There are many types of home improvement loans. Every coin has its two sides. So do home improvement loans. Let me introduce some of them to you and tell you about the pros and cons of each one.
If your credit rating is very low, Avant may be your best choice. Low crediting rate may be triggered by the bad credit. This loan does not need your home equity. You can apply for it even if you are a subprime borrower. But its administrative fee is a little bit higher than other ones, up to 4.75%. And the max amount of loan that you can borrow is $35,000.
On the contrary, if you have an excellent credit and prefer a lower loan rate, LightStream may be more appropriate for you. Its annual percentage rate starts at only 4.99% with no charge fees, but the loan amount with this low rate ranges only from $10,000 to $24,999. Several years of good credit history may help you get this kind of home improvement loan.
If you are young and have worked for a couple of years, you may have little credit history. Under this circumstance, you will be advised to choose Upstart. The pro is that you might qualify for a lower interest rate based on education or job history. The prerequite is that you should not be reported with any bankruptcies. However, you should bear a very high origination fee, reaching almost 8%.
No.4 PenFed Credit Union
Sometimes you only need a small loan. In this situation, only with a membership of the National Military Family Organization can you enjoy a relatively low rates without any origination fees. It is much more like a bonus for members of the credit union.
There are many other kinds of home improvement loans as well. To sum up, everyone faces different financial situations. Choosing a customized home improvement loan is the best choice for you!