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The Best Swimming Pool Loans and Financing
There is nothing better than a swimming pool when you are trying to beat the sticky wet humidity and scorching heat of the unforgiving summer sun. A personal loan can help you secure the funding you need to install your very own swimming pool for your backyard.
Before assigning a score, we research thousands of expert critique and real customer reviews to sift through the several lenders offering personal loans today. Using our proprietary methodology, we perform an in-depth analysis of lenders offering personal loans to find the very best pool financing for 2020.
The 5 best swimming pool loan providers of 2021
- Best for Expensive Pool Renovations: Lightstream
- Best for Borrowers With Low Credit Scores: Wells Fargo
- Best for Borrowers With Good Credit: SoFi
- Best for Competitive Rates: Navy Federal Credit Union
- Most Flexible Repayment Terms: Upgrade
Pool loan providers at a glance
|Lender||APR||Loan Term||Min. Loan||Max. Loan||SimpleScore|
|Wells Fargo||5.99%–24.49%||12–84 months||$3,000||$100,000||4.4/5|
|Navy Federal Credit Union||7.49%–18%||36–60 months||$250||$50,000||4.2/5|
What is a swimming pool loan?
A popular way to finance a new swimming pool is to take out a personal loan, which can also be referred to as a swimming pool loan. Most homeowners do not want to provide collateral for such a project, so an unsecured personal loan can be a great way to finance home remodeling like a swimming pool. Home equity loans are another option, albeit a less popular one.
How swimming pool loans work
When you want to put in a swimming pool, you will need thousands of dollars to install it. Few people have the funds to pay upfront, so pool financing can become a great solution to pay that bill. As a homeowner, you can choose between a personal loan or a home equity loan. Regardless of which one you choose, both are incredibly beneficial for financing a pool.
Financing a pool with a personal loan
A personal loan is a great financing option because you do not need to secure the loan with your personal collateral, which means your assets are safe. However, with less to secure the loan, banks are more likely to charge higher interest rates and add extra fees to compensate.
Pros of personal loans
There are many benefits to personal loans, such as these.
- Faster turnaround: With a personal loan, some lenders can provide financing as soon as the very next day so you can break ground that much faster.
- No collateral needed: Unlike other types of loans, you don’t have to worry about losing your car or worse, your home if you default on the loan.
- Less money spent on fees: Many of the lenders we have chosen here were selected for their low or no fees when it comes to things like origination fees, prepayment penalties and even late fees. If you are looking for a personal loan with bad credit, it still might be helpful to check out a lender that specializes for lower credit tiers.
Financing a pool with a home equity loan
Some borrowers choose instead a home equity loan. By using your home or car as collateral, you can improve your chances of not only receiving a competitive rate but receiving a loan at all if you have bad credit. There is more risk, but you are more likely to be rewarded with lower fees and rates.
Pros of home equity loans
A home equity loan has its own merits.
- Lower interest rates: Home equity loans typically carry interest rates that are more competitive than those associated with unsecured personal loans.
- Potential tax benefits: The IRS could give you a break by not taxing your interest payments when used for home improvement reasons.
How to choose the right pool loan
1. Determine how much you need to borrow.
When it comes to swimming pools, many different factors that can affect the total cost. This includes the size and shape, as well as the materials that will be used and any other caveats, like unique additions and features.
2. Shop your loan options.
With so many lenders to choose from, you should take the time to shop and consider your options seriously. Your specific loan needs and credit history will determine what kind of interest rate you receive, as well as the terms that stipulate how long you have to pay it all back.
3. Calculate what you can afford.
Before you accept a loan, calculate what the total payment will be each month once fees and interest are added. While some lenders charge 8% and more for origination fees, others may charge none at all. The difference can mean hundreds or even thousands of dollars that you could have put toward your new pool.
4. Choose the right kind of loan.
Several options extend beyond just the lender that you choose. There are secured and unsecured loans that will give you the money you need for a pool loan, but they operate very differently. A home equity loan uses the equity you have in real assets to secure your loan. In contrast, an unsecured loan uses just your credit score and, therefore, typically brings higher interest rates.
Things to consider.
A swimming pool can bring boundless enjoyment to your family, but it is essential to understand that it may not add extra value to your home when it comes time to sell. If you would still like to move forward with your loan, you will want to make sure your credit score is as attractive as possible to prospective lenders. Be sure to pull a copy of your credit report and review it carefully to ensure that there is no inaccurate information that you need to dispute. You should also take this time to pay down any existing debts, so that you can present a more attractive income-to-debt ratio.
We welcome your feedback on this article and would love to hear about your experience with the pool financing companies we recommend. Contact us at firstname.lastname@example.org with comments or questions.