GreenSky Review: Funding for Home Improvements

GreenSky pros

GreenSky cons

GreenSky doesn’t disclose qualification requirements like a minimum credit score. Borrowers typically must provide basic personal information, but documentation like bank statements or W-2s usually isn’t required.

GreenSky financing is available in all 50 states, and borrowers must work with GreenSky member contractors to apply for a loan. Approved loan amounts depend on the borrower’s creditworthiness.

How GreenSky works

Let’s say you’re remodeling your kitchen and the contractor offers financing through GreenSky. You’ll submit a loan application to GreenSky online, through its mobile app or over the phone. The application requires your name, Social Security number, gross annual income and the contractor’s Merchant Number. The contractor will ask to see your government-issued ID.

Some merchants offer GreenSky’s pre-qualification option, which lets you see potential loan offers without impacting your credit score. Once a formal application is submitted, GreenSky does a hard credit pull as part of the application process.

If you accept the offer, GreenSky will send your loan documents via email and regular mail.

Most home improvement costs qualify, including kitchen and bathroom remodels, HVAC installations, home automation, windows and pool installation.

» MORE: Compare loans for your kitchen remodel

Alternatives to GreenSky

GreenSky is one option for financing home improvement costs. Consider these alternatives before deciding.

Federal programs: Some government programs can help pay for home renovations. The Federal Housing Administration has several programs, including Title I loans, 203(k) loans and Energy Efficient Mortgages.

Credit cards: If you have good to excellent credit (a credit score in the mid-600s or higher) and a smaller home improvement project, you may qualify for a 0% interest credit card to cover the expenses. If you qualify, you’ll pay no interest charges for a promotional period, typically 15 to 21 months. Unlike with GreenSky, you won’t be retroactively charged interest if you don’t pay the balance, but you will be charged the prevailing interest rate after the promotional period ends.

Personal loans: If you don’t have a lot of equity in your home or you’d rather not rack up credit card debt, consider a personal home improvement loan. These loans are unsecured, with fixed rates and payments, and usually are funded within a week. Many lenders let you pre-qualify with a soft credit check, allowing you to see your rate and terms with no impact on your credit score.

Home equity loans and HELOCs: If you have equity in your home, consider a home equity loan or line of credit. These financing options have lower rates and longer repayment terms than personal loans. The risk is you can lose your home if you fail to repay the loan.

» MORE: Home equity loan and HELOC requirements

Cash-out refinancing: With a cash-out refinance, you can refinance your existing mortgage into a larger home loan and use the difference to pay for your renovation. Rates vary by lender, loan amount and the equity in your home. The interest payments on home loans are usually tax-deductible as long as the loan is secured by your home.