Deck Loans: Finance Your Deck or Patio in 2024

Annie Millerbernd
Written by
Last updated on May 29, 2024
Edited by
✅ Fact checked and reviewed
Kim Lowe
Edited by
✅ Fact checked and reviewed

Many, or all, of the products featured on this page are from our advertising partners who compensate us when you take certain actions on our website or click to take an action on their website. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money.

  • 35+ personal loans reviewed and rated by our team of experts.
  • 20+ years of combined experience covering personal loans and financial topics.
  • Objective, comprehensive star rating system assessing 20+ categories and 70+ data points.
  • Governed by NerdWallet's strict guidelines for editorial integrity.
NerdWallet's personal loans content, including articles, reviews and recommendations, is produced by a team of writers and editors who specialize in consumer lending. Their work has appeared in The Associated Press, USA Today, The New York Times, MarketWatch and many other national, regional and local publications. They have been cited in publications including The Harvard Kennedy School, and appeared on NerdWallet's "Smart Money" podcast as well as local TV and radio.

Compare personal loan rates in just 2 minutes

Check rates from multiple lenders at once Explore loans up to $100,000 There’s NO impact on your credit score

Deck Loans: Finance Your Deck or Patio in 2024

🏆 Top 3 most visited
SoFi
SoFi Personal Loan
🏆 Top 3 most visited
Best for Deck loans for good credit
5.0
Rate discount
Est. APR
8.99-29.99%
Loan amount
$5K-$100K
Min. credit score
None
Visit Lender
on SoFi's website
on SoFi's website
Check Rate
on NerdWallet
on NerdWallet
View details
🏆 Top 3 most visited
Upgrade
Upgrade
🏆 Top 3 most visited
Best for Deck loans for fair credit
Rate discount
Est. APR
8.49-35.99%
Loan amount
$1K-$50K
Min. credit score
560
Discover
Discover® Personal Loans
Best for Deck loans for excellent credit
Fast funding
Est. APR
7.99-24.99%
Loan amount
$2.5K-$40K
Min. credit score
660
🏆 Top 3 most visited
Lightstream
LightStream
🏆 Top 3 most visited
Best for Deck loans with no fees
4.5
Rate discount
Est. APR
6.99-25.49%
Loan amount
$5K-$100K
Min. credit score
660
Prosper
Prosper
Best for Deck loans for co-borrowers
Est. APR
8.99-35.99%
Loan amount
$2K-$50K
Min. credit score
560
Check Rate
on NerdWallet
on NerdWallet
BestEgg
Best Egg
Best for Secured deck loans
Secured loans
Wide range of loan amounts
Est. APR
8.99-35.99%
Loan amount
$2K-$50K
Min. credit score
600
RocketLoans
Rocket Loans
Best for Deck loans for fast financing
Fast funding
Rate discount
Est. APR
9.12-29.99%
Loan amount
$2K-$45K
Min. credit score
640
SoFi
🏆 Top 3 most visited
SoFi Personal Loan
Visit Lender
on SoFi's website
on SoFi's website
Check Rate
on NerdWallet
on NerdWallet
Best for Deck loans for good credit
🏆 Top 3 most visited
Est. APR
8.99-29.99%
Loan amount
$5K-$100K
Min. credit score
None
Best for Deck loans for good credit
Rate discount
Upgrade
🏆 Top 3 most visited
Upgrade
Best for Deck loans for fair credit
🏆 Top 3 most visited
Est. APR
8.49-35.99%
Loan amount
$1K-$50K
Min. credit score
560
Best for Deck loans for fair credit
Rate discount
Discover® Personal Loans
Best for Deck loans for excellent credit
Est. APR
7.99-24.99%
Loan amount
$2.5K-$40K
Min. credit score
660
Best for Deck loans for excellent credit
Fast funding
Lightstream
🏆 Top 3 most visited
LightStream
Best for Deck loans with no fees
🏆 Top 3 most visited
Est. APR
6.99-25.49%
Loan amount
$5K-$100K
Min. credit score
660
Best for Deck loans with no fees
Rate discount
Prosper
Check Rate
on NerdWallet
on NerdWallet
Best for Deck loans for co-borrowers
Est. APR
8.99-35.99%
Loan amount
$2K-$50K
Min. credit score
560
Best for Deck loans for co-borrowers
Best Egg
Best for Secured deck loans
Est. APR
8.99-35.99%
Loan amount
$2K-$50K
Min. credit score
600
Best for Secured deck loans
Secured loans
Wide range of loan amounts
Rocket Loans
Best for Deck loans for fast financing
Est. APR
9.12-29.99%
Loan amount
$2K-$45K
Min. credit score
640
Best for Deck loans for fast financing
Fast funding
Rate discount

Our pick for

Deck loans for good credit

SoFi
Visit Lender
on SoFi's website
on SoFi's website
SoFi

SoFi Personal Loan

5.0
Est. APR

8.99-29.99%

Loan amount

$5,000-$100,000

Min. credit score

None

Our pick for

Deck loans with no fees

Lightstream

LightStream

Est. APR

6.99-25.49%

Loan amount

$5,000-$100,000

Min. credit score

660

Our pick for

Deck loans for fair credit

Upgrade

Upgrade

Est. APR

8.49-35.99%

Loan amount

$1,000-$50,000

Min. credit score

560

Our pick for

Deck loans for fast financing

RocketLoans

Rocket Loans

Est. APR

9.12-29.99%

Loan amount

$2,000-$45,000

Min. credit score

640

Our pick for

Deck loans for co-borrowers

Prosper

Prosper

Est. APR

8.99-35.99%

Loan amount

$2,000-$50,000

Min. credit score

560

Our pick for

Secured deck loans

BestEgg

Best Egg

Est. APR

8.99-35.99%

Loan amount

$2,000-$50,000

Min. credit score

600

Our pick for

Deck loans for excellent credit

Discover

Discover® Personal Loans

Est. APR

7.99-24.99%

Loan amount

$2,500-$40,000

Min. credit score

660

» MORE: Compare top lenders for home improvement projects

What is deck financing?

Deck financing is money borrowed from a lender that you use to pay for a new deck. You then repay the loan amount with interest over time.

Cash is an interest-free way to pay for a deck, but financing options include personal loans, home equity loans or lines of credit, credit cards or contractor financing.

A personal loan is among your fastest options — many lenders can fund a loan within a day or two. Personal loan amounts are $1,000 to $100,000, and annual percentage rates range from 6% to 36%. Personal loans are repaid in fixed monthly installments, typically over two to seven years.

A $7,000 personal loan with a 10% APR repaid over two years would require monthly payments of $323. You’d repay a total of $7,752, including interest.

4 deck financing options

How you finance your deck depends on factors like how much home equity you have, your credit and income, and the cost of your project. Here are four financing options to consider.

Personal loans

An unsecured personal loan doesn’t require pledging your home as collateral, so the interest rate may be higher than with a home equity loan or line of credit. Online lenders offer personal loans, as do some banks and credit unions.

When they’re best: Personal loans are best for financing your deck if you don’t have enough home equity or want to use your home as collateral. They're also best when you need funds quickly.

Things to consider about personal loans

  • Fast funding. Many online lenders can fund a loan within a day or two of approval, while banks may take up to a week. In both cases, you’ll likely get funds faster with a personal loan than with home equity financing.

  • Unsecured. Getting an unsecured loan means if you fail to repay, the lender can’t take your house or car. On-time payments will build your credit, while missed payments will cause it to drop.

  • High credit and debt standards. Because lenders assess only your finances and creditworthiness, many have high credit standards and require a low debt-to-income ratio. You can apply for a joint or co-signed personal loan if you think you won’t qualify for a low rate on your own.

Home equity loans and lines of credit

Home equity loans and lines of credit are secured by your home and have lower interest rates than other financing options.

You get a home equity loan in a lump sum and repay it in fixed monthly installments, similar to a personal loan.

Home equity lines of credit give you the flexibility of borrowing as you need and repaying only the interest during the initial draw period. The repayment period can be 20 years, but rates are variable, meaning the monthly payment may fluctuate.

When they’re best: Equity financing works best if you’re comfortable using your home as collateral and have enough equity to pay for the project.

Home equity loans are best if you have a firm cost estimate for the new deck or patio. You typically can't borrow more money from your equity once you’ve gotten a loan.

Home equity lines of credit are best if your project has an uncertain timeline or you’re concerned about surprise expenses.

Things to consider about HELOCs and home equity loans

  • Tax benefits. When you use equity to pay for a home improvement, the interest is tax-deductible.

  • Secured financing. Home equity options have lower rates than personal loans and credit cards partly because your home is used as collateral.

  • Long repayment terms. Both home equity loans and lines of credit can have repayment terms of over a decade, while personal loan repayment terms are shorter.

0% APR credit cards

On average, credit cards have higher APRs than personal loans and home equity options. But if you qualify, a 0% APR credit card may be your cheapest option.

When they’re best: These cards are best when you qualify — meaning you have strong credit and little existing debt — and you can pay the full balance by the end of the promotional period, which is usually 15 to 21 months.

Things to consider about credit cards

  • High credit standards. Cards with a 0% APR introductory period typically require good or excellent credit to qualify. You may be approved for the card, but not for the full amount you plan to spend on the new outdoor area. In that case, you can use the card for supplementary expenses or unexpected costs.

  • High rates after the promotional period. If you use a 0% APR credit card to finance a deck or patio and don’t pay off the balance, interest begins to accrue when the promotional period ends. Check the card’s post-promotion APR and decide whether you'd be comfortable paying it.

  • Monthly payments. Cardholders should plan to make monthly payments. If you’re late with your minimum payment, the issuer can cancel the promotion, leaving you with the balance and the card’s regular interest rate.

Contractor financing

Some contractors offer financing through a third-party lender, like GreenSky. These are often unsecured loans that a contractor offers once you agree on a cost estimate.

When they’re best: This type of loan is best when it’s the least expensive option. Because the financing is offered through the contractor, they may be able to start on the deck or patio quickly if you use it.

Things to consider about contractor financing

  • Not all contractors offer it. Don’t expect every contractor that gives you a quote to provide financing.

  • It’s usually an unsecured loan. There’s usually no collateral for this type of loan, but missed payments will hurt your credit.

  • Financing may be offered on the spot. Once you agree on an estimate, the contractor may pull up an application and ask you to submit it right away. Even if it seems like a good offer, take time to review the rate and terms and compare it with other financing options.

How to compare personal loans for deck and patio financing

  • Qualifications. The loan’s interest rate and the amount you receive are based primarily on your credit, income and existing debts. Lenders want to know that you can cover your regular monthly expenses, plus the additional loan payments. Some lenders cater to people with bad credit (a 629 or lower score), while others seek borrowers with good or excellent credit (690 and higher). Review lender requirements to determine where you may qualify.

  • APR. A personal loan’s annual percentage rate is the entire cost of the loan, including interest and any fees. The loan with the lowest APR is the least expensive one.

  • Loan terms. Loans with longer terms often cost more in total interest, though monthly payments will be lower. Choose the shortest repayment term with payments you can still afford to minimize interest costs.

  • Special features. Some lenders offer features like pre-qualification, which lets you see your rate with a soft credit pull before formally applying. Others may give a rate discount for setting up automatic payments.

How to get a deck loan

Here are the steps to get a deck loan:

  1. Get a firm cost estimate. The cost of your new deck or patio can determine the best way to pay for it. Calculate your total cost and identify how much you need to borrow.

  2. Pre-qualify. Once you have an estimate, pre-qualify with multiple lenders to see potential loan rates and terms. Pre-qualifying requires only a soft-credit check so it doesn't affect your credit score.

  3. Compare lenders. Lenders may offer different rates, funding times and repayment terms. Compare your options and find a loan with monthly payments that fit comfortably in your budget while offering the features you need.

  4. Apply. Many lenders have an application process that is completely online. You’ll be asked to provide documents verifying your income like W-2s, pay stubs and bank statements. Lenders can inform you of a credit decision within a day or two of applying.

How much does it cost to build a deck or patio?

A new deck costs $4,347 to $12,492 on average, while a new patio can cost $1,968 to $5,866, according to home improvement website Angi.

Factors that affect the cost include materials used to build the deck or patio and the cost of labor if you hire a contractor. Decks on the second floor of the house can cost more than double those on the first floor, according to Angi.

Keep in mind that a new deck or patio may need outdoor furniture or a grill that can add to your overall cost. Annual maintenance, like a new coat of paint or sealant, can cost an additional few hundred dollars but helps to ensure your outdoor space stays in good condition year after year.

Last updated on May 29, 2024

Methodology

NerdWallet’s review process evaluates and rates personal loan products from more than 35 technology companies and financial institutions. We collect over 50 data points from each lender 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 Deck Loans: Finance Your Deck or Patio in 2024

  • SoFi Personal Loan: Best for Deck loans for good credit
  • LightStream: Best for Deck loans with no fees
  • Upgrade: Best for Deck loans for fair credit
  • Rocket Loans: Best for Deck loans for fast financing
  • Prosper: Best for Deck loans for co-borrowers
  • Best Egg: Best for Secured deck loans
  • Discover® Personal Loans: Best for Deck loans for excellent credit

Frequently asked questions

  • Here are four ways to finance a new deck:

    1. Personal loans don't require collateral and offer fast funding.

    2. Home equity loans and lines of credit are low-rate financing options that have long repayment terms.

    3. A 0% APR credit card is an interest-free way to pay for the new deck if you have strong credit and income to qualify.

    4. Contractor financing is usually on the spot once you settle on an estimate. Compare this unsecured loan option with other offers to be sure you're getting a low rate.

  • You can pay for a new deck with a home equity loan or line of credit. To do so, you need enough available equity to cover the cost of putting in a new deck. Consider whether you’re comfortable using your home as collateral for the loan and if the project cost is enough to make the underwriting process and any additional loan costs worth it.

NerdWallet Pixel