How To Finance Your Home Improvement Project

When deciding how to finance your next home improvement project, a home improvement loan is a great option. The loan is often unsecured (there is no asset that serves as collateral), so the interest rate will be higher than purchasing a home or car. All lenders will look at your credit score, and some will consider education, income, earning potential, etc. Below are some online options to apply for a loan. Your local bank or credit union is also a good place to start.

Follow these steps to get started:

Check your credit score and credit history

Request your annual report at AnnualCreditReport.com

Gather all your paperwork

Credit score, annual income, rent/mortgage payment, proof of employment, etc.

Research lenders

Start at your local bank or credit union, research online at credit.com

Always ask about the lender’s credit criteria

Apply for a Personal Loan

Indicate the amount you wish to borrow

Know your loan repayment options, the rules and conditions, and monthly payment amounts, etc.

Be wary of fraudsters posing as legitimate companies online, in particular: