How We Get Paid

We want this to be a “win-win” situation. So we only want to get paid if we bring you value in the form of finding a personal finance option that works for you. Not by selling your data. Credible receives compensation by the lender if you finish the loan process and a loan is disbursed. The amount of our compensation does not impact how and where lenders appear on our site, and Credible charges you no fees of any sort. Some lenders may take traffic sources into account when offering credit terms.

Home improvement loans

How We Get Paid

We want this to be a “win-win” situation. So we only want to get paid if we bring you value in the form of finding a personal finance option that works for you. Not by selling your data. Credible receives compensation by the lender if you finish the loan process and a loan is disbursed. The amount of our compensation does not impact how and where lenders appear on our site, and Credible charges you no fees of any sort. Some lenders may take traffic sources into account when offering credit terms.

Turn your house into a dream home today

Rates from 3.99% APR1

Loan amounts from $600 to $100,000

Check rates from multiple lenders in just 2 minutes

Checking rates won’t affect your credit score

Best Rate Guarantee
If we can't find you the best personal loan rate, we'll give you $200 (Terms Apply).Learn more

Get a decision in minutes

Fast process, low rates, no stress

rates

Check rates from multiple lenders

Compare competitive rates in two minutes with no commitment.

application

Complete your application

After you’ve chosen a lender, complete your application online.

loan

Close your loan

Sign your documents and relax as the funds get deposited into your account.

Check rates from the top home improvement lenders

Advertiser Disclosure
The rates that appear are from companies which Credible receives compensation. This compensation does not impact how or where products appear within the table. The rates and information shown do not include all financial service providers or all of the displayed lender's available services and product offerings.
LenderRates from (APR)Loan termLoan amount
Avant
9.95% - 35.99%2 - 5 yearsUp to $35,000Show detailsCheck Rate

Show details

Axos
6.79% - 17.99%3 - 6 yearsUp to $50,000Show detailsCheck Rate

Show details

Best Egg
4.99% - 35.99%2 - 5 yearsUp to $35,000Show detailsCheck Rate

Show details

Discover
Personal Loans
5.99% - 24.99%3 - 7 yearsUp to $35,000Show detailsCheck Rate

Show details

FreedomPlus
7.99% - 29.99%2 - 5 yearsUp to $50,000Show detailsCheck Rate

Show details

LendingClub
7.04% - 35.89%3, 5 yearsUp to $40,000Show detailsCheck Rate

Show details

LendingPoint
9.99% - 35.99%2 - 5 yearsUp to $25,000Show detailsCheck Rate

Show details

LightStream
2.99% - 19.99%2 - 7 yearsUp to $100,000Show detailsCheck Rate

Show details

Marcus by Goldman Sachs
6.99% - 19.99%3 - 6 yearsUp to $40,000Show detailsCheck Rate

Show details

OneMain Financial
18.00% - 35.99%2 - 5 yearsUp to $20,000Show detailsCheck Rate

Show details

PenFed
4.99% - 17.99%1 - 5 yearsUp to $50,000Show detailsCheck Rate

Show details

Prosper
6.95% - 35.99%3, 5 yearsUp to $40,000Show detailsCheck Rate

Show details

SoFi
6.99% - 21.78%32 - 7 yearsUp to $100,000Show detailsCheck Rate

Show details

Universal Credit
8.93% - 35.93%3, 5 yearsUp to $50,000Show detailsCheck Rate

Show details

Upgrade
5.94% - 35.97%3, 5 yearsUp to $50,000Show detailsCheck Rate

Show details

Upstart
4.37% - 35.99%3, 5 yearsUp to $50,000Show detailsCheck Rate

Show details

All APRs reflect autopay and loyalty discounts where available. Read more about rates and terms1

Here’s what customers are saying about Credible

trustpilot 5 stars

Susan took out a home renovation loan

Credible connected me with the perfect lender. The process was quick and seamless.

See review on Trustpilot
trustpilot 5 stars

Ann chose Credible for her home improvement project

Working with Credible was quite a pleasant experience. The company makes the entire process very easy. I was especially impressed with the customer service.

See review on Trustpilot
trustpilot 5 stars

Hector was approved nearly instantly

I had a very positive experience. I applied for a home improvement personal loan with around 740 credit. I was approved nearly instantly with no further documentation or phone calls... Almost too easy.

