Bad Credit Home Improvement Loans Home Improvement Personal Loan Options
Home improvement projects are expensive, and most homeowners choose to finance the project. Having a high credit rating makes obtaining a home improvement loan easy. While bad credit will not enable a homeowner from securing financing, the chances of getting a good rate are low. Here are a few options available to help homeowners get approved for a bad credit home improvement loan.
Secured Home Improvement Loan
If your credit rating is low, lenders will not approve a loan application for an unsecured loan. Hence, homeowners must resort to applying for a secured personal loan, which requires collateral.
When home improvements are necessary, many homeowners take advantage of their home’s equity. There are two types of home equity loan options, and both are secured by your home’s equity. If applying for a home equity loan, homeowners may acquire a lump sum of money that can be used for any purpose. Common uses include home improvement projects, debt consolidation, etc.
Another option involves the home equity line of credit. With this loan option, homeowners open...