You’ve achieved the dream of home ownership, but you need to make some improvements to get it to look the way you want. Maybe your kitchen and master bathroom needs updating, or you’d like new floors in your living room. Fortunately, you have several options to finance those exciting new projects.
What is a home improvement loan?
A home improvement loan is any source of cash that you designate for your renovations or home repairs. Some home improvement loans, such as those that are government-backed, must provide details about what the projects involve. Other loans, such as a personal loan, don’t have this requirement.
When to choose a personal loan for home improvement?
A personal loan for your home improvement projects is a good choice in several circumstances. Personal loans are unsecured term loans, so you won’t have to pledge your home as collateral. While the interest rates might be higher, a personal loan is also the best choice if you don’t have sufficient equity in your home to use for additional financing.
A personal loan also has a fixed interest rate and a longer payback term, which makes it a better choice than most credit cards. You can fit the monthly payments into your budget and schedule your payoff for two to five years out.
Home improvement loans for bad credit
If you have poor credit and need a home improvement loan, you might still have a few options. However, the interest rates will be high, so consider whether it is the best time to start a large home improvement project.
After graduating year 12, Dan began his banking and finance career at Westpac Banking Corporation in Brisbane in 1988. He worked for the bank for seven years, excelling in his career and working his way up to management.