What is a home improvement loan?
A home improvement loan is a type of financing that you use to cover the costs of renovations, repairs, or upgrades to your property. They typically provide a lump sum of money that you can use to fund your home improvement projects.
Home renovation loans can come in various forms, but are commonly unsecured personal loans. The main benefit is that they let you spread the cost of your renovations over time rather than paying upfront.
If you have bad credit, your options may be more limited, but lenders like Integra Credit can look beyond your credit score to help you find the right solution.
How do home improvement loans work?
Home improvement loans work like traditional personal loans. You receive a fixed sum of money you repay in monthly installments over a set period.
The loan amount, interest rate, and repayment terms depend on factors such as credit score, income, and the lender’s requirements.
Unsecured personal loans don’t require collateral, though they may have higher interest rates. Once you receive the funds, you can use them to pay for your home repairs or renovations.
What can you use a home improvement loan for?
A home improvement loan can help cover the cost of essential repairs, renovations, and upgrades. Whether improving functionality or increasing your home’s value, financing can make your project a reality.
Here are some common ways you could use a loan to make home improvements:
- Repairs and maintenance: Fixing roof leaks, updating plumbing and electrical systems, or replacing HVAC units.
- Kitchen and bathroom upgrades: Remodelling countertops, cabinets, flooring, and fixtures to modernize your space.
- Energy efficiency improvements: Installing solar panels, upgrading insulation, or replacing windows for better energy savings.
- Interior and exterior renovations: Redecorating, replacing flooring, or enhancing curb appeal with new siding or landscaping.
- Accessibility modifications: Adding ramps, stairlifts, or wider doorways to improve mobility and safety.
A home improvement loan gives you the flexibility to complete the repairs or renovations you want while spreading costs over time.
How to compare home improvement loans
You should compare your options carefully when looking for a home improvement loan with bad credit. Here are some of the factors you should consider to help you find the right loan for you:
Interest rates
The annual percentage rate (APR) includes the interest and any additional fees. This gives you a clear picture of how much the loan will cost, making it easier to compare loans and different financing options.
Monthly payments
Make sure the repayments fit your budget. Your repayment will be determined by the interest rate, loan amount and loan term. Bear in mind that, if the interest rate is the same, a longer loan term will come with smaller payments, but you’ll pay more interest overall compared to a shorter term.
Fees and hidden costs
Many loans come with potential charges, including late payment fees if you don’t repay on time and prepayment penalties if you repay the loan early. Look for lenders with transparent fees, so you know where you stand.
Funding speed
If you need funds fast to pay for your home improvements, look for lenders that can release the money quickly. Some lenders offer same-day or next-day funding, whereas others may take a week or longer to get the money to you.
Can you get a loan for home improvements with bad credit?
Getting a home improvement loan is possible even if your credit score is fair or poor. Many lenders, including Integra Credit, assess factors beyond just your credit score when assessing your loan eligibility, including:
- Your income
- Debt-to-income ratio
- Employment status
- Banking and payment history
Lenders can assess your overall financial situation and offer you a home improvement loan that works for you, even if you have a low credit score.
Why choose Integra Credit to find a home improvement loan
Finding the right financing for your home improvement projects can be challenging, especially if you have bad credit. That’s why Integra Credit looks beyond just your credit score to help you find a financing solution that fits your needs.
Loans through Integra Credit for home improvements come with straightforward, transparent terms and no hidden fees, so you know exactly what to expect.
You can check loan offers in minutes, select the amount you need, and complete a quick online application. Plus, Integra Credit’s dedicated support team is always available to assist you.
Most applicants receive an instant decision, and if approved, funds are typically deposited as soon as the next business day.*
Home improvement loan FAQs
How much can I borrow for home improvements?
Personal loans for home improvements with Integra Credit are available for a maximum amount of $3,000, depending on your state’s laws. For more information on the maximum loan amount by state, please refer to our Rates and Terms page.
Will a home improvement loan increase the value of my property?
A home improvement loan can help finance renovations, but whether it affects your property’s value depends on various factors, including the type of project, market conditions, and buyer preferences.
Some upgrades, such as kitchen and bathroom remodels or energy-efficient improvements, may make a home more appealing, while others may have little to no impact. If you’re unsure about potential value changes, consulting a real estate professional may provide additional insight.
Are home improvement loans secured or unsecured?
Home improvement loans through Integra Credit are unsecured personal loans, meaning they don’t require collateral like your home. This makes them a flexible option for covering renovation costs without putting your property at risk.
You can use a secured loan, such as a home equity loan or HELOC, especially if you’re planning large-scale renovations. Secured loans can allow you to borrow larger sums, but your property could be at risk if you don’t keep up with your repayments.
Are home improvement loans tax deductible?
Home improvement loans are not usually tax-deductible unless the funds are used for qualified renovations that add value to your home. Personal loans, like those offered by Integra Credit, are not eligible for tax deductions because they are unsecured.
However, if you take out a home equity loan or HELOC and use the funds specifically for substantial home improvements, like adding a new room or improving energy efficiency, you may be able to deduct the interest. Speak to a tax professional to determine if your home improvement expenses qualify for a deduction.
What is Annual Percentage Rate (APR)?
Annual Percentage Rate, or APR, is a standardized measure used to express the cost of a loan for a whole year. This rate takes into consideration interest owed and any fees a customer will pay as a result of taking out the loan.
How long will it take to receive my money?
Funds for Integra Credit loan agreements fully executed by 8pm CT on weekdays and Saturdays and 3:30pm CT on Sundays are typically sent the next business day. Check with your financial institution’s funds availability policy to learn when it will provide you with access to the funds.
