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These five loan providers offer some of the top personal loans that you can use for home improvement projects. And we've identified which may be best for different types of projects and borrowers.
Home improvement costs for a renovation can start at $3,000 for a bathroom, $5,000 for a home office or $15,000 for a bedroom, according to HomeAdvisor. But it could be much higher depending on where you live and the desired outcome.
A home improvement loan—a personal loan you use for home improvements—can help you cover the upfront cost and lets you pay off the loan with monthly payments. In the meantime, the project may increase the value of your home, and you get to enjoy the upgrades.
Best Personal Loans for Home Improvements
Best Home Improvement Loan for Large Projects: SoFi
Est. APR
Term
Amount
Available loan amounts: $5,000 to $100,000
Est. monthly payment: $226 to $5,540
Grace period: 10 days
Application fee: $0
Loan Details
- Personal Loans with low fixed rates
- Borrow up to $100,000
- No Origination Fees Required, No Prepayment Penalties, and No Late or Overdraft Fees
- Simple online application with live support 7 days a week
- Apply Now
SoFi is an online lender that offers $5,000 to $100,000 personal loans, making it a good match if you need to pay for a large improvement project. The lender doesn't require any common fees—not even a late payment fee—and you may be able to get your loan the same day you're approved. Borrowers also receive other benefits, such as unemployment protection, which allows you to pause loan payments temporarily if you lose your job through no fault of your own. Keep in mind, however, that SoFi tends to offer loans to people who have very good to excellent credit.
| Pros | Cons |
|---|---|
| High maximum loan amount | High minimum loan amount |
| No fees required | May require good credit |
| Unemployment protection | You might not get approved for the amount you need |
Best Home Improvement Loan for Small Projects: LendingClub
Est. APR
Term
Amount
Available loan amounts: $1,000 to $40,000
Est. monthly payment: $20 to $1,344
Grace period: 15 days
Application fee: $0
Loan Details
- Check your rate with no impact to your credit score1
- Fast Funding2
- We offer flexible amounts and terms, with no pre-payment penalties
LendingClub offers personal loans with a $1,000 minimum loan amount, which could be a good fit if you have a small home improvement project. However, minimum loan amounts can depend on state laws. LendingClub charges a 3% to 6% origination fee, which you'll want to consider when comparing loan offers.
| Pros | Cons |
|---|---|
| Low minimum loan amount | Charges an origination fee |
| Potentially low rates | May require good credit |
| Check loan offer without impacting your credit | Only offers 36- or 60-month repayment terms |
Best Home Improvement Loan if You Have Great Credit: LightStream
LightStream offers $5,000 to $100,000 loans with no fees and 24- to 144-month repayment terms, depending on the loan size. LightStream tends to advertise some of the lowest rates on loans, which include a 0.5% interest rate discount for automatic payments, making it a good option if you have good to excellent credit. If you get a lower rate offer on an unsecured loan from a different lender, you may be able to use the LightStream Rate Beat Program to get an even better offer from LightStream.
| Pros | Cons |
|---|---|
| No fees | May require good to excellent credit |
| High loan limits and long repayment terms | High minimum loan amount |
| Low rates and rate beat offers | No soft inquiry preapprovals |
Best Home Improvement Loan if You Have Fair Credit: LendingPoint
Est. APR
Term
Amount
Available loan amounts: $2,000 to $30,000
Est. monthly payment: $90 to $1,756
Grace period: 0 days
Application fee: $0
Loan Details
- Loans from $2,000 to $36,500 and no prepayment penalties
- Rates from 7.99% to 35.99% APR
- Check your rate without impacting your credit score
- Simple online application
- Funds available as soon as the next business day upon approval
- LendingPoint's innovative technology allows them to understand the individual creditworthiness of every applicant
- Terms from 24 - 72 months
- Fixed monthly payment and simple interest
- LendingPoint has thousands of five-star reviews on Trustpilot
- LendingPoint has an A+ rating from the Better Business Bureau
LendingPoint offers $2,000 to $36,500 personal loans for people who have a fair credit score. You can check your loan offers without impacting your credit score and choose from different repayment terms. There may be a 0% to 10% origination fee, which you may be able to subtract from or add to your loan amount.
| Pros | Cons |
|---|---|
| Low minimum loan amount | Potentially high interest rate |
| Doesn't require good credit | Could have an origination fee |
| Check loan offer without impacting your credit | Not available in some states |
Best Home Improvement Loan if You Don't Have Credit: Upstart
Est. APR
Term
Amount
Available loan amounts: $1,000 to $50,000
Est. monthly payment: $31 to $2,262
Grace period: 15 days
Application fee: $0
Loan Details
- Loan amounts from $1,000 - $50,000
- APRs from 7.8% - 35.99% with loan terms of 3 or 5 years
- Won't affect your credit score
- You can have funds in as fast as 1 day
- You are more than your credit score. On Upstart your education and experience help you get the rate you deserve.
Upstart is an online lending platform that uses a unique approach to reviewing loan applications. It doesn't rely on credit scores as heavily as some other lenders—you may not even need a credit score to qualify. However, you may be asked for additional information, such as your education and employment experience, and have to link your bank account when you apply. There are still minimum credit scoring requirements for people who have a credit history, and the loan's origination fees can range from 0% to 10%.
| Pros | Cons |
|---|---|
| No credit score required | Only offers 36- or 60-month repayment terms |
| May be easier to qualify for if you have a low credit score | Potentially high origination fee |
| Low-score applicants may receive better rates than they would from other lenders | Could still have a high APR |
FAQs
Personal Loan vs. Home Equity Financing—What's Best?
Many people use home equity loans or home equity lines of credit (HELOCs) for home repairs and improvements. These are second mortgages that use the home as collateral, which can make it easier to qualify for a large loan amount at a low rate. A cash-out refinance, which replaces your existing mortgage with a new, larger loan, is also an option.
The low rates and long repayment terms can make these home equity financing options ideal in certain circumstances. Beyond the loan's terms, the interest on a home equity loan, HELOC or cash-out refinance may be tax-deductible if you use the proceeds to substantially improve (but not simply repair or maintain) your home.
However, there are limits on how much total mortgage interest you can deduct. And, even if your project qualifies, you won't benefit unless you itemize your tax deductions.
Additionally, the application and approval process can be more complicated and take longer with home equity financing than a personal loan. And the closing costs may be higher than what you'd pay for a personal loan's origination fee.
Should I Get a Personal Loan for Home Improvements?
Getting a personal loan for your home improvement project could make sense if you don't have a lot of equity in your home or you find that the personal loan will be cheaper than home equity financing. A personal loan may also be the better choice if you need to make a repair or improvement immediately—perhaps you're in a time crunch to finish the project before hosting a large event or selling the home. Some lenders offer same-day funding while home equity financing options may take several weeks.
How Do You Qualify for a Personal Loan?
Every lender has its own requirements and criteria for reviewing applications. You can sometimes look up the basic eligibility requirements on the lender's website, such as minimum loan amounts and state residency requirements, but lenders tend to keep some of the details secret.
In general, your eligibility and loan offers will depend on:
- Your credit history and credit score
- Your income, debt and debt-to-income ratio
- Your desired loan amount
- Your history with the lender
Knowing where you stand could help you decide if a personal loan is a good option and where you want to apply. You can check your Experian credit report and a FICO® Score☉ based on your report for free, and receive complimentary ongoing credit report and score tracking.
How Do You Choose a Home Improvement Personal Loan?
You might be able to narrow down your options to a few best-fit lenders. But ultimately, you may want to go with whichever lender offers you the best loan.
You may need to apply for personal loans from multiple lenders, or use a tool that quickly gathers quotes for you, to see and compare your offers. Consider each personal loan offer's interest rate, origination fee, repayment length and monthly payment to see which fits your needs and budget best.
Get Matched With Personal Loan Offers
If you're looking for a personal loan for your next home improvement project, Experian CreditMatch™ can use your unique credit profile to show you estimated loan offers from multiple lenders. If you submit a loan prequalification application, you can receive personalized loan offers that are good for 30 days, giving you time to compare the offers and determine which is best.