6 Personal Loans for Landscaping Projects

» MORE: Compare the best home improvement loans

How much does a loan for landscaping cost?

Adding plants, like flowers and shrubs costs $1,306 to $5,840, while a new patio or pathway can cost $1,938 to $5,627, 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, the loan’s annual percentage rate and its repayment term.

APRs for landscaping loans are from 6% to 36%, and repayment terms can be two to seven years. Your rate and loan amount are based on information like your credit and income. The lowest rates often go to borrowers with high credit scores, strong income and little existing debt.

A $5,000 landscaping loan with a 6% APR repaid over two years would cost $5,318. The same loan with a 36% APR would cost $7,086.

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

» MORE: Compare personal loans for decks and patios

Pros and cons of landscaping loans

Pros

• Fast funding. Some lenders can fund a loan as quickly as the business day after you apply. You typically won’t wait more than a week to receive funds.

• 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 potential rate, term and loan amount before you formally apply. Pre-qualifying doesn’t impact your credit score.

» MORE: Pre-qualify with NerdWallet to see offers from online lenders that partner with us

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 the interest.

• High borrower standards. Lenders typically favor borrowers with strong credit and high income. While some lenders accept bad credit, rates can be high.

» MORE: Home improvement loans for bad credit

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 loan 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 to expedite the process.

4. Apply. Many lenders say an application takes a few minutes to complete, though a local bank or credit union may require you to visit a branch to apply. In most cases, lenders say they can fund an approved loan within a few days of application.

» MORE: How to apply for a personal loan

Landscaping loan alternatives

Cash

Before you apply for financing, consider whether you can save up and pay for the project with cash. This is the interest-free (and therefore the cheapest) way to pay for new landscaping.

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 15 to 21 months. If you can’t pay the card’s balance by the end of the introductory period, you’ll pay the card's 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 or the interest you end up paying could offset the rewards.

• 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 lines of credit 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 if you use them to finance a home improvement project. The tax benefits are the same for both products, and they aren’t available for personal loans or credit cards.

• Cost: The long repayment terms on HELOCs and home equity loans — typically 20 years — also keep their monthly payments lower than personal loans. If your renovation is small, it may not be worth the potential costs and effort of appraisal and underwriting.