See review on Trustpilot

Why use a personal loan to renovate your home?

No collateral

Home improvement loans are unsecured so you can keep the equity in your home.

Boost home value

Make home expansions and renovations to increase the value of your home.

Get started faster

Check your rate in two minutes and receive funds as soon as the same business day.

Our process

How Credible works

Checking rates won’t affect your credit score

Our Impact

We're making a difference

With Credible, you can save money while enjoying a simple, intuitive personal loan shopping process.

in 2021 We’ve helped over

55,600 people

save money on their loans

We've saved our customers

over $92 million

in interest on their loans

review-star-1review-star-2review-star-3review-star-4review-star-5

Excellent customer service

I was apprehensive when I first started... but the customer service was excellent .. I got a good deal very quickly and they helped me .. totally recommend it

See Manpreet's review
review-star-1review-star-2review-star-3review-star-4review-star-5

Great rates for consolidation

Outstanding, competitive rates. It let me shop different vendors without having to go to multiple sources and provide my info. I will be saving a ton ...

See Greg's review
review-star-1review-star-2review-star-3review-star-4review-star-5

Easy process

I was able to refinance my student loan and secure a much lower rate than I had with my other servicer. The process was so easy!

See Alicia's review

Individual experience may vary.

Commonly asked questions

There's no such thing as too many questions

By Jamie Young

Written by

Jamie Young

Personal Loan Editor

Jamie Young is a Credible authority on personal finance. Her work has appeared on some of the best-known media outlets including Time, CBS News, Huffington Post, Business Insider, AOL, MSN, and more.

Time MagazineCBSHuff Post
& Matt Carter

Written by

Matt Carter

Personal Loan Editor

Matt Carter is a writer and editor for Credible. His work has been featured by CNBC, CNN Money, Consumer Reports, Money, USA Today, The New York Times, The Wall Street Journal, The Washington Post, and more.

CNBCWSJThe New York Times

Updated March 16, 2022

Reviewed by Ashley Harrison

Ashley Harrison

Reviewed by

Ashley Harrison

Personal Loan Editor

As a Credible authority on personal finance, Ashley Harrison has covered topics that include student loans, personal loans, and more. She’s been an editor and editorial assistant in the online personal finance space for three years.

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."

Generally, no — personal loans are still widely available despite the COVID-19 pandemic, which could be especially valuable if you need help making ends meet. You’ll still typically need good credit and verifiable income to get approved for a loan with most lenders, including online lenders, banks, and credit unions. Keep in mind that some lenders might have more stringent requirements to ensure that borrowers can repay their loans, though.

Additionally, some lenders are offering coronavirus hardship loans that might be easier to qualify for if the pandemic has impacted your employment. These small emergency loans might come with low or even 0% interest, depending on the lender.

Read More: COVID-19: How Personal Loan Lenders Are Helping Borrowers

A home improvement loan is a type of personal loan offered by various lenders, including online lenders, banks, and credit unions. This kind of personal loan is geared toward covering the assorted costs that can come with home repairs, remodels, or updates — such as materials and labor.

Most personal loans are unsecured, so your property won’t be at risk if you can’t make payments — though missing payments will still damage your credit.

There are also other kinds of loans that might help you pay for home improvements — for example, you could tap into your home’s equity with a home equity loan or home equity line of credit (HELOC). Or you could consider a cash-out refinance. However, keep in mind that with these types of loans, you risk losing your house if you can’t manage your payments.

Another potential option to cover home improvement costs is a construction loan. Here’s how home improvement loans differ from construction loans as well as some pros and cons of each to keep in mind:

Home improvement loans

Personal loans can be used for almost any personal expense — including home improvements. With a personal loan, you can typically borrow $600 to $100,000 or more and will have one to seven years to repay it, depending on the lender.

Additionally, most personal loans are unsecured, which means you don’t have to worry about collateral. However, because this is riskier for lenders, you’ll generally need good to excellent credit to qualify.

Pros

  • Fixed rates: Personal loans come with fixed interest rates, which means your payments will stay the same throughout the life of the loan.

  • No down payment: Unlike other types of loans (such as construction loans), home improvement loans don’t require you to put any money down.

