Getting a home improvement loan with bad credit may require extra effort to find a lender, but borrowers still have options. Here are the best home improvement loans for bad credit.
Checking rates is free and won't impact your credit score.
Best for overall home improvement loan for bad credit
2025 NerdWallet award winner
7.74 - 35.99%
$1K - $50K
600
2 to 7 years
Upgrade accepts lower credit scores than similar lenders, and it offers multiple rate discounts for its personal loans.
Read our review of UpgradeUpgrade accepts lower credit scores than similar lenders, and it offers multiple rate discounts for its personal loans.
Read our review of UpgradeBest for secured loan option
6.99 - 35.99%
$2K - $50K
600
3 to 5 years
Best Egg is worth considering for borrowers looking for a secured loan or to consolidate debt.
Read our review of Best EggBest Egg is worth considering for borrowers looking for a secured loan or to consolidate debt.
Read our review of Best EggBest for large loans
6.70 - 35.99%
$1K - $75K
None
3 to 5 years
Upstart personal loans offer fast funding and may be an option for borrowers with low credit scores or thin credit histories. Upstart is a solid financing choice for large purchases.
Read our review of UpstartUpstart personal loans offer fast funding and may be an option for borrowers with low credit scores or thin credit histories. Upstart is a solid financing choice for large purchases.
Read our review of UpstartBest for small loans
11.69 - 35.99%
$1K - $50K
560
3 to 5 years
A Universal Credit personal loan may be a smart choice for borrowers with lower credit scores who want to consolidate debt.
Read our review of Universal CreditA Universal Credit personal loan may be a smart choice for borrowers with lower credit scores who want to consolidate debt.
Read our review of Universal CreditBest for flexible repayments
9.95 - 35.99%
$2K - $35K
550
2 to 5 years
Avant personal loans are a solid option for fair- and bad-credit borrowers who need fast funding, but their rates and origination fees can be high.
Read our review of AvantAvant personal loans are a solid option for fair- and bad-credit borrowers who need fast funding, but their rates and origination fees can be high.
Read our review of AvantBest for joint loans
8.99 - 35.99%
$2K - $50K
560
2 to 5 years
Prosper is a peer-to-peer online lending platform that accepts borrowers across the credit spectrum.
Read our review of ProsperProsper is a peer-to-peer online lending platform that accepts borrowers across the credit spectrum.
Read our review of ProsperOur team of consumer lending experts follows an objective and robust methodology to rate lenders and pick the best.
30+
Lenders reviewed
We review over 35 lenders, including major banks, top credit unions, leading digital platforms, and high interest installment lenders operating across multiple states.
25+
Categories assessed
Each lender is evaluated across five weighted categories and 27 subcategories, covering affordability, eligibility, consumer experience, flexibility, and application process.
60+
Data points analyzed
Our team tracks and reassesses hundreds of data points annually, including APR ranges, fees, credit requirements, and borrower tools, ensuring up to date, accurate comparisons.
We evaluate more categories than competitors and carefully weigh how each factor impacts your experience.
NerdWallet’s review process evaluates and rates personal loan products from more than 30 financial technology companies and financial institutions. We collect over 60 data points 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.
A home improvement loan is a personal loan used for home repairs or renovations. They're unsecured and don’t require collateral; instead, lenders check your credit score, credit history and debt-to-income ratio (DTI) to qualify you. Lenders that accept borrowers with bad credit may consider additional factors like your employment and educational history.
Loan amounts can go up to $75,000, and rates range from about 7% to 36%. Borrowers with bad credit can expect to receive rates toward the high end of this range. They may also receive smaller loan amounts and shorter repayment terms of two to five years.
» MORE: Best home improvement loans
Your credit score is a major factor in deciding whether you get a personal loan, but there are a few things you can do to improve your chances.
» MORE: 6 ways to boost your chances of qualifying for a personal loan
A home improvement loan can be a good choice if you're unable to tap home equity or don’t want to max out your credit cards to pay for the project. Here are features to compare among home improvement loans.
The annual percentage rate reflects the full cost of a loan, including any fees the lender charges. An APR provides an apples-to-apples cost comparison, which is useful when comparing personal loans and other financing options. For bad-credit borrowers, APRs on personal loans may be high, but still lower than rates on credit cards.
A home improvement loan calculator lets you preview a loan’s monthly payment at different rates and repayment terms. This can help you determine what loan offer you need to stay within your budget.
Bad credit home improvement loans often have repayment terms of two to seven years, but some lenders have more limited options. A longer-term loan will have lower monthly payments but higher overall interest costs, so look for a term that strikes a balance.
Many lenders can fund a loan in less than a week, and some say they can get you the funds within 24 hours. If you’re paying for an urgent repair or an in-progress project, look for a lender offering same- or next-day funding.
» MORE: How long does it take to get a personal loan?
» MORE: How to get a personal loan with bad credit
If you have equity in your home, borrowing against it can be an affordable way to finance a renovation. Home equity loans let you lock in a fixed interest rate for a lump sum of cash. HELOCs are open credit lines with variable rates that you draw from as needed for about 10 years. Repayment terms for both can be 10 to 30 years.
» MORE: Home equity loans vs. lines of credit
Compare to personal loans: Home equity loans and credit lines often have lower rates and longer repayment terms than personal loans. However, equity financing typically requires a home appraisal, which can delay funding by a few weeks. Personal loans are typically approved and funded within a few days.
Typically, the interest on home equity financing is tax-deductible if you use the funds to pay for home improvements. This isn’t true for personal loans.
A cash-out refinance lets you exchange your current mortgage for a larger one and “cash out” the difference between what you currently owe and the new loan. You use the leftover funds for the renovation. It's typically a good option if rates are lower than what you’re currently paying.
» MORE: Best cash-out refinance lenders
Compare to personal loans: A cash-out refinance for home improvement projects should have two benefits: You can finance a remodel and lower your mortgage rate. A personal loan will only help you pay for remodeling. A cash-out refinance may be better for larger projects because closing costs can exceed the cost of smaller updates. There are no closing costs with personal loans.
Home improvement loans insured by the Federal Housing Administration are similar to conventional mortgages but have looser qualification requirements. Rates vary by lender but are often lower than personal loans. A qualifying credit score for an FHA loan can be as low as 500.
FHA 203(k) renovation loan: With a 203(k) loan, you refinance your existing mortgage and roll home improvement costs into the new mortgage. In addition to meeting a lender’s credit requirements, borrowers must have no foreclosures within the past three years.
The 203(k) loan process can be time-consuming. You must work with a mortgage lender to pre-qualify, a general contractor to create a scope of repairs and potentially a consultant from the U.S. Department of Housing and Urban Development (HUD) to complete an inspection.
Title I loan: The requirement to get this type of loan is pretty broad. According to the HUD website, this loan can be used for home improvements that “substantially protect or improve the basic livability or utility of the property.”
Title I loans under $7,500 are unsecured, while larger loans must be secured by a mortgage or deed of trust on the property, according to HUD.
To qualify for a personal loan, you generally need a credit score above 580. However, some lenders such as Upstart, accept scores as low as 300. Find out what credit score you need to get a personal loan.
Home improvement loans may be a good idea when used toward renovations that improve the value of your home or repairs that improve livability and safety. You also want to ensure you can comfortably manage the monthly loan payments for the life of the loan.
