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.
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Home upgrades and repairs can easily add up to tens of thousands of dollars. If you don’t have that kind of cash on hand, a personal loan can help cover the costs.
A home improvement loan is simply an unsecured personal loan that you use for home repairs or renovations. If you qualify, you receive a lump sum of money — typically up to $50,000 — and pay it off over the next several years.
Having bad credit will certainly affect whether you qualify for a personal loan and the interest rate you may receive. So expect some tradeoffs, like higher fees and interest rates than those offered to borrowers with stronger credit.
As you review the list below, consider how much, exactly, you need to borrow. And pay close attention to annual percentage rates, or APRs, which can be a helpful point of comparison between lenders.
Best for overall home improvement loan for bad credit
2026 NerdWallet award winner
7.74 - 35.99%
$1K - $50K
600
2 to 7 years
Best for secured loan option
2026 NerdWallet award winner
6.99 - 35.99%
$2K - $50K
600
3 to 5 years
Best for large loans
2026 NerdWallet award winner
6.70 - 35.99%
$1K - $75K
None
3 to 5 years
Best for small loans
11.69 - 35.99%
$1K - $50K
560
3 to 5 years
Best for flexible repayments
9.95 - 35.99%
$2K - $35K
550
2 to 5 years
Best for joint loans
8.99 - 35.99%
$2K - $50K
560
2 to 5 years
Our team of consumer lending experts follows an objective and robust methodology to rate lenders and pick the best.
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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.
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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.
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When curating this list, we sought lenders who accept borrowers with fair to bad credit (scores in the low 600s or lower). We also checked that they offer loan amounts large enough to cover pricey home improvement projects.
Note that while each lender may work for borrowers with bad credit, the tradeoff is that they all charge origination fees. These fees, expressed as a percentage, are taken from the loan proceeds.
While we would recommend all the lenders on this list, Upgrade shines as the only one to earn a five-star rating. The lender offers competitive rates, multiple discounts and fast funding.
Note that Upgrade’s minimum credit score is 600. However, it offers two ways to potentially improve your approval chances: securing a loan with collateral or adding a co-signer. (Learn more about these options in the “How to qualify” section below).
Best Egg stands out for its next-day funding and wide range of loan amounts, from $2,000 to $50,000. It also gives borrowers access to a range of financial tools that let them monitor their credit score, track payments, set debt-payoff goals and more.
Like Upgrade, Best Egg’s minimum credit score is 600. But it offers a secured loan option that may help borrowers with bad credit qualify. For collateral, Best Egg accepts vehicles as well as permanent home fixtures, such as built-in cabinets and bathroom vanities.
» Learn more: How do secured loans work?
Prosper is the only lender on this list that offers joint loans, meaning two borrowers can apply together and share responsibility for payments. Joint loans are often easier to qualify for and can help you share the load of a significant home expense.
Watch out for fees, though. In addition to an origination fee, Prosper charges fees for insufficient funds, late payments and payments by mailed check.
Upstart is unique in that it doesn’t have a minimum credit score and accepts borrowers with thin credit histories. Rather than focus primarily on credit score, Upstart looks into details like college education and work history to determine who qualifies. It also offers secured loans, which can help you qualify and potentially score a lower interest rate.
We appreciate that Upstart offers a wide range of loan amounts, from $1,000 to $75,000, which could cover a variety of home repairs. Approval typically happens right away, according to Upstart, and the loans are often funded in one business day. That fast turnaround can be essential for an emergency repair.
One downside to consider: Loans through Upstart have origination fees up to 12%. While other lenders charge these fees, they keep them under 10%.
While many lenders’ minimum loan amount is $2,000, Universal Credit’s loans start at $1,000. It also stands out for its rate discounts and fast funding. The lender says most applications are approved within five minutes and that the loans are typically funded within one business day.
Note that Universal Credit doesn’t allow you to add collateral to secure your loan, nor does it allow you to add co-borrowers or co-signers.
We like that Avant typically makes approval decisions within seconds, according to the lender, and deposits funds the next business day. We also appreciate that its customer service representatives are available seven days a week and that it offers hardship programs for borrowers facing financial difficulties.
However, Avant is not the lender for you if you need to borrow a large amount, given that its loans max out at $35,000. It also doesn’t offer co-signed, joint or secured 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?
Before applying for a loan, calculate your monthly loan payment and total interest costs, based on your desired loan amount, repayment term and estimated APR.
Estimated monthly payment
$309.92
Total interest over 3 years
$1,156.95
Total loan payment
$11,156.95
Loan amount
$10,000
Interest rate
7.25%
Loan term (years)
3
» 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.
