Home improvement loans are often unsecured personal loans that you can utilize for renovations like painting your guest room or repairing your extra bathroom. In 2024, obtaining home improvement loans with a bad credit score of 629 or lower may be more challenging.
Lenders offering home improvement personal loans in 2024 may evaluate applications depending on factors beyond credit history, and may even design loans with bad credit in mind. However, you still have choices, even if it may be difficult to get approval for this kind of loan if you have bad credit. Furthermore, borrowers with less-than-perfect credit are accepted by some lenders.
Best Bad Credit Home Improvement Loans Of 2024
A large-scale home improvement like kitchen makeovers or complete roof repairs can be expensive and necessitate funding. Moreover, obtaining approval for a home improvement loans may be more difficult for people with bad credit in 2024, having a FICO score below 670.
However, some lenders in 2024 provide loans for home improvement with bad credit. These lenders often offer higher-than-average interest rates, but they can help you receive the money you need to finish your repair job.
LendingPoint
LendingPoint is an online lender with its headquarters located in Atlanta. It provides personal loans throughout the 48 states as well as Washington, D.C. but it doesn’t offer loans in West Virginia or Nevada. In states where they qualify, potential borrowers can apply online and get cash quickly.
Georgia loans have a minimum loan amount of $3,500, while LendingPoint personal loans range from $2,000 to $36,500. Moreover, the repayment periods vary from two to six years, or 24 to 72 months with a credit score of 600. However, its main drawbacks are its high maximum APRs and origination fees. Although keeping a high credit score usually helps you avoid high APRs, your state may have origination fees (up to 10%) for LendingPoint.
Upgrade
Upgrade considers an applicant’s free cash flow in addition to their credit score. To increase the chance that you will receive a low rate, you can also include a co-signer or co-borrower on your loan application. Additionally, the lender requires a minimum credit score of 560, one account, 75% debt-to-income ratio, a two-year credit history, and no income requirement, accepting income from various sources. Moreover, the loan offers terms ranging from 3 to 7 years, with an origination fee of 1.85% to 9.99%, a late fee of $10, and a failed payment fee of $10.
Universal Credit
Universal Credit is an online lending platform that provides personal loans ranging from $1,000 to $50,000 through its partners. In addition, repayment periods are three to seven years long. There are certain compromises with Universal Credit, even if it allows people with bad credit to obtain a personal loan.
It charges exorbitant annual percentage rates (APRs) compared to the most competitive rates on our list. Additionally, all personal loans from Universal Credit have an origination fee ranging from 5.25% to 9.99%. You will need to account for this when calculating the size of your loan because it will be removed from the proceeds, so make sure you have enough money set aside for it later.
Upstart
One of Upstart’s most appealing features is its extraordinarily lenient credit requirements. Even with the lowest possible score of 300, a loan with Upstart may still be available. It considers additional data, like work history and education, to determine eligibility.
With a $50,000 maximum loan amount, you might be able to finance a larger home repair project. The loan offers next-day funding with a high maximum amount but has a potentially high origination fee, no co-borrowers, and only two loan terms available.
Avant
Avant offers personal loans with amounts ranging from $2,000 to $35,000 and periods from one to five years. This lender may be the best option for consumers with less-than-perfect credit because it will accept credit scores as low as 580. Furthermore, you should anticipate receiving your loan cash as soon as the following business day if your application is accepted.
This implies that you have a higher chance of receiving help at a convenient moment, wherever you are in the United States. Loan rates range from 9.95% to 35.99%, with repayment terms ranging from 1 to 5 years. The offer does not include discounts, origination, late, or dishonored payment fees, and requires a minimum credit score of 580.
LendingClub
LendingClub is a reliable lender for good credit and certain fair credit consumers who apply directly through their website. LendingClub’s prequalification process is straightforward, even if you’re hesitant to provide your Social Security number, as it’s not mandatory at this stage. Although prequalification does not ensure loan approval, LendingClub approves prequalified applicants more frequently than the majority of its credible partner lenders.
However, if you’ve already been prequalified, your chances of having your application rejected are reduced. Loan amounts range from $1,000 to $40,000, with origination fee, no discounts, eligibility in all 50 states, customer service, soft credit check, and 3-day fund approval time.
OneMain Financial
OneMain Financial provides relatively small unsecured loans to clients with weak and fair credit. If collateral is acceptable to you, secured loans are also an option. OneMain’s rates do begin higher than those of many other lenders. The benefits of this service include secured loans, joint applications, and quick funding. However, the product has a low maximum amount, several fees high rates, and limited availability.
SoFi
SoFi offers personal loans with maximum amounts of $50,000 and payback lengths ranging from two to seven years, whereas other lenders set their maximum amounts at $50,000. Due to this, it might be an excellent choice for borrowers who need to finance significant home remodeling projects.
For suitable consumers, the lender offers competitive annual percentage rates (APRs). Your money could be available to you as soon as the same day if your SoFi personal loan application gets approval. Additionally, there are no fees with the lender’s loans, which can help you save money overall.
In addition, SoFi provides several benefits and savings for both current account holders and autopay users. Also, remember that Mississippi does not offer SoFi personal loans. To be eligible, you must also have acceptable credit, though applying jointly with another person may increase your chances of approval.
Best Egg
Best Egg provides its clients with loans that are both secured and unsecured. Since a secured loan is backed by collateral, it may be able to help you get cheaper rates even if your credit is not the best. You must have a minimum yearly income of $100,000 and a credit score of at least 700 to be eligible for this lender’s lowest rates.
Although funding may take up to three days, most borrowers get their money within one working day. Best Egg requires a minimum credit score of 600, U.S. citizenship, or permanent residency. However, it does reside in Iowa, Vermont, West Virginia, the District of Columbia, and U.S. territories.
LightStream
Lightstream, one of three credible partner lenders, offers loans up to $100,000, making it ideal for financing significant needs like home improvements or weddings. Home repair, RV, and boat loans offer up to 12-year repayment terms and can be applied for on the same day.
Lightstream offers affordable rates with no origination costs, with a lower APR than SoFi’s claimed lowest APR, but requires good credit to qualify. Note that Lightstream does not allow you to prequalify, in contrast to most lenders. Additionally, on its website, it doesn’t list a phone number next to its customer support hours.
In 2024, bad credit home improvement loans will be available for those unable to improve their credit score. Before applying, consider the pros and cons, as extra interest may be tax-deductible. Furthermore, home equity products may also increase the home’s value, potentially increasing its selling price.