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Best Home Improvement Loans of June 2023

Home improvement loans offer a convenient option to fund home repairs, renovations, and additions. These loans, typically unsecured personal loans, enable borrowers to access lump-sum funds and repay the balance over a flexible term of one to seven years. Homeowners with equity in their homes can also consider home equity loans or HELOCs to finance home improvement projects. By comparing multiple lenders, borrowers can secure the best rates and terms for their home improvement loan.

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Top Home Improvement Lenders

The best personal loans for home improvement modifications are often directed toward kitchen remodels, bathroom upgrades, or landscape enhancements. If you need to secure a loan for a Home Improvement, you can benefit by choosing personal loan companies that specialize in this type of lending product.

LightStream Division of SunTrust Bank
  • APR: 7.49 - 24.49%
  • Loan Term: 24 - 84* months
  • Min Credit Score: 660
View details
Key facts
  • Good credit gets low rates and zero fees
  • Fast and easy online process
  • $100 Loan Experience Guarantee¹

Read LightStream Review »

*Your loan terms, including APR, may differ based on loan purpose, amount, term length, and your credit profile. Lowest rates require excellent credit. Rateis quoted with AutoPay discount. AutoPay discount is only available prior to loan funding. Rates without AutoPay are 0.50% points higher. Subject to credit approval. Conditions and limitations apply. Advertised rates and terms are subject to change without notice. Payment example: Monthly payments for a $10,000 loan at 4.99% APR with a term of 3 years would result in 36 monthly payments of $299.66. 1After receiving your loan from us, if you are not completely satisfied with your experience, please contact us. We will email you a questionnaire so we can improve our services. When we receive your completed questionnaire, we will send you $100. Our guarantee expires 30 days after you receive your loan. We reserve the right to change or discontinue our guarantee at any time. Limited to one $100 payment per funded loan. Truist teammates do not qualify for the Loan Experience Guarantee. Truist Bank is an Equal Housing Lender. © 2021 Truist Financial Corporation. SunTrust, Truist, LightStream, the LightStream logo, and the SunTrust logo are service marks of Truist Financial Corporation. All other trademarks are the property of their respective owners. Lending services provided by Truist Bank.

Credible Credible is Free to Use
  • APR: 4.60-35.99%
  • Loan Term: 12-84 months
  • Min Credit Score: 600
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Key facts
  • Free-to-use marketplace with a choice of vetted lending partners.
  • Borrowers are in control and can compare competitive loan options.
  • No prepayment fees and origination fees as low as 0%

Read Credible Review »

Credible Disclaimer: “Personal Loans Rate and Terms Disclosure: Rates for personal loans provided by lenders on the Credible platform range between 4.60%-35.99% APR with terms from 12 to 84 months. Rates presented include lender discounts for enrolling in autopay and loyalty programs, where applicable. Actual rates may be different from the rates advertised and/or shown and will be based on the lender’s eligibility criteria, which include factors such as credit score, loan amount, loan term, credit usage and history, and vary based on loan purpose. The lowest rates available typically require excellent credit, and for some lenders, may be reserved for specific loan purposes and/or shorter loan terms. The origination fee charged by the lenders on our platform ranges from 0% to 8%. Each lender has their own qualification criteria with respect to their autopay and loyalty discounts (e.g., some lenders require the borrower to elect autopay prior to loan funding in order to qualify for the autopay discount). All rates are determined by the lender and must be agreed upon between the borrower and the borrower’s chosen lender. For a loan of $10,000 with a three year repayment period, an interest rate of 7.99%, a $350 origination fee and an APR of 11.51%, the borrower will receive $9,650 at the time of loan funding and will make 36 monthly payments of $313.32. Assuming all on-time payments, and full performance of all terms and conditions of the loan contract and any discount programs enrolled in included in the APR/interest rate throughout the life of the loan, the borrower will pay a total of $11,279.43. As of March 12, 2019, none of the lenders on our platform require a down payment nor do they charge any prepayment penalties.”

Upgrade Check Your Rate in Minutes
  • APR: 5.94-35.97%
  • Loan Term: 24-72 months
  • Min Credit Score: 560
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Key facts
  • Quick and seamless application allows you to check rates in minutes.
  • Discover if you qualify without harming your credit score.
  • Offers fast funds in 1-4 business days

Read Upgrade Review »

Upgrade Disclaimer: “Personal loans made through Upgrade feature APRs of 5.94%-35.97%. All personal loans have a 2.9% to 8% origination fee, which is deducted from the loan proceeds. Lowest rates require Autopay and paying off a portion of existing debt directly. For example, if you receive a $10,000 loan with a 36-month term and a 17.98% APR (which includes a 14.32% yearly interest rate and a 5% one-time origination fee), you would receive $9,500 in your account and would have a required monthly payment of $343.33. Over the life of the loan, your payments would total in $12,359.97. The APR on your loan may be higher or lower and your loan offers may not have multiple term lengths available. Actual rate depends on credit score, credit usage history, loan term, and other factors. Late payments or subsequent charges and fees may increase the cost of your fixed rate loan. There is no fee or penalty for repaying a loan early. Personal loans issued by Upgrade’s lending partners. Information on Upgrade’s lending partners can be found at https://www.upgrade.com/lending-partners/.  “Fast Funding Disclaimer: “Accept your loan offer and your funds will be sent electronically to your bank or designated account within one (1) business day of clearing necessary verifications. Availability of the funds is dependent on how quickly your bank processes the transaction. From the time of approval, funds should be available within four (4) business days.”

Bankrate More than 4 decades of experience
  • APR: 6.24-35.99%
  • Loan Term: 6-144 months
  • Min Credit Score: 550
View details
Key facts
  • Borrowers can find a personal loan option that fits their exact needs
  • Offers a comprehensive knowledge hub
  • Simple to use online loan comparison tool

Read Bankrate Review »

The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guarantee the accuracy or availability of any rates shown. Institutions may have different rates on their own websites than those posted on Bankrate.com. The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.

All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own website where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the Bankrate.com rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.

Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers’ terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.

Rate collection and criteria: Click here for more information on rate collection and criteria.

Figure Get Approved in Minutes
  • APR: 5.75-22.94%
  • Loan Term: 36 & 60 months
  • Min Credit Score: 680
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Key facts
  • Approval in minutes. Funding in as few as 2 days.
  • Borrow up to $50k for emergency or unexpected purchases.
  • 100% online application; 3 & 5-year term options.
  • Low fixed rates available.

Read Figure Review »

Figure disclaimer: Figure Personal Loan is available in all 50 states including Washington DC.
¹To check the rates and terms you qualify for, we will conduct a soft credit pull that will not affect your credit score. However, if you continue and submit an application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit. Figure’s APRs start at 4.00% for the most qualified applicants and are higher for other applicants. Loan example, for a borrower with a CLTV of 45% and a credit score of 800, a five-year Figure Home Equity Line with an initial draw amount of $50,000 would have a fixed annual percentage rate (APR) of 5.75% and a 3.00% origination fee. Your total loan amount payment would be $51,500. Origination fees range from 0-5.75% of your initial draw depending on your credit score and the state in which your property is located. The advertised rate is available only to borrowers using primary residences as collateral. Your actual rate will depend on many factors such as your credit, combined loan to value ratio, loan term and occupancy status. * For Figure Home Equity Line, APRs can be as low as 3.00% for the most qualified applicants and will be higher for other applicants, depending on credit profile and the state where the property is located. For example, for a borrower with a CLTV of 45% and a credit score of 800 who is eligible for and chooses to pay a 5.75% origination fee in exchange for a reduced APR, a five-year Figure Home Equity Line with an initial draw amount of $50,000 would have a fixed annual percentage rate (APR) of 3.00%. The total loan amount would be $52,495. Alternatively, a borrower with the same credit profile who pays a 3% origination fee would have an APR of 4.00% and a total loan amount of $51,500. Your actual rate will depend on many factors such as your credit, combined loan to value ratio, loan term, occupancy status, and whether you are eligible for and choose to pay an origination fee in exchange for a lower rate. Payment of origination fees in exchange for a reduced APR is not available in all states. In addition to paying the origination fee in exchange for a reduced rate, the advertised rates include a combined discount of 0.50% for opting into a credit union membership (0.25%) and enrolling in autopay (0.25%). APRs for home equity lines of credit do not include costs other than interest. Property insurance is required as a condition of the loan and flood insurance may be required if your property is located in a flood zone.

SoFi Low Rates. No Fees are Required.
  • APR: 8.99-23.43%
  • Loan Term: 24-84 months
  • Min Credit Score: 680
View details
Key facts
  • Competitive rates available for good credit scores and income source
  • Access to financial advisors, private networking events, & unemployment protection
  • Flexible terms & payment options with no fees whatsoever

Read SoFi Review »

Fixed rates from 8.99% APR to 23.43% APR reflect the 0.25% autopay interest rate discount and a 0.25% direct deposit interest rate discount. SoFi rate ranges are current as of 03/06/23 and are subject to change without notice. Not all applicants qualify for the lowest rate. Lowest rates reserved for the most creditworthy borrowers. Your actual rate will be within the range of rates listed and will depend on the term you select, evaluation of your creditworthiness, income, and a variety of other factors.Loan amounts range from $5,000– $100,000. The APR is the cost of credit as a yearly rate and reflects both your interest rate and an origination fee of 0%-6%, which will be deducted from any loan proceeds you receive.Autopay: The SoFi 0.25% autopay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. Autopay is not required to receive a loan from SoFi.Direct Deposit Discount: To be eligible to potentially receive an additional (0.25%) interest rate reduction for setting up direct deposit with a SoFi Checking and Savings account offered by SoFi Bank, N.A. or eligible cash management account offered by SoFi Securities, LLC (“Direct Deposit Account”), you must have an open Direct Deposit Account within 30 days of the funding of your Loan. Once eligible, you will receive this discount during periods in which you have enabled payroll direct deposits of at least $1,000/month to a Direct Deposit Account in accordance with SoFi’s reasonable procedures and requirements to be determined at SoFi’s sole discretion. This discount will be lost during periods in which SoFi determines you have turned off direct deposits to your Direct Deposit Account. You are not required to enroll in direct deposits to receive a Loan.

What Is a Home Improvement Personal Loan?

A Home Improvement personal loan offers a convenient way to pay contractors when renovating your home. This type of personal loan can be directed to the following improvements:

  • Replacing a roof
  • Upgrading a kitchen
  • Enhancing a backyard
  • Adding a pool
  • Improving a bathroom
  • Adding a room
  • Constructing an additional building
  • Adding major appliances
  • Installing a furnace, air conditioning, or water heater
  • Switching out faucets and showerheads
  • Tiling or carpeting a floor
  • Painting or redecorating a house

As you can see, you can use a Home Improvement loan for a variety of home improvements. Plus, the funding can range from $2,000 to $30,000 or more. What you spend will be based on the amount of work you want to be done and the materials you choose. Therefore, it is a good idea to already have a plan in place before you take out a home improvement loan – a plan that will allow you to see exactly how you will spend the loan proceeds.

To apply for a Home Improvement personal loan online, you can usually take out an uncollateralized loan, or a loan that does not have to be backed by collateral. While our rates may be a bit higher, it will also take less time to pay back the loan. Depending on your credit score, the APR you pay on a Home Improvement loan can span between 6% and 20%. You do not need to have a perfect rating to secure a Home Improvement home loan. You just need to show you can repay the loan amount.

Home Improvement Loan – How to Get Started

To apply for a Home Improvement personal loan, you will need to take the following steps.

  • Check Your Credit Score. When you apply for any type of personal loan online, you need to review your credit score first through the 3 credit bureaus. Because your Home Improvement personal loan is primarily based on your credit score, knowing the score will help to determine the APR you will be charged.
  • Select Your Loan Type. Some companies specialize in Home Improvement loans, so it is better to go through them if you want the best rates for funding.
  • Get Prequalified for Home Improvement loan financing. When you choose several lending providers you like, you will need to get prequalified for your Home Improvement loan next. Doing so will give you the repayment details and terms for your Home Improvement online personal loan. If you agree to shorter loan terms, you can get a lower fixed APR.
  • Compare the Lenders. After you have had a chance to get prequalified through different Home Improvement loan funders, you can review their Home Improvement loan terms and APRs, and see which one fits best with your lending or personal budget needs and requirements. For a Home Improvement personal loan, try to stick with a lender that offers the lowest APR and features the lowest fees.
  • Supply the Necessary Info and Documents. When you choose a lender, you will need to provide the required loan documentation and information for Home Improvement loan funding. In this case, you need to supply the following details and documents:
    • Personal Identification (Social security card, passport, or driver’s license)
    • Proof of earnings or income (W-2s, paystubs, or filed tax returns)
    • Employer information (Name of company, manager’s name, and phone number and address)
    • Proof of residence (utility bill with your name and address or a lease agreement)
  • Apply for the Loan and Start Making Payments. After you apply for your Home Improvement personal loan and start making payments, you might add some extra money to each payment each month to repay the loan faster. Doing so will make the loan repayment smoother and quicker.

Home Improvement Loan Financing – What You Need to Know

To take out a Home Improvement personal loan, you should be aware of the following terms:

  • Annual Percentage Rate (APR) – The rate of interest charged on a Home Improvement personal loan, expressed at a yearly rate. 
  • Application Fee – The amount a lender charges for processing a Home Improvement loan application and the related paperwork. These fees are usually non-refundable and may or may not be included in processing a personal loan.
  • Debt-to-Available Credit Ratio – When considering you for a Home Improvement loan, a lender may look at your debt-to-available credit details. This represents the money you owe compared to the credit available through credit lines and credit cards. Therefore, the debt-to-available credit ratio shows how much available credit you are using. The higher this percentage, the riskier you appear to a lender.
  • Debt-to-Income Ratio – The percent of your monthly pre-tax income that is being used to pay off debts, such as auto loans, credit cards, and student loans. Lenders assess 2 key ratios. The first ratio is a front-end ratio or the percent of monthly pretax earnings spent on your house payment. The second percent is a back-end ratio or the other debts that are factored into the house payments.
  • Late fee – A fee charged to home improvement loan customers who pay a payment late or pay less than the required monthly amount. 
  • Late Payment – A delinquent payment or a failure to pay on a loan before the agreed date. A late payment can hurt your credit score for as long as 7 years.
  • Home Improvement Lender – The financial institution that provides a Home Improvement loan for renovations.
  • Net Income – Your income after taxes have been deducted. It is also called your take-home pay. This is the amount considered by a lender when assessing your ability to repay a loan amount.
  • Prepayment Penalty – A fee charged by a lender when a borrower pays off a loan before its scheduled term. Usually, prepayment penalties are not applied by standard lenders. If you are taking out a subprime Home Improvement loan, you need to read the loan terms carefully, as this fee may be applied.
  • Lien – A claim made against a person’s property—usually as security for a debt that is placed by a home improvement contractor who has not been paid for their work. 
  • Housing Expense Ratio – The percent of your monthly pre-tax income that goes toward the payment for your house. Also called a front ratio, this percentage should not go over 28%. It can be helpful to know this number if you plan to upgrade your house and take out a Home Improvement personal loan.

FAQ on Home Improvement Loans

Do I have to have an above-average credit score to take out a Home Improvement personal loan?

What is the best way to locate a Home Improvement lender online?

What will determine my final installment payment for a Home Improvement personal loan package?

What do I need to put down to obtain a Home Improvement personal loan?

What types of lending products are featured for Home Improvement loan products?

What is the average interest rate for a Home Improvement personal loan?