Your home is an investment, and home improvement loans can provide the funds you need to strengthen this investment by renovations, updates, or repairs. However, not all home improvement loans are the same. So, we are going to compare different types of online home improvement loans for your information. Our opinions are on our own.
Loans for small home renovations
There are two options for appliers who are planning smaller home renovation projects with lower initial loan amounts: Marcus and Wells Fargo.
Marcus by Goldman Sachs offers a fixed-rate unsecured personal loan with no fee. Annual interest rates (APR) range from 6.99% to 23.99%, and loan terms range from 36 to 72 months. Only the most reputable applicants are eligible for the minimum interest rate and maximum loan period. To apply for this kind of home improvement loan, your credit must be at least 660. The loan amount varies from $3,500 to $40,000.
There is no fee for a Marcus loan. You can choose a flexible payment method and pay the debt consolidation loan directly to the creditor. However, it needs a good reputation. There are no co-signing options.
Wells Fargo offers customers a co-signing option for discounts and personal loans. Annual interest rates (APR) range from 7.49% to 24.49%, and loan terms range from 12 to 60 months. You should have a good credit score above 660. The loan amount varies from $3,000 to $100,000.
It offers secured loans with co-sign option, as well as a free credit score access. But you must have a Wells Fargo bank account and get a high credit when you apply.
Loans for large home renovations
LightStream, SoFi, and Earnest offer large renovation loan services; these lenders have higher loan amounts. The loan amount for LightStream and SoFi is up to $100,000.
LightStream offers home improvement loans at no charge and low rates. A creditworthy borrower may be eligible for an extension of up to 12 years. Annual interest rates (APR) range from 4.49% to 17.49%, and loan terms range from 24 to 84 months. The loan amount varies from $5,000 to $100,000.
Borrowers can apply for the home renovation loan without any extra fees. In addition, there is a co-sign option with low starting rates. It does not provide prequalification on its website but does require several years of credit history.
For reputable consumers, SoFi is the perfect choice, offering low-interest rates, no fees, and flexible payments. Annual interest rates (APR) range from 5.99% to 16.79%, and loan terms range from 24 to 84 months. The loan amount varies from $5,000 to $100,000. The minimum credit score is 680, which is higher than above.
The interest rate is fixed and variable. Payment options are flexible. Members enjoy the allowance. Strong credit and income are needed. It can take seven days to fund.
Earnest is a good choice if you are just getting started with credit. It will offer a low price at no charge. Annual interest rates (APR) range from 5.99% to 17.24%, and loan terms range from 36 to 60 months. The loan amount varies from $5,000 to $75,000.
Appliers can have flexible payments with no fee. But there isn’t co-sign or secured loan options. Permission to scan a checking account is required.
In summary, the above loan options have their own advantages and disadvantages, and which one to choose depends on your own preferences.
Featured image: DepositPhotos – hin255
