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Best home improvement loans in November 2022

As of November 28, 2022
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Bankrate’s picks for the top home improvement loans considers the interest rates, terms and features each lender has to offer. We also outline the pros and cons of taking out a home improvement loan, as well as types of home improvement loans and other information to help you decide if taking out a home improvement loan is the right financial move for you. 
 
A home improvement loan is a type of personal installment loan that can help you finance a project that will improve or repair your home. You may get one to remodel your kitchen, replace your roof, finish your basement, or do anything else to your indoor or outdoor space. Before applying for a home improvement loan, you need to compare lenders.
 
The best home improvement loan rates currently range from about 3 percent to 36 percent. The actual rate you receive depends on multiple factors, including your credit score, annual income and debt-to-income ratio. The best rate you can qualify for is not necessarily the best loan you can qualify for. Consider additional factors including loan amount, fees, customer service and other features before choosing a lender.
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4.6

Bankrate Score
APR from

6.99- 19.24%*

with Autopay
Loan Amount

$5k- $100k*

Term: 2-7 yr*
Min. Credit

Not disclosed

Apply on partner site

4.8

Bankrate Score
APR from

7.96- 35.97%

with AutoPay
Loan Amount

$1k- $50k

Term: 2-7 yr
Min. Credit

560

Check rate with Bankrate

4.6

Bankrate Score
APR from

8.99- 35.99%

Loan Amount

$2k- $50k

Term: 3-4 yr
Min. Credit

600

Check rate with Bankrate

4.6

Bankrate Score
APR from

8.99- 29.99%

Loan Amount

$5k- $40k

Term: 2-5 yr
Min. Credit

640

Check rate with Bankrate

4.5

Bankrate Score
APR from

9.95- 35.95%

Loan Amount

$2k- $35k

Term: 1-5 yr
Min. Credit

580

Check rate with Bankrate

3.8

Bankrate Score
APR from

18.00- 35.99%

Loan Amount

$1.5k- $20k

Term: 2-5 yr
Min. Credit

None

Check rate with Bankrate

4.6

Bankrate Score
APR from

7.99- 29.99%

Loan Amount

$12k- $50k

Term: 2-5 yr
Min. Credit

620

Check rate with Bankrate

Current home improvement loan interest 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.

Best home improvement loan rates in November 2022

LENDER BEST HOME IMPROVEMENT LENDER FOR APR LOAN AMOUNT RANGE MIN. CREDIT SCORE
LightStream Long-term financing 6.99%–19.24% APR $5,000–$100,000 Not specified
SoFi Unemployment protection 7.99%–23.42% (with autopay) $5,000–$100,000 680
Marcus by Goldman Sachs Minor home improvements 6.99%–24.99% (with autopay) $3,500–$40,000 Not specified
TD Bank Convenience 6.99%–19.99% $2,000–$50,000 Not specified
LendingClub Emergency home repairs 8.05%–35.89% $1,000–$40,000 Not specified
Best Egg Consumers with limited credit history 8.99%–35.99% $2,000–$50,000 600
Upstart Consumers with below-average credit 5.60%–35.99% $1,000–$50,000 Not specified
Prosper Online-only experience 7.99%–35.99% $2,000–$40,000 560

Best lender for long-term financing

Min. credit score:
Not disclosed
Fixed APR From:
7.99% –22.49%
Loan amount:
$5,000– $100,000
Term lengths:
2 to 7 years
Min. annual income:
$50,000
Overview: LightStream’s unsecured personal loans are big enough for major home projects and come with competitive rates for qualified borrowers.
Why LightStream is 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.

Best lender for unemployment protection

Min. credit score:
Not disclosed
Fixed APR From:
7.99% –23.43%
Loan amount:
$5,000– $100,000
Term lengths:
2 to 7 years
Min. annual income:
$30,000
Overview: SoFi, an online-only lender, offers personal loans for home improvements ranging from $5,000 to $100,000.
Why SoFi is best for unemployment protection: SoFi’s Unemployment Protection Program temporarily pauses your payments if you lose your job.

Best lender for minor home improvement projects

Min. credit score:
Not disclosed
Fixed APR From:
6.99% –24.99%
Loan amount:
$3,500– $40,000
Term lengths:
3 to 6 years
Min. annual income:
$35,000
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 best for minor home improvement projects: You can borrow as little as $3,500, which is good for minor fixes around the house.

Best lender for convenience

Min. credit score:
Not disclosed
Fixed APR From:
6.99% –21.99%
Loan amount:
$2,000– $50,000
Term lengths:
1 to 5 years
Min. annual income:
$0
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 best for convenience: The bank's in-person presence is a nice touch if you would like individual assistance.

Best lender for emergency home repairs

Min. credit score:
Not disclosed
Fixed APR From:
8.3% –36%
Loan amount:
$1,000– $40,000
Term lengths:
3 to 5 years
Min. annual income:
$0
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 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. 

Best lender for consumers with little credit history

Min. credit score:
600
Fixed APR From:
8.99% –35.99%
Loan amount:
$2,000– $50,000
Term lengths:
3 to 4 years
Min. annual income:
$0
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 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.

Best lender for consumers with below-average credit

Min. credit score:
Not disclosed
Fixed APR From:
5.6% –35.99%
Loan amount:
$1,000– $50,000
Term lengths:
3 to 5 years
Min. annual income:
$12,000
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 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.

Best lender for online-only experience

Min. credit score:
560
Fixed APR From:
7.99% –35.99%
Loan amount:
$2,000– $50,000
Term lengths:
3 to 5 years
Min. annual income:
$0
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 best for online-only experience: The paperless application process is quick, and borrowers receive their funds within three business days on average.

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.

Pros and cons of home improvement loans

Pros:

  • Most home improvement loans are unsecured, so you won’t lose your home if you default on your loan.
  • You’re approved the same day 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.

Types of home improvement loans and their uses

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

Personal loans

Personal loans are unsecured loans, which are featured on this page, that can be used for any purpose

  • Who it’s best for: Personal loans are best for those who want to avoid using their home as collateral to secure a loan. Personal loans also tend to be best for borrowers with good credit, because interest rates are based on your credit score. 
  • What to watch out for: Personal loans can come with high interest rates and fees, so make sure you shop around and prequalify with lenders before committing to one. 
  • When to get started: You should start looking for personal loans when you know how much you need to borrow and have a good idea of your credit health. Funds can be delivered quickly and many lenders offer same or next day application approval, so you should wait until you are ready to use the funds to apply.
  • How to get started: Figure out how much you need to borrow and begin comparing lenders. Once you have chosen a lender, proceed with the application process. 

Home equity loans

Home equity loans 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.

  • Who it’s best for: Home equity loans are best for home owners who know how much they need to borrow and are looking to avoid higher interest rate personal loans. 
  • What to watch out for: Home equity loans use your home as collateral, meaning you could lose your home if you do not make the payments.
  • When to get started: Before applying for a home equity loan, you should make sure that you know exactly how much you need to borrow. Once you know what you need, it is worth planning ahead and applying early. Home equity loans typically require an appraisal and can take more time to get approved than personal loans.
  • How to get started: Once you know how much you need to borrow, you can begin comparing lenders. Once you have selected a lender, submit an application and follow the steps they outline to complete the process.

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.

  • Who it’s best for: HELOCs are best for people doing larger home improvement projects who do not have an exact idea of how much money they need. A line of credit allows you to take out what you need when you need it and is ideal for projects that require flexibility.
  • What to watch out for: Since you’re not applying for a specific amount, it can be easy to overspend or take out more than you can pay back. A HELOC is secured by your home, meaning that you could lose your home if you do not make payments. Make sure you are only taking out what you need and will be able to pay back what you borrow.
  • When to get started: Getting a HELOC typically requires a home appraisal, so it is a good idea to think ahead and apply for a HELOC before you begin your home improvement project.
  • How to get started: Start by comparing lenders and finding the ones that meet your needs. Once you have a good idea of what rates and terms you qualify for, choose a lender and apply.

FAQs about home improvement loans

Methodology

To select the top home improvement loan lenders, Bankrate considers 15 factors. These factors include credit requirements, APR ranges, fees, loan amounts and flexibility to account for a wide range of credit profiles and budgets. Of the lenders reviewed, 7 made Bankrate's list of best home improvement loans. Each lender has a Bankrate rating, which consists of three categories. These categories include:
  • Affordability: The interest rates, penalties and fees are measured in this section of the score. Lower rates and fees and fewer potential penalties result in a higher score.
  • Availability: What the minimum loan amounts are, its eligibility requirements and loan turnaround are considered in this category.
  • Customer experience: This category covers customer service hours, if online applications are available, online account access and mobile apps.