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Best Personal Loans for Household Expenses

A Household Expenses personal loan will allow you to pay off the costs of taking care of a home and covers emergency repairs as well as maintenance.

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Overview

Credible connects you with loan/insurance products from their onboard finance partners. The company understands its role in the loan discovery process. It does a great job of providing accurate information, setting substantial privacy barriers, and matching borrower inputs with the right products. The customer’s digital journey through the brand is seamless and straightforward. You may want to read a few lines of its privacy policy and manage the default settings. Otherwise, Credible is a great place to scan the loan market. The company gives the best rate guarantee of $200 (in the form of a gift card) to any applicant who can get financed for a lower rate.

Credible is a public company: stock ticker NYSE: BEST

*Not all available financial products and offers from all financial institutions have been reviewed by this website

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%
  • Max Loan Amount: $100K

Pros

pros iconGreat for Comparing Lenders

pros icon Fast and Easy

pros iconSecure 256-bit encryption

Cons

cons iconFees Vary

cons iconOther Variable Info

cons iconTerms are Limited

  • $600-$100K Loan Amount
  • 550 Min Credit
  • 6.99-35.99% APR
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Overview

SoFi, or Social Finance, Inc., was founded in 2011 by Stanford business school students. It started as a way to connect recent graduates with alumni in their community.

In 2012, it became the first private company to refinance both private and federal student loans. A couple of years after that, it started offering mortgage loans, personal loans, and more. By 2019, the company had released SoFi Invest (stock trading) and SoFi Money (cash management account).

Along with loans, SoFi also offers credit cards, budgeting tools, and unique benefits to members. Its goal is to become a one-stop shop for all its consumers’ financial needs.

Sofi is a public company: stock ticker NASDAQ: SOFI

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
  • Max Loan Amount: $100K

Pros

pros iconPersonal loan application process is easy and only takes a few minutes to complete

pros iconSoft credit check that doesn’t affect your credit score and gives you personalized rates

pros iconFixed and variable rate loans available ranging from $5,000 to $100,000

pros iconNo late or origination fees required

pros iconExcellent customer support team

pros iconOnline autopay comes with a discount on interest

pros iconExclusive benefits for members (ex. networking events and access to financial advisors)

pros iconUnemployment Protection feature comes with a temporary payment pause (up to 12 months)

pros iconNo prepayment penalties

Cons

cons iconMay take up to 4 days to receive funds after approval (longer than other online lenders)

cons iconHigh eligibility requirements (ex. good credit and sufficient income)

  • $5K-$100K Loan Amount
  • 680 Min Credit
  • 8.99-29.99% APR
Powered by Credible
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Overview

Pentagon Federal Credit Union (PenFed) was established in 1935 and has grown to become the third largest credit union in the US. The company boasts over 2.8 million members and caters to individuals in all 50 states, with more than $36 billion of assets under management. PenFed offers a wide range of financial products, including mortgages, personal loans, HELOC, student loans, and student loan refinancing.

Headquartered in Virginia, the company holds valid regulation with the National Credit Union Administration. PenFed is also known for its competitive interest rates and attractive features, such as spousal loan refinancing.

Key Facts

  • Useful mobile app to manage your loan
  • Accepts co-signer and joint applications
  • Wide range of term lengths and amounts

Pros

pros iconFast funding time

pros iconGreat reputation

pros iconLow-fee loans

pros iconWide range of term lengths

Cons

cons iconYou need to be a PenFed Credit Union member to get a loan

cons iconDoesn’t disclose all eligibility requirements

  • $600-$50K Loan Amount
  • 690 Min Credit
  • 8.49-17.99% APR
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Overview

Upgrade is an online lender that has been around since 2016. It caters to the needs of a wide range of people, including people who want to refinance credit cards, make significant purchases, and make improvements to their homes.

It also offers a no-fee checking account that provides cash-back opportunities, as well as a variety of different credit lines. This Upgrade review will look at everything that Upgrade brings to the table.

