Home improvements can seem dauntingly expensive and with contractors potentially ripping you off with their financing offers, it can seem impossible to make any sort of improvement on your home. Credit scores can often make it difficult to find financing at the interest rate you need. But what if I told you that you could afford it through a third party financier and remake your house into your dream home. Through this post, you’ll see just how affordable it can be no matter your credit score.
Excellent Credit Score
The ideal scenario would be having a flawless credit score, so let’s talk about that first. If you have an amazing credit score, there’s a lot more options available (but don’t worry if you have a bad one, that doesn’t mean you won’t be able to get a good loan). You also have a tendency to get a lower interest rate. LightStream offers a low APR range coupled with a high limit (up to $100,000). Plus, the only fee they charge is interest and you have up to seven years for repayment. This loan cannot be used for anything other than home improvements.
Middle Credit Score
The reality for most Americans is a medium credit score, not horrible, but not great. There are lots of good options still available for those needing a home improvement loan that don’t have excellent credit. Avant targets people with a lower credit score by lowering their minimum credit score to qualify. They offer quick approval and are flexible on repayment deadlines. They offer lower APR’s than most with equivocally low qualifying credit score, but they are higher than a lot of loan options for those with better credit scores. Do keep in mind that they are a new company, so there’s a minimal level of risk involved. Wells Fargo offers a lower rate, but they require a slightly higher minimal credit score to qualify. They offer short-term options for repayment (a year) as well as long-term (up to five years).
Bad Credit Score
Having a bad credit score doesn’t immediately knock you out of the running for a home improvement loan. Government loans can be a viable option, offering up to $35,000 to be financed into the mortgage for repairs. You could also get a co-signer on your loan and, based on their credit, potentially become eligible for some of the better loan options. Be sure to read all the documentation and pay attention the interest rates because they can be higher for those with poor credit scores.
Improving your home can be affordable regardless of your credit score. Don’t settle for the contractor’s financing offer as they have a tendency to have higher rates, offering convenience in the way of research but charging you for it. There are many options available for unsecured home improvement loans with varying maximums, making it possible to find the largest unsecured home improvement loan available no matter your credit score. For instance, you can quality for up to 60% of your annual income. If your annual income is $80,000 then you could be in line to obtain a loan of up to $48,000. You see, your home improvement dreams are within your reach.