation, pay off credit cards, home improvements, unexpected expenses, home and auto repairs, weddings, and other major purchases
Read full reviewOverview
BHG Money stands out for offering the largest loan amounts — up to $200,000 — of any Credible partner lenders. Simply put, if you need an unsecured personal loan over $100,000, there are very few places to look, but BHG is one. You'll have up to 10 years to repay the loan, but you'll need an annual income of at least $100,000 to qualify and a FICO score that's 660 or higher. However, if you have a cosigner that meets these requirements, BHG will consider your application.
Loan amounts start at $20,000, so look elsewhere for small loans. And BHG charges a modest origination fee between 2% and 4%, depending on your financial profile. Loan funds are available within three to 14 days of loan approval. Note that you can't prequalify with BHG.
Fees
Origination fees, late fees
Eligibility
Available in all states except Maryland and Illinois
Loan uses
Debt consolidation, baby (adoption), engagement ring financing, moving (relocation), business, home improvement, special occasion, cosmetic procedures, major purchase, taxes, credit card refinancing, medical expenses, vacation, wedding, other
Read full reviewBest home improvement loans
One of the most important factors in finding the best home improvement loan is how much you need to borrow. If you're doing a major renovation that requires more than a $50,000 loan, there will be fewer lenders for you to choose from, so you need to know where to look. It's also crucial that you can afford to repay any loan you take out, which makes a longer repayment term ideal for budgeting large home improvement projects.
The top lenders below offer loan amounts up to at least $50,000, and a few offer loans up to $100,000 or more. While most repayment terms cap out at seven years, some of the best home improvement loans below have repayment terms as long as 12 years.
LightStream: Best home improvement loans and low rates
Best home improvement loans and low rates
Loan Amount
$5000 to $100000
Same-day funding available
High maximum loan amount
No origination fee
Good credit required
No prequalification process
Not available in Vermont
Overview
Lightstream is one of three Credible partner lenders to offer loan amounts up to $100,000, which makes it ideal for financing large expenses like home improvements or weddings. Funds are available as soon as the same day you apply, and you'll have up to 12 years to repay certain types of loans, including home improvement loans, RV loans, and boat loans. There are no origination fees, and rates are low — Lightstream's lowest APR beats SoFi's advertised lowest APR by 1 percentage point. But you'll need good credit to qualify.
Unlike most lenders, Lightstream does not let you prequalify on its site. Nor does it provide a contact phone number next to its customer service hours on its website.
Repayment terms
2 - 12 years, depending on loan purpose
Eligibility
Available in all states except RI and VT
Time to get funds
As soon as the next business day
Loan uses
Credit card refinancing, debt consolidation, home improvement, and other purposes
Loan Amount
$5000 to $100000
Min. Credit Score
Does not disclose
No fees required
Large loan amounts available
Autopay and direct pay discounts
Same day funding
Long loan terms available
Good credit required
5,000 minimum loan amount
Overview
SoFi stands out for offering no-fee personal loans with competitive rates, high loan amounts, long loan terms, discounts for autopay and direct pay, and funding as soon as the same day. Plus, SoFi prioritizes convenience for existing and potential customers with features like live chat and an easy prequalification process that doesn't require your Social Security number.
The main catch is that you need to qualify for a loan with SoFi, which can be hard to do if you don't have good credit. You also won't be able to apply with a cosigner, since SoFi doesn't accept cosigners; nor does it offer secured personal loans.
Fees
Option to pay an origination fee (up to 6%) in exchange for a lower rate
Time to get funds
Typically within a few days, given approval and bank account verification, but sometimes within the same day
Loan uses
Solely for personal, family, or household uses
BHG Money: Best for large personal loans
Best for large personal loans
Loan Amount
$20000 to $200000
Eligible applicants can borrow up to $200,000
Considers borrowers with fair credit
Long repayment terms
Cosigners allowed
Not available in MD or IL
No discounts
Minimum income required of $100,000 annually
Overview
BHG Money stands out for offering the largest loan amounts — up to $200,000 — of any Credible partner lenders. Simply put, if you need an unsecured personal loan over $100,000, there are very few places to look, but BHG is one. You'll have up to 10 years to repay the loan, but you'll need an annual income of at least $100,000 to qualify and a FICO score that's 660 or higher. However, if you have a cosigner that meets these requirements, BHG will consider your application.
Loan amounts start at $20,000, so look elsewhere for small loans. And BHG charges a modest origination fee between 2% and 4%, depending on your financial profile. Loan funds are available within three to 14 days of loan approval. Note that you can't prequalify with BHG.
Fees
Origination fees, late fees
Eligibility
Available in all states except Maryland and Illinois
Loan uses
Debt consolidation, baby (adoption), engagement ring financing, moving (relocation), business, home improvement, special occasion, cosmetic procedures, major purchase, taxes, credit card refinancing, medical expenses, vacation, wedding, other
Universal Credit: Best debt consolidation loans for bad credit
Best debt consolidation loans for bad credit
Loan Amount
$1000 to $50000
Borrowers with bad credit considered
No minimum income requirement
Autopay and direct pay discounts available
Can fund in one business day
High APRs
Potentially high origination fees
Not available in Iowa
Overview
Universal Credit is one of a handful of lenders that offers personal loans for bad credit. If your FICO credit score is at least 560, you may be eligible for a Universal Credit personal loan. It offers loan amounts up to $50,000, repayment terms up to seven years, and discounts for direct pay and autopay. Funds are available as soon as the next business day after loan approval.
Note that rates and fees can be relatively high — you may pay an origination fee from 5.25% to 9.99%, and APRs start at 11.69%. If you get a loan with a high interest rate, consider refinancing your personal loan at a lower rate once you've improved your credit score.
Eligibility
A U.S. citizen or permanent resident; not available in DC, IA, SC, WV
Time to get funds
As soon as 1 business day after acceptance
Loan uses
Debt consolidation, pay off credit cards, home improvements, unexpected expenses, home and auto repairs, weddings, and other major purchases
Upgrade: Best for fair credit
Loan Amount
$1000 to $50000
Fair credit borrowers eligible
Autopay and direct pay discounts
Can fund in as little as 1 business day
Mobile app
Secured loans available
High maximum origination fee
Cosigners not accepted on home improvement loans
Low J.D. Power ranking
Overview
Upgrade has a suite of features that make it a very attractive lender: competitive interest rates, discounts for direct pay and autopay, as soon as same-day funding, up to seven-year repayment terms, and nationwide availability. Plus, loans are available to fair-credit borrowers, and you don't need to input your Social Security number to prequalify on the website. Upgrade even offers secured personal loans, which is not common among lenders.
However, Upgrade does charge an origination fee of 1.85% to 9.99%. You must have a FICO score of at least 600 and a minimum income of $25,000 annually to qualify.
Loan amount
$1,000 to $50,000 ($3,005 minimum in GA; $6,600 minimum in MA)
Loan uses
Credit card refinancing, debt consolidation, home improvement, major purchase, other
Upstart: Best fast personal loans for all credit types
Best fast personal loans for all credit types
Loan Amount
$1000 to $50000
May fund in 1 business day
No minimum credit score requirement on lender site
Low minimum APR
Trustpilot score of 4.9/5 stars
May charge a high origination fee
No discounts offered
Overview
Upstart has one of the lowest available APRs of Credible partner lenders and of all non-partners we reviewed, making it a good choice for well-qualified applicants. However, it's also is one of few lenders that doesn't have a minimum credit score requirement (if you apply on the lender's website), which makes it an option if you have bad credit or no credit history. Upstart may charge an origination fee as high as 12%, but good-credit borrowers may not be charged one at all.
Trustpilot gives Upstart 4.9 stars, which is the highest of all lenders we reviewed.
Time to get funds
As soon as 1 to 3 business days
Loan uses
Pay off credit cards, consolidate debt, relocate, make a large purchase, and other purposes
Axos: Best for low origination fees
Best for low origination fees
Loan Amount
$10000 to $50000
Long loan terms available
May fund in 1 to 2 days
Low minimum income requirement
Available in all states
Trustpilot score of 4.9/5 stars
High minimum loan amount
Origination fee
No discounts
Good credit required
Overview
Axos is one of few lenders that offers loans for business purposes. Plus, it has a low minimum income requirement, offers repayment terms up to 7 years, and is available in all states. But If you need a loan under $10,000, you'll need to look elsewhere. While this lender may charge an origination fee, it's fees are on the low side, topping out at 3%. You'll also want to have good credit to apply for a loan with Axos. You can expect to receive funds 1 to 2 business days after the loan is approved.