Key Facts

  • Discounts for Upgrade account owners
  • No prepayment fees
  • Fast funding in 1-4 days

Pros

pros iconOffers a small minimum loan amount

pros iconDeals with credit scores of at least 580

pros iconNo early prepayment fee

pros iconQuick time to funding

pros iconSolid mobile app to manage loans

Cons

cons iconCharges origination fee

cons iconLate fees in place

  • $1K-$50K Loan Amount
  • 580 Min Credit
Powered by Credible
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Overview

Axos Bank lays claim to being one of the oldest digital banks in the world. The company was founded as Bank of Internet USA in 1999 and rebranded to Axos Bank in 2018. Nowadays, Axos Bank is based in San Diego, California, where it has grown to a workforce of over 1,000 and is the consumer-facing arm of Axos Financial.

Axos has built a solid reputation over two decades of trading as an online bank. The company is well known for its excellent APYs, ATM reimbursements, and one of the market’s most rewarding ranges of checking accounts. To this day, the company remains online-only, with the lack of branches resulting in better value financial products for its customers.

Axos Bank is a public company: stock ticker NYSE: AX

Key Facts

  • Wide range of loan term lengths.
  • No prepayment penalties.
  • Enjoy additional services Axos offer.

Pros

pros iconNo prepayment penalties

pros icon1-year loan terms available

pros iconFast, 2-day funding

pros iconWide range of loan terms

Cons

cons iconHigh credit score requirements

cons iconOrigination fee

cons iconShorter loan terms

  • $5K-$50K Loan Amount
  • 690 Min Credit
Powered by Credible
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Overview

LightStream is a division of Truist Financial Corporation, acting as its online loans division. LightStream market itself as offering personal loans for practically any purpose, providing loan funding for people with good to excellent credit ratings.

LightStream was founded in 2012 and launched in 2013 as a division of SunTrust Bank. When SunTrust and BB&T merged in 2019, becoming Truist, LightStream came along as part of the deal, and it hasn’t looked back. Another selling point of LightStream’s offering is its same-day loans, where personal loan funding can be in your account on the same day you apply.

Light Stream is a public company: stock ticker NASDAQ: CSCO

Key Facts

  • Good credit gets low rates and zero fees
  • Fast and easy online process
  • $100 Loan Experience Guarantee¹
  • Max Loan Amount: $100K
  • Powered by Credible

Pros

pros iconGet a loan for practically anything

pros iconAutopay discount available

pros iconDedicated app to manage your loan

pros iconLightStream doesn’t charge any fees

Cons

cons iconPersonal loan up to $100K

cons iconRequires steady income

cons icon1-3 Days till funding

  • $5K-$100K Loan Amount
  • 660 Min Credit
Powered by Credible
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Overview

Headquartered in Chicago, Avant was founded in 2012. Avant is a financial technology company, not a bank. Loans are funded by WebBank. Avant lends strictly to individuals, not businesses. There are no physical branches for customer service.

Avant’s main selling point is that it helps people move forward financially by providing simple solutions like personal loans. The company advertises that it has helped more than two million customers.

Avant is a public company: stock ticker TSE: AVNT

Key Facts

  • Flexible repayment options
  • Great for customers with bad credit score
  • Safe and secure

Pros

pros iconEasy, fast application process

pros iconFunds are disbursed quickly

pros iconBuilds personal credit

Cons

cons iconHigh fees and interest charges

cons iconNo co-signed, joint, or secured loan option

cons iconNo rate discount for automatic payments

  • $2K-$35K Loan Amount
  • 580 Min Credit
  • 9.95-35.99% APR

you can use a Household Expenses loan to cover a plumbing emergency, pay for landscaping work, or for taking care of the maintenance and treatment of a swimming pool. A Household Expenses loan can also cover costs, such as waterproofing a basement, patching a roof, cleaning a chimney or gutter, or retaining home maintenance services, such as a furnace or A/C checks, repairing foundation cracks, or fixing a broken fence.

