Home improvement loan rates are dependent are a number of factors. The most common factor is borrower credit rating and score but that is not the only thing to consider. You should consider the type of loan that you are interested in and your financing needs based on the scope of the project. Many of the underwriting considerations look at total risk factor of the loan and the ability of the borrower to repay the obligation. Unsecured loans have a higher risk to the lender than do secured loans but the secured loan option is not as common unless you are thinking about a home equity based loan.
Home improvement loan rates can be broken down into two categories. The two most common home improvement loans are credit cards for home improvement and unsecured loans for home improvement. Rates for home improvement credit cards can be as low as 0% APR during the introductory period, for up to18 months. This is a very popular option with both consumers and contractors. You can search for 0% Intro APR credit cards for your home improvement projects here. The second type of home improvement loan is what is called an unsecured loan. Unsecured home improvement loans simply mean that there is no collateral need to secure the lenders interest. Rates for these types of loans can vary for as low as 4.99% to the much higher depending on credit, loan amount and overall risk. Use the simple search function on this site to find 0% Intro APR Credit Cards and unsecured loans that are available to you and in your state.
*The above content is for informational purpose only. It does not constitute professional financial advice. If you have more questions, please reach out to a financial advisor for more information.
A credit card with an introductory 0 % APR is hands down one of the best deals in consumer finance today. If you qualify for the offer it is a great fit for home improvement purchases . Use it wisely and you can pay for large purchases such as home improvement over time with low, interest-free monthly payments. The trick in taking advantage of these credit card offers successfully is to remember the promotional time period and make every attempt to pay the balance in full before it expires. You can continue to make payments after the 0% period expires but this is where you will start paying interest. If you are faced with carrying a balance after the promotional period we recommend that you find another 0% offer and transfer the balance to the new card and starting a new 0% time line. In summary, a 0% card is usually the best option for large purchases such as home improvement if you can get approved.