  • Variety of uses: You can use a personal loan for a wide variety of expenses in addition to home repairs.

Cons

  • Fewer options for bad credit: You’ll generally need good to excellent credit to qualify for a personal loan — which means you might have a hard time qualifying if you have poor or fair credit.

  • Might come with fees: Some lenders charge fees on personal loans, such as origination fees or late fees. These could increase your overall loan cost. Keep in mind that if you take out a personal loan for home improvements with one of Credible’s partner lenders, you won’t have to worry about prepayment penalties.

  • Lump-sum payment: Personal loan funds are disbursed as a lump sum to use how you wish. If you end up needing more money for your home improvements, you’ll have to apply for another loan.

Construction loans

Construction loans are typically available to potential homeowners who want to purchase land and immediately build a home on it. However, you might also be able to use this kind of loan to fund the construction that could come with home improvements — this type of construction loan is often known as a renovation construction loan.

Unlike other types of loans, construction loans don’t have a specific maximum. Instead, how much you can borrow will depend on your expected construction costs as well as other factors like your credit and income.

Pros

  • No set maximum: The maximum amount you can borrow with a construction loan will depend on the lender and your expected construction costs.

  • Interest-only payments during construction: Generally, you won’t begin making full principal and interest payments until the construction is complete. In the meantime, you’ll make interest-only payments, which could be helpful for your budget.

  • Will convert to traditional loan: A construction loan only lasts as long as the construction itself — usually 12 to 18 months. After that, it will convert to a traditional 15- or 30-year mortgage, which could provide more stability in comparison.

Cons

  • Variable rates: Construction loans come with variable interest rates, which means your rate could fluctuate according to market conditions.

  • Down payment: You’ll typically have to make a down payment with a construction loan — usually 10% to 20%, depending on the lender. This means you’ll have to save up money to cover the down payment before you can apply.

  • Must provide construction plans: If you decide to take out a construction loan, be prepared to provide the lender with a detailed plan for the construction, including schedule and budget projections. While this can be helpful for keeping you on track, it also allows for less flexibility in comparison to a personal loan.

While eligibility requirements to get a personal loan can vary by lender, there are some common requirements you’ll likely come across, including:

  • Good credit: You’ll typically need good to excellent credit to qualify for a home improvement loan — a good credit score is usually considered to be 700 or higher. There are also several lenders that offer personal loans for bad credit, but these generally come with higher interest rates compared to good credit loans.

  • Verifiable income: Some lenders have a minimum required income while others don’t. But in either case, you’ll likely need to provide proof of income to show you can afford to repay the loan.

  • Low debt-to-income ratio: Your debt-to-income (DTI) ratio is the amount you owe in debt payments each month compared to your income. To be eligible for a personal loan, you’ll generally need to have a DTI ratio of 40% or less — though some lenders might require you to have a lower ratio than this.

With Credible, you can compare your prequalified rates from multiple lenders after filling out just a single form — this way, you won’t have to visit each lender’s site to see if you qualify. Additionally, checking your rates with Credible uses only a soft credit check, which means your credit won’t be affected.

Here are a few strategies that could help you get the best home improvement loan rates:

  • Improve your credit. Your credit is one of the major factors that impacts what rates you’re offered. In general, the better your credit, the lower your interest rate. A couple of ways you might be able to build your credit and get more favorable rates include making on-time payments on all of your bills or paying down credit card balances.

  • Apply with a cosigner. Having a creditworthy cosigner could help you qualify for better rates than you’d get on your own — even if you don’t need one to get approved. Anyone with good credit — such as a parent, other relative, or trusted friend — could potentially be a cosigner.

  • Compare rates from multiple lenders. Be sure to spend some time researching and comparing personal loan interest rates from as many lenders as you can, as you might get a better rate from one lender over another.

You can typically borrow $600 up to $100,000 (or more) with a home improvement loan, depending on the lender. How much you’ll be able to borrow will also depend on other factors, such as your credit and income.

No matter how much you’re approved for, be sure to borrow only what you need to keep your repayment costs as low as possible.

Before you take out a home improvement loan, here are a few pros and cons to consider first:

Pros

  • Fixed interest rates: Personal loans generally have fixed interest rates, which means your rate and payment will stay the same throughout the life of your loan.

  • No collateral required: Most personal loans are unsecured, so you won’t have to worry about providing collateral.

  • Long repayment terms: You could have one to 12 years to repay a personal loan for home improvement, depending on the lender you choose.

Cons

  • Fixed loan amounts: Personal loans are paid out in a lump sum. If you need more money, you’ll have to apply for another loan. This could be less than ideal if you’re not sure exactly how much your home improvements will cost — or if you end up needing more money than you expected.

  • Potentially higher interest rates: Because personal loans aren’t secured by collateral, they pose more of a risk to the lender. As such, they can come with higher interest rates compared to other options like home equity loans or HELOCs.

  • Might come with fees: Some lenders charge fees for personal loans, such as origination or late fees. These can add to your overall loan cost.

Certain home improvements can add value to your home, such as by:

  • Increasing the square footage: A room addition (or the addition of another floor) that increases the size of your home can increase its value.

  • Cutting your energy bill: Installing double-pane windows and insulation or adding rooftop solar panels can help cut your energy bill which can add to your home's value.

  • Keeping it modern: A well-maintained home can command a higher asking price, so home repairs and modern remodeling can also be a good investment.

  • Boosting curb appeal: Updating your landscaping or home exterior can make your home more attractive to prospective buyers.

Because of this, you could consider a home improvement loan as a way to potentially raise your home’s value.

However, before you take out a home improvement loan, it’s important to consider how much that loan will cost you. This way, you can be prepared for any added expenses. You can estimate how much you’ll pay for a loan using our personal loan calculator.

Personal loan repayment terms generally range from one to seven years, depending on the lender. There are also some lenders that offer longer terms specifically for home improvement loans — for example, you could have up to 12 years to repay a LightStream loan. Just keep in mind that if you choose a longer term, you’ll pay more in interest over time.

In comparison, terms on home equity loans can range from five up to 30 years, depending on the lender.

Whether a home equity loan or personal loan is better for renovations will depend on your unique financial situation. For instance, if you’re a homeowner with plenty of equity in your home, then you might prefer to use a home equity loan so you can take advantage of lower interest rates.

There are also some situations where getting a personal loan could be a better choice — for example, if you:

  • Don’t want to put your home at risk: Because a home equity loan is secured by your house, you risk losing it if you can’t keep up with your payments. Personal loans, on the other hand, are typically unsecured — so while missing payments will damage your credit, you won’t lose your property.

  • Only need a small loan: If you only need a small amount of money to cover home improvements or repairs, a personal loan could be a simpler option compared to a home equity loan.

  • Want faster funding: The time to fund for personal loans is usually about one week — though with some lenders, you might get your money even faster. This is much faster compared to home equity loans, which could take up to a few weeks to process.

In some cases, you might be able to deduct points (also known as loan origination fees or discount points) paid on a loan that is used to substantially improve your home. However, on top of having to meet several tests, your loan must be secured by your primary home to be eligible — which means a personal loan for home improvements won’t qualify.

But if you decide to take out a loan secured by your home — such as a home equity loan — and pass the required tests, then you might be eligible for a tax deduction provided you make “substantial home improvements,” according to the IRS. For an improvement to be considered substantial, it must fall under one of the following categories:

  • Adds to the value of your home

  • Prolongs your home's useful life

  • Adapts your home to new uses

While many lenders require borrowers to have good to excellent credit, there are also several that offer personal loans for bad credit. However, keep in mind that these bad credit loans can come with higher interest rates compared to good credit loans — meaning you’ll pay more for the loan overall.

If you’re struggling to get approved for a home improvement loan, consider applying with a cosigner. Not all lenders allow cosigners on personal loans, but some do. Even if you don’t need a cosigner to qualify, having one could get you a lower interest rate than you’d get by applying alone.

Just remember that your cosigner will share responsibility for the loan — which means they’ll be on the hook if you can’t keep up with your payments.

To find the best personal loan lender for a home improvement loan, it’s important to compare as many lenders as you can. Consider not only interest rates but also repayment terms and any fees charged by the lender — this way, you can choose the best lender for your needs.

A personal loan can be a useful tool to cover the costs for home improvements, repairs, or remodels. If a home improvement loan seems like the right fit for your needs, here are some additional resources to help you learn more about getting one: