Best home improvement loans in May 2022

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As of May 18, 2022

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What To Know First

A home improvement loan can help you finance a project that will improve or repair your home. You may take one out to remodel your kitchen, replace your roof, finish your basement, or do anything else to your indoor or outdoor space. To apply for a home improvement loan, you’ll need to find the right lender for your situation and fill out its application.

Methodology

To select the top personal loan lenders, Bankrate considered factors that help consumers decide whether a lender is a good fit for them, such as credit requirements and minimum APRs. We sought lenders with low fees and a range of loan amounts for borrowers with varying budgets and credit profiles. We also looked for conveniences like online applications and fast funding.

In addition, the lenders featured here were evaluated for notable features like customer discounts and flexible repayment options.

What you need to know about home improvement loans
Best home improvement loan rates in 2022
What is a home improvement loan and how does it work?
Types of home improvement loans
Common reasons to use a home improvement loan
Pros and cons of home improvement loans
Best home improvement loans in 2022
How to find the best home improvement loan rates
Frequently asked questions about home improvement loans

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4.6 Bankrate Score	APR from 4.99%* with AutoPay	Loan Amount $5k- $100k* Term: 2-12 yr*	Min. Credit Not disclosed	See Offers Lowest rate is for excellent credit only. Rates 4.99% - 16.99% APR w/autopay.* Loans from $5,000 - $100,000 Same-day funding available (conditions apply) We guarantee your best-funded loan experience ever Your loan terms, including APR, may differ based on loan purpose, amount, term length, and your credit profile. Excellent credit is required to qualify for lowest rates. Rates range from 4.99% - 16.99% APR w/AutoPay. Rate is quoted with AutoPay discount. AutoPay discount is only available prior to loan funding. Rates without AutoPay are .50% points higher. Subject to credit approval. Conditions and limitations apply. Advertised rates and terms are subject to change without notice. Payment example: Monthly payments for a $25,000 loan at 6.49% APR with a term of 20 years would result in 240 monthly payments of $186.25. Truist Bank is an Equal Housing Lender. © 2022 Truist Financial Corporation. Truist, LightStream, and the LightStream logo are service marks of Truist Financial Corporation. All other trademarks are the property of their respective owners. Lending services provided by Truist Bank. APR From 4.99% Loan Amount $5k- $100k Min Credit Not disclosed See Offers	Apply on partner site
4.8 Bankrate Score	APR from 5.94- 35.97% with AutoPay	Loan Amount $1k- $50k Term: 3-5 yr	Min. Credit 560	See Offers Personal loans up to $50,000 with low fixed rates that will never change Affordable monthly payments that fit your budget and no prepayment penalties Fast funding, money is sent to your bank account within a day of clearing any verifications No obligation and no impact to your credit score when you check your rate Use your loan through Upgrade to pay on high interest credit cards, make a large purchase, finish that home improvement project, or almost any life event! Personal loans made through Upgrade feature APRs of 5.94%-35.97%. All personal loans have a 2.9% to 8% origination fee, which is deducted from the loan proceeds. Lowest rates require Autopay and paying off a portion of existing debt directly. Loans feature repayment terms of 24 to 84 months. For example, if you receive a $10,000 loan with a 36-month term and a 17.98% APR (which includes a 14.32% yearly interest rate and a 5% one-time origination fee), you would receive $9,500 in your account and would have a required monthly payment of $343.33. Over the life of the loan, your payments would total $12,359.97. The APR on your loan may be higher or lower and your loan offers may not have multiple term lengths available. Actual rate depends on credit score, credit usage history, loan term, and other factors. Late payments or subsequent charges and fees may increase the cost of your fixed rate loan. There is no fee or penalty for repaying a loan early. Personal loans issued by Upgrade's lending partners. Information on Upgrade's lending partners can be found at https://www.upgrade.com/lending-partners/. **Accept your loan offer and your funds will be sent to your bank or designated account within one (1) business day of clearing necessary verifications. Availability of the funds is dependent on how quickly your bank processes the transaction. From the time of approval, funds sent directly to you should be available within four (4) business days. Funds sent directly to pay off your creditors may take up to 2 weeks to clear, depending on the creditor. APR From 5.94% Loan Amount $1k- $50k Min Credit 560 See Offers	Check rate with Bankrate
4.7 Bankrate Score	APR from 5.99% 3 or 5 year term	Loan Amount $2k- $50k Term: 3-5 yr	Min. Credit 660	See Offers Get a personal loan up to $50,000 with a fixed APR from 5.99% to 35.99%,Get money in as little as one business day, upon approval and verification,Join more than 450,000 customers at a trusted company with an A+ BBB rating,Use it for almost anything: consolidate debt or other unexpected expenses DISCLOSURE UPDATE AS OF 07.2021 Trustpilot TrustScore as of June 2020. Best Egg personal loans, including the Best Egg Secured Loan, are made by Cross River Bank, a New Jersey State Chartered Commercial Bank, Member FDIC, Equal Housing Lender or Blue Ridge Bank, a Nationally Chartered Bank, Member FDIC, Equal Housing Lender. "Best Egg" is a trademark of Marlette Holdings, Inc., a Delaware corporation. All uses of "Best Egg" refer to "the Best Egg personal loan", "the Best Egg Secured Loan", and/or "Best Egg on behalf of Cross River Bank or Blue Ridge Bank, as originator of the Best Egg personal loan," as applicable. The term, amount, and APR of any loan we offer to you will depend on your credit score, income, debt payment obligations, loan amount, credit history and other factors. Your loan agreement will contain specific terms and conditions. About half of our customers get their money the next day. After successful verification, your money can be deposited in your bank account within 1-3 business days. The timing of available funds upon loan approval may vary depending upon your bank's policies. Loan amounts range from $2,000 - $50,000. Residents of Massachusetts have a minimum loan amount of $6,500; New Mexico and Ohio, $5,000; and Georgia, $3,000. For a second Best Egg loan, your total existing Best Egg loan balances cannot exceed $50,000. Annual Percentage Rates (APRs) range from 5.99% - 35.99%. The APR is the cost of credit as a yearly rate and reflects both your interest rate and an origination fee of 0.99% - 5.99% of your loan amount, which will be deducted from any loan proceeds you receive. The origination fee on a loan term 4-years or longer will be at least 4.99%. Your loan term will impact your APR, which may be higher than our lowest advertised rate. You need a minimum 700 FICO® score and a minimum individual annual income of $100,000 to qualify for our lowest APR. To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens an account. What this means for you: When you open an account, we will ask for your name, address, date of birth, and other information that will allow us to identify you. We may also ask to see your driver's license or other identifying documents. APR From 5.99% Loan Amount $2k- $50k Min Credit 660 See Offers	Check rate with Bankrate
4.6 Bankrate Score	APR from 6.99- 22.78% with AutoPay	Loan Amount $5k- $100k Term: 2-7 yr	Min. Credit Not disclosed	See Offers Personal loans from $5,000 to $100,000 Low fixed rates (with AutoPay) and no origination fees Checking your rate will not affect your credit score Simple online application and live customer support Fixed rates from 6.99% APR to 22.28% APR APR reflect the 0.25% autopay discount and a 0.25% direct deposit discount. SoFi rate ranges are current as of 1/18/22 and are subject to change without notice. Not all rates and amounts available in all states. See Personal Loan eligibility details. Not all applicants qualify for the lowest rate. Lowest rates reserved for the most creditworthy borrowers. Your actual rate will be within the range of rates listed above and will depend on a variety of factors, including evaluation of your credit worthiness, income, and other factors. See APR examples and terms. The SoFi 0.25% AutoPay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. APR From 6.99% Loan Amount $5k- $100k Min Credit Not disclosed See Offers	Check rate with Bankrate
4.6 Bankrate Score	APR from 5.99%	Loan Amount $5k- $35k Term: 2-5 yr	Min. Credit 600	See Offers	Check rate with Bankrate
4.6 Bankrate Score	APR from 7.95- 35.99%	Loan Amount $2k- $40k Term: 3-5 yr	Min. Credit 560	See Offers More than $16 billion in loans funded 9 out of 10 customers would recommend Prosper to friends or family* Co-borrower option available. Applying with a co-borrower could help improve your rates Get your money in as few as 3 business days, your monthly payment stays the same For example, a three-year $10,000 personal loan would have an interest rate of 11.74% and a 5.00% origination fee for an annual percentage rate (APR) of 15.34% APR. You would receive $9,500 and make 36 scheduled monthly payments of $330.90. A five-year $10,000 personal loan would have an interest rate of 11.99% and a 5.00% origination fee with a 14.27% APR. You would receive $9,500 and make 60 scheduled monthly payments of $222.39. Origination fees vary between 2.41%-5%. Personal loan APRs through Prosper range from 7.95% to 35.99%, with the lowest rates for the most creditworthy borrowers. Eligibility for personal loans up to $40,000 depends on the information provided by the applicant in the application form. Eligibility for personal loans is not guaranteed, and requires that a sufficient number of investors commit funds to your account and that you meet credit and other conditions. Refer to Borrower Registration Agreement for details and all terms and conditions. All personal loans made by WebBank, Member FDIC. APR From 7.95% Loan Amount $2k- $40k Min Credit 560 See Offers	Check rate with Bankrate
