» MORE: Best personal loans for home improvement

What is a pool loan?

A pool loan is a personal loan you receive in a lump sum and repay with interest in fixed monthly installments.

This type of loan is unsecured, which means no collateral is necessary. Instead, a lender uses information such as your credit score, income and other debts to decide whether you qualify for a loan and what annual percentage rate to offer you.

Pool loan amounts can be from $1,000 to $100,000, and are usually repaid over two to seven years. You can expect a rate from 6% to 36% on this loan, but the lowest rates often go to borrowers with good or excellent credit (scores of 690 or higher).

Pool loan rates

Source: Average rates are based on aggregate, anonymized offer data from users who pre-qualified through NerdWallet from March 1, 2024, through March 31, 2024. Rates are estimates only and not specific to any lender. The lowest credit scores — usually below 500 — are unlikely to qualify. Information in this table applies only to lenders with maximum APRs below 36%.

» MORE: How to finance a swimming pool

How much do pools cost?

The cost of a pool can vary significantly depending on what materials you use, whether it’s in- or above-ground, and additional features.

An in-ground pool can cost from about $44,000 to $86,000, according to Angi, a website that connects homeowners with home service professionals. An above-ground pool can cost from $1,000 to $6,000.

» MORE: How to finance an above-ground pool

Pool loan example

A $60,000 pool loan repaid over five years at a 15% APR would require monthly payments of $1,427. You’d pay $25,644 in total interest on that loan.

» MORE: Calculate your monthly pool loan payments

Where to get a pool loan

Banks, credit unions and online lenders offer pool loans. Each type of lender has its own borrower criteria and loan features.

Existing bank customers can sometimes qualify for bank loans with lower rates, larger loans or special discounts. In general, banks prefer borrowers with good credit and strong income.

Borrowers with fair or bad credit (689 or lower scores) may be more likely to qualify for a credit union loan. These not-for-profit organizations may look beyond a low credit score and review your membership history to qualify you.

Online lenders vary in their qualification requirements and loan features. For example, some bad-credit lenders tailor their loans to borrowers with low scores or thin credit histories. Others offer borrowers special features like a mobile app or autopay rate discounts.

» MORE: Home improvement loans for bad credit

How to get a pool loan

The process of getting a personal loan generally involves these steps:

1. Get a pool estimate. Work with a contractor to agree on a cost estimate for the project before you start loan shopping. Once you know how much you need, you can choose a lender that offers that amount. Unlike with credit cards or credit lines, you can’t borrow more once you get the loan.

2. Check your credit. Knowing your credit score will give you a sense of your chances for qualifying and the range of rates you may receive. You can check your credit reports for free with NerdWallet or at AnnualCreditReport.com. 

3. Pre-qualify. Online lenders and some banks and credit unions allow you to pre-qualify for a personal loan and see potential loan offers, including rates and monthly payments, without affecting your credit score.

4. Compare lenders. If you get similar pool loan offers, compare not only rates and terms, but also other loan features. Some lenders offer extended repayment terms for larger home improvement projects.

5. Gather documents and apply. Collect documents most lenders require for an application — like W-2s, bank statements and a government-issued ID — to move the process along faster. Some lenders can make an approval decision the same day you apply and fund a loan within one to two business days.

How to compare pool loans

Borrower requirements: Compare lenders’ minimum credit score, income and debt-to-income ratio requirements to find one you may qualify with. Some lenders include borrowing requirements in the FAQ or blog section of their websites.

Loan amount: Depending on the type of pool you choose, you may need to find a lender that offers large personal loans. Many lenders cap loans at $50,000, but some offer up to $100,000. Borrowers typically need strong credit and incomes to qualify for the largest pool loans.

Affordability: Use the APR to compare the cost of multiple loan offers and other financing options. The option with the lowest APR is the least expensive and usually the best offer. Also, check the payments against your monthly budget to be sure you can afford them.

Repayment term options: The repayment term helps determine the size of the monthly payment. Pool loans with longer terms have lower monthly payments but cost more in total interest. Some lenders only offer three- or five-year repayment terms, but others can have terms up to 12 years.

Joint loan option: If you share the home where you’re putting the pool in, you may be able to get a joint loan. Adding a co-borrower can improve your chances of qualifying, getting a larger loan or receiving a lower rate. A co-borrower is equally responsible for payments and has equal access to the funds.

» MORE: Personal loans with a co-signer

Pool loan pros and cons

Other types of pool loans

Financing a pool can be a years-long commitment. Compare personal loans with other financing options to find the one that fits best with your plans.

Home equity loans

A home equity loan is a second mortgage that’s structured similarly to a personal loan. APRs and monthly payments are fixed. If you’re comfortable using your home as collateral for the loan, home equity loans can be a low-rate financing option.

Here’s what you can expect if you use a home equity loan to pay for a pool:

• Maximum loan amount: 80% to 90% of your home’s value, minus what you owe on the mortgage.

• Repayment term: Up to 30 years.

• APRs: Start around 8%.

» MORE: Compare home equity loans

Home equity lines of credit

A HELOC is an open credit line that you can draw on as needed, making it ideal for projects that last a long time or have surprise costs. HELOCs have variable interest rates, so your monthly payments could fluctuate.

Like home equity loans, starting rates are often in the single digits, so it may be a low-cost way to add a pool.

Here’s what you can expect if you use a HELOC to pay for a pool:

• Maximum loan amount: 80% to 90% of your home’s value, minus what you owe on the mortgage.

• Repayment term: A 10-year draw period followed by a 20-year repayment period is common.

• APRs: Start around 8%.

» MORE: Compare HELOCs

Cash-out refinance

A cash-out refinance replaces your current mortgage with a new, larger loan. You “cash out” the difference between your new loan and the amount owed, and use it to pay for the pool. Because it’s a brand-new mortgage, you’ll have to get a home appraisal and pay closing costs, and the loan will have new terms. This is worth considering only if rates are lower than what you’re currently paying.

Here’s what you can expect if you use a cash-out refinance to pay for a pool:

• Loan amount: 80% to 90% of your home’s value, minus what you owe on the mortgage.

• Repayment terms: 15 years and 30 years are common mortgage repayment terms.

• APRs: Start around 7%.

» MORE: Compare cash-out refinance lenders

In-house financing

Your contractor may offer you an in-house financing option, usually through a third-party lender. Because this offer is specific to a new pool, loan amounts may be larger than a personal loan and repayment terms may be longer.

Compare this offer with other financing options to be sure you’re getting a good deal.

Loan amounts, repayment terms and rates can vary by company, but here’s what to expect if you finance through a contractor: