LendingTree is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.
Unsecured personal loans don’t require collateral, which makes them an alluring alternative for homeowners who don’t want to put their home on the line with a home equity loan or home equity line of credit (HELOC). However, secured personal loans do exist, and they may offer an affordable alternative for borrowers with fair or worse credit.
Since personal loans are typically unsecured, personal loan lenders rely heavily on an applicant’s financial profile — such as their credit score and debt-to-income ratio — when determining eligibility. Good-credit borrowers will see lower APRs than fair- and bad-credit borrowers. (Annual percentage rate, or APR, represents the cost of borrowing a loan over the course of a year. A lower APR indicates a cheaper total loan cost.)
Getting a loan to remodel your house is as simple as applying for a personal loan. Since personal loans are typically unsecured, they can be used to pay for virtually anything. They don’t have the same requirements as some other types of loans like HELOCs, for example, which require you to have equity in your home. All you need for a personal loan is proper identification, as well as a good credit score and debt-to-income ratio.
The lower your APR, the less you’ll pay over the life of the loan. Shopping around for the lowest possible APR for your financial situation can save you money.
Read the fine print before you borrow money. Some lenders charge a prepayment penalty, which means you’d be penalized for paying off your loan early.
It can be overwhelming to decide which lender is right for you. Read lender reviews to gather perspective from homeowners who have been in your shoes.