4.5 Bankrate Score	APR from 9.95- 35.99%	Loan Amount $2k- $35k Term: 2-5 yr	Min. Credit 550	See Offers Personal loans from $2,000 to $35,000 online. Competitive rates from 9.95% - 35.99% APR and terms from 24 to 60 months Checking your loan options has no impact to your credit score. Fast Decisions, see your loan options in minutes Funding as soon as next business day *A $5,700 loan with an administration fee of 4.75% and an amount financed of $5,429.25, repayable in 36 monthly installments, would have an APR of 29.95% and monthly payments of $230.33. Minimum loan amounts may vary by state. If approved, the actual rate and loan amount that a customer qualifies for may vary based on credit determination and other factors. An administration fee of up to 4.75% will be deducted from the loan proceeds. Avant branded credit products are issued by Webbank, member FDIC. APR From 9.95% Loan Amount $2k- $35k Min Credit 550 See Offers	Check rate with Bankrate
3.9 Bankrate Score	APR from 18.00- 35.99%	Loan Amount $1.5k- $20k Term: 2-5 yr	Min. Credit None	See Offers Personal and auto loans from $1,500-$20,000 (GA minimum $1,500 existing customers for new loans $3100 for others) A quick decision on your loan request Clear loan terms with no hidden fees and no prepayment penalties Apply online, by phone or at your local branch. Not all applicants will qualify for larger loan amounts or most favorable loan terms. Loan approval and actual loan terms depend on your ability to meet our credit standards (including a responsible credit history, sufficient income after monthly expenses, and availability of collateral). Larger loan amounts require a first lien on a motor vehicle no more than ten years old, that meets our value requirements, titled in your name with valid insurance. Maximum annual percentage rate (APR) is 35.99%, subject to state restrictions. APRs are generally higher on loans not secured by a vehicle. Depending on the state where you open your loan, the origination fee may be either a flat amount or a percentage of your loan amount. Flat fee amounts vary by state, ranging from $25 to $300. Percentage-based fees vary by state ranging from 1% to 10% of your loan amount subject to certain state limits on the fee amount. Active duty military, their spouse or dependents covered under the Military Lending Act may not pledge any vehicle as collateral for a loan. OneMain loan proceeds cannot be used for postsecondary educational expenses as defined by the CFPB’s Regulation Z, such as college, university or vocational expenses; for any business or commercial purpose; to purchase securities; or for gambling or illegal purposes. Borrowers in these states are subject to these minimum loan sizes: Alabama: $2,100. California: $3,000. Georgia: Unless you are a present customer, $3,100 minimum loan amount. Ohio: $2,000. Virginia: $2,600. Borrowers (other than present customers) in these states are subject to these maximum unsecured loan sizes: North Carolina: $7,500. New York: $20,000. An unsecured loan is a loan which does not require you to provide collateral (such as a motor vehicle) to the lender. APR From 18% Loan Amount $1.5k- $20k Min Credit None See Offers	Check rate with Bankrate
	APR from 7.99- 35.99%	Loan Amount $1k- $35k Term: 1-3 yr	Min. Credit None	See Offers Stilt is a mission-driven fintech company focused on providing credit to international students, immigrants and the underserved. We build products to improve financial inclusion and democratize access to the credit through providing accessible and reasonable personal loans. Immigrants, international students, other visa holders and those underserved by the traditional banking system often encounter many struggles while trying to build credit, apply for personal loans and build their financial future. Stilt’s services allow them to take a step forward in their path to financial health by applying for a personal loan with a unique qualifying process like Stilt’s. Stilt is focused on improving financial inclusion and access to credit at reasonable rates. Stilt loans are originated by Stilt Inc., NMLS#1641523. Terms and conditions apply. To qualify for a Stilt loan you must reside in an eligible state and meet Stilt’s underwriting requirements. Not all borrowers receive the lowest rate. To qualify for the lowest rate, you must have excellent credit, a responsible financial history and meet other conditions Stilt requires. Rates and terms are subject to change at anytime without notice and are subject to state restrictions. Not all amounts and rates are available in all states. To check rates and terms Stilt may be able offer you a soft credit inquiry that will be made. This soft inquiry will not affect your credit score. However, if you choose to accept a Stilt loan offer, a hard inquiry from one or more of the consumer reporting agencies will be required. A hard inquiry may affect your credit score. There will be an origination fee charged for the loans for up to 8% of the loan amount. Your actual rate will be within the range of rates listed above and will depend on a variety of factors, including evaluation of your credit worthiness, repayment ability, income and other factors. All applications are subject to additional terms and conditions. If you could receive a $10,000 loan with a term of 18 months with an APR of 13.00%, the monthly payment will be $614.48. No down payment is required. The minimum loan amount in $6,001 in MA, $3,001 in GA and $10,001 in CA. APR From 7.99% Loan Amount $1k- $35k Min Credit None See Offers	Check rate with Bankrate

