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Personal Loans
Home improvements with a personal loan
Updated Sep 28, 2026
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Key takeaways:
You could use a personal loan as a home improvement loan.
Personal loans offer flexible funding that you can use to upgrade your home.
You can apply for an unsecured personal loan without pledging your home (or anything else) as collateral.
Your home provides security and contentment that's hard to find elsewhere. Give it some TLC with a home improvement loan.
Turning your home into a sanctuary that produces feelings of joy and peace can be immensely satisfying, but that often requires money. You don't have to borrow against your home to improve it, however. You don't even have to own the home (as long as you're doing improvements that are allowed).
A home improvement loan could help you renovate, upgrade, or repair whatever needs attention or TLC. Let's explore how a personal loan could help you improve your living space so you can feel more comfortable at home.
What is a personal loan for home improvement?
A personal loan for home improvement allows you to borrow money to fix up your home, usually without pledging something of value to the lender. This makes unsecured personal loans different from secured loans that require collateral. For instance, to get a home equity loan you pledge the home as a guarantee that you'll repay the loan.
Instead of putting up collateral, you'll qualify based on your credit standing, income, and other debts. Unsecured personal loans tend to range from about $5,000 to $50,000, although you can find them in smaller and larger amounts.
How much you can borrow depends on your income, your credit, and the debts you already carry. Lenders set their own limits, so borrowing ranges differ from one to the next. Size the loan to your project cost plus a small cushion for surprises so you cover the whole job.
The repayment period is usually between two and five years, and the length is your choice. You can spread a large expense over a timeframe that keeps it affordable.
Ways you can use your loan to improve your home
Most personal loans allow for freedom when choosing how to use the money. As a result, you could use your personal loan funds for a variety of projects around the house, including:
Remodel a kitchen or bathroom
Upgrade light fixtures and doors
Redo the flooring
Transform a room for a new purpose
Build a deck or patio
Install a sprinkler system
Add a fresh coat of paint to the whole house
Buy new appliances or furniture
Purchase or upgrade electronics or a smart home system
Install energy-efficient windows or insulation
These projects can breathe new life into your living space without the need for you to secure the loan with an asset like your home.
How to get a personal loan
Start by figuring out how much your project will cost. That gives you a baseline for how much you need to borrow. Then, start your search for the right lender.
Compare loan offers from at least three lenders so you can see the breadth of what's out there for you. Choose lenders that let you prequalify using a soft credit inquiry that won't impact your credit scores. Achieve Personal Loans could be a good place to start since you can prequalify in minutes.
Prequalification lets you see estimated rates and fees, though it's not a guarantee. Once you choose a loan, you'll submit a formal application, which causes a hard pull on your credit. A hard pull can make your score temporarily drop by a few points.
You'll provide proof of your identity and your contact information. The lender might also ask for documents like a driver's license, recent pay stubs, or bank statements. Once you submit everything, the lender decides whether you qualify. If approved, you can close on the loan and get your funds.
Benefits of using a personal loan for home renovations
As you weigh whether to use a personal loan for home improvement, consider the following potential upsides:
Unsecured loans typically have a straightforward application that doesn't require collateral or appraisals.
You can choose from a variety of repayment terms to meet your needs and make paying for the renovations manageable.
The right home improvements could increase your home's resale value.
Flexible loan funds mean money for a variety of projects, big or small.
Personal loan risks
Even though personal loans can work as home improvement loans, there are risks to keep in mind:
Anytime you apply for credit, it's likely to impact your credit score.
Until you pay down your home improvement loan, it could be harder to borrow money for other purposes.
Interest rates on unsecured personal loans tend to be a little higher than comparable secured loans (like home equity loans).
3 other ways to pay for home improvements
While a personal loan can be one way to pay for home improvements, it's not the only choice. You might also consider:
Home equity loan: If you have equity, you might be able to borrow against it with a home equity loan. This offers a one-time loan that uses your home as collateral. Borrowing against equity could allow for larger amounts and lower interest rates than personal loans.
Home equity line of credit (HELOC): A reusable credit line tied to your home, HELOCs can be more flexible than home equity loans. Many have variable rates, but a fixed rate HELOC could blend the benefits of a HELOC and home equity loan.
Credit card: A credit card could be a good fit to cover smaller projects, especially if you qualify for an introductory interest rate offer and you can pay off the balance quickly.
Consider the best approach for you. Sometimes it makes sense to use a home equity loan for remodeling. In other cases, a personal loan might offer better flexibility. Even a credit card might be the best choice if you can get special financing and pay off the balance quickly.
Author Information
Written by
Miranda Marquit is an award-winning financial writer and podcaster. Her work appears in numerous media outlets. She often hosts workshops and appears on panels on topics related to financial wellness. She is the co-host of the Money Talks News podcast and a consumer finance advocate.
Reviewed by
Kailey is a CERTIFIED FINANCIAL PLANNER® Professional and has been writing about finance, including credit cards, banking, insurance, and retirement, since 2013. Her advice has been featured in major publications, including The Motley Fool.
Frequently asked questions about using a personal loan for home improvements
If you want to avoid borrowing against the home (or you don't own the home), consider a personal loan. A personal loan has few restrictions on how you can use the money.
If you want the lowest interest rate or more than what you can get with a personal loan, consider borrowing against your home equity. A fixed-rate HELOC gives you a fixed interest rate and a draw period. You don't have to take the whole loan in one lump sum if you don't need all the money right away.
A home improvement loan is more straightforward to get than many people expect. You can apply online for either a personal loan or a home equity loan.
To qualify for a personal loan, you'll generally need fair credit or better and enough income to afford the payments. A home equity loan asks for similar credit and income, plus enough equity in your home. With a home equity loan, the lender also orders an appraisal or valuation to confirm your home's value.
A personal loan could have several advantages over credit card debt. Personal loans typically offer a fixed interest rate and payment amount, which makes budgeting and planning easier. Those rates are often much lower with a personal loan, too. It may also be easier to qualify for a larger personal loan amount than credit card limit, giving loans an edge if you need a large lump sum upfront.
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