5 Options for Fence Financing
White picket fences may sound idyllic, but the cost of installation can quickly add up to thousands of dollars, depending on the size of your yard and the materials you use. This can make it difficult to repair or get a new fence if you don’t have the cash on hand. Fortunately, there are other low-cost ways to fund your fence financing project.
1. Retail financing
As you shop around for fencing supplies, be sure to check with home improvement retailers in your area like Lowe’s and Home Depot, which may offer zero-interest promotions on fence financing.
Lowe’s financing options are all tied to the Lowe’s Advantage Card:
- Six-month special financing: If you spend at least $299 on your Lowe’s Advantage Card and pay it off within six months, you can avoid paying any interest on your purchase. If you don’t pay off the entire balance within six months, you’ll be charged deferred interest from the purchase date. Annual percentage rates (APRs) for new accounts are 31.99% variable.
- 84-month fixed-pay financing: If you want longer than six months to pay off your fence, Lowe’s also offers an 84-month fixed-pay financing option for purchases that are $2,000 or more. If you qualify, you would have fixed monthly payments for 84 months at 9.99% APR.
- In-home-consultant program: Should you need to finance more than $2,500, you also have the option of using the Lowe’s in-home-consultant program. A Lowe’s consultant will visit your home to determine the scope of the project and provide a custom quote. Then, you would have fixed payments for 120 months at 9.99% APR. This option is for in-home consultant sales only and is available until January 31, 2024.
Home Depot financing options include the Home Depot Consumer Credit Card (offered through Citibank) and the Project Loan program, issued by GreenSky®:
- Home Depot Consumer Credit Card: If your fence costs you $299 or more and you can pay it off within six months, you won’t have to pay any interest. With special financing, you may even have up to 24 months to pay it off interest-free. Standard APR is 17.99% – 26.99%.
- Project Loan: If your fence project ends up costing a pretty penny, Home Depot’s Project Loan offers funds up to $55,000. The loan comes with fixed payments and APRs as low as 7.42%, depending on the length of the loan.
2. Apply for a home improvement loan
A home improvement loan — a type of personal loan — is an unsecured form of debt that can be used to fund your fence installation. Personal loans come with fixed APRs, terms and loan payments, so you’ll know how much you’ll pay each month and when the loan will be completely repaid.
Since home improvement loans are unsecured, creditors will rely heavily on your credit to determine whether to lend you money. Therefore, you’ll want to make sure your credit is in good shape before you apply for a personal loan.
3. Consider a HELOC or home equity loan
Home equity loans and home equity lines of credit (HELOC) are forms of financing that draw from the equity you’ve built in your home. Both can be great options for homeowners, but there are key differences you’ll want to carefully consider.
A home equity loan is a loan you can take out against your home. However, you generally can’t borrow against all your equity. Lenders typically limit your loan-to-value (LTV) ratio — how much of your home’s value you can borrow — to 85%. Like a personal loan, a home equity loan has fixed rates, terms and monthly payments.
A home equity line of credit works like a credit card. Drawing from your home’s equity like a form of revolving credit, you can borrow money as you need instead of getting a lump sum of cash. HELOCs come with variable interest rates and homeowners can often borrow up to 90% of their equity.
Pros
- Can tap into your home’s equity
- May access lower rates than unsecured debt
- May be able to borrow more money than with other forms of credit
Cons
- Debt is secured by your home, so you risk foreclosure if you can’t repay the loan
- Not available if you haven’t built equity
- Rates may be higher than traditional mortgages
4. Use a rewards credit card
Rewards credit cards are another way to finance your fence project, and you can also earn benefits like cash back and travel rewards with this option. Depending on the credit card, you may receive rewards at a flat rate any time you swipe your card or only for certain purchases.
If you qualify for a 0% APR credit card, you can avoid paying interest during the promotional period, often 12 to 21 months. This can save you money, as your entire monthly payment will go directly to repay the principal. Just be sure to pay off the balance before the promotional period ends or you’ll have to pay interest on the remaining amount.
Pros
- Cash back rewards can help offset costs for fence installation
- May earn travel, points or cash back rewards
- May receive a sign-up bonus
Cons
- Rewards caps may limit how much you can earn on your purchases
- Some cards charge annual fees
- Good credit is often required
5. Save up and pay cash
For some people — particularly those with bad credit or a lot of existing debt — saving up for your fence project instead of taking on new debt may be the best route. This option can save you money since you won’t have to worry about paying fees or interest on a loan or credit card.
On the other hand, if your fence is in need of emergency repair or replacement, you may not have time to save enough money. You also miss out on the opportunity to build your credit with on-time payments.
Pros
- Avoids increasing your debt-to-income ratio
- Don’t need to have good credit
- Can save money by avoiding interest and fees
Cons
- Miss opportunity to build credit
- Can take time to save up enough cash
- May not be feasible if you don’t have room in your budget for savings
The information related to the Lowe’s Advantage Card and the Home Depot Consumer Credit Card has been independently collected by LendingTree and has not been reviewed or provided by the issuer of the card prior to publication.
Frequently asked questions
Yes, you can finance a fence but you may need to have good credit to meet credit card or loan requirements. Bad credit can make it difficult to qualify for financing and, if you’re eligible, you may get stuck paying high APRs and fees.
The credit score you need for a fence loan depends on a lender. However, if you want APRs below 22%, you’ll likely need to have a credit score of at least 680, according to LendingTree data on closed personal loans for the first quarter of 2023.
Not only can bad credit make it difficult to qualify for a loan, but it can also stick you with high interest rates and make fence financing more expensive. However, bad-credit personal loans are available to consumers who need financing right away and don’t have the time to work on improving their credit scores before building or repairing their fence.
According to Home Depot, the average fencing cost for a fence project was $6,700 in 2022. The cost of your fence depends on the dimensions of your yard, the material you use, where you live and the cost of labor.
Yes — if you hire a company to install your fence, be sure to ask if it offers in-house financing options. This can streamline the entire process as you can finance and install your fence all through the same company. At the same time, be sure to compare rates to other fence financing options before signing on the dotted line.
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