Home improvement loans are a popular financing option for homeowners looking to renovate or repair their homes. These loans are typically unsecured personal loans, which means that the bank or lender doesn’t require collateral—something of value like your house—to secure the loan. You’ll pay interest on the full loan amount and usually have one to seven years to repay it.
Benefits of Home Improvement Loans
Home improvement loans offer several benefits, including:
Flexibility: Home improvement loans can be used for a variety of projects, from minor repairs to major renovations.
No collateral required: Unlike home equity loans, home improvement loans don’t require you to put up your home as collateral.
Lower interest rates: Home improvement loans often have lower interest rates than credit cards or other types of loans.
Easy application process: Many lenders offer online applications, making it easy to apply for a home improvement loan from the comfort of your own home.
Best Home Improvement Loans of December 2023
Here are some of the best home improvement loans available as of December 2023:
SoFi: SoFi offers home improvement loans with APRs ranging from 8.99% to 25.81% with autopay. Loan amounts range from $5,000 to $100,000, and the minimum credit score required is 6501.
LightStream: LightStream offers home improvement loans with APRs ranging from 7.49% to 25.49% with autopay. Loan amounts range from $5,000 to $100,000, and the minimum credit score required is 6601.
LendingPoint: LendingPoint offers home improvement loans with APRs ranging from 7.99% to 35.99% with autopay. Loan amounts range from $2,000 to $36,500, and the minimum credit score required is 6001.
Upgrade: Upgrade offers home improvement loans with APRs ranging from 8.49% to 35.99%. Loan amounts range from $1,000 to $50,000, and the minimum credit score required is 5801.
Universal Credit: Universal Credit offers home improvement loans with APRs ranging from 11.69% to 35.99%. Loan amounts range from $1,000 to $50,000, and the minimum credit score required is 5801.
Conclusion
Home improvement loans can be a great way to finance your home renovation or repair project. With flexible terms, low interest rates, and easy application processes, these loans offer homeowners a convenient way to fund their home improvement projects. If you’re considering a home improvement loan, be sure to shop around and compare rates from multiple lenders to find the best deal for you.