What Is a Household Expenses Loan?

A Household Expenses loan allows you to maintain your home and obtain emergency repairs with less hassle and stress. A Household Expenses loan can help you take care of the emergency costs associated with a broken pipe or an electrical problem or outage. It can also be used to repair or maintain various areas inside and outside the home.

For example, you can use the loan to repair a faulty A/C unit or direct the money to replace a thermostat that will not work anymore. You can also use a Household Expenses personal loan to treat a mold problem or to concrete a drive or walkway. Take the proceeds of your Household Expenses loan and direct them toward anything that needs a maintenance upgrade and repair.

Here are some of the ways you can use your Household Expenses loan proceeds. They just don’t cover repairs and maintenance. They also cover the direct expenses involved with homeownership, such as the following:

  • Payments for mortgage insurance
  • Payments for utilities
  • Property tax costs
  • Homeowner’s Association (HOA) dues

Therefore, with a Household Expenses personal loan, you can keep on top of your home’s maintenance and repairs as well as keep current with your homeownership expenses. 

Household Expenses Loan – How to Get Started

To apply for a Household Expenses 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 Household Expenses 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 Household Expenses funding so it is better to go through them if you want the best rates for this loan type.
  • Get Prequalified for Household Expenses loan financing. When you choose several lending providers you like, you will need to get prequalified for your Household Expenses loan next. Doing so will give you the repayment details and terms for your Household Expenses online personal loan. If you agree to shorter loan terms, you can also get a lower fixed APR.
  • Compare the Lenders. After you have had a chance to get prequalified through different Household Expenses loan funders, you can review their loan terms and APRs, and see which one fits best with your lending or personal finance requirements. For a Household Expenses personal loan, go with a lender that offers the lowest APR and features the lowest fees over the term of the loan.
  • Supply the Necessary Info and Documents. When you choose a lender, you will need to provide the required loan paperwork and information for Household Expenses 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 Household Expenses personal loan and start making payments, you might add some extra money to your payment each month to repay the loan faster. Doing so will make the loan repayment faster and simpler.

Household Expenses Loan Financing – What You Need to Know

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

  • Annual Percentage Rate (APR) – The rate of interest charged on a Household Expenses personal loan, expressed at an annual rate. 
  • Application Fee – The amount a lender charges for processing a Household Expenses loan application and the related documents. 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 Household Expenses 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 customers who take out a Household Expenses loan 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 Household Expenses loan before the agreed due date. A late payment can hurt your credit score for as long as 7 years.
  • Household Expenses Lender – The financial institution that provides a Household Expenses loan for paying home-related repair, maintenance, and ownership costs. 
  • 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 Household Expenses loan, you need to read the loan terms carefully, as this fee may be applied.
  • Principal – The amount of money owed on a loan, excluding the charged interest or APR.
  • Risk Score – Another name for a credit score.
  • Subprime Borrower – Some people who request funding for a Household Expenses loan may be subprime borrowers. A subprime borrower usually has a poor credit score because of late payments or collection accounts. Lenders evaluate and grade subprime borrowers on the degree of past collection problems – A to D, or lower. Subprime borrowers can qualify for Household Expenses loan but at a higher interest rate.
  • Utilization Ratio – A ratio that shows a lender how much available credit you are using.
  • Unsecured Loan – Most personal loans online, or Household Expenses loans, are not collateralized. Therefore, they are not secured with a form of collateral, such as a house or car. The lender assesses the borrower’s ability to pay primarily on their credit score.

Recommended Household Expenses Loan Lenders

Credible
  • Fixed APR: 6.99 - 35.99%
  • Loan Term: 12-84 months
View rates
sofi logo
SoFi
  • APR: 8.99-25.81%
  • Loan Term: 24-84 months
View rates
penfed logo
PenFed Credit Union
  • Useful mobile app to manage your loan
  • Accepts co-signer and joint applications
View rates