Eligibility
Available in all 50 states
Time to get funds
As soon as the next business day after successful verification
Loan uses
Debt consolidation, home improvement, self-employment, and other purposes
Best Egg: Best for high close rates if pre-approved
Best for high close rates if pre-approved
Loan Amount
$2000 to $50000
Secured loans available
Low minimum income requirement
Scored second in J.D. Power's Consumer Lending Satisfaction Study
Funds in 1-3 business days
High close rate on loans through Credible platform
Origination fees
No discounts
Not available in DC, IA, VT, or WV
Overview
Best Egg is a solid lender for a wide range of borrowers and, notably, scored second for personal loan satisfaction in J.D. Power's Consumer Lending Study. It offers competitive rates, reasonable loan terms and amounts, and personal loans for fair credit. You'll need a FICO score of at least 600 to qualify, but the lower your score, the higher your APR may be. The APR includes the interest rate and origination fees, which range from 0.99% to 8.99% with Best Egg.
Note that if you successfully prequalify with Best Egg, you may be more likely to be approved for the loan relative to other lenders you prequalify with. Based on Credible data, borrowers who chose to apply for a loan with Best Egg were more than twice as likely to be approved (relative to most other Credible partners).
Fees
Origination fee, late fee, unsuccessful payment fee, check processing fee
Eligibility
Available in all states except DC, IA, VT, and WV
Time to get funds
As soon as 1 to 3 business days after successful verification
Loan uses
Credit card refinancing, debt consolidation, home improvement, and other purposes
Methodology
Credible evaluated the best personal loan lenders for home improvements based on factors such as customer experience, minimum fixed rate, maximum loan amount, funding time, loan terms, fees, discounts, and whether cosigners are accepted. Credible’s team of experts gathered information from each lender’s website, customer service department, in-house resources, and via email support. Each data point was verified to make sure it was accurate at the time of publication.
Learn more about how Credible rates lenders by exploring our Personal Loans Lender Rating Methodology.
What are home improvement loans?
Home improvement loans are taken out for the purpose of funding home improvement projects, like remodeling an outdated kitchen or replacing old flooring. Many different types of loans can be considered home improvement loans, including personal loans, home equity loans, home equity lines of credit (HELOCs), and cash-out refinance loans.
The type of home improvement loan that’s best for you will, in part, depend on what types of loans you can qualify for and if you want the lowest rate at all costs. For example, you’re likely able to get a lower rate on a home equity loan or HELOC because the loan is secured by your home (meaning the lender can take it if you default).
With a personal loan, however, the rate is likely to be higher because most personal loans are unsecured. This means that if you default, your home is not in jeopardy. If you have a fair or bad credit score, applying for a home equity loan or HELOC might be your best shot at getting a reasonable rate.
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How do home improvement loans work?
The way a home improvement loan works will depend on the type of loan you get. However, all have the following components:
- Loan term: The loan’s term is the span of time over which you’ll pay back the amount borrowed, except in the case of a HELOC. A HELOC includes both a draw period, during which you can use the credit line as needed, and a repayment period, during which you’ll repay the amount borrowed.
- Annual percentage rate (APR): The APR accounts for the interest rate and any upfront fees, like an origination fee, that you might pay to borrow money. This makes it a better measure of loan cost than the interest rate alone.
- Fees: Loans may come with additional fees, such as closing costs origination fees. Note that an origination fee is often deducted upfront from the loan amount — which means you’d receive less than the dollar amount you borrowed.
- Loan-to-value ratio (LTV): When your property acts as collateral on a home improvement loan, the LTV percentage determines how much of your home’s value you can borrow.
Learn More: APR vs Interest Rate on a Personal Loan
Here’s a closer look at how the most common types of home improvement loans work.
