Credible takeaways
- Having an in-ground pool put in can be expensive, but loans can make paying for it manageable.
- You can use a personal loan to finance a pool, or a home equity loan if you have sufficient equity in your home.
- Consider applying with a cosigner if your credit is poor to receive more favorable terms.
Building a pool can be expensive. According to HomeAdvisor, an in-ground pool can cost up to $66,500 to install, though the price can be even higher, depending on the features you want. Common pool loan options include home equity loans, home equity lines of credit (HELOCs), and personal loans. All pool loans work by letting you spread payments over a period of time, with interest.
Here's a look at some of the best pool loans available, as well as an overview of how to apply for a pool loan.
Compare pool loan rates of March 2024
Advertiser DisclosureOverview
Lightstream is one of three Credible partner lenders to offer loan amounts up to $100,000, which makes it ideal for financing large expenses like home improvements or weddings. Funds are available as soon as the same day you apply, and you'll have up to 12 years to repay certain types of loans, including home improvement loans, RV loans, and boat loans. There are no origination fees, and rates are low — as of this writing, Lightstream's lowest APR beats SoFi's advertised lowest APR by 1 percentage point. But you'll need good credit to qualify.
Note that unlike most lenders, Lightstream does not let you prequalify. Nor does it provide a contact phone number next to its customer service hours on its website.
Repayment terms
2 - 12 years, depending on loan purpose
Eligibility
Available in all states except RI and VT
Time to get funds
As soon as the next business day
Loan uses
Credit card refinancing, debt consolidation, home improvement, and other purposes
Read full reviewOverview
Upstart has one of the lowest available APRs of Credible partner lenders and of all non-partners we reviewed, making it a good choice for well-qualified applicants. However, it's also is one of few lenders that doesn't have a minimum credit score requirement (if you apply on the lender's website), which makes it an option if you have bad credit or no credit history. Upstart may charge an origination fee as high as 12%, but good-credit borrowers may not be charged one at all.
Trustpilot gives Upstart 4.9 stars, which is the highest of all lenders we reviewed.
Time to get funds
As soon as 1 to 3 business days
Loan uses
Pay off credit cards, consolidate debt, relocate, make a large purchase, and other purposes
Read full reviewOverview
Discover Personal Loans offers low APRs, repayment terms up to seven years, no origination fees, nationwide availability, and doesn't require your Social Security number to prequalify on its site. You'll need to have an annual income of at least $40,000, and a FICO score 660 or higher, to be eligible. If your credit score is fair or poor, you'll need to go elsewhere, as Discover doesn't allow cosigners.
Funds are available as soon as the next business day after loan approval.
Eligibility
Available in all 50 states
Time to get funds
Funds can be sent as soon as the next business day after acceptance
Loan uses
Auto repair, credit card refinancing, debt consolidation, home remodel or repair, major purchase, medical expenses, taxes, vacation, and wedding
Read full reviewOverview
PenFed is a credit union that offers personal loans to applicants with good credit. Though you'll need to become a member to receive a loan, membership is open to everyone. PenFed shines with no origination fees, small available loan amounts, and low interest rates. If you don't have a FICO score above 700, you may not qualify on your own, but can apply with a cosigner with good credit — which is not something most lenders offer.
PenFed doesn't have a minimum income amount, and offers live chat and an entirely online loan application process.
Fees
Unsuccessful payment fee, late fee
Time to get funds
Typically 1 to 2 business days after verification
Loan uses
Debt consolidation, home improvement, credit card refinancing
Read full reviewOverview
Upgrade has a suite of features that make it a very attractive lender: competitive interest rates, discounts for direct pay and autopay, as soon as same-day funding, up to seven-year repayment terms, and nationwide availability. Plus, loans are available to fair-credit borrowers, and you don't need to input your Social Security number to prequalify on the website. Upgrade even offers secured personal loans, which is not common among lenders.
However, Upgrade does charge an origination fee of 1.85% to 9.99%. You must have a FICO score of at least 600 and a minimum income of $25,000 annually to qualify.
Loan amount
$1,000 to $50,000 ($3,005 minimum in GA; $6,600 minimum in MA)
Loan uses
Credit card refinancing, debt consolidation, home improvement, major purchase, other
Read full reviewOverview
SoFi stands out for offering no-fee personal loans with competitive rates, high loan amounts, long loan terms, discounts for autopay and direct pay, and funding as soon as the same day. Plus, SoFi prioritizes convenience for existing and potential customers with features like live chat and an easy prequalification process that doesn't require your Social Security number. Once you have a loan with SoFi, you may be eligible for unemployment protection and unemployment assistance.
The main catch is that you need to qualify for a loan with SoFi, which can be hard to do if you don't have good credit. You also won't be able to apply with a cosigner, since SoFi doesn't accept cosigners; nor does it offer secured personal loans.
Fees
Option to pay an origination fee (up to 6%) in exchange for a lower rate
Time to get funds
Typically within a few days, given approval and bank account verification, but sometimes within the same day
Loan uses
Solely for personal, family, or household uses
Read full reviewOverview
Best Egg is a solid lender for a wide range of borrowers. It offers competitive rates, reasonable loan terms and amounts, and personal loans for fair credit. You'll need a FICO score of at least 600 to qualify, but the lower your score, the higher your APR may be. The APR includes the interest rate and origination fees, which range from 0.99% to 8.99% with Best Egg.
Note that if you successfully prequalify with Best Egg, you may be more likely to be approved for the loan relative to other lenders you prequalify with. Based on Credible data, borrowers who chose to apply for a loan with Best Egg were more than twice as likely to be approved (relative to most other Credible partners).
Fees
Origination fee, late fee, unsuccessful payment fee, check processing fee
Eligibility
Available in all states except DC, IA, VT, and WV
Time to get funds
As soon as 1 to 3 business days after successful verification
Loan uses
Credit card refinancing, debt consolidation, home improvement, and other purposes
Read full reviewOverview
LendingClub is a solid lender for good credit borrowers and some fair credit borrowers that apply directly on its website. It's easy to prequalify with LendingClub, especially if you're uncomfortable providing your Social Security number, as the company doesn't require it at the prequalification stage. (You will need to provide it if you move forward with a full application.)
While prequalification is not a guarantee that you'll be approved for a loan, LendingClub does a better job than most other Credible partner lenders at approving applicants that have successfully prequalified. In other words, you're less likely to have your application declined once you apply (if you've already prequalified). LendingClub may charge an origination fee between 3% and 6%.
Eligibility
Available in all 50 states
Time to get funds
Usually takes about 2 days
Loan uses
Debt consolidation, paying off credit cards
Read full reviewOverview
Avant personal loans are a good choice for borrowers with bad credit looking for small- to moderate-sized personal loans. Loans are available up to $35,000 and you could get the money as soon as the next business day after approval. Plus, Avant is more likely than some lenders to approve the applications of borrowers who've prequalified with Avant. However, the lender charges an origination fee up to 4.75%, and its top-range interest rates are among the highest of the lenders we reviewed.
Fees
Origination fee, late fee, dishonored payment fee
Eligibility
Available in all states except HI, IA, MA, ME, NY, VT, and WV
Time to get funds
As soon as the next business day (if approved by 4:30 p.m. CT on a weekday)
Loan uses
Debt consolidation, emergency expense, life event, home improvement, and other purposes
Repayment terms
1 to 5 years (2 to 5 years through Credible)
Read full reviewOverview
It’s worth considering a personal loan through Splash if you have good credit (ideally, a FICO score above 710). The platform offers loans from a wide range of lenders, and next-day funding is available. Plus, Splash has a live chat feature so you can get real-time answers without having to wait on hold or for an email. Loans are available up to $100,000 if you apply via Splash’s website.
Rates are competitive, but borrowers with excellent credit may find lower APRs elsewhere. If you need a repayment term longer than five years, you’ll need to look elsewhere as well.
Loan amount
$5,000 - $100,000 (up to $35,000 on Credible)
Eligibility
Available in all states except VT. OH and NM net disbursed amount must be greater than $5,000. MA must be greater than $6,000
Time to get funds
Same day available, typically 1-3 days
Loan uses
Debt consolidation, home improvement, medical expenses, major purchases
Read full reviewOverview
Universal Credit is one of a handful of lenders that offers personal loans for bad credit. If your FICO credit score is at least 560, you may be eligible for a Universal Credit personal loan. It offers loan amounts up to $50,000, repayment terms up to seven years, and discounts for direct pay and autopay. Funds are available as soon as the next business day after loan approval.
Note that rates and fees can be relatively high — you may pay an origination fee from 5.25% to 9.99%, and APRs start at 11.69%. If you get a loan with a high interest rate, consider refinancing your personal loan at a lower rate once you've improved your credit score.
Eligibility
A U.S. citizen or permanent resident; not available in DC, IA, SC, WV
Time to get funds
As soon as 1 business day after acceptance
Loan uses
Debt consolidation, pay off credit cards, home improvements, unexpected expenses, home and auto repairs, weddings, and other major purchases
Read full reviewOverview
Happy Money has been in operation since 2009 (formerly known as Payoff). It's an option for fair-credit borrowers (plus those with better credit), and notably has a relatively low top-end APR. In other words, you could qualify for a lower rate with Happy Money with fair credit, relative to other lenders that offer fair-credit loans. The company does charge an origination fee on some loans, up to 5%, but that's not as high as some other lenders' origination fees.
You should be prepared to wait a few days to get your money, as funding can take three to five days once approved. And loans aren't available in Massachusetts or Nevada. Happy Money has an A+ rating with the BBB and is ideal for debt consolidation and credit card consolidation loans.
Eligibility
Available in all states except MA, MS, NV, and OH
Time to get funds
As soon as 2 - 5 business days after verification
Loan uses
Debt consolidation and credit card consolidation only
Read full reviewOverview
BHG Money stands out for offering the largest loan amounts — up to $200,000 — of any Credible partner lenders. Simply put, if you need an unsecured personal loan over $100,000, there are very few places to look, but BHG is one. You'll have up to 10 years to repay the loan, but you'll need an annual income of at least $100,000 to qualify and a FICO score that's 660 or higher. However, if you have a cosigner that meets these requirements, BHG will consider your application.
Loan amounts start at $20,000, so look elsewhere for small loans. And BHG charges a modest origination fee between 2% and 4%, depending on your financial profile. Loan funds are available within three to 14 days of loan approval. Note that you can't prequalify with BHG.
Fees
Origination fees, late fees
Eligibility
Available in all states except Maryland and Illinois
Loan uses
Debt consolidation, baby (adoption), engagement ring financing, moving (relocation), business, home improvement, special occasion, cosmetic procedures, major purchase, taxes, credit card refinancing, medical expenses, vacation, wedding, other
Read full reviewFees
Origination Fee, $15 Late Fee, $25 NSF Fee
Eligibility
Available in all states except CO, CT, ME, NV, NH, TN, VT, WV, WY, and all U.S. Territories
Time to get funds
Funds typically deposited into your account in 1 business day13
Loan uses
Debt consolidation, credit card refinancing
Read full reviewOverview
OneMain Financial has multiple options for bad-credit personal loans. The minimum credit score required is 540, which means you could get a loan with bad credit (FICO below 580). Plus, cosigners are allowed — a cosigner is someone (ideally, with good credit) who promises to repay the loan if you can't, which can make it easier to qualify or lower your rate. And, secured personal loans are available. You secure a loan with collateral, which may also help you qualify or lower your rate.
Rates are higher than competitors and OneMain charges origination fees as either a flat fee up to $500, or a percentage from 1% to 10% (depending on your state of residence). Note that even if you prequalify for a personal loan with OneMain, getting approved isn't a given.
Fees
Origination fee, unsuccessful payment fee, late fee
Eligibility
Must have photo I.D. issued by U.S. federal, state or local government
Time to get funds
As soon as 1 to 2 days after acceptance
Loan use
All except business, and education
Read full reviewBest pool loans
The best pool loans provide sufficient funds to get your pool project off the ground (or perhaps, in it) and don't rely on whether you have sufficient home equity to qualify. For this reason, we've considered personal loans below. But if you have more than enough home equity to pay for a new pool, and don't mind waiting a month for a home equity loan to close, you could potentially get a lower interest rate and a longer repayment term.
Loan Amount
$5000 to $100000
Min. Credit Score
Does not disclose
No fees required
Large loan amounts available
Autopay and direct pay discounts
Same day funding
Long loan terms available
Good credit required
5,000 minimum loan amount
Overview
SoFi stands out for offering no-fee personal loans with competitive rates, high loan amounts, long loan terms, discounts for autopay and direct pay, and funding as soon as the same day. Plus, SoFi prioritizes convenience for existing and potential customers with features like live chat and an easy prequalification process that doesn't require your Social Security number. Once you have a loan with SoFi, you may be eligible for unemployment protection and unemployment assistance.
The main catch is that you need to qualify for a loan with SoFi, which can be hard to do if you don't have good credit. You also won't be able to apply with a cosigner, since SoFi doesn't accept cosigners; nor does it offer secured personal loans.
Fees
Option to pay an origination fee (up to 6%) in exchange for a lower rate
Time to get funds
Typically within a few days, given approval and bank account verification, but sometimes within the same day
Loan uses
Solely for personal, family, or household uses
Best credit union for personal loans
Loan Amount
$600 to $50000
No origination fee
Allows cosigners
Small loan amounts available
May fund in 1 to 2 business days
No discounts
Good credit required
Overview
PenFed is a credit union that offers personal loans to applicants with good credit. Though you'll need to become a member to receive a loan, membership is open to everyone. PenFed shines with no origination fees, small available loan amounts, and low interest rates. If you don't have a FICO score above 700, you may not qualify on your own, but can apply with a cosigner with good credit — which is not something most lenders offer.
PenFed doesn't have a minimum income amount, and offers live chat and an entirely online loan application process.
Fees
Unsuccessful payment fee, late fee
Time to get funds
Typically 1 to 2 business days after verification
Loan uses
Debt consolidation, home improvement, credit card refinancing
Loan Amount
$1000 to $50000
Fair credit borrowers eligible
Autopay and direct pay discounts
Can fund in as little as 1 business day
Mobile app
Secured loans available
High maximum origination fee
Cosigners not accepted on home improvement loans
Low J.D. Power ranking
Overview
Upgrade has a suite of features that make it a very attractive lender: competitive interest rates, discounts for direct pay and autopay, as soon as same-day funding, up to seven-year repayment terms, and nationwide availability. Plus, loans are available to fair-credit borrowers, and you don't need to input your Social Security number to prequalify on the website. Upgrade even offers secured personal loans, which is not common among lenders.
However, Upgrade does charge an origination fee of 1.85% to 9.99%. You must have a FICO score of at least 600 and a minimum income of $25,000 annually to qualify.
Loan amount
$1,000 to $50,000 ($3,005 minimum in GA; $6,600 minimum in MA)
Loan uses
Credit card refinancing, debt consolidation, home improvement, major purchase, other
Best debt consolidation loans for bad credit
Loan Amount
$1000 to $50000
Borrowers with bad credit considered
No minimum income requirement
Autopay and direct pay discounts available
Can fund in one business day
High APRs
Potentially high origination fees
Not available in Iowa
Overview
Universal Credit is one of a handful of lenders that offers personal loans for bad credit. If your FICO credit score is at least 560, you may be eligible for a Universal Credit personal loan. It offers loan amounts up to $50,000, repayment terms up to seven years, and discounts for direct pay and autopay. Funds are available as soon as the next business day after loan approval.
Note that rates and fees can be relatively high — you may pay an origination fee from 5.25% to 9.99%, and APRs start at 11.69%. If you get a loan with a high interest rate, consider refinancing your personal loan at a lower rate once you've improved your credit score.
Eligibility
A U.S. citizen or permanent resident; not available in DC, IA, SC, WV
Time to get funds
As soon as 1 business day after acceptance
Loan uses
Debt consolidation, pay off credit cards, home improvements, unexpected expenses, home and auto repairs, weddings, and other major purchases
Best for home improvement loans and low rates
Loan Amount
$5000 to $100000
Same-day funding available
High maximum loan amount
No origination fee
Good credit required
No prequalification process
Not available in Vermont
Overview
Lightstream is one of three Credible partner lenders to offer loan amounts up to $100,000, which makes it ideal for financing large expenses like home improvements or weddings. Funds are available as soon as the same day you apply, and you'll have up to 12 years to repay certain types of loans, including home improvement loans, RV loans, and boat loans. There are no origination fees, and rates are low — as of this writing, Lightstream's lowest APR beats SoFi's advertised lowest APR by 1 percentage point. But you'll need good credit to qualify.
Note that unlike most lenders, Lightstream does not let you prequalify. Nor does it provide a contact phone number next to its customer service hours on its website.
Repayment terms
2 - 12 years, depending on loan purpose
Eligibility
Available in all states except RI and VT
Time to get funds
As soon as the next business day
Loan uses
Credit card refinancing, debt consolidation, home improvement, and other purposes
Loan Amount
$1000 to $40000
Mobile app
Low minimum income requirement
High close rate on loans made through Credible
Available in all states
Origination fee
No discounts
Only 3- and 5-year repayment terms available
Overview
LendingClub is a solid lender for good credit borrowers and some fair credit borrowers that apply directly on its website. It's easy to prequalify with LendingClub, especially if you're uncomfortable providing your Social Security number, as the company doesn't require it at the prequalification stage. (You will need to provide it if you move forward with a full application.)
While prequalification is not a guarantee that you'll be approved for a loan, LendingClub does a better job than most other Credible partner lenders at approving applicants that have successfully prequalified. In other words, you're less likely to have your application declined once you apply (if you've already prequalified). LendingClub may charge an origination fee between 3% and 6%.
Eligibility
Available in all 50 states
Time to get funds
Usually takes about 2 days
Loan uses
Debt consolidation, paying off credit cards
Loan Amount
$10000 to $50000
Long loan terms available
May fund in 1 to 2 days
Low minimum income requirement
Available in all states
Trustpilot score of 4.9/5 stars
High minimum loan amount
Origination fee
No discounts
Good credit required
Overview
Axos is one of few lenders that offers loans for business purposes. Plus, it has a low minimum income requirement, offers repayment terms up to 7 years, and is available in all states. But If you need a loan under $10,000, you'll need to look elsewhere. While this lender may charge an origination fee, it's fees are on the low side, topping out at 3%. You'll also want to have good credit to apply for a loan with Axos. You can expect to receive funds 1 to 2 business days after the loan is approved.
Eligibility
Available in all 50 states
Time to get funds
As soon as the next business day after successful verification
Loan uses
Debt consolidation, home improvement, self-employment, and other purposes
Best for large personal loans
Loan Amount
$20000 to $200000
Eligible applicants can borrow up to $200,000
Considers borrowers with fair credit
Long repayment terms
Cosigners allowed
Not available in MD or IL
No discounts
Minimum income required of $100,000 annually
Overview
BHG Money stands out for offering the largest loan amounts — up to $200,000 — of any Credible partner lenders. Simply put, if you need an unsecured personal loan over $100,000, there are very few places to look, but BHG is one. You'll have up to 10 years to repay the loan, but you'll need an annual income of at least $100,000 to qualify and a FICO score that's 660 or higher. However, if you have a cosigner that meets these requirements, BHG will consider your application.
Loan amounts start at $20,000, so look elsewhere for small loans. And BHG charges a modest origination fee between 2% and 4%, depending on your financial profile. Loan funds are available within three to 14 days of loan approval. Note that you can't prequalify with BHG.
Fees
Origination fees, late fees
Eligibility
Available in all states except Maryland and Illinois
Loan uses
Debt consolidation, baby (adoption), engagement ring financing, moving (relocation), business, home improvement, special occasion, cosmetic procedures, major purchase, taxes, credit card refinancing, medical expenses, vacation, wedding, other
Methodology
Credible evaluated the best personal loan lenders for pool loans based on factors such as customer experience, minimum fixed rate, maximum loan amount, funding time, loan terms, fees, discounts, and whether cosigners are allowed. Credible’s team of experts gathered information from each lender’s website, customer service department, directly from our partners, and via email support. Each data point was verified by a third party to make sure it was accurate and up to date.
Learn more about how Credible rates lenders by exploring our Personal Loans Lender Rating Methodology.
How do pool loans work?
Generally speaking, a pool loan lets you pay for your pool in installments over a period of years. This article focuses on using a personal loan to finance a swimming pool build. Personal loans do not require your home as collateral and rates are fixed once you take out the loan. Home equity loans and HELOCs, however, require your home as collateral and can have variable rates.
When you use a personal loan to pay for your pool, you receive the money upfront and pay it back over time, with interest. The amount you can get for a pool loan generally ranges up to $100,000 or more, depending on your income and credit profile. Repayment terms generally range between one and 12 years. Interest rates depend on your credit score and history, as well as the lender — for a two-year personal loan, the average rate was 11.48% as of May 2023, according to the Federal Reserve.
Since rates and available repayment terms vary between lenders, it’s crucial to shop around and prequalify with multiple lenders before deciding which loan to apply for. Prequalification lets you see rates and terms you may be approved for, but is not an offer of credit. It doesn’t impact your credit score, but note that once you formally apply for a loan, the lender will conduct a hard credit pull that could lower your credit score by a few points for up to a year.
Important
When shopping for pool loans, compare the annual percentage rate (APR) on each loan you prequalify for. The APR is a better indicator of loan cost than the interest rate alone since it also considers upfront fees, such as an origination fee.
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Types of pool loans
Pools are commonly financed by personal loans, home equity loans, HELOCs, and direct financing through the pool builder.
- Personal loans: Personal loans are typically unsecured, meaning collateral is not required. Amounts are available up to $200,000, and repayment terms can range up to 12 years. Since unsecured loans are riskier for lenders, they tend to have higher interest rates relative to secured loans.
- Home equity loans: A home equity loan uses the equity in your home as collateral on the loan. For this reason, you’re limited to the amount of equity you have, making these loans a poor choice for newly purchased homes. If you can’t repay a home equity loan, you could lose your home in foreclosure.
- Home equity line of credit (HELOC): Similar to a home equity loan, the amount you can access via a HELOC is likewise based on the equity in your home. Unlike a loan, where you receive the money upfront, you draw from a line of credit as needed. A HELOC also uses your home as collateral.
It's also possible to get a secured pool loan, meaning the loan will be backed by some type of collateral, such as your car or home. This could lower your interest rate or help you qualify. Note that you’d be at risk of losing the collateral if you're unable to pay back the loan.
Pros and cons of pool loans
If you're considering moving forward with a pool loan, here are the major upsides:
- Spreads out payments on a costly project: Perhaps the biggest advantage of a pool loan is that you don't have to fork over the full amount upfront. Pools can be costly, but adding one can be easier on your budget if you spread payments out over time.
- Often no collateral required: If you use a personal loan to finance your pool, you often won't have to put up collateral like you would with a home equity loan. Whenever you secure a loan with collateral, you risk losing it if you can’t keep up with payments.
- Fixed monthly payments: If you use a personal loan to finance your pool, payments are typically fixed through the entire term of the loan. Because you’ll know your monthly payment ahead of time, pool loan payments can be easy to budget.
- Improve your credit: With any loan that is reported to the credit bureaus, you have an opportunity to improve your credit through timely payments and eventually paying off the loan.
Meanwhile, these are a few downsides:
- Monthly payments could be high: If you have a high interest rate or choose a shorter loan term, the monthly payment could be steep. For instance, if you took out a 7-year pool loan for $50,000 with a 12% interest rate, you'd pay $883 per month.
- Potentially high interest cost: Paying for a pool is already a large undertaking, and it becomes even more expensive when you add the cost of interest. For example, on the $50,000 loan above, you’d pay $24,141 in interest over the course of the loan.
- Could hurt your credit: If you don’t make timely payments, your credit score could drop, which could reduce your ability to get favorable terms on future loans.
How to qualify for a pool loan
To qualify for a pool loan, you'll need to meet certain financial criteria. Typically, lenders consider the following factors:
- Credit score: Exact requirements vary by lender, but ideally you should have a good FICO credit score — 670 or higher — to qualify for the best rates. Some lenders may approve your loan even if you have bad credit, or a FICO score below 580, but be prepared to pay a high interest rate (the top interest rates on personal loans can be over 30%).
- Income and employment: Lenders want to see proof of income and employment when reviewing your application for a pool loan, such as paystubs, bank statements, or a copy of your W-2. They're looking for borrowers with a steady, reliable income to ensure they can repay the loan.
- Debt-to-income ratio: Additionally, lenders will look at your income compared to your existing debt obligations to ensure you have the financial footing to repay the loan and won’t be overextended. Most lenders prefer a debt-to-income ratio (DTI) below 35%.
- Co-borrower: If you’re applying for a pool loan with your spouse or partner, lenders will consider their financials as well.
- Cosigner: If you’re struggling to qualify for a pool loan due to bad credit, consider finding a cosigner — a friend or relative with good credit who’s willing to ‘vouch’ for you on the loan. Lenders that accept cosigners will consider their credit and income when you apply for a loan, but will also hold them liable if you can’t make payments.
Learn More: Co-applicant vs. Cosigner
How to apply for a pool loan
If you're applying for a pool loan, you'll generally need to go through the following steps:
- Get a pool estimate: Before you start shopping for loans, you’ll need to know how much you need to borrow. Many contractors and pool companies offer estimates at no cost, so aim to get at least a few to compare.
- Compare lenders: Beyond shopping around for pool companies and contractors, you'll also want to compare lenders. See which are likely to suit your needs and suss out what they're offering in terms of interest rates, loan amounts, discounts, and repayment terms. You'll also want to consider fees, like origination fees, and the lender's reputation.
- Prequalify with multiple lenders: Prequalifying helps you shop around and compare rates before committing to a loan. When you prequalify, a lender estimates what interest rate and loan terms you may qualify for, based on basic financial information you submit.
- Pick a loan option: Once you’ve prequalified with multiple lenders, choose the best loan for your financial situation and pool-building needs. Make sure the monthly payments fit your budget for the length of the repayment term you want.
- Complete the application: With your lender selected, it's time to submit your formal application. You'll need to provide personal information like your Social Security number and driver's license, and proof of employment, income, assets and liabilities. The application will involve a hard credit check, which will temporarily lower your credit score.
- Get your funds: If you're approved, you'll receive the funds you applied for (minus any origination fees charged). With a personal loan, you generally receive a lump sum upfront, though some pool loans may disburse funding in stages as the project moves forward.
Important
If a personal loan has an origination fee, that amount is typically deducted from the loan amount you applied for before you get your funds. In other words, loans with origination fees will remit less than the amount you applied for.
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FAQ
What is the minimum credit score required to qualify for a pool loan?
You may be able to qualify for a pool loan with a score in the upper 500s or low to mid 600s, but your rate will be high and you may need to offer collateral or get a cosigner. Minimum credit score requirements vary by lender, and some have no minimum.
Can I use a pool loan for other home improvement projects?
What you're permitted to use your loan funds for depends on the terms of your loan agreement. Often, personal loans can be used for a variety of purposes, including home improvement projects.
How long does it take to get approved for a pool loan?
How quickly you can get approved for a pool loan depends on the lender, as well as whether additional materials or information are needed beyond the application. Some lenders offer approval as soon as the same day you apply.
Are there any prepayment penalties for pool loans?
It's possible that there will be prepayment penalties for pool loans, though this depends on the lender. Check your loan agreement before committing to see whether or not you'll owe a fee for paying off your loan before the end of the term.
Can I get a pool loan if I have an existing mortgage on my home?
Yes, it is possible to get a pool loan even if you already have a mortgage. However, whether a lender will approve a pool loan depends, in part, on how much of your income is already going toward existing debts, such as your mortgage. Lenders prefer that borrowers' debt-to-income ratios are below 35%.
Loan Amounts:
Meet the expert:
Becca Stanek
Becca Stanek has worked as an editor and writer in the personal finance space since 2017. She previously served as the managing editor for investing and savings content at LendingTree and an editor at SmartAsset. Prior to that, she was a staff writer at The Week. She’s currently freelancing for publications including SoFi, Forbes, and The Week while she earns her MFA in creative writing.