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The Bankrate guide to choosing the best personal loan for home improvements

Why trust Bankrate?

Bankrate has been comparing and surveying lenders and financial products for over 40 years. Hundreds of top news organizations rely on Bankrate as a trusted source of information. Bankrate strives to help you make smart, informed decisions about your finances. We follow strict guidelines to ensure that our editorial content is not influenced by advertisers. Our editorial team receives no direct compensation from advertisers, and our content is fact-checked to ensure accuracy.

When shopping for the best home improvement loan, look for the lowest interest rate, an affordable repayment term and low to no fees. Loan details presented here are current as of the publication date. Check the lenders’ websites for the most up-to-date information. The top lenders, listed below, are selected based on factors such as APR, loan amounts, repayment terms, credit requirements and broad availability.

Best home improvement loan rates in 2022


LENDER	BEST HOME IMPROVEMENT LENDER FOR	APR	LOAN AMOUNT RANGE	MIN. CREDIT SCORE
LightStream	Long-term financing	7.49%–16.99% (with autopay)	$5,000–$100,000	Not specified
SoFi	Unemployment protection	5.99%–18.85% (with autopay)	$5,000–$100,000	680
Marcus by Goldman Sachs	Minor home improvements	6.99%–19.99% (with autopay)	$3,500–$40,000	Not specified
TD Bank	Convenience	6.99%–21.99%	$2,000–$50,000	Not specified
LendingClub	Emergency home repairs	8.05%–35.89%	$1,000–$40,000	660
Best Egg	Consumers with limited credit history	5.99%–29.99%	$2,000–$35,000	600
Upstart	Consumers with below-average credit	6.76%–35.99%	$1,000–$50,000	600
Prosper	Online-only experience	7.95%–35.99%	$2,000–$40,000	640

Current home improvement loan rates

Average home improvement loan rates currently range from around 3 percent to 36 percent. While the rate you're quoted depends on many factors, the most important is usually your credit score; the higher your credit score, the lower your rate. Many lenders provide their minimum credit score requirements, as well as the credit score needed to receive the lowest rate. However, even if your score is closer to the minimum, it's still worth going through prequalification, as lenders may also factor in things like your annual income, debt-to-income ratio and employment status when determining your rate.