Personal loans
Personal loans typically unsecured installment loans. Companies lend you a lump sum and you repay it, plus interest and fees, over a set period. The loan amount, loan term, interest rate, and amount you receive will depend primarily on your income and credit profile.
In general, loan amounts range from under $1,000 to over $100,000, and loan terms range from one to seven years or more. For example, Lightstream lets you take out a 12-year personal loan to pay for home improvements.
The average APR on a 24-month personal loan was 12.49% in February 2024 (the most recent data), according to the Federal Reserve. APRs generally range from 5% to 36% at the time of publication, and origination fees (when charged) can be as high as 12% of the loan amount.
Home equity loans
Home equity loans, also called second mortgages, are secured installment loans backed by the equity you have in a home. Lenders require an appraisal of your home to assess its current fair market value and then will determine the amount you can borrow based on their LTV guidelines — you can often borrow up to 85% of your home’s equity.
Like a first mortgage, home equity loans have interest charges and closing costs. The interest rate you get will depend on your credit profile and loan length, while closing costs are often 2% to 6% of your loan amount. Loan terms generally range from five to 30 years.
Home equity lines of credit (HELOCs)
HELOCs, like home equity loans, are backed by the equity you have in your home. You can often borrow up to 85% of your home’s equity. However, instead of a lump-sum loan that’s repaid over a set term, HELOCs give you access to a credit line that you can use as needed for a set term — typically 10 years.
During the draw period, you can withdraw funds up to your credit limit and lenders may only charge you interest on the outstanding amount. Once the draw period ends, the repayment period begins, which generally lasts up to 20 years. Some HELOCs don’t have closing costs, while others may charge an origination fee, for example.
Cash-out refinance loans
Cash-out refinance loans involve refinancing your existing mortgage into a new, larger loan and cashing out the difference. You can often borrow up to 80% of your home’s value. A cash-out refinance has closing costs, a new interest rate, and a new term (typically of 30 years).
Tip
In a high-interest rate environment, a cash-out refinance may not be the best option for a home improvement loan.
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How to choose the best home improvement loan
To find the best home improvement loan for your situation, it’s important to consider all of your options and weigh the pros and cons.
Personal loans
While unsecured personal loans are often the fastest and most convenient option — you can apply online, get approved, and have the money in your account as soon as the same day — your interest rate could be higher relative to a home-equity based loan, especially if you have bad credit.
You’ll need to meet a lineup of eligibility requirements, which generally include a minimum credit score, income, debt-to-income ratio, and more. These tend to be more stringent than the requirements for secured loans since there’s no collateral for the lender to collect if you default.
To get the best home improvement loan rates on a personal loan, it’s essential to shop around and prequalify with multiple lenders. Prequalification gives you an idea of the loan amounts and terms you might qualify for, but doesn’t impact your credit. Compare loan quotes for the lowest APRs, the most suitable loan amounts, a repayment term that fits your project, and a monthly payment you can comfortably afford. If a lender denies your application, consider enlisting the help of a cosigner with good credit or opting for a secured alternative.
Loan Amounts:
- $2,000 Loan
- $1,000 Loan
- $5,000 Loan
- $10,000 Loan
- $30,000 Loan
- $40,000 Loan
- $45,000 Loan
- $60,000 Loan
- $80,000 Loan
- $100,000 Loan
Important
Though prequalification doesn’t impact your credit score, once you submit your loan application, the lender will conduct a hard credit pull, which may temporarily lower your credit score. Note that prequalification quotes are not offers of credit.
Equity-backed loans
Home equity-backed loans take a bit more time and paperwork, but in exchange, you may be able to tap into higher loan amounts, lower interest rates, and more lenient eligibility requirements. With your home acting as collateral for the loan, lenders face less risk, which means they’re able to approve borrowers with lower credit scores.
However, when considering home equity loans, HELOCs, and cash-out refinances, be sure to factor in the closing costs, which can add 2% to 6% of the loan amount to your costs. As with personal loans, rates and fees often vary between lenders, so it’s in your best interest to compare multiple lenders that might be a good fit.
Important
If you miss too many payments on a home equity loan, HELOC, or cash-out refinance, your home could be at risk of foreclosure.
How to get a home improvement loan
Ready to move ahead with a home improvement loan? The first step is to check your credit score and budget. Doing so will help you determine which loans you’re most likely to get and the monthly payment amount you can afford.
If you opt for a personal loan, the application process is relatively easy. Most applications ask for general information including your name, birth date, address history, employment history, income, and Social Security number. You may need to provide supporting documentation — such as pay stubs or tax returns — to prove your income, and a utility bill to prove your address.
If you opt for a home equity-backed loan, the process is more involved. Along with proof of your personal and income information, you’ll often need to provide your homeowners insurance declarations page, property tax statement or mortgage statement, and your flood insurance declaration (if applicable). Additionally, your home will typically need to undergo an appraisal.
Advertiser DisclosureOverview
Lightstream is one of three Credible partner lenders to offer loan amounts up to $100,000, which makes it ideal for financing large expenses like home improvements or weddings. Funds are available as soon as the same day you apply, and you'll have up to 12 years to repay certain types of loans, including home improvement loans, RV loans, and boat loans. There are no origination fees, and rates are low — Lightstream's lowest APR beats SoFi's advertised lowest APR by 1 percentage point. But you'll need good credit to qualify.
Unlike most lenders, Lightstream does not let you prequalify on its site. Nor does it provide a contact phone number next to its customer service hours on its website.
Repayment terms
2 - 12 years, depending on loan purpose
Eligibility
Available in all states except RI and VT
Time to get funds
As soon as the next business day
Loan uses
Credit card refinancing, debt consolidation, home improvement, and other purposes
Read full reviewOverview
Upstart has one of the lowest available APRs of Credible partner lenders and of all non-partners we reviewed, making it a good choice for well-qualified applicants. However, it's also is one of few lenders that doesn't have a minimum credit score requirement (if you apply on the lender's website), which makes it an option if you have bad credit or no credit history. Upstart may charge an origination fee as high as 12%, but good-credit borrowers may not be charged one at all.
Trustpilot gives Upstart 4.9 stars, which is the highest of all lenders we reviewed.
Time to get funds
As soon as 1 to 3 business days
Loan uses
Pay off credit cards, consolidate debt, relocate, make a large purchase, and other purposes
Read full reviewOverview
Upgrade has a suite of features that make it a very attractive lender: competitive interest rates, discounts for direct pay and autopay, as soon as same-day funding, up to seven-year repayment terms, and nationwide availability. Plus, loans are available to fair-credit borrowers, and you don't need to input your Social Security number to prequalify on the website. Upgrade even offers secured personal loans, which is not common among lenders.
However, Upgrade does charge an origination fee of 1.85% to 9.99%. You must have a FICO score of at least 600 and a minimum income of $25,000 annually to qualify.
Loan amount
$1,000 to $50,000 ($3,005 minimum in GA; $6,600 minimum in MA)
Loan uses
Credit card refinancing, debt consolidation, home improvement, major purchase, other
Read full reviewOverview
SoFi stands out for offering no-fee personal loans with competitive rates, high loan amounts, long loan terms, discounts for autopay and direct pay, and funding as soon as the same day. Plus, SoFi prioritizes convenience for existing and potential customers with features like live chat and an easy prequalification process that doesn't require your Social Security number.
The main catch is that you need to qualify for a loan with SoFi, which can be hard to do if you don't have good credit. You also won't be able to apply with a cosigner, since SoFi doesn't accept cosigners; nor does it offer secured personal loans.
Fees
Option to pay an origination fee (up to 6%) in exchange for a lower rate
Time to get funds
Typically within a few days, given approval and bank account verification, but sometimes within the same day
Loan uses
Solely for personal, family, or household uses
Read full reviewOverview
Best Egg is a solid lender for a wide range of borrowers and, notably, scored second for personal loan satisfaction in J.D. Power's Consumer Lending Study. It offers competitive rates, reasonable loan terms and amounts, and personal loans for fair credit. You'll need a FICO score of at least 600 to qualify, but the lower your score, the higher your APR may be. The APR includes the interest rate and origination fees, which range from 0.99% to 8.99% with Best Egg.
Note that if you successfully prequalify with Best Egg, you may be more likely to be approved for the loan relative to other lenders you prequalify with. Based on Credible data, borrowers who chose to apply for a loan with Best Egg were more than twice as likely to be approved (relative to most other Credible partners).
Fees
Origination fee, late fee, unsuccessful payment fee, check processing fee
Eligibility
Available in all states except DC, IA, VT, and WV
Time to get funds
As soon as 1 to 3 business days after successful verification
Loan uses
Credit card refinancing, debt consolidation, home improvement, and other purposes
Read full reviewOverview
Universal Credit is one of a handful of lenders that offers personal loans for bad credit. If your FICO credit score is at least 560, you may be eligible for a Universal Credit personal loan. It offers loan amounts up to $50,000, repayment terms up to seven years, and discounts for direct pay and autopay. Funds are available as soon as the next business day after loan approval.
Note that rates and fees can be relatively high — you may pay an origination fee from 5.25% to 9.99%, and APRs start at 11.69%. If you get a loan with a high interest rate, consider refinancing your personal loan at a lower rate once you've improved your credit score.
Eligibility
A U.S. citizen or permanent resident; not available in DC, IA, SC, WV
Time to get funds
As soon as 1 business day after acceptance
Loan uses
Debt consolidation, pay off credit cards, home improvements, unexpected expenses, home and auto repairs, weddings, and other major purchases
Read full reviewOverview
BHG Money stands out for offering the largest loan amounts — up to $200,000 — of any Credible partner lenders. Simply put, if you need an unsecured personal loan over $100,000, there are very few places to look, but BHG is one. You'll have up to 10 years to repay the loan, but you'll need an annual income of at least $100,000 to qualify and a FICO score that's 660 or higher. However, if you have a cosigner that meets these requirements, BHG will consider your application.
Loan amounts start at $20,000, so look elsewhere for small loans. And BHG charges a modest origination fee between 2% and 4%, depending on your financial profile. Loan funds are available within three to 14 days of loan approval. Note that you can't prequalify with BHG.
Fees
Origination fees, late fees
Eligibility
Available in all states except Maryland and Illinois
Loan uses
Debt consolidation, baby (adoption), engagement ring financing, moving (relocation), business, home improvement, special occasion, cosmetic procedures, major purchase, taxes, credit card refinancing, medical expenses, vacation, wedding, other
Read full reviewFAQ
Can I get a home improvement loan with bad credit?
If you have bad to fair credit, it’s still possible to get a home improvement loan but you may need to shop around. For example, some personal loan lenders, such as Avant and Universal Credit, will consider borrowers with credit scores below 600 (that’s in “fair” and “poor” credit score territory). Quicken Loans says borrowers should have a credit score of at least 620 to get approved for home equity loans, while Freedom Mortgage requires a score of just 550 for VA or FHA cash-out refinances.
Is interest on a home improvement loan tax-deductible?
The interest on home equity lines of credit and loans may be tax-deductible if the funds from the loan are used to build, buy, or substantially improve the home that secures the loan. An improvement is considered “substantial” if it adds value to a home, prolongs its life, or adapts it to new uses, according to the Internal Revenue Service (IRS).
How long are home improvement loans?
The length of a home improvement loan can vary depending on the type of loan you get.
- Home equity loans often range from five to 30 years.
- HELOCs often have draw periods of 10 years and repayment periods of up to 20 years.
- Cash-out refinance loans typically have terms of up to 30 years.
- Personal loan terms tend to range from one to seven years, but are available up to 12 years.
Do I need collateral for a home improvement loan?
Collateral requirements on home improvement loans vary depending on the type of loan you get. Home equity loans, HELOCs, and cash-out refinance loans are secured by your home, while personal loans for home improvement are often unsecured.
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Jessica Walrack
Jessica Walrack is a freelance finance writer and journalist with over a decade of experience. During that time, she’s written hundreds of articles about loans, insurance, banking, mortgages, credit cards, budgeting, and taxes for well-known publications including CBS News MoneyWatch, USA Today, US News and World, Investopedia, and The Balance Money.