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Best home improvement loans in October 2024

Updated Oct 22, 2024

What to know first: The best home improvement loans offer a wide range of loan amounts, terms and APRs (annual percentage rates) to help you finance a home renovation or repair project. These personal loans can be used to improve just about any indoor or outdoor space within your property and funds are typically available the day after approval. Home improvement loan rates currently range from about 7 percent to about 36 percent.

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Lightstream: Bankrate 2024 awards winner for best personal loan for home improvement.

4.7

Est. APR
7.49- 21.94%
* with AutoPay
Loan term
3-12 yrs*
Loan amount
$5k- $100K
Min credit score
695
See offersArrow Right

Apply on partner site

PERSONAL LOANS

Upstart: Best for little or no credit history

4.8

Est. APR
7.80- 35.99%
Loan term
3-5 yrs
Loan amount
$1k- $50K
Min credit score
300

PERSONAL LOANS

Achieve: Best for pre-renovation debt consolidation

4.7

Est. APR
8.99- 35.99%
Loan term
2-5 yrs
Loan amount
$5k- $50K
Min credit score
620
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Check rate with Bankrate

PERSONAL LOANS

Citi: Best for no fees

4.6

Est. APR
11.49- 20.49%
Loan term
1-5 yrs
Loan amount
$2k- $30K
Min credit score
720
See offersArrow Right

Apply on partner site

PERSONAL LOANS

Best Egg: Best for unique secured loans

4.6

Est. APR
7.99- 35.99%
Loan term
3-5 yrs
Loan amount
$2k- $50K
Min credit score
600
See offersArrow Right

Check rate with Bankrate

PERSONAL LOANS

LendingClub: Best for adding a co-borrower

4.5

Est. APR
9.06- 35.99%
Loan term
2-5 yrs
Loan amount
$1k- $40K
Min credit score
600
See offersArrow Right

Check rate with Bankrate

PERSONAL LOANS

Upgrade: Best for fast funding for fair credit

4.7

Est. APR
9.99- 35.99%
with AutoPay
Loan term
2-7 yrs
Loan amount
$1k- $50K
Min credit score
580
See offersArrow Right

Check rate with Bankrate

PERSONAL LOANS

Prosper: Best peer-to-peer lender

4.6

Est. APR
8.99- 35.99%
Loan term
2-5 yrs
Loan amount
$2k- $50K
Min credit score
640

PERSONAL LOANS

Discover: Best low fair credit rates

4.8

Est. APR
7.99- 24.99%
Loan term
3-7 yrs
Loan amount
$2.5k- $35K
Min credit score
660

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Compare home improvement loan rates from Bankrate’s top picks

A side-by-side comparison can help you evaluate the most essential points for each lender. This table shows our top lenders in an easy-to-compare format so you can quickly narrow down your options.

LENDER BEST FOR EST. APR LOAN AMOUNT LOAN TERM MIN CREDIT SCORE
LightStream Best overall 7.49%-21.94%* (with AutoPay) $5,000-$100,000 3-12 years 695
Upstart Little or no credit history 7.80%-35.99% $1,000-$50,000 3 or 5 years No Requirement
Achieve Debt consolidation 8.99%-35.99% $5,000-$50,000 2-5 years 620
Citi No fees 11.49%-20.49% $2,000-$30,000 1-5 years 720
Best Egg Unique secured loans 7.99%-35.99% $2,000-$50,000 3-5 years 600
LendingClub Adding a co-borrower 9.06%-35.99% $1,000-$40,000 2-5 years 600
Upgrade Fast funding for fair credit 9.99%-35.99% $1,000-$50,000 2-7 years 580
Prosper Peer-to-peer lending 8.99%-35.99% $2,000-$50,000 2-5 years 640
Discover Low fair credit rates 7.99%-24.99% $2,500-$40,000 3-7 years 660

A closer look at our top home improvement loan lenders

Here we take a deeper dive into the details that earned each lender a spot as the best in its category. We also offer some guidance about who specifically may benefit most from the lender’s products.

Lightstream: Bankrate 2024 awards winner for best personal loan for home improvement

LightStream
Rating: 4.7 stars out of 5
4.7

Overview: LightStream is an online lending branch of the commercial bank Truist. It caters to borrowers with good to excellent credit and touts a fast and easy online application process that can be completed through the website or on its mobile app.

Est. APR
7.49%–21.94%
Loan amount
$5k– $100k
Min credit score
695

Upstart: Best lender for little or no credit history

Upstart
Rating: 4.8 stars out of 5
4.8

Overview: Upstart is an online lender that uses artificial intelligence to approve loans rather than only using a borrower's credit score.

Est. APR
7.80%–35.99%
Loan amount
$1k– $50k
Min credit score
300

Achieve: Best lender for pre-renovation debt consolidation

Achieve
Rating: 4.7 stars out of 5
4.7

Overview: Achieve is a digital personal finance company that offers personal loans, home equity loans and debt management resources and tools. Over the past 20 years, the lender has served over a million people, giving it a trusted reputation in the lending industry.

Est. APR
8.99%–35.99%
Loan amount
$5k– $50k
Min credit score
620

Citi Personal Loan: Best lender for no fees

Citi® Personal Loan
Rating: 4.6 stars out of 5
4.6

Overview: Citi is a global bank that offers a complete hub of financial products and services. Its personal loans come with automatic payment discounts and zero fees. 

Est. APR
11.49%–20.49%
Loan amount
$2k– $30k
Min credit score
720

Best Egg: Best lender for unique secured loans

Best Egg
Rating: 4.6 stars out of 5
4.6

Overview: Best Egg is a well-known lender due to its ample benefits and unique member perks. Plus, those with fair credit may qualify.

Est. APR
7.99%–35.99%
Loan amount
$2k– $50k
Min credit score
600

LendingClub: Best lender for adding a co-borrower

LendingClub
Rating: 4.5 stars out of 5
4.5

Overview: Until 2021, LendingClub operated as a peer-to-peer lender but has since transitioned to a lending marketplace and bank. You can apply for a loan online and get a quote without a hard pull on your credit report.

Est. APR
9.06%–35.99%
Loan amount
$1k– $40k
Min credit score
600

Upgrade: Best for fast funding for fair credit

Upgrade
Rating: 4.7 stars out of 5
4.7

Overview: In the past six years, Upgrade has made over $31 billion in credit available to its customers. Headquartered in San Francisco, but with offices in Phoenix, Montreal, Orange County and Atlanta, Upgrade offers multiple financial products and services, like credit cards, personal loans and savings accounts.

Est. APR
9.99%–35.99%
Loan amount
$1k– $50k
Min credit score
580

Prosper: Best peer-to-peer lender

Prosper
Rating: 4.6 stars out of 5
4.6

Overview: Prosper is a peer-to-peer lender that matches borrowers with multiple investors rather than individual banks or financial institutions. Established in 2005, the company has over two million customers, earning a positive reputation in the lending industry.

Est. APR
8.99%–35.99%
Loan amount
$2k– $50k
Min credit score
640

Discover: Best lender for competitive fair credit rates

Discover
Rating: 4.8 stars out of 5
4.8

Overview: Discover, headquartered in Illinois, is well-known for its credit cards and banking. Its personal loans offer low start rates and terms as long as seven years. 

Est. APR
7.99%–24.99%
Loan amount
$2.5k– $35k
Min credit score
660

What are home improvement loans?

A home improvement loan is a financing option used to pay for home remodeling and repairs. Loan amounts can range from $1,000 to $100,000 and standard repayment terms are between one and seven years.

Home improvement loans are installment loans, meaning they have a fixed interest rate and stable monthly payment for a set period. Because they aren’t secured by your home, you don’t risk losing your property if you default on the loan. Once you're approved, you receive a lump sum and your repayment schedule starts with regular payments of principal and interest until the balance is paid in full.

Pros and cons of home improvement loans

Considering a home improvement loan’s benefits and drawbacks will also help you decide if it’s the right option for paying for your renovation goals. 

Green circle with a checkmark inside

Pros

  • You're able to fund projects that may increase your home’s value.
  • Most home improvement loans don’t use your home as collateral.
  • Fixed loan amounts can help you avoid borrowing more than you need.
  • Fixed interest rates provide predictable monthly payments.
Red circle with an X inside

Cons

  • Home improvement loans may come with higher origination fees and APRs.
  • Shorter repayment term options may make the monthly payment unaffordable.
  • Late or missed payments could hurt your credit.

Types of home improvement loans and their uses

There are many different  types of home improvement loans. These are some of the most common:

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The author's expert insight

"It’s important to understand the revolving credit feature of a HELOC only lasts for a set time – usually no more than 10 years. After that time, the entire balance is repaid on a fixed schedule for the remaining loan term. That can shock people who made interest-only payments during the revolving period. The other drawback is HELOC rates are usually variable, which may make the payment unaffordable if the Fed is hiking rates regularly."

- Denny Ceizyk, Senior Loans Writer

How to compare home improvement loan lenders

It's always best to get quotes from a few lenders before applying for a loan so you can determine the best offer. When comparing lenders, keep an eye on these factors.

  • Approval requirements: Every lender sets its own threshold for approving potential borrowers. They consider your income, credit score and debt-to-income ratio. If you have below-average credit, look for lenders that use other approval criteria. Some will consider your area of study or job history.
  • Interest rates and fees: The lowest advertised rate is never guaranteed, so compare your actual quotes. When comparing interest rates, make sure to factor in fees or penalties. Origination fees or application fees can significantly add to the overall cost of your loan.
  • Co-signers: Adding a co-signer may boost your approval odds or getting low rates if you have fair or poor credit. But not all lenders offer this option.
  • Loan amounts: The scope of your home project or repair sets how much you need to borrow. If you are remodeling your kitchen, you will likely need a larger loan than just replacing an appliance. Ensure the lender offers loan amounts as high or low as you need.
  • Repayment options: A good home improvement loan lender usually offers repayment terms ranging from 12 to 84 months. The longer the term, the lower the monthly payment — but the more interest you pay over the life of the loan. 
  • Unique features: Keep an eye out for lenders with any unique perks or restrictions. For example, some lenders offer discounts if you set up automatic payments from your bank account. Others may charge a fee if you pay the loan off before the full term.
  • Customer service: Check the company's business hours, particularly if you prefer in-person service to online.Check company reviews on various platforms to see what consumers say about their experiences. 

How to get a home improvement loan 

To determine your best loan option, compare the characteristics and drawbacks of each type of funding with your own needs and circumstances. For example, if you urgently need to replace your roof following a storm, you might need the fast timeline and large amount a personal loan can provide. When you’re ready, follow these steps to apply for a home improvement loan.

  • Shop around for rates: After you’ve chosen a loan type, research lenders offering it. Make sure the lenders you are interested in serve borrowers with your credit profile and offer the loan amounts and term lengths you want.
  • Gather documentation: Lenders have similar documentation requirements. Most will want to see your photo ID, proof of income and proof of residence. You may also need to provide information on your housing payment and any current debts you have.
  • Get prequalified: If the lenders you’re considering offer prequalification, it’s a great way to compare possible rates and monthly payments without hurting your credit score. Prequalify for multiple lenders at once and look for the best deal.
  • Fill out your application: After you’ve chosen a lender, complete a full application. Check the information you provide thoroughly to avoid mistakes. Most lenders do a hard credit check when you complete a formal application, so if you’re applying to more than one, keep your applications within a 14-day period to limit damage to your credit score.

Where to get a home improvement loan

You can get home improvement loans from the same institutions as you would a personal loan. This includes most banks, online lenders, credit unions and peer-to-peer lenders.

  • Bank or credit union: If you have good credit and a solid repayment history, then start with your bank or credit union to see what rate you're offered. Plus, banks often give preexisting customers exclusive benefits for borrowing with them again, like extended grace periods or interest rate reductions. If the rates aren't ideal, turn to an online lender. 
  • Online lender: Online lenders may offer lower interest rates than other lending institutions. The offers may also be easier to compare since the application process is completed online. The applications are typically completed within minutes, but this depends on the lender. However, if your credit isn't where you want it to be, then starting with a peer-to-peer lender may be better for you.
  • Peer-to-peer lenders: Peer-to-peer lenders may offer lower rates than online lenders and are most likely to approve borrowers with a shaky credit profile.

Alternatives to home improvement loans

If you’ve determined that a personal loan isn’t the best option for you, look into these alternatives instead.

Can I borrow more on my mortgage for home improvement?


Senior Loans Writer

Yes, but the best option may be one you don’t hear a lot about — a renovation loan. Many mortgage lenders will suggest a cash-out refinance, allowing you to borrow more than you owe and pocket the cash difference for your project. However, you can’t usually borrow more than 80 percent of your home’s current value, which may not be enough for a larger project. A renovation loan like the Fannie Mae Homestyle loan allows you to roll the labor, materials and closing costs into one loan up to 97 percent of your home’s value. What’s even better: The loan is based on the estimated value of your home after renovations, giving you even more borrowing power. There are a few drawbacks. First, the lender will need to approve your project. Second, funds are disbursed in draws rather than all at once.

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There are several options for borrowing more on your mortgage to pay for repairs and renovation. These include a cash-out refinance, a FHA 203(k) loan, a Fannie Mae HomeStyle loan and a Freddie Mac CHOICERenovation Mortgage. There are also Energy-Efficient Mortgages, or EEMs, that let you finance energy-efficient improvements to your home as part of an FHA or VA mortgage. Homeowners should compare the cost with obtaining a home equity loan or home equity line of credit (HELOC), since those options may be less expensive or more flexible.

Frequently asked questions about home improvement loans

How we made our picks for best home improvement loans

Bankrate's trusted home improvement loans industry expertise

48

years in business

30

lenders reviewed

20

loan features weighed

665

data points collected

To select the best home improvement loans, Bankrate’s team of experts evaluated over 30 lenders. Each lender was ranked using a meticulous 20-point system, focusing on four main categories: