The Best Personal Loans for Home Improvement of April 2023

Our experts answer readers’ personal loan questions and write unbiased product reviews (here’s how we assess personal loans). In some cases, we receive a commission from our partners; however, our opinions are our own.

Maybe you have a home improvement project in mind, such as building a deck, remodeling your bathroom, or replacing your roof, but you need money to complete the job. A personal loan could be a good option. A personal loan is a fixed-rate loan, often paid off in monthly installments with a variety of term length options.

The best personal loans for home improvement offer high maximum limits and low interest rates. If you’re looking for a solid personal loan lender for home improvements or a home renovation, here are several of the best places to begin your search.

Best Personal Loans for Home Improvement

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Compare the Best Personal Loans for Home Improvement

How Our Experts Chose the Best Personal Loans for Home Improvement

We rate all auto loan products in our reviews and guides on a 1-5 scale. The overall rating is a weighted average that takes into account seven different categories, some of which are judged more heavily than others. They are:

• Interest rate (20% of rating)
• Fees (20% of rating)
• Term lengths and loan amounts (15% of rating)
• Borrower accessibility (15% of rating)
• Variety of loans (15% of rating)
• Customer support (7.5% of rating)
• Ethics (7.5% of rating)

Each category’s weighting is based on its importance to your borrowing experience. Rates and fees have the most direct impact on the overall cost of your loan, so we weigh those the most heavily. Customer support and ethics are still very important parts of the borrowing experience, but do not directly tie to a personal loan’s terms, so they have less of an impact on the overall rating.

See our full personal loans rating methodology >>

Home Improvement Loans Frequently Asked Questions

LightStream Personal Loan

Why LightStream is worth it: Lightstream‘s minimum APR is the lowest of all the lenders on our list of top picks, making the overall cost of your loan for home improvements less expensive. However, the lender has slightly stricter eligibility requirements than some of our other top picks, including several years of credit history, stable income, and few or no payment delinquencies on your credit report.

If you’re looking to borrow a large sum of money, LightStream’s maximum loan amount of $100,000 is on par with SoFi and is significantly higher than most of the other lenders on our list. 

What to look out for: LightStream is only available to borrowers with good credit. If your credit isn’t in the best shape, you’ll find it hard to qualify. 

SoFi Personal Loan

Why SoFi is worth it: SoFi‘s defining feature is its unemployment protection program, which applies if you lose your job through no fault of your own. If approved for the program, SoFi will put your loans into forbearance, suspending your monthly payments. It’s worth noting that interest will continue to accrue on your loan when it is in forbearance. 

SoFi has the highest minimum credit score requirement of any lender on our list — you’ll need a credit score of at least 680. SoFi also offers a higher maximum loan amount than most other lenders, allowing you to take out up to $100,000.

What to look out for: High minimum loan amount. To take out a loan with SoFi, you’ll need to borrow at least $5,000, so it isn’t the best option for smaller home improvement projects. 

Prosper Personal Loan

Why Prosper is worth it: Unlike many lenders, Prosper Personal Loan allows co-borrowers on its personal loans, which is particularly useful if your credit score isn’t in the best shape and you’re worried about qualifying for a loan. The lender’s minimum and maximum loan amounts are both some of the lowest on our list, so Prosper could be a good option if you need $40,000 or less.

Most loans for home improvements from Prosper are approved within one day, and depending on your bank, it may take one to three business days to receive funds in your bank account.

What to look out for: Origination fees. Prosper will charge an origination fee, which will be deducted from your overall loan proceeds, between 2.4% to 5%, depending on your financial situation. Other lenders on our list don’t charge origination fees. 

Avant Personal Loan

Why Avant is worth it: Avant may be the easiest lender to qualify with on our list. Its minimum credit is just a guideline, not a requirement, but most Avant borrowers have a credit score between 600 and 700. If your credit isn’t in great shape and you aren’t eligible to borrow from companies like Lightstream or SoFi, Avant may be a good choice for you. 

The company funds loans for home improvements quickly — if Avant approves your loan by 4:30 p.m. CT Monday through Friday, it often deposits money into your account by the next business day. Avant has great customer service hours, with its phone line open at least 13 hours every day of the week. The lender also has a solid mobile app. 

What to watch out for: Low maximum loan limit. You’re only able to borrow up to $35,000 with Avant, which is lower than many other lenders on our list. 

First Tech Personal Loan

Why First Tech is worth it: If you are looking for a small home repair loan for minor work, you can get one for as little as $500 with First Tech Federal Credit Union — the lowest of any of our top picks. You’ll also avoid the high APRs that come with payday loans. First Tech loans don’t have any application, origination, or annual fees, and there’s no prepayment penalty. 

First Tech doesn’t clarify its minimum credit score, so you’ll have to apply with the lender to see if you qualify. 

What to watch out for: Membership requirements. Though you need to join First Tech to be eligible to receive a home improvement loan from the credit union, it’s pretty easy to qualify for membership. You can join the Financial Fitness Association for $8 to qualify, and you may already be eligible if you live or work in specific parts of Oregon.

First Tech Personal Loan

Why Wells Fargo is worth it: As a longstanding bank, Wells Fargooffers a variety of loan types. Its personal loans offer low interest rates, smaller minimum borrowing amounts, and shorter terms than others. Wells Fargo offers loans between $3,000 and $100,000, for payoff terms as short as 12 months. The bank is the only brick-and-mortar institution on our list as it’s one of few traditional banks to offer personal loans. 

What to watch out for: Trustworthiness issues. Wells Fargo currently has an F rating from the Better Business Bureau, non-profit organization focused on consumer protection and trust. The BBB measures companies by evaluating businesses’ responses to consumer complaints, honesty in advertising, and transparency about business practices. The bank has faced several federal penalties for improper customer referrals to lending and insurance products, and security issues associated with creating fake accounts several years ago. 

Other Personal Loans We Considered

• Upstart Personal Loan. Upstart has a low credit score minimum of just 600, making it a good lender for people with bad credit. However, you may be able to get a loan more easily with Avant, as its minimum credit score is just a guideline, not a requirement. Read Insider’s full review of Upstart here. 
• Upgrade Personal Loan. Upgrade has lower credit score requirements than many other lenders and offers next-day funding to most borrowers, but it charges substantial origination fees and prohibits co-signers. Read Insider’s full review of Upgrade here. 
• Discover Personal Loan. The largest amount you can take out with Discover is $35,000, which is lower than every other lender on our list with the exception of Avant.
• TD Bank Fit Loan. While TD Bank offers relatively low maximum APRs on its personal loans, the company only lends to borrowers in 15 states and Washington, DC, so it may not be accessible depending on where you live. 
• LendingClub Personal Loan. LendingClub has a relatively high maximum APR, and you might receive your money more slowly than with a different lender. Read Insider’s full review of Insider’s full review of LendingClub here.
• Best Egg Personal Loan. You can get a relatively low minimum APR of 5.99% with Best Egg, but to qualify for the best rates you need at least a 700 credit score and $100,000 annual income. Read Insider’s full review of Best Egg here.  
• PenFed Credit Union Personal Loan. PenFed has a low minimum loan amount, but it’s still higher than First Tech’s minimum and you have to become a member of the credit union to take advantage. Read Insider’s full review of PenFed Credit Union here. 
• Peerform personal loans. Peerform offers competitive APRs on its loans and only requires a minimum credit score of 600 to qualify, but its minimum loan amount of $4,000 is higher than our top picks. 

How To Get a Home Improvement Loan

To get a personal loan for home improvements, you’ll first need to crunch the numbers and get all of your documentation in order. In addition to finding out your credit score and debt-to-income ratio, you’ll need documents that prove your identity, address, employment, and income. These can include W2s, 1099s, bank statements, and income tax returns.

Once you’ve gathered all that information, you can apply for loan prequalification, a process where the lender reviews your information and gives you a loan offer with terms you might qualify for. Typically, this involved a soft credit inquiry, which does not affect your credit score. Being preapproved does not necessarily mean you’ll ultimately be approved for a loan. For that, you’ll need to submit a full application, which involved a deeper look at your credit profile.

Compare offers from multiple lenders. Choose the one with the amount, estimated monthly payments, interest and fees, and term length that works best for you.

Pros and Cons of Home Improvement Loans

Personal loans aren’t the only way to finance home improvements. Two popular alternatives are home equity loans and home equity lines of credit. However, each of those uses your home as collateral, while most personal loans are unsecured.

As with any financial decision, be sure to weigh the pros and cons before taking out a personal loan for home improvements.

Home Improvement Loans Trustworthiness

We’ve compared each institution’s Better Business Bureau score to help you make the best decision possible when choosing a home improvement loan. The BBB evaluates businesses based on factors like their honesty in advertising, transparency about business practices, and responsiveness to consumer complaints. Here is each company’s score:

A majority of our top picks are rated A or higher by the BBB, with the exception of Wells Fargo and First Tech Federal Credit Union. You should know that a high BBB score does not ensure a positive relationship with a lender, and that you should keep doing research and talking to others who have used the company to get the most helpful information you can.

The BBB gives First Tech an F grade because of 25 complaints filed against the business, including two unresolved complaints. The BBB gives Wells Fargo an F rating because of the business’ failure to respond to 24 complaints and government actions against the business.

Most recently, the Consumer Financial Protection Bureau in December 2022 ordered Wells Fargo to return $2 billion to customers and pay a $1.7 billion penalty for legal violations involving auto loans, mortgages, and deposit accounts. The bank illegally charged fees and interest penalties on auto and mortgage loans. Additionally, it misapplied payments to those loans for many customers. 

Due to both lenders’ BBB scores, you might prefer to use a different personal loan company on our list.

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Ryan Wangman, CEPF

Loans Reporter

Ryan Wangman is a reporter at Personal Finance Insider reporting on personal loans, student loans, student loan refinancing, debt consolidation, auto loans, RV loans, and boat loans. He is also a Certified Educator in Personal Finance (CEPF).
In his past experience writing about personal finance, he has written about credit scores, financial literacy, and homeownership. He graduated from Northwestern University and has previously written for The Boston Globe. 
Learn more about how Personal Finance Insider chooses, rates, and covers financial products and services here >>

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Elias Shaya

Jr Compliance Associate

Elias Shaya is a junior compliance associate on the Personal Finance Insider team based in New York City.
Personal Finance Insider is Insider’s personal finance section that incorporates affiliate and commerce partnerships into the news, insights, and advice about money that readers already know and love. The compliance team’s mission is to provide readers with stories that are fact-checked and current, so they can make informed financial decisions.
The team also works to minimize risk for partners by making sure language is clear, precise, and fully compliant with regulatory and partner marketing guidelines that align with the editorial team. Elias is the point person for the loans sub-vertical and works with the editorial team to ensure that all rates and information for personal and student loans are up to date and accurate.
He joined Insider in February 2022 as a fellow on the compliance team.
Elias has a Bachelor of Science in International Business from the CUNY College of Staten Island. Prior to joining Insider, he volunteered at the New York Presbyterian Hospital, where he worked with the biomedical engineering department. In his spare time, Elias enjoys exploring new restaurants, traveling to visit his family in Lebanon, and spending time with friends.

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