Best Pool Loans of December 2024

Our experts reviewed the top pool loans and determined that LightStream is the best choice. Unsecured loan amounts are available up to $100,000 with generous repayment terms, zero fees, and same-day funding. 

According to HomeAdvisor, an in-ground pool can cost up to $66,500 to install, though the price can be even higher, depending on the features you want. Common pool loan options include home equity loans, home equity lines of credit (HELOCs), and personal loans. All pool loans work by letting you spread payments over a period of time, with interest.

Here's a look at some of the best pool loans available, as well as an overview of how to apply for a pool loan.

Compare pool loan rates of December 2024

Best pool loans

The best pool loans provide sufficient funds to get your pool project off the ground (or perhaps, in it) and don't rely on whether you have sufficient home equity to qualify. For this reason, we've considered personal loans below. But if you have more than enough home equity to pay for a new pool, and don't mind waiting a month for a home equity loan to close, you could potentially get a lower interest rate and a longer repayment term. 

Methodology

Credible evaluated the best personal loan lenders for pool loans based on factors such as customer experience, minimum fixed rate, maximum loan amount, funding time, loan terms, fees, discounts, and whether cosigners are allowed. Credible’s team of experts gathered information from each lender’s website, customer service department, directly from our partners, and via email support. Each data point was verified by a third party to make sure it was accurate and up to date.

Learn more about how Credible rates lenders by exploring our Personal Loans Lender Rating Methodology.

How do pool loans work?

Generally speaking, a pool loan lets you pay for your pool in installments over a period of years. This article focuses on using a personal loan to finance a swimming pool build. Personal loans do not require your home as collateral and rates are fixed once you take out the loan. Home equity loans and HELOCs, however, require your home as collateral and can have variable rates. 

When you use a personal loan to pay for your pool, you receive the money upfront and pay it back over time, with interest. The amount you can get for a pool loan generally ranges up to $100,000 or more, depending on your income and credit profile. Repayment terms generally range between one and 12 years. Interest rates depend on your credit score and history, as well as the lender — for a two-year personal loan, the average rate was 12.33%, according to the Federal Reserve.

Since rates and available repayment terms vary between lenders, it’s crucial to shop around and prequalify with multiple lenders before deciding which loan to apply for. Prequalification lets you see rates and terms you may be approved for, but is not an offer of credit. It doesn’t impact your credit score, but note that once you formally apply for a loan, the lender will conduct a hard credit pull that could lower your credit score by a few points for up to a year. 

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Types of pool loans

Pools are commonly financed by personal loans, home equity loans, HELOCs, and direct financing through the pool builder. 

• Personal loans: Personal loans are typically unsecured, meaning collateral is not required. Amounts are available up to $200,000, and repayment terms can range up to 12 years. Since unsecured loans are riskier for lenders, they tend to have higher interest rates relative to secured loans.
• Home equity loans: A home equity loan uses the equity in your home as collateral on the loan. For this reason, you’re limited to the amount of equity you have, making these loans a poor choice for newly purchased homes. If you can’t repay a home equity loan, you could lose your home in foreclosure.
• Home equity line of credit (HELOC): Similar to a home equity loan, the amount you can access via a HELOC is likewise based on the equity in your home. Unlike a loan, where you receive the money upfront, you draw from a line of credit as needed. A HELOC also uses your home as collateral.

It's also possible to get a secured pool loan, meaning the loan will be backed by some type of collateral, such as your car or home. This could lower your interest rate or help you qualify. Note that you’d be at risk of losing the collateral if you're unable to pay back the loan.

Pros and cons of pool loans

If you're considering moving forward with a pool loan, here are the major upsides:

• Spreads out payments on a costly project: Perhaps the biggest advantage of a pool loan is that you don't have to fork over the full amount upfront. Pools can be costly, but adding one can be easier on your budget if you spread payments out over time.
• Often no collateral required: If you use a personal loan to finance your pool, you often won't have to put up collateral like you would with a home equity loan. Whenever you secure a loan with collateral, you risk losing it if you can’t keep up with payments.
• Fixed monthly payments: If you use a personal loan to finance your pool, payments are typically fixed through the entire term of the loan. Because you’ll know your monthly payment ahead of time, pool loan payments can be easy to budget. 
• Improve your credit: With any loan that is reported to the credit bureaus, you have an opportunity to improve your credit through timely payments and eventually paying off the loan.

Meanwhile, these are a few downsides:

• Monthly payments could be high: If you have a high interest rate or choose a shorter loan term, the monthly payment could be steep. For instance, if you took out a 7-year pool loan for $50,000 with a 12% interest rate, you'd pay $883 per month.
• Potentially high interest cost: Paying for a pool is already a large undertaking, and it becomes even more expensive when you add the cost of interest. For example, on the $50,000 loan above, you’d pay $24,141 in interest over the course of the loan.
• Could hurt your credit: If you don’t make timely payments, your credit score could drop, which could reduce your ability to get favorable terms on future loans.

How to qualify for a pool loan

To qualify for a pool loan, you'll need to meet certain financial criteria. Typically, lenders consider the following factors:

• Credit score: Exact requirements vary by lender, but ideally you should have a good FICO credit score — 670 or higher — to qualify for the best rates. Some lenders may approve your loan even if you have bad credit, or a FICO score below 580, but be prepared to pay a high interest rate (the top interest rates on personal loans can be over 30%).
• Income and employment: Lenders want to see proof of income and employment when reviewing your application for a pool loan, such as paystubs, bank statements, or a copy of your W-2. They're looking for borrowers with a steady, reliable income to ensure they can repay the loan.
• Debt-to-income ratio: Additionally, lenders will look at your income compared to your existing debt obligations to ensure you have the financial footing to repay the loan and won’t be overextended. Most lenders prefer a debt-to-income ratio (DTI) below 35%.
• Co-borrower: If you’re applying for a pool loan with your spouse or partner, lenders will consider their financials as well.
• Cosigner: If you’re struggling to qualify for a pool loan due to bad credit, consider finding a cosigner — a friend or relative with good credit who’s willing to ‘vouch’ for you on the loan. Lenders that accept cosigners will consider their credit and income when you apply for a loan, but will also hold them liable if you can’t make payments. 

Learn More: Co-applicant vs. Cosigner

How to apply for a pool loan

If you're applying for a pool loan, you'll generally need to go through the following steps:

• Get a pool estimate: Before you start shopping for loans, you’ll need to know how much you need to borrow. Many contractors and pool companies offer estimates at no cost, so aim to get at least a few to compare.
• Compare lenders: Beyond shopping around for pool companies and contractors, you'll also want to compare lenders. See which are likely to suit your needs and suss out what they're offering in terms of interest rates, loan amounts, discounts, and repayment terms. You'll also want to consider fees, like origination fees, and the lender's reputation. 
• Prequalify with multiple lenders: Prequalifying helps you shop around and compare rates before committing to a loan. When you prequalify, a lender estimates what interest rate and loan terms you may qualify for, based on basic financial information you submit.
• Pick a loan option: Once you’ve prequalified with multiple lenders, choose the best loan for your financial situation and pool-building needs. Make sure the monthly payments fit your budget for the length of the repayment term you want.
• Complete the application: With your lender selected, it's time to submit your formal application. You'll need to provide personal information like your Social Security number and driver's license, and proof of employment, income, assets and liabilities. The application will involve a hard credit check, which will temporarily lower your credit score.
• Get your funds: If you're approved, you'll receive the funds you applied for (minus any origination fees charged). With a personal loan, you generally receive a lump sum upfront, though some pool loans may disburse funding in stages as the project moves forward.

Learn More: How To Get a Personal Loan

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