Best Bad Credit Home Improvement Loans Of 2024

Best Bad Credit Home Improvement Loans – Most borrowers who have a bad credit score assume they cannot get a home improvement loan. This is a wrong assumption because there are the best bad credit home improvement loans. Most lenders consider giving out loans to those with low credit scores or no credit history at all. As you know sorting out major home improvement projects requires a lot of money. Even if it is to get a new roof or renovate your whole house, you will still have funds to do all this.

Best Bad Credit Home Improvement Loans

This is why you need a home improvement loan. This loan will help you access the money you need to upgrade your home. If you have a bad credit score, you can also apply for a home improvement loan and then take advantage of more flexible lending requirements to qualify for a mortgage.

Best Bad Credit Home Improvement Loans

There are few home improvement loans for bad credit. These providers are the best because they have a competitive interest rate and minimum credit score requirements. Let us take a look at the best home improvement loan lenders.


LightStream is one of our top home improvement lenders. It made it to this list because it offers different loan products along with loans for home improvement projects. It also offers competitive interest rates, and borrowers have the option to apply online or use the app to receive funds. However, borrowers might need an extensive credit history to qualify for a loan from LightStream. Their minimum credit score is 670, and they offer a loan amount of $5,000 to $100,000.


  • Prequalification offered: no
  • Term: 2 to 12 years
  • APR: 5.74 to 20.49 percent


If you need to take out a personal loan for home improvement and you don’t have a good credit score, this is the best option for you. It offers affordable and responsible loans, including home improvement loans. If you have a low credit score, you can still get a loan, as Upgrade only needs a minimum credit score of 560 to qualify. Its loan amount starts at $1,000, and this is a moderate price for homeowners looking to finance smaller renovation projects.


  • Term: 2 to 7 years
  • Prequalification offered: Yes
  • Loan amount: $1,000 to $50,000
  • APR: 7.46 to 35.97 percent
  • Minimum credit score: 560

Wells Fargo

Coming third on this list is Wells Fargo, and it made it to this list because it offers a lot of flexibility for borrowers looking for a home improvement loan. New or existing customers should expect a lot of flexibility in loan terms and limits, as their minimum and maximum loan amounts are $3,000 and $100,000, respectively. Borrowers who are customers of Wells Fargo will have to visit a brick-and-mortar location to complete an application because only existing Wells Fargo customers can apply for a loan.


  • Loan amount: $3,000 to $100,000
  • Prequalification offered: no
  • Term: 1 to 7 years
  • Minimum credit score: not specified
  • APR: 5.74 to 20.99 percent

Marcus, by Goldman Sachs

This is another home improvement loan lender you can take out a loan from even if you have bad credit. It offers reasonable loan terms to borrowers with a minimum credit score of 660. It also allows borrowers to consolidate debt with third-party creditors, which may be an advantage for homeowners who want to spend their funds to pay down debt or cover renovation costs.


  • APR: 6.99 to 24.99 percent
  • Prequalification offered: yes
  • Term: 2 to 6 years
  • Loan amount: $3,500 to $40,000
  • Minimum credit score: 660


With SoFi, prequalification is available, unlike other traditional financial institutions. It offers borrowers the option to eliminate late fees, origination fees, and prepayment fees, and it also boosts the competitive interest rate. However, the company offers loans with limits as high as $100,000. To qualify for this loan, borrowers would need a minimum credit score of 670.


  • Minimum credit score: 670
  • Prequalification offered: Yes
  • Term: 2 to 7 years
  • Loan amount: $5,000 to $100,000
  • APR: 7.99 to 23.43%

How To Compare Home Improvement Lenders

There are ways to compare home lenders even if you have a bad credit score, and they include:

Loan Length

Consider the length of the loan the lender is willing to offer. Usually, home improvement loans with a longer repayment term come with a lower monthly payment, but they will cost more to repay over time. However, loans with short repayment terms have lower total costs, but they come with higher monthly payments.

Loan Amounts

Personal loan lenders have minimum and maximum borrowing amounts, so you need to look out for loan amounts when comparing lenders.

Eligibility Requirements

When comparing loan lenders, find out the lender’s minimum qualifications and prequalify to check your chances of approval. After going through a soft credit inquiry, most personal loan lenders will let you pre-qualify.


APRs are also very important when comparing home improvement loan lenders. Compare home improvement rates by getting prequalified rate quotes.

Customer Service

When you are searching for the best home improvement loan lenders for bad credit, make sure you read the lender reviews. This will help you learn about their customer service and what to expect from the lender.


Taking out a loan from the best bad-credit home improvement lender is possible. All you have to do is compare loan offers and interest rates from three to four lenders. Comparing loans will help you get the best deal, and getting a few different quotes from different lenders can help you negotiate loan terms. However, make sure you use a loan calculator before applying for a home improvement loan with bad credit. This will help you determine if you can afford the monthly payments.