9
Best Home Improvement Loans For Bad Credit 2026
Compare the Best Bad Credit Home Improvement Loans
| COMPANY | FORBES ADVISOR RATING | MINIMUM CREDIT SCORE | APR RANGE | LEARN MORE |
|---|---|---|---|---|
 
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600
|
7.99% to 35.99%
|
Via Credible.com’s Website
| |
|
|
580
|
7.74% to 35.99%
|
Via Credible.com's Website
| |
|
560
|
11.69% to 35.99%
|
Via Credible.com’s Website
| |
|
|
620
|
6.60% to 35.99%
|
Via Credible.com's Website
| |
|
|
580
|
9.95% to 35.99%
|
Via Credible.com's Website
| |
|
|
600
|
5.96% to 35.99%
|
Via Credible.com's Website
|
Best Home Improvement Loans for Bad Credit: A Closer Look
Best for Fast Funding
LendingPoint
Minimum Credit Score
600
APR range
7.99% to 35.99%
with autopay
Loan amounts
$1,000 to $36,500
600
7.99% to 35.99%
with autopay
$1,000 to $36,500
LendingPoint is an online lender that offers personal loans to prospective borrowers in 48 states and Washington D.C.; it doesn’t offer loans in Nevada and West Virginia.
Why We Like It
LendingPoint offers longer loan terms than many other lenders—24 to 60 months—or two to five years—providing borrowers with more flexibility in their repayment plans.
What We Don’t Like
High maximum APRs and origination fees up to 10% may make LendingPoint more costly for less-qualified borrowers.
Who It’s Best For
LendingPoint is best for borrowers who want a longer repayment period.
- Funding as soon as the next business day
- Low credit score requirement
- No prepayment penalty
- Origination fee up to 10%
- Co-signers or joint loans not permitted
- Not available in Nevada or West Virginia
Eligibility:
- Minimum credit score. 600
- Minimum annual income. $35,000
- Co-signers. Not permitted
Customer service
After testing and evaluating LendingPoint’s customer service, we found it to be one of the most helpful and transparent lenders on our list after waiting only 46 seconds to be connected to a representative. The customer service representative we spoke with shared an in-depth perspective of their loan offers, including information about loan amounts, eligibility requirements, how interest rates are determined and prequalification.
LendingPoint’s team also disclosed late fees but didn’t confirm origination fees. While customer service didn’t share this information wasn’t, the lender discloses a fee of up to 10% on its website. LendingPoint was also one of few lenders that shared how they report payments to credit bureaus, which it typically does at the start of the month.
Best for Scores as Low as 580
Upgrade
Loan amounts
$1,000 to $75,000
APR range
7.74% to 35.99%
Minimum Credit Score
580
$1,000 to $75,000
7.74% to 35.99%
580
Upgrade offers accessible online credit and banking services, including personal loans of $1,000 to $75,000.
Why We Like It
Upgrade allows borrowers to apply with co-signers and sets a low minimum credit requirement of 580, increasing the chances of approval.
What We Don’t Like
Upgrade’s loans only go up to $75,000. The lender also charges origination fees between 1.85% and 9.99% of the loan amount, which can decrease the total borrowed amount.
Who It’s Best For
Upgrade’s personal loans are best for borrowers with poor credit histories who may not qualify for a personal loan without a co-signer.
- Direct payment to creditors streamlines the consolidation process
- 24/7 live chat customer support available
- Offers both co-signer and co-borrower options
- Charges origination fees on consolidation loans
- High maximum loan APR ( 35.99%)
- Average 3-day funding timeline
Lender Details
Eligibility
- Minimum credit score: 580
- Co-signers/co-borrowers: Accepted
Funding Speed
Funding may occur within one business day of clearing verification.
Best for Comparing Multiple Offers
Universal Credit
Minimum Credit Score
560
APR range
11.69% to 35.99%
Loan amounts
$1,000 to $50,000
560
11.69% to 35.99%
$1,000 to $50,000
Universal Credit is an online lending platform that offers personal loans between $1,000 to $50,000 through its partners. Repayment terms range from three to seven years.
While Universal Credit makes finding a personal loan accessible even to those with damaged credit, it comes with a few tradeoffs. First, it charges high APRs, well above the most competitive rates seen on our list. Second, Universal Credit charges a 5.25% to 9.99% origination fee on all personal loans. Because this is deducted from your loan proceeds, you’ll need to factor this in when determining your loan amount to ensure you receive the necessary amount after the fact.
- Flexible qualification requirements
- Funding within one business day
- No prepayment penalty
- APRs are higher than those offered by top competitors
- Origination fees from 5.25% to 9.99%
- Lowest APR requires choosing direct payment of creditors
Eligibility:
- Minimum credit score. 560
- Minimum income. Does not disclose
- Co-signers. Not permitted
- Co-borrowers. Not permitted
Best for Loans as Low as $1,000
Upstart
Loan amounts
$1,000 to $75,000
APR range
6.60% to 35.99%
Minimum Credit Score
620
$1,000 to $75,000
6.60% to 35.99%
620
Upstart uses artificial intelligence (AI) to evaluate applications, allowing the lender to consider factors such as employment and education when determining eligibility.
Why We Like It
Upstart’s minimal credit score requirements allow more borrowers to qualify for loans. The Consumer Financial Protection Bureau estimated Upstart has approved 27% more borrowers than possible under a traditional lending model.
What We Don’t Like
Upstart’s three- or five-years loan terms are more limited than other lenders. However, this is likely an acceptable tradeoff for applicants who might not be approved in a traditional lending environment.
Who It’s Best For
Upstart is best for individuals with limited credit history who want a more inclusive approach to the lending process.
- Low minimum APR of 6.60%
- Low credit score and income requirements
- Offers instant approval decisions
- Maximum and minimum amounts vary by state
- Limited repayment options
- Doesn’t offer co-signer or co-borrower options
Best for A Range of Repayment Options
Avant
Loan amounts
$1,000 to $40,000
APR range
9.95% to 35.99%
Minimum Credit Score
580
$1,000 to $40,000
9.95% to 35.99%
580
Avant is a lender that offers secured and unsecured personal loans through a third-party bank. The lender offers loans in Washington, D.C. and every state but Hawaii, Iowa, Maine, New York, Vermont and West Virginia.
Why We Like It
Avant may deposit loan funds as soon as the next business day after approval, making it a great option for borrowers who need money fast.
What We Don’t Like
Avant’s APRs range from 9.95% to 35.99%. It also charges an administrative fee of up to 4.75% of the loan amount, which further increases the cost of borrowing.
Who It’s Best For
Avant is best for individuals with damaged or limited credit who need quick funding.
- Low minimum credit requirement of 580
- Funding as soon as the next business day
- Seven-day customer support available
- High minimum APR of 9.95%
- Administration fee up to 9.99%
- Doesn’t pay creditors directly
Best for Online Experience
Happen Bank
Loan amounts
$1,000 to $60,000
APR range
5.96% to 35.99%
Minimum Credit Score
600
$1,000 to $60,000
5.96% to 35.99%
600
Happen Bank offers various financial products, including personal loans and banking services. The lender operates in every state except Iowa and the U.S. territories.
Why We Like It
Happen Bank makes debt consolidation loans with direct creditor payoff accessible to borrowers with bad credit.
What We Don’t Like
Borrowers pay an origination fee between 0% to 8% of the total loan amount, which is deducted from the loan proceeds at funding. Happen Bank’s APRs are also higher than those available from some competitors, and there’s no autopay discount.
Who It’s Best For
Happen Bank’s personal loans are best for those with bad credit histories looking to consolidate debt into one monthly payment.
- Low minimum APR compared to the alternatives ( 5.96%)
- Offers direct payment to creditors
- Offers a co-borrower option
- Live chat support is available
- Charges origination fees
- Higher maximum APR ( 35.99%)
- Lower maximum loan amount ( up to $60,000)
- No autopay discount available
Lender Details
Eligibility
- Minimum credit score: 600
- Co-signers/co-borrowers: Co-borrowers accepted
Funding Speed
Funding may occur within 24 hours.
Tips To Compare Home Improvement Loans for Bad Credit
When shopping around for bad credit home improvement loans, here’s how to compare options:
- Prequalify if you can. Many lenders now offer a prequalification form you can fill out to get a preliminary quote with no credit check. You’ll be able to see the loan interest rates and terms you may qualify for with just a soft credit inquiry. Taking this step can help you scope out which loans you may be eligible for without hurting your credit score.
- Compare APRs. A loan’s annual percentage rate (APR) is a percentage that expresses how much borrowing will cost you over time. APRs on personal loans typically range from 6% to 36%, with the lowest rates going to borrowers with stronger credit. Strategies like paying off existing debt could help improve your credit score before borrowing so you can qualify for a better interest rate.
- Check for origination fees. Personal loans usually have upfront fees that are taken from your loan funds before you get the money, and it’s an extra cost to compare from one lender to the next.
- Compare loan terms and monthly payments. Repayment terms usually range from one to seven years. Review your budget to see which loan term and repayment schedule best fits your needs.
How To Get a Home Improvement Loan With Bad Credit
Qualifying for a home improvement loan can be challenging, especially if you have less-than-stellar credit. Here’s how to get a home improvement loan with bad credit:
- Find a creditworthy co-borrower. A co-borrower is someone who applies with you and shares financial responsibility for your debt, which reduces risk for lenders. If a lender accepts co-borrowers, having one added to your application could help you get approved with a better interest rate.
- Try credit union loans. Credit unions may offer loans to members with flexible eligibility criteria. If you’re already a credit union member or within a credit union’s field of membership, consider seeing what loans are available.
- Look for lenders with flexible credit requirements. Certain alternative lenders may be willing to accept borrowers with a limited credit history or a poor credit score. Minimum credit requirements aren’t always listed on a lender’s website, but shopping around and prequalifying could help you find a loan that fits your needs.
- Pay down debt before borrowing. Lowering your debt balances can reduce your credit utilization and lower your DTI ratio, which could give you a better shot at getting approved for a loan.
Bad Credit Home Improvement Loans vs. Home Equity Loans
Unlike unsecured home repair loans for bad credit, home equity loans are secured loans backed by the equity you have built up in your home. The collateral backing of this type of loan reduces risk for lenders, which is why secured loans tend to come with lower interest rates.
Lenders typically let you borrow up to 80% of your equity. However, what you can borrow depends on your income and credit. Some lenders may be willing to accept a credit score of 620 for a home equity loan, but a higher score can increase your chances of approval and improve your interest rate.
It’s important to note that your home could go into foreclosure if you can’t pay a home equity loan back. A home equity loan is not a good option if there’s any risk you can’t keep up with loan payments.
Other Options for Bad Credit Borrowers
Qualifying for one of the best bad credit home improvement loans isn’t the only way to finance your next home project. Here are other options you could consider:
Assistance Programs
Homeowners with a low income may be able to qualify for financial assistance to pay for home improvement costs through community programs. The HOME Investment Partnerships Program, for example, is a homeowner rehabilitation initiative that helps owners make repairs and renovations. Rehabilitation assistance may include grants and affordable loans available to borrowers who have trouble qualifying for loans through private lenders.
Title I Property Improvement Loan
Title I Property Improvement Loans are loans backed by the government and help low- and moderate-income borrowers make upgrades that improve the “livability and utility” of a home. This program lets you borrow up to $7,500 through an unsecured loan or up to $25,000 if your home secures the loan.
While lenders will check your credit history for approval, there are no minimum credit requirements, so you may be able to qualify with less-than-perfect credit.
Family Loans
If you know someone in a financial position to lend money, the last resort could be asking for a loan to make repairs and upgrades to your home. However, family loans may have tax implications for the person lending if you borrow over $10,000.
Before going this route, be sure to get the terms, repayment schedule and interest rate in writing so both you and the person lending you money are on the same page about how the loan will be repaid.
Methodology
We reviewed popular lenders based on 16 data points in the categories of loan details, loan costs, eligibility and accessibility, customer experience and the application process. We chose lenders that have a minimum credit score requirement of 600 or lower and ranked them based on the weighting assigned to each category:
- Eligibility and accessibility: 30%
- Loan cost: 25%
- Loan details: 20%
- Customer experience: 15%
- Application process: 10%
Within each category, we also considered several characteristics, including loan amounts, repayment terms, APR ranges and applicable fees. We also looked at whether each lender accepts co-signers or joint applications and the geographic availability of the lender. Finally, we evaluated each provider’s customer support tools, borrower perks and features that simplify the borrowing process—like prequalification and mobile apps.
Where appropriate, we awarded partial points depending on how well a lender met each criterion.
To learn more about how Forbes Advisor rates lenders, and our editorial process, check out our Loans Rating & Review Methodology.
Frequently Asked Questions (FAQs)
What credit score is needed to get a home improvement loan?
Credit score requirements can vary by lender, but a score of 600 or above is often required to get an unsecured loan. In some cases, lenders may accept a credit score as low as 560.
What can you use a home improvement loan for?
You can use a home improvement loan for pretty much any expense you want, like for covering the cost of a bathroom remodel, a home upgrade, new furniture, and more.
How much can you borrow in a home improvement loan?
Loan limits vary by lender, but you may be able to borrow up to $35,000 or $50,000 for home renovations. Factors like your credit and income can impact the loan amounts you’re offered.