6 Personal Loans for Landscaping Projects

How much does a loan for landscaping cost?

The cost to add landscaping, like flowers and shrubs, can range between $600 and $9,000, while a new patio or pathway can cost $830 to $7,000, according to home improvement website HomeAdvisor.

To determine the cost of a landscaping loan, you need to know how much you’re going to borrow, and the loan’s annual percentage rate and repayment term.

APRs for personal loans range from about 6% to 36%, and repayment terms are usually between two and five years.

» MORE: Compare personal loans for decks

A $6,000 landscaping loan repaid over two years would cost between $6,382 and $8,503.

Once you know the loan amount, calculate your monthly payments to see whether a personal loan is an affordable option.

Pros and cons of landscaping loans

Pros

• Fast funding. Most lenders can fund a loan within a week after you apply, and some can fund as quickly as the business day you apply.

• Fixed payments. Personal loans have fixed interest rates and are repaid in predictable, fixed monthly installments. You know exactly what you owe each month and when the loan will be repaid.

• Easily compare offers. Many lenders let you pre-qualify for a personal loan to see your estimated rates, terms and loan amount before you formally apply. Pre-qualifying doesn’t impact your credit score.

» MORE: Pre-qualify with NerdWallet to see offers from multiple online lenders

Cons

• High rates. Personal loan APRs are often higher than other financing options like home equity loans and lines of credit.

• No tax benefits. Interest on personal loan payments isn’t tax-deductible. If you use home equity to pay for a home improvement project, you might be able to deduct interest.

• High borrower standards. Lenders offer the lowest rates and largest loans to borrowers with good or excellent credit (690 or above FICO), high income and little debt. Some lenders offer personal loans to borrowers with fair or bad credit (689 or lower FICO), but they typically have high rates.

» MORE: Compare the best home improvement loans

How to get a loan for your landscaping project

Here are four steps to getting a landscaping loan with the best rates and features for your project.

1. Check your credit. Comb through your credit report for any errors before you apply. You can get a free copy of your report at annualcreditreport.com. Address any issues, like delinquent accounts, before a lender reviews your credit.

2. Compare lenders. Decide which features are important to you, like fast funding, a mobile app to manage your loan, an autopay discount or low rates. Then, find the lender that can offer them. Pre-qualify with multiple lenders to feel confident you're getting the best rate and terms available.

3. Gather documents. Many lenders require at least income verification, some form of identification and verification of address. Gather pay stubs, W-2s, utility bills or a copy of your lease and your Social Security number before you apply. Having them ready ahead of time will expedite the process.

4. Apply. Most online lenders say an application takes a few minutes to complete, while some banks and credit unions require you to visit a branch to apply. In most cases, lenders say they can fund an approved loan within a week of application.

» MORE: Learn how to apply for a personal loan

Landscaping loan alternatives

Savings

About two-thirds of homeowners planned to use their savings for home improvement projects in 2020, according to a survey from online lender LightStream. Savings is the cheapest way to pay for a landscaping project because you won’t pay any interest.

» MORE: 6 types of home improvement loans and how they work

Credit cards

High interest rates on most credit cards make them expensive financing options for high-priced updates. But for smaller DIY projects that require some shopping, the plastic in your pocket might do the trick. A credit card for home improvements can help you avoid interest or earn rewards.

Credit cards with perks are often reserved for borrowers with good or excellent credit scores. Paying off your balance each month can help you build credit. But if your purchases bring you too close to the card’s limit, your credit utilization will go up and your credit score could drop.

» MORE: Best home improvement credit cards

Here are three credit card options for DIY and small outdoor projects:

• Use a 0% APR card when you feel confident that you can pay off the balance during the promotional period — typically 12 to 18 months. If surprise expenses put you over budget and you can’t pay the card’s balance by the end of the introductory period, you’ll pay the regular APR.

• A rewards card can get you cash back or other perks when you make certain types of purchases. Some cards have rewards specifically for home improvement purchases. Try to avoid carrying a balance for too long or the interest you end up paying could offset the rewards you earn.

• Store credit cards can reward you for buying most of your landscaping supplies from one store. Store cards’ lower credit requirements make them more accessible to fair-credit customers. You may be limited to using store credit cards at the store that issues them.

HELOC or home equity loan

Home equity loans and home equity lines of credit are also popular ways to finance renovations. They have lower rates and longer repayment terms than personal loans and require you to use your home as collateral.

Here are a few things to know about using your home equity to pay for your upcoming project.

Collateral: With both options, you use your home as collateral to borrow from your equity. This helps to keep rates low, but it means a lender can take your home if you fail to repay.

Tax benefits: You can write off the interest you pay on a HELOC or home equity loan. The tax benefits are the same for both products, and they aren’t available for personal loans or credit cards.

Cost: The long terms on HELOCs and home equity loans — typically 10 or more years — also keep their rates lower than personal loans. If your renovation is small, it may not be worth the potential costs and effort of appraisal, underwriting and closing the loan.