Summary: Home improvement loans in 2022

What is a home improvement loan and how does it work?

A “home improvement loan” is usually an unsecured personal loan used to pay for home repairs and improvements. An unsecured loan does not require you to put up an asset, like your house, as collateral. Loans can range from $1,000 to $100,000 and typically have a fixed interest rate and a fixed monthly payment. They are available from traditional banks, credit unions, online lenders and peer-to-peer lenders.

When you're approved for a home improvement loan, you receive all funds up front, which you can then use to make your renovations. As soon as funds are disbursed, you'll enter the repayment term, which can last anywhere from one to 15 years. During this time, you'll make regular fixed payments on the loan, paying back the principal plus interest.

Types of home improvement loans

There are several kinds of loans you can use to make home improvements. The most common are:

Personal loans: These unsecured loans, which are featured on this page, can be used for any purpose. Interest rates are based on your credit score, and you don’t have to provide collateral. This may be a good option if you want to avoid using your home to secure a loan.
Home equity loans: These are lump-sum loans that are often used for home-related projects and needs. Your home is used to secure the home equity loan. Because of this, you can usually expect a lower interest rate than with a personal loan, but if you miss payments, your home could face foreclosure.
Home equity line of credit (HELOC): A HELOC is a revolving line of credit secured by the equity in your home. You can take money out for home-related expenses as needed, rather than as a lump sum. Your home is used as collateral for a HELOC, and you’ll score lower interest rates because of it.

Common reasons to use a home improvement loan

A home improvement loan is flexible. You can use it to cover the cost of just about any project that will improve your home or repair any problems that exist. Some examples of common projects include:

Kitchen remodels.
Deck or patio additions.
Bathroom remodels.
Roof replacements.
Home additions.
Flooring upgrades.
Window replacements.

Pros:

Most home improvement loans are unsecured, so you won’t lose your home if you default on your loan.
the same day you’re approved or a few days after.
Since home improvement loans come with fixed interest rates, you can enjoy predictable payments.

Cons:

You may be on the hook for fees such as origination fees and late fees. This can increase the overall cost of your loan.
Some home improvement loans have high APRs, which may cost you thousands of dollars in interest.
If you borrow more than you can afford, you risk steering yourself into a cycle of debt.

Best home improvement loans in January 2022

To find the best home improvement loans, we combed through interest rates, repayment timelines and fees. Here are the best home renovation loans to consider in 2022, along with loan details and profiles of borrowers they best fit:

LightStream: Best lender for long-term financing
SoFi: Best lender for unemployment protection
Marcus by Goldman Sachs: Best lender for minor home improvement projects
TD Bank: Best lender for convenience
LendingClub: Best lender for emergency home repairs
Best Egg: Best lender for consumers with little credit history
Upstart: Best lender for consumers with below-average credit
Prosper: Best lender for online-only experience

LightStream: Best lender for long-term financing

Overview: The lender’s unsecured personal loans are big enough for major home projects and come with competitive rates for qualified borrowers.

Why LightStream is the best for long-term financing: The online lending arm of Truist (formerly SunTrust Bank) offers terms as long as 12 years for home improvement loans.

Perks: You can borrow up to $100,000 at a very competitive rate if your credit is excellent. There are no fees or penalties for paying the loan off early.

What to watch out for: LightStream requires good to excellent credit. Rates without autopay are 0.5 percentage points higher, and you must borrow at least $5,000.

LENDER:: LightStream
BANKRATE RATING:: 4.6 / 5.0
MIN. CREDIT SCORE:: Not specified
EST. APR:: 7.49%–16.99% (with autopay)
LOAN AMOUNT:: $5,000–$100,000
TIME TO RECEIVE FUNDS:: As soon as the same day
TERM LENGTHS:: 2 to 12 years
MIN. ANNUAL INCOME:: Not specified
FEES:: None
ADDITIONAL REQUIREMENTS:: N/A

Read Bankrate's Expert LightStream Review

SoFi: Best lender for unemployment protection

Overview: SoFi, an online-only lender, offers personal loans for home improvements ranging from $5,000 to $100,000.

Why SoFi is the best for unemployment protection: SoFi’s Unemployment Protection Program temporarily pauses your payments if you lose your job.

Perks: Repayment terms stretch from two to seven years, and the loans do not have origination fees or prepayment penalties.

What to watch out for: Good to excellent credit is required. SoFi loans are also not available in Mississippi, and minimum loan amounts may be higher in some states — so check the terms for your state to make sure you won't have to borrow more than you need.

LENDER:: SoFi
BANKRATE RATING:: 4.6 / 5.0
MIN. CREDIT SCORE:: 680
EST. APR:: 5.99%–18.85% (with autopay)
LOAN AMOUNT:: $5,000–$100,000
TIME TO RECEIVE FUNDS:: Within a few days
TERM LENGTHS:: 2 to 7 years
MIN. ANNUAL INCOME:: Not specified
FEES:: None
ADDITIONAL REQUIREMENTS:: Not available in Mississippi; higher minimum loan amounts in some states

Read Bankrate's Expert SoFi Review

Marcus by Goldman Sachs: Best lender for minor home improvements

Overview: Marcus by Goldman Sachs is an online lender that offers unsecured personal loans for home improvements. You do not have to have a relationship with Goldman Sachs to apply.

Why Marcus by Goldman Sachs is the best for minor home improvements: You can borrow as little as $3,500, which is good for minor fixes around the house.

Perks: There are no late fees or prepayment fees, and the lender has an app for mobile banking.

What to watch for: If your credit is weak, you may not qualify for a loan.

LENDER:: Marcus by Goldman Sachs
BANKRATE RATING:: 4.8 / 5.0
MIN. CREDIT SCORE:: Not specified
EST. APR:: 6.99%–19.99% (with autopay)
LOAN AMOUNT:: $3,500–$40,000
TIME TO RECEIVE FUNDS:: As few as three days
TERM LENGTHS:: 3 to 6 years
MIN. ANNUAL INCOME:: Not specified
FEES:: None
ADDITIONAL REQUIREMENTS:: N/A

Read Bankrate's Expert Marcus by Goldman Sachs Review

TD Bank: Best lender for convenience

Overview: For borrowers who want a brick-and-mortar lender, TD Bank has more than 1,200 locations on the East Coast, which are open on weekends. It also offers mobile banking to consumers nationwide.

Why TD Bank is the best for convenience: The bank's in-person presence is a nice touch if you would like individual assistance.

Perks: TD Bank's unsecured personal loan is available in as little as one business day.

What to watch for: TD Bank charges a late fee of 5 percent or $10, whichever is less, and the rate cap is also fairly high at 21.99 percent. Additionally, TD Bank's personal loans are only available to residents of Connecticut, Delaware, Florida, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, North Carolina, Pennsylvania, Rhode Island, South Carolina, Vermont, Virginia and Washington, D.C.

LENDER:: TD Bank
BANKRATE RATING:: 4.9 / 5.0
MIN. CREDIT SCORE:: Not specified
EST. APR:: 6.99%–21.99%
LOAN AMOUNT:: $2,000–$50,000
TIME TO RECEIVE FUNDS:: As soon as one business day
TERM LENGTHS:: 3 to 5 years
MIN. ANNUAL INCOME:: Not specified
FEES:: Late fee: 5% of minimum payment due or $10, whichever is less
ADDITIONAL REQUIREMENTS:: Loans can’t be used for business or education expenses.

Read Bankrate's Expert TD Bank Review

LendingClub: Best lender for emergency home repairs

Overview: LendingClub is a peer-to-peer lender that offers loans of up to $40,000 for home improvement projects. You can apply online and get a loan quote without a hard pull on your credit report.

Why LendingClub is the best for emergency home repairs: LendingClub lets you borrow as little as $1,000, which is convenient if the hot water heater or clothes dryer conks out and you’re short of cash.

Perks: LendingClub allows joint applicants, which makes it easier for people with below-average credit to be approved.

What to watch for: There is an origination fee of 3 percent to 6 percent of the loan amount, and the late payment fee is the greater of 5 percent or $15. The APRs for borrowers with poor credit are also on the high side, hitting close to 36 percent if your credit is bad.

LENDER:: LendingClub
BANKRATE RATING:: 4.3 / 5.0
MIN. CREDIT SCORE:: 660
EST. APR:: 8.05%–35.89%
LOAN AMOUNT:: $1,000–$40,000
TIME TO RECEIVE FUNDS:: As soon as four days
TERM LENGTHS:: 3 or 5 years
MIN. ANNUAL INCOME:: Not specified
FEES:: Origination fee: 3% to 6%; Late fee: 5% or $15
ADDITIONAL REQUIREMENTS:: Maximum debt-to-income ratio (DTI): 40 for individual applications, 35 for joint applications

Read Bankrate's Expert LendingClub Review

Best Egg: Best lender for consumers with little credit history

Overview: Best Egg home improvement loans allow you to finance big expenses like building a new deck, replacing your garage door and remodeling your kitchen.

Why Best Egg is the best for consumers with little credit history: Borrowers with little credit experience and a FICO credit score of just 600 may be able to qualify for a home improvement loan with Best Egg.

Perks: You can borrow as little as $2,000 or as much as $35,000. Borrowers with great credit can get rates starting as low as 5.99 percent, and there is no penalty for paying the loan off early.

What to watch for: Best Egg charges origination fees of 0.99 percent to 5.99 percent, and there is a $15 fee for payments more than three days late — a relatively short grace period compared to other companies.

LENDER:: Best Egg
BANKRATE RATING:: 4.6 / 5.0
MIN. CREDIT SCORE:: 600
EST. APR:: 5.99%–29.99%
LOAN AMOUNT:: $2,000–$35,000
TIME TO RECEIVE FUNDS:: As soon as the next business day
TERM LENGTHS:: 3 to 5 years
MIN. ANNUAL INCOME:: Not specified
FEES:: Origination fee: 0.99% to 5.99%; Late fee: $15; Returned payment fee: $15
ADDITIONAL REQUIREMENTS:: N/A

Read Bankrate's Expert Best Egg Review

Upstart: Best lender for consumers with below-average credit

Overview: Home improvement loans through Upstart allow you to finance home improvement projects like home renovations or unexpected home expenses, such as a roof repair.

Why Upstart is the best for consumers with below-average credit: Consumers with tainted credit still might be able to qualify for unsecured home improvement loans with Upstart, a lending platform that partners with banks to make personal loans.

Perks: There’s no penalty for paying the loan off early. Loan amounts start as small as $1,000, and you can get your loan funds in as little as one business day.

What to watch for: Loans cannot have co-signers, and there is a late fee of 5 percent or $15, whichever is greater.

LENDER:: Upstart
BANKRATE RATING:: 4.5 / 5.0
MIN. CREDIT SCORE:: 580 in most states
EST. APR:: 6.76%–35.99%
LOAN AMOUNT:: $1,000–$50,000
TIME TO RECEIVE FUNDS:: As soon as one business day
TERM LENGTHS:: 3 or 5 years
MIN. ANNUAL INCOME:: Not specified
FEES:: Origination fee: 0% to 8%; Late fee: greater of 5% of unpaid balance or $15; Returned check fee: $15;
ADDITIONAL REQUIREMENTS:: N/A

Read Bankrate's Expert Upstart Review

Prosper: Best lender for an online-only experience

Overview: Prosper was founded in 2005 and is a pioneer in the digital lending marketplace. It is a peer-to-peer lender, which matches investors with borrowers. Prosper offers fixed-rate unsecured personal loans to borrowers with fair to excellent credit. Prosper’s home remodeling loans let you make renovations like building an outdoor deck or a room addition.

