Home improvement projects, especially major ones like roof repair, come with a high price tag for which you may need financing. Those with a fair or poor FICO score (below 670) may find it harder to get approved for loans.

However, there are many lenders that offer home improvement loans to borrowers with bad credit or fair credit. While these can help you complete important projects, you may have to pay a higher interest rate.

5 Best Home Improvement Loans With Bad Credit

If you have bad credit, qualifying for a home improvement loan may be difficult, but not impossible. We reviewed 20 home improvement loan providers based on a number of factors, such as geographic availability, ease of application, customer reviews, annual percentage rate (APR) range, available loan amounts, and credit score requirements, to pick our top five recommendations.

UpstartLendingPointUpgradeLendingClubAvant
Loan Amounts$1,000 to $50,000$2,000 to $36,500$1,000 to $50,000$1,000 to $40,000$2,000 to $35,000
APR7.80% to 35.99%7.99% to 35.99%8.49% to 35.99%8.98% to 35.99%9.95% to 35.99%
Terms3 or 5 years2 to 6 years3 to 7 years2 to 5 years2 to 5 years
Minimum Credit Score300600580600580

1. Upstart- Best for Low Minimum Credit Score Requirements

  • Loan Amounts: $1,000 to $50,000
  • APR: 7.80% to 35.99%
  • Terms: 3 or 5 years, only
  • Minimum Credit Score: 300

Upstart doesn’t have a minimum credit score requirement so they’re accessible to borrowers with bad credit or no credit history. It’s our top choice for the best home improvement loan for bad credit because of easy qualification, flexible payment dates, and quick funding.

You’ll still need to qualify based on other information, such as your employment and income, as well as the amount of your other debts. There are also some added fees that you may have to pay, such as loan origination fees, statement fees, or late fees.

Pros

  • Accessible to borrowers with a recent history of bad credit or no credit history at all
  • Quick loan funding
  • Prequalification option available
  • Ability to choose your own payment date

Cons

  • Origination fee of up to 12%
  • Only two repayment term options are available, 3 or 5 years
  • No joint applicant loans

2. LendingPoint- Best for Fast Funding

  • Loan Amounts: $2,000 to $36,500
  • APR: 7.99% to 35.99%
  • Terms: 2 to 6 years
  • Minimum Credit Score: 600

LendingPoint is a personal loan lender that serves borrowers in 48 states and Washington, D.C. You can apply online and receive your funds quickly, usually within one business day if approved.

While you can qualify even with a credit score of 600, the maximum APR is quite high at 35.99%. You may also pay a high loan origination fee of up to 10%, which can significantly add to the overall cost.

Pros

  • No prepayment penalty
  • Quick funding
  • Low minimum credit score requirement

Cons

  • Origination fee of up to 10%
  • No joint loans with a co-applicant are allowed
  • Not available in all 50 states - LendingPoint does not provide services to residents of Nevada or West Virginia

3. Upgrade- Best for Credit Building Tools

  • Loan Amounts: $1,000 to $50,000
  • APR: 8.49% to 35.99%
  • Terms: 3 to 7 years
  • Minimum Credit Score: 580

If you’re looking for a home improvement loan with bad credit, Upgrade is a solid choice because of the perks it offers. The mobile app allows you to manage your payments and view your balance. Upgrade also offers tools to improve your credit over the life of your loan.

Upgrade doesn’t charge a prepayment penalty for paying off the loan early, but you may still pay an origination fee to obtain your loan, which adds to your overall loan costs.   Upgrade charges a late payment fee of $10 for any payment that is received 15 days after your loan payment’s due date and a $10 fee for each returned payment.

Pros

  • Credit building tools
  • Streamlined experience with mobile app
  • No prepayment penalty

Cons

  • Origination fee of up to 9.99%
  • Insufficient and late payment fees
  • No option to choose a payment date

4. LendingClub- Best for Small Loan Amounts

  • Loan Amounts: $1,000 to $40,000
  • APR: 8.98% to 35.99%
  • Terms: 2 to 5 years
  • Minimum Credit Score: 600

LendingClub is an online lending marketplace that offers a smooth and quick online application process. Loan terms are slightly less flexible compared to the other lenders on our list, but you can pay off your loan early or make extra payments without any prepayment penalties.  

LendingClub doesn’t offer autopay discounts, and you’ll typically pay an origination fee of 3% to 8% of the amount you borrow.

Pros

Cons

  • No autopay discounts
  • High maximum APR
  • Origination fee of up to 8%

5. Avant- Best for Online Applications

  • Loan Amounts: $2,000 to $35,000
  • APR: 9.95% to 35.99%
  • Terms: 2 to 5 years
  • Minimum Credit Score: 580

Avant is a lending platform that offers accessible loan options to borrowers with fair to good credit. The easy online application process and low minimum credit score requirements are major benefits.

Avant’s home improvement loans for bad credit do come with a high price with a maximum APR of 35.99% and an administrative fee, which can make it quite expensive.

Pros

  • Low credit score requirements
  • Easy online application process
  • Accessible to borrowers with fair to poor credit

Cons

  • No joint loans
  • Upfront administrative fee
  • High maximum APR of 35.99%

Pros and Cons of Home Improvement Loans for Bad Credit

Like any other bad credit loan, home improvement loans have their own set of pros and cons.

Pros

  • You’ll get access to the funds you need for important repairs or improvements to your home.
  • Low credit score requirements make it easier to qualify even if you have bad credit.
  • You won’t have to tap into the equity of your home if you’re borrowing a personal loan for home improvements.
  • Most lenders offer easy and convenient online applications.
  • Quick funding once the loan is approved.

Cons

  • Interest rates can be high for borrowers with poor credit.
  • There may be extra fees, such as origination fees and late fees.
  • You may not be able to apply with a co-applicant, whose income and better credit score may help you more easily get approved.
  • Borrowing a loan will add to your overall debt load.

Tips To Compare Home Improvement Loans for Bad Credit

It’s important to compare home improvement loans for bad credit from multiple lenders to ensure you get the lowest rates. Here are a few tips to compare your options:

  • Compare the annual percentage rate (APR) of multiple lenders since the APR reflects the true cost of borrowing the loan.
  • Prequalify and compare the repayment terms offered by different lenders. A shorter loan term will make your monthly payments higher but will keep the overall interest costs lower.
  • Use a loan calculator to see how your monthly payments will change with different repayment terms and rates.
  • Check the lenders’ minimum credit score and other eligibility requirements.

What Is Considered “Bad Credit” for Home Improvement Loans?

A FICO score of 580 or less is considered poor. While most lenders prefer borrowers with a strong credit profile, there are several options available when it comes to borrowing with bad credit home improvement loans.

Tips for Qualifying for Home Improvement Loans with Bad Credit

While there are several lenders that cater to borrowers with fair to poor credit, it’s always better to improve your credit before you send your loan application to boost your chances of approval. Here are a few tips to help you qualify for a loan at competitive terms:

  • Pay all your bills on time to create a positive repayment history.
  • Apply with a co-borrower or co-signer. If you apply with a person who has a higher income and stronger credit history, it may improve your odds of qualifying.
  • Pay off some of your debt to reduce your debt-to-income ratio.
  • Review your credit report on a regular basis to spot and fix any inaccuracies.

Types of Home Improvement Loans for Bad Credit

Even with bad credit, there are several borrowing options available for home improvement. Here are a few you may want to consider:

  • FHA 203(k) Renovation Loan: This type of loan allows you to purchase and renovate your home with a single loan. You may qualify if you have a stable income and a strong repayment history.
  • Home Equity Loans and HELOCs: You can tap into your equity to borrow funds through a home equity loan or home equity line of credit (HELOC). Both offer longer repayment terms (and lower payments, all else equal) compared to personal loans.
  • Cash-Out Refinance: You can refinance your current mortgage and borrow a larger one to “cash out” the difference between the two loan amounts. This is a good option if you qualify for a lower interest rate than what you’re currently paying and your home has appreciated significantly in value.
  • Personal Loans: Secured and unsecured personal loans are flexible and easier to qualify for if you have poor credit. However, the interest rate you’ll pay will usually be higher than the other options on this list.

Can You Get a Home Improvement Loan Without a Credit Check?

No credit check loans are available if you don’t want the lender to run your credit. However, these loans come with extremely high APRs, sometimes up to 200%. There may also be additional fees on top of this, which can lead you back into a debt cycle if you’re not careful about repaying the entire loan before the end of the loan’s term.

Alternatives To Home Improvement Loans With Bad Credit

If you don’t qualify for any of the options listed above or want to explore alternatives, here are a few you can consider:

  • The HUD’s home improvement loan programs can help you with home repairs and modifications.
  • If you’re looking for government loans for bad credit, the FHA Title 1 loan is a good option to consider for those who won’t get approved for other borrowing options.
  • You may also want to consider peer-to-peer lending or micro-lending to secure a loan for home improvements.
  • A home equity sharing agreement is easier to qualify for and will give you access to a lump sum amount in exchange for a portion of the future value of your home.

Weigh the Pros and Cons of Borrowing a Home Improvement Loan With Bad Credit

Getting a home improvement loan with bad credit can be difficult and expensive. It’s important to consider all your loan offers and compare the costs carefully. Use a loan calculator to ensure you’ll be able to afford the payments. You can also get a secured loan or apply with a co-borrower to qualify for better loan rates.

When possible, check to see if you qualify for government grants and loans since these are usually available at competitive rates. A home equity sharing agreement is also a viable option to consider if you don’t want monthly loan payments but need money for important home improvement projects.