What are my options for home improvement loans?

In general, there are four types of financing for home improvement: home improvement loans, which don't depend on having any equity in your home, cash-out refinancing, home equity loans (HEL), and home equity lines of credit (HELOC). The loan that's right for you will be affected by several factors, such as current interest rates, the amount that you want to borrow, and your credit history.

What's the difference between a home equity loan (HEL) and home equity line of credit (HELOC)?

Great question! Both types of loan assume that you've got some equity built up in your property, and you use that property to "secure" your loan. Home equity loans are more like a traditional loan: you get an upfront lump sum and make fixed payments over your repayment term. On the other hand, a home equity line of credit lets you borrow as needed, up to a predetermined limit: your interest rate may be variable, so your payments can increase or decrease over time.

Can I use my home improvement loan funds any way I want?

Basically, yes. Your loan is rarely tied to any particular use. Maybe you thought you wanted a new kitchen, but now an in-ground pool sounds more fun. Or, perhaps you planned to upgrade your bathroom, and then all of your appliances died after a lightning strike. No problem! The money is yours to use as you see fit.

How much can I borrow with a home improvement loan?

That depends. With a traditional home improvement loan, the amount you can borrow will largely be determined by your credit history, current amount of debt, and your income. If you're borrowing against the equity in your home, you may be able to get a loan for up to 85% of your equity. For example, if your home is worth $300,000 and you've got $200,000 left to pay, then your equity is $100,000: you may be able to borrow up to $85,000.

How quickly can I get approved for a home improvement loan?

If you need money fast, your best bet is a home improvement loan rather than a home equity loan. With a home improvmeent loan, you could get funds deposited within a day or two of being approved. Any lending tied to the equity in your home takes much longer, often including a (new) house inspection and underwriting. But, keep in mind that home improvement loans often have higher interest rates than home equity loans.

Which type of home improvement loan is the most affordable?

The home improvement loan process is much easier than an equity-based loan, and you'll receive your money much faster - but you're likely to get the best rates and terms with a cash-out refinance (if interest rates now are lower than when you obtained your current mortgage) or a home equity loan. Keep in mind, though, you can get your money with a home improvement loan in just a day or two, while an equity-based loan can take weeks.

Can I get a home improvement loan if I have bad credit?

It's not impossible. You're more likely to qualify for a home equity loan or line of credit, because your home's value can secure the loan. But, there are also some home improvement loan providers that work with individuals that have less-than-perfect credit.

Can't I just use a credit card to pay for my home improvements?

You can... but unless you've got a 0% APR card with a high credit limit and you can pay it all off within the introductory no-interest period (usually 12-21 months), you're going to wind up paying a lot more in interest. A LOT more. Check out your other options, which are tailored for this type of project, before using a credit card to fund home improvements or repairs!

Best Home Improvement Loans for February 2026

Item: The Best Home Improvement Loans - Summary Reviews
Rating: 5
Author: Top Consumer Reviews

Friday, February 13th We evaluate products and services based on unbiased research. Top Consumer Reviews may earn money when you click on a link. Learn more about our process.

2026 Home Improvement Loan Reviews

Where Can You Get the Best Home Improvement Loans? Need some extra cash to make some changes to your house? Home improvement loans are here to help you tackle those renovation projects. Whether you're planning to overhaul the kitchen with all-new cabinets and countertops, get rid of that 70s-style bathroom, or add curb appeal to your property, these loans provide the financial support you need to make it happen.

5.0

EXCELLENT

Best Option

Credible

Loan amounts available from $600 to $200,000
Connect with up to 10 different lenders at once
Funds can be used for any type of home improvement project

Read Full Review

EXCELLENT

5.0

On the Credible website

Hoping to finance your home improvement projects without the hassle of entering applications at multiple banks? Look no further than Credible. With over a decade of experience, Credible simplifies the borrowing process by allowing you to apply to ten different lenders with just one form. Whether you're looking to finish your basement, add a pool, or jazz up your landscaping, Credible connects you with sources of personal loans, giving you the flexibility to decide how to utilize the funds. With loan amounts ranging from $600 to $200,000, Credible offers a wide range of lender options to suit your needs. Plus, their Best Rate Guarantee ensures that you get the most competitive rates available. With an "A+" rating from the BBB and thousands of five-star reviews, Credible is a convenient, reliable, and highly recommended option for securing the funds necessary for your home improvement projects.

4.4

GREAT

Great

Discover

Loans ranging from $2,500 to $40,000, structured as personal loans
Terms ranging from 36 to 84 months
Next-day funding available after approval

Read Full Review

GREAT

4.4

On the Discover website

Did you know that Discover, the credit card company, can help you with home improvement projects too? They offer personal loans from $2,500 to $40,000 that you can use for fixing up your home, and you can pay them back over 36 to 84 months. The best part? There are no extra fees for getting the loan or paying it off early. Applying is easy, and it won't hurt your credit score to check your rate. If you get approved, you could have the money in your account by the next business day. People who borrow from Discover say they love the good rates, great customer service, and how easy it is to get approved. Discover is a surprising but excellent choice for financing your home improvement projects, earning a high recommendation from us.

4.0

VERY GOOD

Very Good

LendingTree

Home improvement loans available up to $50,000
Referral service pairs you with up to five lending partners
Repayment terms range from 24 to 84+ months

Read Full Review

VERY GOOD

4.0

On the LendingTree website

Looking for a loan to spruce up your home? LendingTree has got you covered. Since 1998, they've been connecting homeowners like you with lenders who can help finance your home improvement projects. With loans available up to $50,000 and repayment terms ranging from 24 to 84 months, you've got plenty of options to choose from. Plus, their easy application process won't affect your credit until you're ready to pick a lender. While they've got an impressive track record with an "A+" rating from the BBB and lots of 5-star feedback in other places, keep in mind that you might get some unwanted messages after sharing your info. Despite that, LendingTree remains a solid choice for finding the right loan for your home upgrades.

3.9

VERY GOOD

Very Good

SuperMoney

Loan referral platform
Transparent about their partners
Excellent resource for evaluating loan providers

Read Full Review

VERY GOOD

3.9

On the SuperMoney website

SuperMoney, a trusted financial service provider since 2013, doesn't offer home improvement loans directly, but they connect you with a bunch of lenders who do. You can borrow up to $100,000 for your project, and their website makes it easy to compare your options and read reviews from other borrowers. When you fill out their simple form, they won't sell your info to anyone else, and they'll match you with lenders that fit your needs. Even though they're not listed with the BBB, they've got a great reputation elsewhere with almost 400 ratings averaging 4.9 stars. If you're looking for a loan for fixing up your home, SuperMoney is a fantastic way to find the right lender without any hassle.

3.8

VERY GOOD

Very Good

SoFi^®

Home improvement loans available from $5,000 to $100,000 (structured as a personal loan)
Flexible repayment terms spanning from 2 to 7 years
Most loans funded same or next day

Read Full Review

VERY GOOD

3.8

On the SoFi^® website

With over two million members and $50 billion in funded loans, SoFi offers an array of resources for financial independence, including personal loans for your home upgrades. Applying for a home improvement loan with SoFi is straightforward - just enter your basic info and desired loan amount, and they'll verify your identity with a soft credit check. While their rates aren't the lowest, they do offer perks like autopay discounts. However, watch out for potential origination fees, which can range up to 6%. Despite some transparency issues, SoFi has a mostly positive reputation, with an "A+" rating from the BBB and thousands of five-star reviews from satisfied clients. While they might not offer the absolute best rates and terms, the unique perks make it worth considering SoFi for your home improvement financing needs.

3.5

GOOD

Good

LendingClub

Loans available up to $40,000 (structured as personal loans)
Funded $90B+ in loans for over 4 million members since 2007
Origination fees of 3-8%

Read Full Review

GOOD

3.5

On the LendingClub website

LendingClub, once a peer-to-peer lending platform, has grown into its own bank since 2007, having helped over 4 million people secure more than $90 billion in loans. If you're considering a home improvement loan through LendingClub, you can borrow up to $40,000 with origination fees ranging from 3% to 8%, based on factors like your credit score and income. Many borrowers praise LendingClub for its quick funding, easy application process, and competitive rates, with thousands of 5-star reviews and an "A+" rating from the Better Business Bureau. While the origination fees might deter some borrowers, the overwhelmingly positive feedback from satisfied customers earns LendingClub a respectable rating.

3.4

GOOD

Good

Prosper

Personal loans up to $50,000
HELOCs and HELoans up to $500,000
Origination fees from 1%-7.99%

Read Full Review

GOOD

3.4

On the Prosper website

Prosper offers a different way to fund your home improvement projects. As a peer-to-peer lending platform since 2005, it connects people who want to invest with those who need to borrow. You have the choice between a personal loan or a HELOC/HELoan, with the personal loan allowing you to borrow up to $50,000 without using your home as collateral. When applying, make sure to select "Home Improvement" as your reason to attract investors. Expect origination fees ranging from 1% to 7.99%, deducted from your loan amount. While funding may take longer due to the peer-to-peer aspect, Prosper maintains an "A+" BBB rating and thousands of 5-star reviews on Trustpilot from customers who appreciate the streamlined process. Overall, Prosper is a reliable option for home improvement loans.

3.0

AVERAGE

Average

Upgrade

Home improvement loans ranging from $1,000 to $50,000, structured as personal loans
Origination fees from 1.85% to 9.99%, deducted from the loan amount
Repayment terms from 24 to 84 months

Read Full Review

AVERAGE

3.0

On the Upgrade website

Founded in 2017, Upgrade offers personal loans for home improvement projects, ranging from $1,000 to $50,000. Applying for a loan is easy, but borrowers should watch out for additional fees (1.85% to 9.99%) taken from the loan amount. Even though customers like Upgrade and it has an "A+" from the BBB, its high fees and interest rates mean it only gets an average rating in our review. While it's good for people with lower credit scores, those fees and rates might make some people think twice about getting a home improvement loan from Upgrade.

1.0

POOR

Poor

Personal Loans

Lender referral service
Connects you with lenders offering anywhere from $250 to $35,000
Parent company has an "A" rating from the BBB

Read Full Review

POOR

1.0

On the Personal Loans website

Personal Loans is the last place you should look for funding on your home improvement project. You'll be asked to provide extremely detailed information (including your bank account details) before you're even told which lenders they'll refer you to, and you're probably going to get spammed by companies not even related to your borrowing. Personal Loans is a waste of time at best, so we recommend using your time wisely by going to the higher-ranked lenders and referral options on our list instead.

Continued from above...

Where Can You Get the Best Home Improvement Loans?

Need some extra cash to make some changes to your house? Home improvement loans are here to help you tackle those renovation projects. Whether you're planning to overhaul the kitchen with all-new cabinets and countertops, get rid of that 70s-style bathroom, or add curb appeal to your property, these loans provide the financial support you need to make it happen.

When it comes to applying for a home improvement loan, going online offers you a convenient and accessible option. It's no wonder that online home improvement loans have become so popular. With just a few clicks, you can explore a variety of lenders and loan terms from the comfort of your own home.

Online applications streamline the process, eliminating the hassle of in-person appointments and extensive paperwork. Instead, you can submit your application quickly and easily, receiving loan offers and getting funds deposited - all without ever leaving your computer or smartphone.

Before you start filling out applications, it's important to understand that not all loans labeled as "home improvement loans" are structured the same way. Some are specifically tailored for home-related projects, while others, particularly those offered online, are often personal loans.

Personal loans provide you with a lump sum of money that you can use for various purposes, including home improvements. Unlike home equity loans or lines of credit (HELOCs), which are secured by the equity in your home, personal loans are unsecured and don't require collateral.

The distinction between personal loans and HELOCs is crucial for you to understand. HELOCs allow homeowners to borrow against the equity in their homes, making them ideal for large-scale renovations or projects that require substantial funding. While HELOCs may offer lower interest rates and tax benefits, they also come with the risk of losing your home if you default on payments.

On the other hand, personal loans offer you flexibility and accessibility. They don't require equity in your home, making them accessible to homeowners with limited equity or those who don't want to put their homes at risk. Personal loans often come with fixed interest rates and repayment terms, simplifying budgeting and planning for you. Additionally, the application process is typically faster, with funds disbursed quickly - sometimes within a few days of approval.

So, with all of the options out there, how can you tell where to start your search for a home improvement loan? Here are some ideas for sifting through the various platforms and choosing the right one for you:

Referral service or direct lender. Do you want to compare loan offers from multiple financial institutions at once? Then choose a site that serves as a referral platform. But, if you'd prefer the peace of mind that comes from a single application with a lender you already know and trust, you've got solid options that way as well. It's a matter of personal preference.
Borrower qualifications. Does the lender or platform have any minimum criteria you'll need to meet, in order to be eligible for a home improvement loan? That could be a particular credit score, monthly income, or even a particular state of residence.
Maximum loan amount. If you've got a major home improvement project in mind, you may need more than a few thousand bucks to get it done. Some lenders cap their loans at $35,000 (or less), so check that out first.
Reputation. Have other homeowners successfully used the site to get the funding they needed? Were there any surprises during the application process or afterwards? Has the lender or the referral platform been rated by the BBB?

Ready for renovations? The experts at Top Consumer Reviews have reviewed and ranked some of today's most frequently-used sites for home improvement loans, so that you can turn your ho-hum house into something truly Insta-worthy in no time.