Fence Financing Options: Smart Financing Tips
- To finance a fence, you can use retail financing, rewards credit cards, home equity loans, HELOCs and home improvement loans.
- Different fence financing options have different credit requirements and interest rates.
- Paying in cash may be better (if you can afford it), since you’ll avoid costly debt.
A new fence can give you better privacy and security, as well as add to your home’s appeal, but it can cost anywhere from $1,800 to $7,000, depending on size, materials and other factors.
The good news is that you don’t necessarily have to pay that total all at once if you can find fence financing that fits your budget and credit score.
Retail financing
Retail financing is usually available from fence contractors or big box retailers, bypassing the need to find a lender. It allows you to break up the costs into installments over time.
You can also get retail fence financing in the form of a credit card. For example, Lowe’s and Home Depot offer home improvement credit cards that may allow you to charge purchases and can have special financing offers, like a limited-time 0% annual percentage rate (APR).
This can be convenient, but compare other financing options to make sure you don’t end up paying a higher interest rate than you need to.
Home improvement loan
A home improvement loan can be used to finance many projects, including fencing. Top home improvement lenders have rates as low as 5%-7%, for amounts from $1,000 up to $100,000 or more. Terms typically range from one to five years.
To qualify, you’ll usually need a credit score of at least 600, though this depends on the lender. The higher your credit score, the better the rates you’ll usually get.
You can also have LendingTree help find a home improvement loan tailored to their needs, via one online form.
HELOC or home equity loan
If you’ve built up home equity, or your home is now worth more than what you owe, you may be able to get a home equity loan or a home equity line of credit (HELOC) to fund your fence.
- A home equity loan lets you borrow a lump sum of money, using your home as collateral and repaying the loan in installments. If you know your fencing costs and you have enough equity in your home, this option could make sense.
- A HELOC also lets you borrow against your equity, but instead of a lump sum, you can borrow what you need, up to a limit, and repay it as you can, until the end of the “draw period.” After that, you’d be given a set amount of time to pay back any remaining debt. This flexibility can make a HELOC useful for higher-cost fencing projects.
If you’re interested in a home equity loan or HELOC, LendingTree can let you compare customized quotes that could be a better deal than unsecured options, like retail financing or credit cards.
Rewards credit card
Some credit cards let you earn rewards, such as cash back, miles or other rewards points. You could charge your fencing costs to an existing rewards credit card and enjoy the benefits.
Or you could look for a credit card with 0% APR for an introductory time period. If you can repay the cost of a fence before the 0% period ends, you’ll get your fence financed for free.
Either way, the key here is paying off the balance as quickly as possible. If you carry a balance from month to month, for example, your charges could be subject to a high APR. That would eat into the value of the rewards you may earn.
Cash
If you have enough money to cover your fencing costs, it’s often best to pay cash so you can avoid interest and not have debt hanging over your head.
On the other hand, if you need cash for an emergency fund or you have pressing needs that might cause you to borrow anyway, affordable fence financing could be a good idea.
Which fence financing option is right for you?
| Option | Best for… | Pros | Cons |
|---|---|---|---|
| Retail financing | Convenience | No need to find a lender May come with promotional offers | Can be more expensive Choices may be limited |
| Home improvement loan | Those with good credit | Competitive rates Wide array of options Can get large-dollar loans | May require good credit score — otherwise rates can be high |
| HELOC or home equity loan | Those with enough equity in their home | Can borrow in a lump sum or a little at a time May offer long repayment terms | You need enough equity to borrow Your home is collateral, risking foreclosure |
| Rewards credit card | Those who can repay the debt quickly | May come with a 0% interest period Lets you access card rewards | Can come with high APR if you carry a balance |
| Cash | Those who have enough saved | No interest No credit needed | Could tie up money you may need later |
Frequently asked questions
The cheapest fencing option may be to build it yourself. You won’t pay for labor and can even source cheaper material like hog wire if you need to.
If you need to finance a fence, the best option may be to use a credit card with a 0% introductory rate, so long as you pay off the balance before the interest charges begin.
Adding a fence can help increase your home’s value, averaging a return of about 50% of the invested amount. But the value your new fence may add also depends on the materials used, as well as the fence size and quality.
You may still be able to get fence financing if you have bad credit, but you’ll likely pay higher interest rates than those with higher credit scores. You can check our list of the best loans for bad credit, as well as ask for options at your current bank or credit union.
Yes, many companies that install fences also have in-house financing. This can streamline the process, since everything is done through the same company. But still be sure to compare rates with other fence financing options before deciding.
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