7 Best Home Improvement Loans with Bad Credit

Your home is a canvas where dreams come to life, a reflection of your unique style and aspirations.


Whether it’s renovating the kitchen to create a culinary haven, adding a cozy family room for quality time, or transforming the backyard into an oasis of serenity, home improvements play a pivotal role in shaping your living space into a cherished haven. THOUGH, having negative credit can make those aspirations seem out of reach.

There are still solutions to assist you in turning your basic dwelling into the paradise you’ve always imagined.

Best Home Improvement Loans with Bad Credit


This post will reveal the 7 Best Home Improvement Loans with Bad Credit . So, let’s get started and see how you can make your ideas a reality.

What is a home improvement loan?

Home improvement personal loans are unsecured loans that are available to people with various forms of credit.


Most lenders provide payback terms ranging from 2 to 7 years, depending on the loan size and the borrower’s credit. Borrowing up to $100,000 is possible, with interest rates starting at 6.99%.

Furthermore, most lenders consider more variables than only the credit score throughout the acceptance procedure. Landscaping, fencing, pool finance, finishing a basement, repairing a water heater, and other home improvement projects are all possible with home improvement loans.

10 Best Home Improvement Loans with Bad Credit

Below is a list of the top best home improvement loans with bad credit, and they include the following:


  1. Avant

If you have low credit, you may be able to get a loan through Avant, a lender that works with people who have less-than-perfect credit. It provides a mobile app through which you may view your payment history and keep track of upcoming payments.

Loan sums ranging from $2,000 to $35,000 are available. You might receive your loan payment as soon as the next working day if you have fast funding.

The origination cost can be as high as 4.75 percent. Late fees and insufficient money costs are also possible. The APR starts at 9.95 percent, which is exorbitant when compared to lenders who work with higher credit consumers.

  1. Prosper

Prosper is a one-of-a-kind internet lender that provides peer-to-peer loans. Prosper may be an excellent alternative for consumers with fair to good credit. Prosper leverages data points such as credit history and debt-to-income ratio to qualify candidates.


Borrowers are assigned a Prosper score based on the data points. The score is used by investors to assess whether or not to support your loan. Prosper can provide a range of loan sizes for fixed-rate and unsecured loans.

However, funding timeframes may be lengthier than with other lenders. Prosper can fund an authorized loan in 5 business days, while financing times may vary. Prosper provides loan sizes ranging from $2,000 to $40,000 with APRs ranging from 7.99% to 35.99%. To be eligible for a Prosper loan, you must. To qualify for a Prosper loan, one should have a credit score of 600 or higher.

  1. Axos Bank

Axos Bank provides home improvement loans ranging from $5,000 to $35,000 with interest rates ranging from 6.49% to 29.99%. You must have a credit score of 680 or better to qualify for an Axos Bank home renovation loan.

Prepayment penalties are not imposed by Axos Bank, and loans can be funded within 48 hours. On the negative side, Axos Bank typically charges an origination fee ranging from 0.00% to 2.00%.


  1. OneMain Financial

OneMain Financial requires a minimum credit score of 600, making them a recommended lender for a wide range of consumers. They do, however, feature higher APRs and smaller loan amounts than some of their competitors.

OneMain Financial can provide personal loans ranging from $1,500 to $20,000, with APRs ranging from 8.98% to 36%. Furthermore, depending on the jurisdiction, OneMain Financial may impose an origination fee ranging from 1% to 10% or a flat fee of up to $500.

OneMain Financial is competitive in terms of funding timelines. Although funding dates may vary, OneMain Financial can finance accepted loans as soon as one business day.


  1. Lightstream

For home improvement loans, Lightstream is a good option. LightStream can assist you in getting the money you want for the majority of home improvement projects, with loan amounts up to $100,000 and rates as low as 6.99%.

Additionally, there are no fees or prepayment penalties, and the periods can last up to 12 years. Depending on the circumstances, LightStream may be able to finance accepted loans as soon as the next working day.

A minimum salary of $50,000 is required, and a credit score of 660 is also necessary. The limitation of $5,000 on their smallest personal loan is a drawback of LightStream.

  1. NetCredit

While NetCredit caters to consumers with poor credit; you may be subject to a higher APR than with other lenders. APRs in New Jersey, for example, begin at 34.00 percent. The lender does not charge fees (in some areas) and reports to the major credit agencies, allowing you to develop your credit.


Loans start as low as $1,000, which is ideal if your home repair job isn’t that expensive or if you need an emergency fix in that price range.

NetCredit is only available in 36 states. If you do not live in a state where it is available, you should look into alternatives. APRs can reach 155 percent, which is more than four times the highest APR offered by competitive lenders. OneMain Financial, for example, has an APR ceiling of 35.99 percent.

  1. LendingPoint

lendingpoint is one of the top best Home Improvement Loans with Bad Credit, Lenders frequently evaluate income when approving loans. In some situations, a borrower may have a limited income or may only be able to show a portion of their income.

With an annual minimum income criterion of under $30,000, LendingPoint can assist low-income borrowers in obtaining personal loans. However, these loans may come at a cost. LendingPoint provides personal loans ranging from $2,000 to $25,000 with interest rates ranging from 15.49% to 35.49%.

In addition, they can impose an origination fee ranging from 0% to 6%. LendingPoint can fund approved loans as soon as one business day, while financing times may vary.

How to build up your credit score to get a home improvement loan

When it comes to qualifying for a home improvement loan, having negative credit can be a major challenge. While there are lenders who work with clients with varying credit scores, you should be properly prepared for the application and understand everything about the loan, from repayment alternatives to minimum and maximum APRs.

Verify your credit report and credit score before applying to ensure you satisfy the minimum standards. It’s also a good idea to verify your credit report for inaccuracies on a frequent basis.

Improving your chances of approval begins with establishing credit. Making at least the minimum payments on any outstanding loans and credit cards on time is critical for establishing and keeping a favorable repayment history.

Reduce your credit usage and avoid exceeding your credit restrictions. The simplest strategy to increase your credit score is to pay off as much of your monthly bill as possible on time each month and to reduce your card usage. However, you must not close the account because doing so will have a negative impact on your credit.

Remember that there is no “quick way” to improve your credit. It will take time, so if your home renovation project cannot wait, you may have to accept higher rates or better terms.

Tips to Compare Home Improvement Loans with Bad Credit

Here’s how to compare home improvement loans:

  • Prequalify if possible. Many lenders now provide a prequalification form that you can fill out to acquire a preliminary quote with loan interest rates and terms. This step might help you determine which loans you may be eligible for without affecting your credit score.
  • Examine APRs. The annual percentage rate (APR) of a loan is a percentage that reflects how much borrowing will cost you over time. Personal loan interest rates normally range from 4% to 36%, with borrowers with better credit receiving the lowest rates. Paying off previous debt could help you improve your credit score before borrowing, allowing you to qualify for a lower interest rate.
  • Check for origination fees. Personal loans typically involve upfront costs that are deducted from your loan funds before you receive the funds, and this is an additional cost to compare from one lender to the next.
  • Examine loan terms and monthly installments. Repayment lengths typically range from one to seven years. Examine your budget to determine which loan term and payback arrangement best meets your needs.

How to Get a Home Improvement Loans With Bad Credit

If you have bad credit, the following tips may help you qualify for a home improvement loan:

  • Look for a creditworthy co-borrower. A co-borrower is someone who applies with you and shares financial responsibility for your debt, lowering lender risk. If a lender accepts co-borrowers, including one on your application may help you get approved at a lower interest rate.
  • Look into credit union loans. Credit unions may make loans to members who meet certain criteria. Consider examining what loans are available if you are currently a credit union member or live within a credit union’s field of membership.
  • Look for lenders who have flexible credit requirements. Certain alternative lenders may be ready to accept borrowers with little or no credit history or with a low credit score. Although minimum credit requirements aren’t always specified on a lender’s website, browsing around, and prequalifying might help you locate a loan that meets your needs.
  • Pay off your debts before borrowing. Lowering your debt levels can reduce your credit usage and DTI ratio, which may improve your chances of loan approval.


While bad credit can make it more difficult to get approved for a home improvement loan, you still have plenty of financing options. Remember to examine all of your offers and possibilities before signing anything to be sure you’re getting the best deal possible, given your credit status.

It’s a good idea to utilize a loan calculator before applying to be sure you can afford the monthly payments both immediately and in the long run. The best strategies to safeguard your credit while repairing or renovating your home are to make the required monthly loan payments on time and in full, avoid using all available credit on your cards and refrain from borrowing excessively.


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