Best Swimming Pool Loans

Only 8% of homes in the U.S. have a pool, according to the Pool and Hot Tub Alliance. Why the scarcity? Cost. Pools can be one of the most expensive additions to a home, often costing tens of thousands of dollars. Covering that kind of expense with cash may be impossible for many, but personal loans provide a relatively affordable (and quick) way to finance a swimming pool. Other options include home equity loans, home equity lines of credit, and contractor financing. 

Compare interest rates on pool loans

Best pool loans

Compared to home equity loans, personal loans can be quicker to get and don’t require an evaluation of your home’s worth to qualify. They can be a good option if you don’t have enough home equity to qualify for a home equity loan or line of credit, or if you don’t want to use your home’s equity as collateral. If you don’t have excellent credit, however, you could pay a higher interest rate on a personal loan compared to a loan secured by your home.

What are pool loans and how do they work?

Pool loans can be installment loans that disburse the money upfront and require a fixed monthly payment for the entire loan term. In other cases, they could be a revolving line of credit that you use to pay pool cost expenses as they’re due. Common types of installment loans used to finance a pool include personal loans and home equity loans. Revolving credit lines include HELOCs and credit cards. Builder financing may also be an option.

Pros and cons of personal loans for swimming pools

One of the biggest benefits of using a personal loan to finance your pool is that there is no home equity requirement — making personal loans an option for more homeowners.

Pros

• Fixed interest rate and monthly payments: Personal loans for pools have a predictable repayment schedule since your monthly payment and APR don’t change.
• No collateral required: Pool loans from personal loan lenders are typically unsecured, which means you don’t have to pledge any assets to get the loan. 
• Long- and short-term options: Lenders that provide pool loans tend to offer multiple repayment terms, which gives you flexibility to opt for a higher monthly payment and lower overall interest costs or a lower monthly payment and higher overall costs across a longer loan term.
• No home equity requirement: Since personal loans are not secured by your home’s equity, you don’t need a minimum amount of equity to qualify. 
• Quick funding: Also, since there’s no minimum home equity requirement, your home’s value doesn’t need to be appraised, which can lead to much quicker funding relative to home-equity-based loans.
• Can add value to your home: The added financing costs of a pool loan may make you hesitant to move forward, but once the pool is installed, you could expect a property value increase between 5% and 8%, according to HGTV. This should offset some of those loan costs.
• Purchasing power: Pools are expensive, and most homeowners could not pay out of pocket to have one installed. Taking out a pool loan means you can put in the pool of your dreams without having to drain your savings or compromise on the features you want.
• Money left for maintenance costs: By using a loan to pay for the pool, you’ll leave your savings untouched. That’s important because you’ll need to immediately start thinking about how you’ll pay for related costs, like ongoing pool maintenance, higher water bills, and higher homeowners insurance.

Cons

• Potential origination fees: Some lenders charge origination fees that can cost up to or over 10% of your loan amount. 
• Potential for high APRs: If you don’t have good credit and can qualify for a pool loan, you could pay an APR near 30%.
• Other improvements may have higher ROI: A pool can increase the value of your home, but you might not get the most bang for your buck. It might make more sense to take on debt for something with a higher return on investment (ROI), such as a new roof, a kitchen remodel, or new windows.
• Ongoing expenses: Monthly loan repayment for the next several years might make it more challenging to afford pool maintenance, higher water bills, and higher homeowners insurance.

How much do swimming pools cost?

You can expect to pay anywhere from $35,000 to $100,000 for an in-ground pool, says Karen Watts, founder of new-homeowner consulting firm DomiSource. However, that number can vary based on where you live, your pool’s size, and other costs such as custom shapes, decking, and heating.

For example, a basic pool may cost an average of $55,000 to $75,000 in Texas, says John Uhle, founding partner at Discount Salt Pool. However, a pool built with luxury accommodations such as a heater, lighting, fencing, and decking could easily cost more than $150,000, Watts says, once you factor in the add-ons, permits, and drainage work.

Pool costs with a personal loan

When you use a pool loan to finance the construction of your new swimming pool, you’ll have to budget for additional costs beyond the materials, permits, and labor. Personal loans for swimming pools come with interest and potentially origination fees.

Average personal loan rates for home improvement loans through the Credible marketplace typically range between 10% for borrowers with excellent credit to 31% for borrowers with poor credit.

The tables below show monthly interest payments and total interest paid for $35,000, $75,000, and $100,000 pool loans with different interest rates and repayment terms.

$35,000 pool loan, 3-year term

$75,000 pool loan, 5-year term

$100,000 pool loan, 7-year term

Use a personal loan calculator to determine how much you’d pay in interest based on the estimated cost of your pool, the interest rate you’re likely to qualify for, and your preferred loan repayment term.

How to compare pool financing options

Take your time when shopping for a personal loan to pay for a pool. Not all personal loans are created equal. Prequalify with several lenders and compare all the terms and conditions to choose the right option for you.

Know your credit score

Many lenders have minimum credit score requirements. Check your credit score for free using Credible's credit-monitoring tool and see how your score matches up with lenders you're considering.

Consider APRs

Personal loan APRs, or annual percentage rates, account for both the interest rate and any upfront lender fees, such as origination fees. APR represents the annualized cost of borrowing. With a purchase as big as a pool, getting a lower APR could save you a significant amount of money on interest.

Consider term length carefully

Choosing a shorter pool loan repayment term can save you a lot of money in interest, but it might not be the best move. The shorter the loan term, the higher the monthly payment becomes (since you’re paying the loan back in fewer months).

Adding a large loan payment to your monthly budget might be difficult, especially as your pool can also involve higher utility bills, maintenance costs, and an increased homeowners insurance premium. Try to find the best balance between a monthly payment you can comfortably afford and total interest costs over the life of the loan.

Prequalify with a handful of lenders

To make the best decision, prequalify with multiple lenders online. Review the fine print of each to understand:

• If each lender offers loan amounts large enough to cover the cost of the pool
• The APR being offered by each lender
• The repayment terms available to you
• The resulting monthly payment with each lender

How to get a pool loan

1. Get a pool estimate. Many contractors and pool companies offer estimates at no cost — get at least a few to compare.
2. Check your credit score and check your credit report for errors. Dispute any inaccurate or outdated information on your credit report before applying for a loan.
3. Prequalify with multiple lenders to get an idea of the rates and repayment terms you might be offered. Compare the results. 
4. Research lenders based on customer satisfaction, contact details, and any features important to you, like whether the lender has a mobile app.
5. Pick the loan quote and company that best fit your needs and start the application. 
6. Complete the application and wait for the lender’s decision. 
7. If you’re approved, you’ll receive a formal loan offer. Read the loan contract carefully to confirm that the rate, terms, monthly payment amount, and all fees are acceptable. 
8. Sign the loan agreement and related documents to initiate funding.

Other ways to pay for a swimming pool

Home equity line of credit (HELOC)

A HELOC is a popular way to pay for a swimming pool. HELOCs are a line of credit you take out against your home, and the amount you’re approved for is based on the equity you have in your home. 

HELOC rates tend to be lower than personal loans and credit cards. However, HELOC rates are variable, which means your rate could change over time based on market conditions. As a result, your monthly payment could change monthly as well. You could also lose your home if you can’t keep up with payments.

HELOCs are divided into draw and repayment periods. During the draw period, you can draw from your line of credit and make interest-only payments on what you pull out. During the repayment period, you can’t draw from your HELOC and your monthly payments include principal and interest.

Home equity loan

Home equity loans are very similar to personal loans in that you make fixed monthly payments based on a fixed interest rate, and you receive the money upfront. The big difference is that, like with a HELOC, you use your home as collateral, which means you could lose it if you default on payments. 

Contractor financing

The contractor you choose to build your pool may offer financing. If that’s an option, be sure to review the terms of the lender’s financing and prequalify (if you can) to get a sense of what your financing rate and terms would be. Some contractors may offer 0% promotions that allow you to make payments without interest for a certain number of months.

Methodology 

Credible evaluated 32 lenders across 1,216 data points to find the best pool loans among personal loan lenders. We feature lenders that offer loans for home improvement and one or more of the following factors: high loan amounts, low rates, and financing options for fair credit.

Lender star ratings were established based on the following weighted categories:

• Rates and fees: 18.75%
• Eligibility and options for bad and no credit: 17.5%
• Availability: 12.5%
• Loan amounts and terms: 10%
• Customer satisfaction: 10%
• Customer service: 10%
• Efficiency and fund delivery: 10%
• Discounts: 7.5%
• Credible proprietary data: 3.75%

Credible’s team of experts gathered information from each lender’s website and from our partners directly. We also considered each of our partner lenders’ statistics over a 12-month period — including average funding times, average credit scores for approved applicants, and average rates. Each data point is verified by a senior editor to make sure it’s accurate at the time of publication. 

Learn more about how Credible rates lenders by exploring our personal loans lender rating methodology.

Disclosure: Some lending partners that participate in Credible’s comparison marketplace offer loans to borrowers with scores as low as 550. Borrowers with low scores will have fewer lending options than borrowers with higher credit scores.