Best Deck Financing of April 2024

Adding a deck or patio to your home can offer greater outdoor functionality and possibly increase your property’s resale value, but one can cost thousands of dollars to build. Deck financing lets you cover this home improvement project, even if you don’t have cash saved up for it.

There are many ways to finance a new deck, including with a personal loan. To help you find the financing solution that’s right for your needs, we’ve compiled an overview of some personal loan options to get you started.

Compare deck financing rates of April 2024

Best deck financing

Personal loans offer fixed-rate financing that you can repay over multiple years. Based on data that we’ve gathered across multiple lenders and loan products, here are a few lenders that offer competitive deck-financing loans.

SoFi: Best overall

Upgrade: Best for fair credit

Discover: Best for no origination fees (and low rates)

Universal Credit: Best debt consolidation loans for bad credit

LightStream: Best home improvement loans and low rates

Best Egg: Best for high close rates if pre-approved

Upstart: Best fast personal loans for all credit types

Methodology

Credible evaluated the best deck financing based on factors such as customer experience, minimum fixed rate, maximum loan amount, funding time, loan terms, fees, discounts, and whether cosigners are accepted. 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.

Cost to build a deck

The average cost for a deck addition is $8,056, but most will pay between $4,350 and $12,324, according to HomeAdvisor, with the site estimating costs between $30 and $60 per square foot, including labor and materials. But the exact cost you’ll face for your project depends on a few factors.

These include the size, your location, leveling, feature add-ons like built-in lighting or an attached bar, labor, and desired materials. If you have an existing deck that needs demolition, this can add to your overall cost, too.

Additionally, if you’re considering deck financing, you’ll need to budget for interest and fees. This is presented as the annual percentage rate (APR) on your financing agreement, which accounts for the interest rate and any upfront fees.

How does deck financing work?

Deck financing lets you pay for deck construction costs in bite-sized fixed payments over time. Having the convenience of paying for your deck in installments typically means you’ll be charged additional fees, interest, or both, on top of the base project cost.

Financing is offered by brick-and-mortar financial institutions like banks and credit unions, as well as online lenders. Some contractors also offer their own in-house deck financing options. You might look into financing a deck if you don’t have money saved in advance for it, or simply if you want to make smaller payments over time.

Types of deck financing

Below are common ways to pay for your deck addition.

Personal loans

A personal loan is an installment loan that can offer a lump-sum disbursement upfront at a fixed APR. These loans are sometimes called deck loans or home improvement loans. Repayment terms range from one to seven years — though they can range longer for some home improvement loans — with loan amounts up to $100,000 or more, depending on the lender. The average interest rate for a 24-month personal loan was 12.49% as of February 2024, according to the Federal Reserve, more preferable than the average on credit cards, 21.59%.

The lender can often send the funds as soon as the same or next business day after you are approved. Once you get your funds, you’ll begin making monthly payments to repay the loan immediately. Fees vary by lender, and interest rates are based on your credit, loan amount, and term.

You may be able to get a personal loan even if you have bad credit. Keep in mind that you’ll likely receive a higher APR, which means a higher overall cost of your loan.

Aside from a personal loan, you can also consider a personal line of credit. Much like a credit card, a line of credit is a form of revolving credit that allows you to draw from your line as needed, up to a certain amount.

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Contractor financing

You can also explore financing options directly through your contractor or deck builder. Some contractors offer their own loan solutions that help you pay for the deck you’ve been dreaming of, even if you don’t have cash ready to go.

Like personal loans, contractor financing charges interest and might tack on fees. Remember, not all contractors offer financing. If yours does, compare its financing option against other alternatives to see which solution offers the best value for you.

No-interest credit card

A 0% APR credit card is a card with a limited-time interest rate promotion that’s typically offered to individuals with strong credit. This zero-interest period might last a few months to a couple of years.

On a traditional credit card, any purchase balance that rolls over into the next billing cycle incurs interest. However, with a no-interest card, rolled-over balances on the credit card during the promotional period don’t accrue interest charges.

This financing option lets you make smaller installment payments toward your new deck over multiple months, without interest. However, ensure you can pay the total balance before the promotional period ends. Any balance leftover after the 0% APR offer expires accrues interest moving forward. Typical credit card APRs are higher than average personal loan rates, so letting your deck expenses carry past the promotional window can be costly.

Home equity-based financing

You can also use the amassed equity in your home to finance a deck project. Home equity is the difference between the resale value of your home and what’s left on your mortgage. Generally, lenders limit how much you can borrow to no more than 80% of your home's equity.

Financing options include a home equity loan or a home equity line of credit (HELOC). A home equity loan is a fixed, lump-sum distribution that usually offers a fixed rate. You’ll repay it in equal monthly installments over time, plus interest and fees.

A HELOC is a revolving credit line that you can borrow against, as needed, for a specified “draw” period. Typically, it has a variable rate that can change multiple times. Variable rates carry the risk of higher payments if rates increase.

After the draw period, you’ll repay the full amount or make lower payments over a predetermined term.

How to finance a deck

There’s no one right way to finance a new deck. But whether you’ve decided to pay for your deck through a personal loan or another method, you’ll need to go through a few preliminary steps to get financed.

1. Check your credit

Your credit score influences your financing options. The higher your score, the more you’ll qualify for competitive rates and favorable repayment terms. Checking your credit score and credit report offers a glimpse into your financing eligibility and where you stand. You can request free credit reports at AnnualCreditReport.com to ensure your data is accurate.

2. Determine how much your deck will cost

Your deck concept (materials, features, placement, size, etc.) greatly influences how much you’ll need to finance. Home improvement stores, like Home Depot, offer deck calculators that can give you a baseline.

You can also get quotes from local contractors, however. This can give you a more accurate idea of how much financing you might need to execute your vision in your area.

3. Compare quotes

Since all lenders have their own underwriting criteria, their offers will also differ. Get prequalified for loan financing with a handful of lenders. Prequalification requires your basic information and a soft credit inquiry, which doesn’t affect your credit. However, prequalification is not an offer of credit, so once you receive your final rate, it may be different.

Pay attention to the loan amount you’ve been prequalified for, as well as the APR, term, and other discounts that might be offered for things like autopay. Additionally, compare third-party reviews and learn about past customers’ experience with the lender’s customer support team and pain points they’ve encountered.

4. Fill out an application

Complete a financing application for the loan you’d like to accept. Once you formally apply, the lender will perform a hard credit pull, which will temporarily hurt your credit score.

Many personal loan lenders accept online applications, and some lenders offer decisions within one to two business days.

5. Submit documents

After sending your application, the lender might request supporting documents or more information, like proof of income such as pay stubs. This might happen before or shortly after a loan decision. Submit any requests immediately to limit delays in this process.

6. Make installment payments

If your deck loan application is approved, the funds will be disbursed. You’ll receive the money as a one-time lump sum.

Unless your loan agreement specifies it, there’s typically no grace period for repayment on personal loans. You’ll start making monthly payments toward the loan as soon as you get the money for your project.

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How to compare deck financing lenders

Once you’ve prequalified with multiple lenders, consider how each lender and loan type fulfills your requirements in the following categories:

• Time to fund: How soon do you need the money? Personal loans can fund as soon as the same day in some cases, while home equity loans and HELOCs can take a month or more. Lenders should be able to give you an idea of when your loan funds could be available.
• APR: Look to APR over interest rate to compare borrowing costs between similar loan types.
• Loan amount: Choose a lender that can deliver the funds you need. If you’d prefer a home equity loan, but don’t have enough equity to finance a deck, consider supplementing with a personal loan.
• Delivery of funds: Do you need a lump sum at once? Or would you prefer to borrow in installments as needed? If it’s the latter, a HELOC or credit card may be better suited to your needs.
• Repayment terms: How long do you need to pay back the loan? A low-interest or 0% credit card may have a short repayment window, up to two years. While a personal loan for deck financing could be repaid over 12 years, depending on the lender. If you’d prefer to wait on making payments, a HELOC requires minimal repayment during the draw period, which could last up to 10 years.
• Fees: Some personal loans charge an upfront origination fee, which can range from less than 1% to 12% of the loan amount, depending on your credit. Home equity loans and HELOCs may have closing costs up to 6% of the loan amount. Consider how each lender’s fees compare.
• Cosigner option: If you’re struggling to secure a good rate on a loan, consider lenders that let you apply with a cosigner. A cosigner is someone who’s equally responsible for the loan, and serves as a backup if you stop making payments. Note that cosigners should have good credit to help you qualify, and any late payments you make could impact their credit as well as yours.
• Secured vs. unsecured: If you have the home equity, are you comfortable using your home as collateral? If not, look to a personal loan if you need a long-term home improvement loan.

Deck financing FAQ

Is it smart to finance a deck?

Financing a deck can be useful if you don’t have cash upfront to cover the construction cost. Thinking longer term, the latest data from the Journal of Light Construction found that adding a wood deck to your home can increase your home’s resale value enough to recoup 50.2% of the cost to build one, on average.

Can you pay for a deck in installments?

Yes, you can explore deck financing options through a handful of sources. Home improvement loans, financing through your contractor, and a 0% APR credit card are a few ways to pay for a deck in installments. When paying in installments, interest charges and fees might be added to your loan amount, so make sure you budget for this added expense.

How long can you finance a deck?

Financing a deck using a personal loan offers repayment terms from one to seven years. How long you can finance a deck depends on your lender and its repayment options. Keep in mind a longer loan term means the more interest you’ll pay. This impacts your overall cost toward paying for your deck project.

Loan Amounts:

• $5,000 Loan
• $10,000 Loan
• $30,000 Loan
• $40,000 Loan
• $45,000 Loan
• $60,000 Loan
• $80,000 Loan
• $100,000 Loan