Adam McCann, Financial Writer
@adam_mcan
The minimum credit score for a home improvement loan is 580 or higher, depending on the lender. Home improvement loans are usually just personal loans that people use for home improvements, and some personal loan providers will approve you with 580+ credit score. That’s not too difficult to attain, either – it’s within the bad credit range and below the average American’s credit score.
You may be able to get a home improvement loan with an even lower score if you get a secured personal loan. Secured loans tend to not have a minimum credit score at all. That’s because they require collateral, which the lender can take possession of if you don’t pay back the loan. There’s very little risk for the lender, so they can afford to accept people with bad credit.
Minimum Credit Score for Home Equity Loans
Another way to get a home improvement loan is through a home equity loan or home equity line of credit. The average credit score needed for home equity loans and lines of credit is 680, according to Experian, though it may be possible to get approved with lower scores. Your chances are best if you have a score of at least 700.
If you don’t know what your score is, you can check your latest credit score for free. But your credit score isn’t the only factor that goes into approval for a home improvement loan.
To get the best sense of your odds, try using WalletHub’s free pre-qualification tool to see which lenders offer good chances of acceptance.
People also ask
What are unsecured home improvement loans?
An unsecured home improvement loan is a home improvement loan with no collateral involved. The borrower doesn’t have to put their property at risk in order to take out the loan. In contrast, a secured home improvement loan requires some collateral, such as an auto title, real estate, stocks or a certificate of deposit. The lender can take ownership of the collateral if the borrower is unable to pay back the loan.
Because it...
read full answer by Adam McCann, Financial WriterWhat credit score is needed for a personal loan?
The minimum credit score for personal loan approval is 580, depending on the lender. That means it is possible to get an unsecured personal loan with a bad credit score, though such a loan will likely have an origination fee.
For your reference, WalletHub researched some of the most popular lenders to find out more about their specific loan requirements.
Credit Score for Personal Loan Approval by Lender
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What credit score do you need to get a renovation loan?
You need a minimum credit score of 580 to get a renovation loan in most cases. Credit score requirements vary by lender, and the higher your credit score is above a lender's minimum, the more likely you are to get approved for the loan. In addition to having a high enough credit score, you need to be a U.S. citizen or permanent resident, be at least 18 years old, have a steady income, and provide...
read full answer by Gino Rodriguez, WriterDid we answer your question?
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