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Best Home Improvement Loans With Bad Credit

Updated on January 12, 2025
Annie Millerbernd
Written by 
Assistant Assigning Editor
Kim Lowe
Edited by 
Head of Content, Personal & Student Loans
Fact Checked
Ronita Choudhuri-Wade
Co-written by 
Lead Writer
Annie Millerbernd
Written by 
Assistant Assigning Editor
Ronita Choudhuri-Wade
Co-written by 
Lead Writer
Kim Lowe
Edited by 
Head of Content, Personal & Student Loans
Fact Checked

Getting a home improvement loan with bad credit may require extra effort to find a lender, but borrowers with bad credit scores (629 or lower) still have options. Some lenders look beyond your credit score when they review your loan application and may tailor loans specifically to bad-credit borrowers.

Here are the best home improvement loans for bad credit:

  • Upgrade: Best for borrowers who want credit-building tools.

  • Best Egg: Best for borrowers who want a secured loan.

  • Upstart: Best for borrowers with thin credit history.

  • Universal Credit: Best for borrowers with low credit scores.

  • Avant: Best for fast funding.

  • LendingPoint: Best for payment flexibility.

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Upgrade: Best for Bad-credit home improvement loans with credit-building tools

Upgrade
5.0

Est. APR

7.99-35.99%

Loan amount

$1K-$50K

Min. credit score

580

Check Rate
on NerdWallet

  • Qualifications:

    Key Facts:

    Upgrade looks more closely at an applicant’s free cash flow than their credit score. You can also add a co-signer or co-borrower to a loan application to improve your chances of getting a low rate.

    Qualifications:
    • Minimum credit score: 580.
    • Minimum number of accounts on credit history: One account.
    • Maximum debt-to-income ratio: 75%, including mortgage payments.
    • Minimum length of credit history: Two years.
    • Minimum income requirement: None. Lender accepts income from alimony, retirement, child support, Social Security, disability benefits and other sources.
    Available Term Lengths:2 to 7 years
    Fees:
    • Origination fee: 1.85% to 9.99%.
    • Late Fee: $10.
    • Failed payment fee: $10.

Best Egg: Best for Secured bad-credit home improvement loans

BestEgg
4.5

Est. APR

6.99-35.99%

Loan amount

$2K-$50K

Min. credit score

600

Check Rate
on NerdWallet

  • Qualifications:

    Key Facts:

    OneMain doesn’t consider a borrower’s credit score as closely as it considers the score it generates itself for applicants. The lender says it can fund a loan within a couple of business days.

    Qualifications:
    • Minimum credit score: 600.
    • Maximum debt-to-income ratio: 70% including a mortgage.
    • Minimum credit history: 3 years and 1 account.
    • Acceptable income sources: Employment, household income, alimony, retirement, child support, Social Security payments and disability benefits.
    • Must be a U.S. citizen or permanent resident and at least 18 years of age.
    Available Term Lengths:3 to 5 years
    Fees:
    • Origination fee: 0.99% - 9.99%.

Upstart: Best for Bad-credit home improvement loans for thin credit history

Upstart
5.0

Est. APR

6.70-35.99%

Loan amount

$1K-$50K

Min. credit score

None

Check Rate
on NerdWallet

  • Qualifications:

    Key Facts:

    Upstart considers factors outside a borrower’s credit profile, like education, job history and residence. The lender says it can fund most loans the business day after an application is submitted.

    Qualifications:
    • Must be a U.S. citizen or permanent resident living in the U.S.
    • Must be at least 18 years old in most states.
    • Must have a valid email address and Social Security number.
    • Must have a full- or part-time job, a full-time job offer starting within six months or another source of regular income.
    • Must have a personal bank account at a U.S. financial institution with a routing number.
    • No bankruptcies in the last 12 months.
    • No current delinquent accounts on your credit reports.
    • Fewer than six hard inquiries on your credit report in the last six months, excluding student, auto and mortgage loans.
    • Minimum credit score: None.
    • Minimum annual income: $12,000.
    Available Term Lengths:3 to 5 years
    Fees:
    • Origination: 0% to 12%.
    • Late fee: 5% of the unpaid amount or $15, whichever is greater.
    • Insufficient funds fee: $15.

Universal Credit: Best for Bad-credit home improvement loans for low credit scores

Universal Credit
4.0

Est. APR

11.69-35.99%

Loan amount

$1K-$50K

Min. credit score

580

Check Rate
on NerdWallet

  • Qualifications:

    Key Facts:A Universal Credit loan is a sound option for bad-credit borrowers looking to build credit, but rates are high compared to similar lenders.
    Qualifications:
    • Minimum credit score: 580.
    • Minimum number of accounts on credit history: 1 account.
    • Maximum debt-to-income ratio: 75%, including mortgage and the loan you’re applying for.
    • Minimum length of credit history: 2 years.
    • Minimum income requirement: None. Lender accepts income from alimony, retirement, child support, Social Security and other sources.
    Available Term Lengths:3 to 5 years
    Fees:
    • Origination fee: 5.25% to 9.99%.
    • Late fee: Up to $10.
    • Non-sufficient funds fee: $10.

Avant: Best for Bad-credit home improvement loans with fast funding

Avant
4.0

Est. APR

9.95-35.99%

Loan amount

$2K-$35K

Min. credit score

550

Check Rate
on NerdWallet

  • Qualifications:

    Key Facts:Avant personal loans are a solid option for fair- and bad-credit borrowers who need fast funding, but their rates and origination fees can be high.
    Qualifications:
    • Minimum credit score: 550. Avant uses FICO score version 8.0 and VantageScore version 3.0 from TransUnion.
    • Minimum monthly net income: $1,200. This lender accepts income from employment alimony, retirement, child support, Social Security payments or disability benefits.
    • Must be a resident of a state where Avant’s loans are available.
    • Must provide a Social Security number.
    • Must have a personal bank account in your name.
    • No active bankruptcies.
    Available Term Lengths:2 to 5 years
    Fees:
    • Origination fee: Up to 9.99%.
    • Late fee: $25.
    • Nonsufficient funds fee: $15.

LendingPoint: Best for Bad-credit home improvement loans with payment flexibility

LendingPoint
4.0

Est. APR

7.99-35.99%

Loan amount

$1K-$37K

Min. credit score

640

Check Rate
on NerdWallet

  • Qualifications:

    Key Facts:LendingPoint personal loans are a solid borrowing option for fair- and bad-credit borrowers. They are funded quickly and have some flexible features.
    Qualifications:
    • Minimum credit score: 640. LendingPoint uses FICO version 9 and VantageScore version 3.0.
    • Minimum credit history: 2 years.
    • Maximum debt-to-income ratio: 45%, not including mortgage payments.
    • Minimum annual income: $35,000. This lender accepts income from employment, alimony, retirement, child support, Social Security and disability benefits, but not a partner’s income.
    • Must be at least 18 years old in most states.
    • Must have a Social Security number, a government-issued photo ID and a personal bank account.
    Available Term Lengths:2 to 6 years
    Fees:
    • Origination fee: Up to 10%.
    • Late fee: 5% of the payment amount or $30.

Upgrade: Best for Bad-credit home improvement loans with credit-building tools

Upgrade
5.0

Est. APR

7.99-35.99%

Loan amount

$1K-$50K

Min. credit score

580
Check Rate
on NerdWallet

  • Qualifications:

    Key Facts:

    Upgrade looks more closely at an applicant’s free cash flow than their credit score. You can also add a co-signer or co-borrower to a loan application to improve your chances of getting a low rate.

    Qualifications:
    • Minimum credit score: 580.
    • Minimum number of accounts on credit history: One account.
    • Maximum debt-to-income ratio: 75%, including mortgage payments.
    • Minimum length of credit history: Two years.
    • Minimum income requirement: None. Lender accepts income from alimony, retirement, child support, Social Security, disability benefits and other sources.
    Available Term Lengths:2 to 7 years
    Fees:
    • Origination fee: 1.85% to 9.99%.
    • Late Fee: $10.
    • Failed payment fee: $10.

Best Egg: Best for Secured bad-credit home improvement loans

BestEgg
4.5

Est. APR

6.99-35.99%

Loan amount

$2K-$50K

Min. credit score

600
Check Rate
on NerdWallet

  • Qualifications:

    Key Facts:

    OneMain doesn’t consider a borrower’s credit score as closely as it considers the score it generates itself for applicants. The lender says it can fund a loan within a couple of business days.

    Qualifications:
    • Minimum credit score: 600.
    • Maximum debt-to-income ratio: 70% including a mortgage.
    • Minimum credit history: 3 years and 1 account.
    • Acceptable income sources: Employment, household income, alimony, retirement, child support, Social Security payments and disability benefits.
    • Must be a U.S. citizen or permanent resident and at least 18 years of age.
    Available Term Lengths:3 to 5 years
    Fees:
    • Origination fee: 0.99% - 9.99%.

Upstart: Best for Bad-credit home improvement loans for thin credit history

Upstart
5.0

Est. APR

6.70-35.99%

Loan amount

$1K-$50K

Min. credit score

None
Check Rate
on NerdWallet

  • Qualifications:

    Key Facts:

    Upstart considers factors outside a borrower’s credit profile, like education, job history and residence. The lender says it can fund most loans the business day after an application is submitted.

    Qualifications:
    • Must be a U.S. citizen or permanent resident living in the U.S.
    • Must be at least 18 years old in most states.
    • Must have a valid email address and Social Security number.
    • Must have a full- or part-time job, a full-time job offer starting within six months or another source of regular income.
    • Must have a personal bank account at a U.S. financial institution with a routing number.
    • No bankruptcies in the last 12 months.
    • No current delinquent accounts on your credit reports.
    • Fewer than six hard inquiries on your credit report in the last six months, excluding student, auto and mortgage loans.
    • Minimum credit score: None.
    • Minimum annual income: $12,000.
    Available Term Lengths:3 to 5 years
    Fees:
    • Origination: 0% to 12%.
    • Late fee: 5% of the unpaid amount or $15, whichever is greater.
    • Insufficient funds fee: $15.

Universal Credit: Best for Bad-credit home improvement loans for low credit scores

Universal Credit
4.0

Est. APR

11.69-35.99%

Loan amount

$1K-$50K

Min. credit score

580
Check Rate
on NerdWallet

  • Qualifications:

    Key Facts:A Universal Credit loan is a sound option for bad-credit borrowers looking to build credit, but rates are high compared to similar lenders.
    Qualifications:
    • Minimum credit score: 580.
    • Minimum number of accounts on credit history: 1 account.
    • Maximum debt-to-income ratio: 75%, including mortgage and the loan you’re applying for.
    • Minimum length of credit history: 2 years.
    • Minimum income requirement: None. Lender accepts income from alimony, retirement, child support, Social Security and other sources.
    Available Term Lengths:3 to 5 years
    Fees:
    • Origination fee: 5.25% to 9.99%.
    • Late fee: Up to $10.
    • Non-sufficient funds fee: $10.

Avant: Best for Bad-credit home improvement loans with fast funding

Avant
4.0

Est. APR

9.95-35.99%

Loan amount

$2K-$35K

Min. credit score

550
Check Rate
on NerdWallet

  • Qualifications:

    Key Facts:Avant personal loans are a solid option for fair- and bad-credit borrowers who need fast funding, but their rates and origination fees can be high.
    Qualifications:
    • Minimum credit score: 550. Avant uses FICO score version 8.0 and VantageScore version 3.0 from TransUnion.
    • Minimum monthly net income: $1,200. This lender accepts income from employment alimony, retirement, child support, Social Security payments or disability benefits.
    • Must be a resident of a state where Avant’s loans are available.
    • Must provide a Social Security number.
    • Must have a personal bank account in your name.
    • No active bankruptcies.
    Available Term Lengths:2 to 5 years
    Fees:
    • Origination fee: Up to 9.99%.
    • Late fee: $25.
    • Nonsufficient funds fee: $15.

LendingPoint: Best for Bad-credit home improvement loans with payment flexibility

LendingPoint
4.0

Est. APR

7.99-35.99%

Loan amount

$1K-$37K

Min. credit score

640
Check Rate
on NerdWallet

  • Qualifications:

    Key Facts:LendingPoint personal loans are a solid borrowing option for fair- and bad-credit borrowers. They are funded quickly and have some flexible features.
    Qualifications:
    • Minimum credit score: 640. LendingPoint uses FICO version 9 and VantageScore version 3.0.
    • Minimum credit history: 2 years.
    • Maximum debt-to-income ratio: 45%, not including mortgage payments.
    • Minimum annual income: $35,000. This lender accepts income from employment, alimony, retirement, child support, Social Security and disability benefits, but not a partner’s income.
    • Must be at least 18 years old in most states.
    • Must have a Social Security number, a government-issued photo ID and a personal bank account.
    Available Term Lengths:2 to 6 years
    Fees:
    • Origination fee: Up to 10%.
    • Late fee: 5% of the payment amount or $30.

Bad credit home improvement loans vs. home equity financing

Personal loans

A home improvement loan is a personal loan used for home repairs or renovations. Unsecured personal loans don’t require collateral; instead, lenders consider your credit score, credit history and debt-to-income ratio (DTI) to determine whether you qualify. Some look at additional factors like your employment and educational history.

Loan amounts can go up to $50,000, and rates range from 6% to 36%. Borrowers with bad credit may receive lower loan amounts than requested, higher interest rates and shorter repayment terms of two to five years.

» MORE: How do home improvement loans work

Home equity loans and lines of credit

If you have equity in your home, borrowing against it can be an affordable way to finance a renovation. Home equity loans let you lock in a fixed interest rate for a lump sum of cash. HELOCs are open credit lines with variable rates that you draw from as needed for about 10 years. Repayment terms for both can be 10 to 30 years.

» MORE: Home equity loans vs. lines of credit

Compare to personal loans: Home equity loans and credit lines often have lower rates and longer repayment terms than personal loans. However, equity financing typically requires a home appraisal, which can delay funding by a few weeks. Personal loans are typically approved and funded within a few days.

Typically, the interest on home equity financing is tax-deductible if you use the funds to pay for home improvements. This isn’t true for personal loans.

Cash-out refinance

A cash-out refinance lets you exchange your current mortgage for a larger one and “cash out” the difference between what you currently owe and the new loan. You use the leftover funds for the renovation. It's typically a good option if rates are lower than what you’re currently paying.

» MORE: Best cash-out refinance lenders

Compare to personal loans: A cash-out refinance for home improvement projects should have two benefits: You can finance a remodel and lower your mortgage rate. A personal loan will only help you pay for remodeling. A cash-out refinance may be better for larger projects because closing costs can exceed the cost of smaller updates. There are no closing costs with personal loans.

» MORE: Best home improvement loans

How to qualify for a bad credit home improvement loan

Your credit score is a major factor in deciding whether you get a personal loan, but there are a few things you can do to improve your chances.

  • Check your credit. Review your credit report and fix any errors that may be hurting your score. You can access a free credit report with NerdWallet or at AnnualCreditReport.com. Also, if you can, try to pay down any existing debts to lower your debt-to-income ratio. Most lenders want to see that you have a DTI below 43%, and enough cash each month to cover existing expenses, plus the extra loan payment.

  • Pre-qualify. Many lenders let you pre-qualify online to preview your potential rate and loan amount. The process doesn’t require a hard credit pull, so your score won’t be affected, and it can set expectations for the loan you may get.

  • Add a co-signer or co-borrower. Adding someone with better credit and a high income to vouch for you on the application can boost your chances of qualifying or get you a lower rate. However, your co-applicant must repay the loan if you fail to.

  • Get a secured personal loan. With a secured loan, you attach collateral to the application, like a car, in exchange for a lower rate. The lender can take the collateral if you don’t make the payments.

» MORE: 6 ways to boost your chances of qualifying for a personal loan

How to compare home improvement loans with bad credit

A home improvement loan could be a good choice if you can't tap equity or don’t want to max out your credit cards to pay for the project. Here are features to compare among bad credit home improvement loans.

APR

The annual percentage rate reflects the full cost of a loan, including any fees the lender charges. An APR provides an apples-to-apples cost comparison, which is useful when comparing personal loans and other financing options. Borrowers with bad credit can expect a rate on the high end of lenders’ ranges.

Monthly payments

A home improvement loan calculator lets you preview a loan’s monthly payment at different rates and repayment terms. This can help you determine what loan offer you need to stay within your budget.

Repayment terms

Bad credit home improvement loans often have repayment terms of two to seven years, but some lenders have more limited options. A longer-term loan will have lower monthly payments but higher overall interest costs, so look for a term that strikes a balance.

Funding time

Many lenders can fund a loan in less than a week, and some say they can get you the funds within 24 hours. If you’re paying for an urgent repair or an in-progress project, look for a lender offering fast funding.

» MORE: How long does it take to get a personal loan

How to get a home improvement loan with bad credit

  1. Get a firm cost estimate. Having a firm estimate of your project’s cost can help you decide how much you need to borrow and which financing option will be a good fit. If you’re not sure of the cost, the flexibility of a line of credit may be helpful, while a set price tag can make a fixed interest rate loan a good idea. 

  2. Compare borrowing options. Compare a home improvement loan against equity financing or other options. The best choice has the lowest APR, payments that fit your budget and a funding time that works with your repair or renovation timeline. 

  3. Pre-qualify. Many online personal loan lenders and some banks let borrowers pre-qualify for a loan with a soft credit check to see potential offers before applying. Pre-qualifying can give you an idea of your rate, term and monthly payments.

  4. Gather your documents. Before starting an application, collect the documents and information you will need. Lenders want to see documents to verify your identity, employment and sources of income.

  5. Apply. Many lenders have online applications, although some banks or credit unions may require you to apply in person. Some lenders provide same-day credit decisions, and many can fund a loan within a day or two.  

» MORE: Personal loan application requirements

Home improvement loan alternatives for bad-credit borrowers

Government-insured loans for home improvements

Home improvement loans insured by the Federal Housing Administration are similar to conventional mortgages but have looser qualification requirements. Rates vary by lender but are often lower than personal loans. A qualifying credit score for an FHA loan can be as low as 500.

FHA 203(k) renovation loan: With a 203(k) loan, you refinance your existing mortgage and roll home improvement costs into the new mortgage. In addition to meeting a lender’s credit requirements, borrowers must have no foreclosures within the past three years.

The 203(k) loan process can be time-consuming. You must work with a mortgage lender to pre-qualify, a general contractor to create a scope of repairs and potentially a consultant from the U.S. Department of Housing and Urban Development (HUD) to complete an inspection.

Title I loan: The requirement to get this type of loan is pretty broad. According to the HUD website, this loan can be used for home improvements that “substantially protect or improve the basic livability or utility of the property.”

Title I loans under $7,500 are unsecured, while larger loans must be secured by a mortgage or deed of trust on the property, according to HUD.

Family loans

If you don’t qualify for another type of loan but urgently need a small amount of cash, it may be worth asking a friend or relative to lend you the money. Family loans don’t require good credit and allow you and your friend or relative to decide on interest and repayment terms.

However, with this type of loan, your relationship is collateral and if you’re not careful, it could cause conflict.

Last updated on January 12, 2025

Frequently asked questions

  • To qualify for a personal loan, you generally need a credit score above 580. However, some lenders such as Upstart, accept scores as low as 300. Find out what credit score you need to get a personal loan.

  • If you have bad credit, you may still qualify for a home improvement loan. You can improve your chances of getting a good rate by cleaning up your credit report, adding a co-signer and pre-qualifying with multiple lenders. Learn more about how to get a loan with bad credit.

  • Home improvement loans may be a good idea when used toward renovations that improve the value of your home or repairs that improve livability and safety. You also want to ensure you can comfortably manage the monthly loan payments for the life of the loan.

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How we chose the best personal loans

Our team of consumer lending experts follows an objective and robust methodology to rate lenders and pick the best.

35+

Lenders reviewed

We review over 35 lenders, including major banks, top credit unions, leading digital platforms, and high interest installment lenders operating across multiple states.

25+

Categories assessed

Each lender is evaluated across five weighted categories and 27 subcategories, covering affordability, eligibility, consumer experience, flexibility, and application process.

70+

Data points analyzed

Our team tracks and reassesses hundreds of data points annually, including APR ranges, fees, credit requirements, and borrower tools, ensuring up to date, accurate comparisons.

Star rating categories

We evaluate more categories than competitors and carefully weigh how each factor impacts your experience.
Affordability

25%

We review lenders’ annual percentage rate offerings at least twice per year and the competitiveness of each lenders’ APR range. We also assess whether a lender charges an origination fee and any opportunity for borrowers to receive a rate discount.
Customer experience

20%

We consider the experience of the consumer trying to manage a personal loan, which means accessibility of customer service representatives, whether borrowers can choose and change their payment due date, and the ability to track their loan on a mobile app.
Underwriting and eligibility

20%

We consider the rigorousness of each lender’s underwriting practices and how widely available their loans are. This category includes whether a lender does a hard credit check before providing a loan, the range of credit profiles they accept and how many states their loans are offered in.
Loan flexibility

20%

We assess how flexible lenders can be with borrowers, including whether they offer multiple loan types, personal loan amounts and repayment term options and whether they offer direct payment to creditors on debt consolidation loans.
Application process

15%

We consider the lender’s full application process, including a borrower’s ability to preview their loan offer via pre-qualification, whether basic loan information such as APR range and repayment terms are available and easy to find online and how quickly a loan can be funded after approval.

5.0

Overall score

NerdWallet’s review process evaluates and rates personal loan products from more than 35 financial technology companies and financial institutions. We collect over 70 data points and cross-check company websites, earnings reports and other public documents to confirm product details. We may also go through a lender’s pre-qualification flow and follow up with company representatives. NerdWallet writers and editors conduct a full fact check and update annually, but also make updates throughout the year as necessary.
Our star ratings award points to lenders that offer consumer-friendly features, including: soft credit checks to pre-qualify, competitive interest rates and no fees, transparency of rates and terms, flexible payment options, fast funding times, accessible customer service, reporting of payments to credit bureaus and financial education. Our ratings award fewer points to lenders with practices that may make a loan difficult to repay on time, such as charging high annual percentage rates (above 36%), underwriting that does not adequately assess consumers’ ability to repay and lack of credit-building help. We also consider regulatory actions filed by agencies like the Consumer Financial Protection Bureau. We weigh these factors based on our assessment of which are the most important to consumers and how meaningfully they impact consumers’ experiences.
NerdWallet does not receive compensation for our star ratings. Read more about our ratings methodologies for personal loans and our editorial guidelines.
To recap our selections...

NerdWallet's Best Home Improvement Loans With Bad Credit

  • Upgrade: Best for Bad-credit home improvement loans with credit-building tools
  • Best Egg: Best for Secured bad-credit home improvement loans
  • Upstart: Best for Bad-credit home improvement loans for thin credit history
  • Universal Credit: Best for Bad-credit home improvement loans for low credit scores
  • Avant: Best for Bad-credit home improvement loans with fast funding
  • LendingPoint: Best for Bad-credit home improvement loans with payment flexibility