Jessica Walrack has over a decade of experience in personal finance. Her work has been featured by CBS News MoneyWatch, USA Today, U.S. News and World, Investopedia, and The Balance Money.
Meredith Mangan is a senior editor at Credible and expert on personal loans.
Updated October 15, 2024
Editorial disclosure: 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. Credible Operations, Inc. NMLS # 1681276, is referred to here as “Credible.”
Remodeling your home could be a smart move that benefits you both now and in the future. According to Remodeling by JLC’s 2024 Cost vs. Value Report, homeowners who undergo midrange bathroom remodeling projects recoup an average of 73.7% of their costs through resale value increases.
As a result, midrange bathroom remodels currently offer one of the highest returns on investment (ROIs) of all interior home improvement projects.
If you’re looking to remodel but can't pay out of pocket, consider a remodel loan. Multiple personal loan lenders offer financing for home improvement projects, and you don't need to have home equity to qualify.
Compare bathroom remodel financing rates in November 2024
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 20 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.
pros
Same-day funding available
High maximum loan amount
No origination fee
cons
Good credit required
No prequalification process
Not available in Vermont
Loan amount
$5,000 to $100,000
Repayment terms
2 - 20 years, depending on loan purpose
Fees
None
Discounts
Autopay
Eligibility
Available in all states except RI and VT
Min. income
Does not disclose
Customer service
Email
Soft credit check
No
Time to get funds
As soon as the same business day
Loan uses
Credit card refinancing, debt consolidation, home improvement, and other purposes
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.
pros
No fees required
Large loan amounts available
Autopay and direct pay discounts
Same day funding
Long loan terms available
cons
Good credit required
5,000 minimum loan amount
Loan amount
$5,000 to $100,000
Repayment terms
2 - 7 years
Fees
Option to pay an origination fee in exchange for a lower rate
Discounts
Autopay, direct pay
Eligibility
Available in all states
Min. income
Does not disclose
Customer service
Phone, email, live chat
Soft credit check
Yes
Time to get funds
Typically within a few days, given approval and bank account verification, but sometimes within the same day
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 9.99% 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).
pros
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
cons
Origination fees
No discounts
Not available in DC, IA, VT, or WV
Loan amount
$2,000 to $50,000
Fees
Origination fee, late fee, unsuccessful payment fee, check processing fee
Discounts
None
Eligibility
Available in all states except DC, IA, VT, and WV
Min. income
None
Customer service
Phone, email
Soft credit check
Yes
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
BHG Financial 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.
Loan amounts start at $20,000, so look elsewhere for small loans. And BHG charges a modest origination fee between 3% and 4%, depending on your financial profile. Loan funds are available within five to 14 days of loan approval. Note that you can't prequalify with BHG.
pros
Eligible applicants can borrow up to $200,000
Considers borrowers with fair credit
Long repayment terms
cons
Not available in IL, ND, and MT
No discounts
Minimum annual income requirement of $100,000
Funding takes at least five days
Loan amount
$20,000 - $200,000
Repayment terms
3 - 10 years
Fees
Origination fees, late fees, other fees may apply
Discounts
None
Eligibility
Available in all states except Illinois, North Dakota, and Montana
Min. income
$100,000
Customer service
Email, phone
Soft credit check
Not on lender's site
Time to get funds
In as few as 5 days
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
Zable offers relatively small loan amounts — ranging from $1,000 to $35,000 — that can be deposited in your account as soon as the same day you are approved, if it is by the lender's deadline. It’s an option for fair-credit borrowers, with a minimum credit score of 600, as well as those with lower incomes.
Its origination fees range from 5% to 9%, however, and it does not offer discounts, secured loans, nor the option to add a cosigner to your application. Zable also currently does not offer loans in 21 states.
pros
Funding as soon as the same day
Low minimum income required
100% digital process
cons
No discounts
Maximum loan amount is lower than most other lenders
Origination fee
Not available in CO, CT, IN, KS, LA, ME, ND, NE, NH, NJ, NV, OK, OR, PA, RI, SC, SD, VT, WV, WI, or WY
Loan amount
$1,000 to $35,000
Repayment terms
1 to 5 years
Fees
Origination fees (5% to 9%)
Discounts
None
Eligibility
Not available in CO, CT, IN, KS, LA, ME, ND, NE, NH, NJ, NV, OK, OR, PA, RI, SC, SD, VT, WV, WI, or WY
Min. income
$1,000 per month
Customer service
Email, phone
Soft credit check
Yes
Time to get funds
As soon as the same day
Loan uses
Debt consolidation, credit card refinancing, home improvement, major purchase, car financing
OneMain Financial has multiple options for bad-credit personal loans. There is no minimum credit score required (if you apply directly with OneMain), which means you could get a loan with bad credit (FICO below 580). Plus, cosigners are allowed — a cosigner is someone (ideally, with good credit) who promises to repay the loan if you can't, which can make it easier to qualify or lower your rate. And, secured personal loans are available. You secure a loan with collateral, which may also help you qualify or lower your rate.
Rates are higher than competitors and OneMain charges origination fees as either a flat fee up to $500, or a percentage from 1% to 10% (depending on your state of residence). Note that even if you prequalify for a personal loan with OneMain, getting approved isn't a given.
pros
Flexible eligibility requirements
Offers secured options
Competitive bad-credit loans
Physical presence
cons
Availability
Origination fees
High starting APR
Loan amount
$1,500 to $20,000
Fees
Origination fee, unsuccessful payment fee, late fee
Discounts
None
Eligibility
Must have photo I.D. issued by U.S. federal, state or local government
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 20 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.
pros
Same-day funding available
High maximum loan amount
No origination fee
cons
Good credit required
No prequalification process
Not available in Vermont
Loan amount
$5,000 to $100,000
Repayment terms
2 - 20 years, depending on loan purpose
Fees
None
Discounts
Autopay
Eligibility
Available in all states except RI and VT
Min. income
Does not disclose
Customer service
Email
Soft credit check
No
Time to get funds
As soon as the same business day
Loan uses
Credit card refinancing, debt consolidation, home improvement, and other purposes
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.
pros
No fees required
Large loan amounts available
Autopay and direct pay discounts
Same day funding
Long loan terms available
cons
Good credit required
5,000 minimum loan amount
Loan amount
$5,000 to $100,000
Repayment terms
2 - 7 years
Fees
Option to pay an origination fee in exchange for a lower rate
Discounts
Autopay, direct pay
Eligibility
Available in all states
Min. income
Does not disclose
Customer service
Phone, email, live chat
Soft credit check
Yes
Time to get funds
Typically within a few days, given approval and bank account verification, but sometimes within the same day
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 9.99% 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).
pros
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
cons
Origination fees
No discounts
Not available in DC, IA, VT, or WV
Loan amount
$2,000 to $50,000
Fees
Origination fee, late fee, unsuccessful payment fee, check processing fee
Discounts
None
Eligibility
Available in all states except DC, IA, VT, and WV
Min. income
None
Customer service
Phone, email
Soft credit check
Yes
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
BHG Financial 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.
Loan amounts start at $20,000, so look elsewhere for small loans. And BHG charges a modest origination fee between 3% and 4%, depending on your financial profile. Loan funds are available within five to 14 days of loan approval. Note that you can't prequalify with BHG.
pros
Eligible applicants can borrow up to $200,000
Considers borrowers with fair credit
Long repayment terms
cons
Not available in IL, ND, and MT
No discounts
Minimum annual income requirement of $100,000
Funding takes at least five days
Loan amount
$20,000 - $200,000
Repayment terms
3 - 10 years
Fees
Origination fees, late fees, other fees may apply
Discounts
None
Eligibility
Available in all states except Illinois, North Dakota, and Montana
Min. income
$100,000
Customer service
Email, phone
Soft credit check
Not on lender's site
Time to get funds
In as few as 5 days
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
Zable offers relatively small loan amounts — ranging from $1,000 to $35,000 — that can be deposited in your account as soon as the same day you are approved, if it is by the lender's deadline. It’s an option for fair-credit borrowers, with a minimum credit score of 600, as well as those with lower incomes.
Its origination fees range from 5% to 9%, however, and it does not offer discounts, secured loans, nor the option to add a cosigner to your application. Zable also currently does not offer loans in 21 states.
pros
Funding as soon as the same day
Low minimum income required
100% digital process
cons
No discounts
Maximum loan amount is lower than most other lenders
Origination fee
Not available in CO, CT, IN, KS, LA, ME, ND, NE, NH, NJ, NV, OK, OR, PA, RI, SC, SD, VT, WV, WI, or WY
Loan amount
$1,000 to $35,000
Repayment terms
1 to 5 years
Fees
Origination fees (5% to 9%)
Discounts
None
Eligibility
Not available in CO, CT, IN, KS, LA, ME, ND, NE, NH, NJ, NV, OK, OR, PA, RI, SC, SD, VT, WV, WI, or WY
Min. income
$1,000 per month
Customer service
Email, phone
Soft credit check
Yes
Time to get funds
As soon as the same day
Loan uses
Debt consolidation, credit card refinancing, home improvement, major purchase, car financing
OneMain Financial has multiple options for bad-credit personal loans. There is no minimum credit score required (if you apply directly with OneMain), which means you could get a loan with bad credit (FICO below 580). Plus, cosigners are allowed — a cosigner is someone (ideally, with good credit) who promises to repay the loan if you can't, which can make it easier to qualify or lower your rate. And, secured personal loans are available. You secure a loan with collateral, which may also help you qualify or lower your rate.
Rates are higher than competitors and OneMain charges origination fees as either a flat fee up to $500, or a percentage from 1% to 10% (depending on your state of residence). Note that even if you prequalify for a personal loan with OneMain, getting approved isn't a given.
pros
Flexible eligibility requirements
Offers secured options
Competitive bad-credit loans
Physical presence
cons
Availability
Origination fees
High starting APR
Loan amount
$1,500 to $20,000
Fees
Origination fee, unsuccessful payment fee, late fee
Discounts
None
Eligibility
Must have photo I.D. issued by U.S. federal, state or local government
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 20 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.
Loan amount
$5,000 to $100,000
Repayment terms
2 - 20 years, depending on loan purpose
Fees
None
Discounts
Autopay
Eligibility
Available in all states except RI and VT
Min. income
Does not disclose
Customer service
Email
Soft credit check
No
Time to get funds
As soon as the same business day
Loan uses
Credit card refinancing, debt consolidation, home improvement, and other purposes
BHG Financial 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.
Loan amounts start at $20,000, so look elsewhere for small loans. And BHG charges a modest origination fee between 3% and 4%, depending on your financial profile. Loan funds are available within five to 14 days of loan approval. Note that you can't prequalify with BHG.
Loan amount
$20,000 - $200,000
Repayment terms
3 - 10 years
Fees
Origination fees, late fees, other fees may apply
Discounts
None
Eligibility
Available in all states except Illinois, North Dakota, and Montana
Min. income
$100,000
Customer service
Email, phone
Soft credit check
Not on lender's site
Time to get funds
In as few as 5 days
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
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.
Loan amount
$5,000 to $100,000
Repayment terms
2 - 7 years
Fees
Option to pay an origination fee in exchange for a lower rate
Discounts
Autopay, direct pay
Eligibility
Available in all states
Min. income
Does not disclose
Customer service
Phone, email, live chat
Soft credit check
Yes
Time to get funds
Typically within a few days, given approval and bank account verification, but sometimes within the same day
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
More details
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 9.99% 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).
Loan amount
$2,000 to $50,000
Fees
Origination fee, late fee, unsuccessful payment fee, check processing fee
Discounts
None
Eligibility
Available in all states except DC, IA, VT, and WV
Min. income
None
Customer service
Phone, email
Soft credit check
Yes
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
OneMain Financial has multiple options for bad-credit personal loans. There is no minimum credit score required (if you apply directly with OneMain), which means you could get a loan with bad credit (FICO below 580). Plus, cosigners are allowed — a cosigner is someone (ideally, with good credit) who promises to repay the loan if you can't, which can make it easier to qualify or lower your rate. And, secured personal loans are available. You secure a loan with collateral, which may also help you qualify or lower your rate.
Rates are higher than competitors and OneMain charges origination fees as either a flat fee up to $500, or a percentage from 1% to 10% (depending on your state of residence). Note that even if you prequalify for a personal loan with OneMain, getting approved isn't a given.
Loan amount
$1,500 to $20,000
Fees
Origination fee, unsuccessful payment fee, late fee
Discounts
None
Eligibility
Must have photo I.D. issued by U.S. federal, state or local government
Maximum loan amount is lower than most other lenders
Origination fee
Not available in CO, CT, IN, KS, LA, ME, ND, NE, NH, NJ, NV, OK, OR, PA, RI, SC, SD, VT, WV, WI, or WY
More details
Overview
Zable offers relatively small loan amounts — ranging from $1,000 to $35,000 — that can be deposited in your account as soon as the same day you are approved, if it is by the lender's deadline. It’s an option for fair-credit borrowers, with a minimum credit score of 600, as well as those with lower incomes.
Its origination fees range from 5% to 9%, however, and it does not offer discounts, secured loans, nor the option to add a cosigner to your application. Zable also currently does not offer loans in 21 states.
Loan amount
$1,000 to $35,000
Repayment terms
1 to 5 years
Fees
Origination fees (5% to 9%)
Discounts
None
Eligibility
Not available in CO, CT, IN, KS, LA, ME, ND, NE, NH, NJ, NV, OK, OR, PA, RI, SC, SD, VT, WV, WI, or WY
Min. income
$1,000 per month
Customer service
Email, phone
Soft credit check
Yes
Time to get funds
As soon as the same day
Loan uses
Debt consolidation, credit card refinancing, home improvement, major purchase, car financing
Methodology
Credible evaluated the best bathroom remodel loans based on customer experience, interest rates and origination fees, loan amounts, funding times, loan terms, discounts, the availability of secured loans, whether cosigners are accepted, and more.
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.
The average cost of a bathroom remodel in the U.S. is $32,741 in 2024, according to Angi. However, the average range across the country starts at $13,765 and goes up to $45,944.
Your costs can vary based on a wide range of factors, such as what you plan to upgrade, the materials you choose, and if you hire professional help.
Good to know:
The three expenses that account for the largest portions of bathroom remodels are cabinets and shelving (25%), showers and tubs (22%), and a general contractor (13%). Everything else averages between 1% and 7% of the total project price.
To give you a better idea of what you can expect budget-wise, here’s a look at the average costs of common bathroom remodeling projects.
Bathroom remodel project
Average cost
Bathroom remodel overall
$70 to $250 per square foot
Shower remodel
$8,000
Bathtub replacement
$5,580
New bathroom cabinets
$5,500
New vanity countertop
$2,300
New interior wall
$2,054
Retiling a bathroom
$2,000
Professional bathroom painting
$1,100
Window replacement
$850
New interior door installation
$787
New light fixtures
$555
Sink installation
$431
Bathroom fan replacement
$386
Toilet installation
$374
Bathroom faucet replacement
$270
Source: Angi
If you don’t want to pay for your project out of pocket, you can look into financing but should weigh the extra costs that come with it.
For example, if you take out a $12,500 loan with a 12% interest rate and a three-year term, you’ll pay $2,446 in interest over the life of the loan through monthly payments of $415.
Tip:
Not sure how to figure out the cost of a loan? If you enter a loan amount, interest rate, and loan term into Credible’s personal loan calculator, you can see the loan’s estimated total cost and your monthly payment amount.
6 ways to finance a bathroom remodel
1. Personal loan
Best for high loan amounts and long repayment terms
Personal loans are installment loans designed to cover personal expenses, such as home improvement projects. They are typically unsecured, meaning you don’t have to provide collateral, but if you have a bad credit score (a FICO score below 580), a secured personal loan or getting a personal loan with a cosigner could help your chances of approval.
Personal loan amounts can range anywhere from $500 to $50,000 or more, and tend to have APRs between 6.99% and 35.99%. Some lenders also charge origination fees, which can be less than 1% or up to 12% of the loan amount, depending on the lender. After receiving the loan, you’ll repay it through fixed payments over a set term.
Best if you have sufficient equity and are ok using your home as collateral
A home equity loan allows you to borrow against a portion of the equity you’ve built in your home. For example, if your home appraises for $400,000 and you owe $200,000, you would have $200,000 in equity. However, most lenders only let you borrow up to around 80% of your home’s appraised value, less than the amount you owe on your mortgage.
So, in this case, you’d subtract your outstanding mortgage balance of $200,000 from $320,000 (80% of $400,000) to get the amount you could potentially borrow: $120,000. Upon approval, the lender would send you a lump sum that you would repay, plus interest, through fixed payments over a period of years. Home equity loan terms are typically available up to 30 years.
Because of the appraisal process, home equity loans can take weeks to more than a month to close.
Home equity loans tend to have lower interest rates than unsecured credit products like personal loans. However, they often come with closing costs equal to 2% to 6% of the loan amount and require a second lien on your property.
3. HELOC
Best for variable interest rates
A home equity line of credit (HELOC) lets you borrow against a portion of your home equity. However, instead of getting a lump sum loan upfront, you’re given access to a credit line for a draw period — often up to 10 years. When the draw period ends, you enter the repayment period. Lenders may require a balloon payment or allow monthly payments over a set term.
With HELOCs, you can withdraw funds as needed and will only pay interest on what you borrow. Additionally, the payments are often interest-only during the initial draw period. On the downside, HELOCs may come with upfront closing costs, variable interest rates, and expensive back-end payments.
Variable interest rates may fluctuate based on the market, so you could end up paying more in interest one month versus another.
4. Cash-out refi
Best for a single monthly payment
A cash-out refinance involves replacing your current mortgage with a larger one. After you pay off your original mortgage, you can use the remaining funds for your bathroom remodel or other expenses.
Cash-out refi loans can be a good fit if you want to tap into your home equity but prefer one monthly mortgage payment over two. They also make sense if you can get one with an interest rate that's lower than the current rate on your mortgage. This might be the case if you've improved your credit or if interest rates have come down since you first got your mortgage.
Lenders typically charge closing costs, which range from 2% to 5% of the loan amount, and the closing process can take a month or longer.
5. Credit card
Best for potential rewards and 0% APR promotions
If you have a card with available credit, you could use it to pay for bathroom remodel expenses. However, credit cards are best used for short-term financing that you can pay off within the card's grace period (usually one billing cycle) or within a 0% APR promotional period (up to 21 months or more, depending on the card).
This is because credit cards tend to have higher interest rates than the other credit products on this list. For instance, the average APR for credit cards is 21.59%, compared to 12.49% for a two-year personal loan, according to the Federal Reserve.
It can also be difficult to get approved for a credit line large enough to cover a full bathroom remodel or a 0% APR card. You're most likely to qualify if you have an excellent credit score (a FICO score of 800 or higher) and financial profile.
Tip:
One way to use a credit card to your advantage is to get one with a 0% APR introductory period of 12 to 21 months or more, as well as rewards. Then, pay off the balance before the promotion ends.
For example, the Citi Custom Cash Card is a no-annual-fee rewards card with a 0% intro APR on purchases for 15 months. It also offers 5% cash back on up to $500 per month in home improvement store spending (if it's your top spending category), and 1% cash back on all other purchases.
6. FHA 203(k) home improvement loan
Best for homeowners with FHA-approved lenders
The FHA 203(k) home improvement loan program was designed by the U.S. Department of Housing and Urban Development (HUD). It allows you to finance up to $35,000 or more into your mortgage to repair, improve, or upgrade your home.
You can use it when buying a new home or refinancing your existing one. However, among other requirements, you must plan to make at least $5,000 in eligible repairs or improvements to qualify. You can learn more about the program on the HUD website.
How to apply for a loan
If you’re interested in applying for a loan or credit line to finance the costs of a bathroom remodel, the process will depend on the credit product you choose.
For example, if you’re interested in a personal loan, you can request quotes through the websites of individual lenders or all in one place through Credible.
Once you have a handful of quotes, identify the key features to review: the loan amount, APR, fees, term, monthly payment amount, and overall cost. Then, compare the quotes side by side to find the best deal.
If you find a loan you want to get, notify the lender and complete the final steps. Most will request to perform a hard credit check, which will temporarily affect your credit score, and ask for documents to verify your identity, income, employment, and address.
The money you spend on remodeling a bathroom isn’t typically tax deductible.
However, through the 2025 tax year, you may be able to deduct the interest on a home equity loan or HELOC if you use the loan funds for qualifying home improvements. If you’re interested in going this route, it’s best to consult a tax professional regarding whether you qualify.
FAQ
Can you finance a bathroom remodel?
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Yes, you can finance a bathroom remodel. Personal loans, credit cards, home equity loans, HELOCs, and other options can all be used to finance home improvements.
How to save money remodeling a bathroom
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You can save money when remodeling a bathroom by taking steps such as leaving the layout the same, and opting for prefabricated kits over custom builds.
Further, it can help to DIY things when you can, and choose standard materials and finishes. The biggest costs are shelving and cabinets, showers and tubs, and hiring a general contractor, so you’ll want to look for ways to save in those areas.
Jessica Walrack has over a decade of experience in personal finance. Her work has been featured by CBS News MoneyWatch, USA Today, U.S. News and World, Investopedia, and The Balance Money.