Why Prosper is the best for an online-only experience: The paperless application process is quick, and borrowers receive their funds within three business days on average.

Perks: There are no penalties for paying your loan balance off early, and the initial application process will result in a soft pull on your credit, which won’t hurt your score.

What to watch for: Prosper charges origination fees of 2.41 percent to 5 percent and late fees of 5 percent or $15, whichever is greater. If your credit is poor, you may have to find another lender, as Prosper's credit threshold is 640.

LENDER:: Prosper
BANKRATE RATING:: 4.4 / 5.0
MIN. CREDIT SCORE:: 640
EST. APR:: 7.95%–35.99%
LOAN AMOUNT:: $2,000–$40,000
TIME TO RECEIVE FUNDS:: As soon as one to three business days
TERM LENGTHS:: 3 or 5 years
MIN. ANNUAL INCOME:: Not specified
FEES:: Origination fee: 2.41% to 5%; Late fee: $15 or 5%; Check fee: $5 or 5%; Insufficient funds fee: $15
ADDITIONAL REQUIREMENTS:: N/A

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How to find the best home improvement loan rates

To land the best home improvement rate, you can:

Shop around: Not all lenders are created equal. Do your research and compare lenders so you can choose the ideal option for your budget and credit.
Get prequalified: See if you prequalify for a loan with various lenders. This way, you can easily compare rates and terms.
Get a co-signer: If you have less than stellar credit, a co-signer may make sense. They can help you secure a loan with an interest rate that you may not qualify for on your own.
Improve your credit score: A higher credit score can lead to a lower rate. If your score is on the low side, work to improve it before you apply for a loan.
Choose a shorter loan term: Generally speaking, the shorter loan term you choose, the lower rate you’ll receive. If you do go with a shorter term, make sure you can afford the monthly payments.

Frequently asked questions about home improvement loans

Can a home improvement loan increase my home's value?

Doing home improvement projects makes it less likely that you’ll have to pay for expensive repairs down the road. When you replace your roof and gutters, for example, you protect your home from water damage. Some projects add more value to your home than others.

Some home improvement projects are expensive but add little value to your property. Comparing the cost of the project to its value can help you determine your asking price when it’s time to sell.

The remodeling projects that recoup the most cost, according to Remodeling's 2021 Cost vs. Value report, include the following:

Garage door replacement (93.8 percent of cost recouped).
New manufactured stone veneer (92.1 percent of cost recouped).
Minor kitchen remodel with midrange finishes (72.2 percent of cost recouped).

Are home improvement loans tax deductible?

Personal loans for home improvement are not tax deductible because they're not secured by your home. Home equity loans and home equity lines of credit, on the other hand, use your home as collateral for the loan. Because of this, you may be able to deduct the interest paid on a home equity loan or HELOC if the funds were used to "buy, build or substantially improve" the home that was used as collateral.

How much can you borrow with a home improvement loan?

Because home improvements do not use your home as collateral, you're typically not limited by the amount of equity you have in your home — the amount you can borrow is instead determined by the individual lender. Most lenders offer loan amounts from $1,000 to $50,000, though some let you borrow much more.

Can I borrow more on my mortgage for home improvement?

While it's not possible to add on to your existing mortgage, you can borrow money for home improvements through what's known as a cash-out refinance. With a cash-out refinance, you'll take out a new mortgage for a greater amount than what you currently owe. You'll then receive the difference in cash, which can be put toward home improvements. Because you'll be taking out an entirely new mortgage with new terms and a new interest rate, a cash-out refinance is only a wise move if you can get a better interest rate than what you're paying on your current mortgage.