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Fence Financing: 5 Options, Including Personal Loans

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There’s a reason why white picket fences are synonymous with the American dream: They can keep pets and children safe at home while keeping intruders out. Fences come at a price, though, so you might need some form of fence financing for installation or maintenance.

The typical fence installation costs between $1,672 and $4,115, according to HomeAdvisor, a home improvement marketplace. While you might be able to budget for this on your own, you can utilize plenty of fence financing options. Read on to find the best option for you.

5 options for fence financing

  1. Seek financing options at retailers
  2. Open a personal loan for home improvement
  3. Consider a HELOC or home equity loan
  4. Charge a rewards credit card
  5. Budget months in advance and pay cash

1. Seek fence financing options at retailers

You might be able to secure a low interest rate ー or pay no interest at all ー if you work through a home improvement retailer. For example, Lowe’s Home Improvement has two fence financing promotion deals with the Lowe’s Advantage credit card, which is offered through Synchrony Bank:

  • 6-month special financing: If you pay off your project of $299 or more within six months, you’ll pay no interest using your Lowe’s Advantage Card. But if you haven’t paid off the amount within that promotional time frame, then interest will be charged to your account dating back to the purchase date.
  • 84-month fixed pay financing: For projects that cost $2,000 or more, you can get 84 fixed monthly payments at a reduced 7.99% APR using your Lowe’s Advantage Card. Standard APR is 26.99%.

Similarly, Home Depot also offers fence financing through the Home Depot Consumer Credit Card (offered through Citibank) and the Project Loan issued by GreenSky®, a loan program:

  • 6-month special financing: If you pay off your project of $299 or more within six months, you’ll pay no interest using your Home Depot Consumer Credit Card. But if you haven’t paid off the amount within that promotional time frame, then interest will be charged to your account dating back to the purchase date.
  • 84-month fixed pay financing: For projects that cost up to $55,000, you can get 66 fixed monthly payments at a reduced 7.42% APR with a Home Depot Project Loan.

For both Lowe’s and Home Depot, financing is subject to credit approval. You could also search for local fence companies that have financing options you can explore.

2. Borrow a fence loan, AKA a personal loan for home improvement

Another way to finance your fence installation project is to take out a personal loan. These types of loans are unsecured, which means that they don’t require collateral. Instead, lenders lean more heavily on your credit profile to determine eligibility.

See the table below to learn more about using a personal loan to build a fence.

Using a fence loan
Pros Cons
Personal loans are unsecured, so you don’t have to put up any collateral. With a secured loan, like a home equity loan, you risk losing your collateral if you fail to make payments. Interest rates can be high. The average personal loan APR for borrowers with a solid credit score (640 to 659) in Q1 2021 was 30.18%. Borrowers with scores over 720 saw an average APR of 10.73% while borrowers with credit scores below 560 saw an average APR of 156.11%.
You could improve your credit score, because issuers like using FICO to see that borrowers have a mix of credit types. You’ll have a hard time getting a favorable interest rate or even qualifying if you haven’t already established good credit.
You can use a personal loan to pay for virtually any type of home improvement. You can take out financing to build a fence, plus you could pay for any other home improvement project you have in mind. Interest is added on top of your return on investment, so it might not be worthwhile to complete the project if you’re looking to maximize value added to your home.
You’ll pay off the loan in equal monthly installments, so you’ll always know how much is due. Other financing options may offer better interest rates. These may include a store credit card with special financing or a secured loan like a home equity loan.

If you shop around for loans, prioritize lenders that allow you to prequalify and check rates without submitting to a hard credit check that can ding your credit score. With a variety of quotes in hand, you can make a more informed comparison of APRs and loan terms, among other details. Also, ask about each lender’s fee schedule to determine if there are hidden costs associated with some loan proposals and not others.

3. Consider a HELOC or home equity loan

Homeowners, listen up: if you have equity in your home, then you might be able to borrow money against your home’s value. Your equity is determined using this formula:

Value of your home – liens against it = Home equity

Let’s say your home is worth $250,000, and you have $140,000 left on your mortgage and no other liens. Here’s your equity:

$250,000 – $140,000 = $110,000

To take advantage of your equity, you could use a home equity loan or a home equity line of credit, or HELOC. Keep in mind that you won’t be able to access all of your equity, but rather up to 85% of it. How much you’re approved for is also dependent on creditworthiness.

Since you’re putting your home up as collateral, you’ll generally see lower interest rates than you would with an unsecured personal loan or a credit card. The finances you’re borrowing are secured against something you own, so you also might have an easier time qualifying for a home equity loan than a personal loan if you need fence financing with bad credit. (On the flipside, if you fail to make payments, you could lose your home.)

Plus, when you use your home equity to borrow the money, your interest payments will be tax deductible – a unique advantage to this financing option.

Fence financing: Home equity loan vs. home equity line of credit
Home equity loan HELOC
What it is A loan that uses your home equity as collateral A line of credit that uses your home equity as collateral
Interest rates Interest rates are fixed, with a 5.82% average interest rate for 15-year fixed-rate home equity loans, according to ValuePenguin Interest rates can be fixed or variable. 5.61% average interest rate for variable-rate HELOCs. You’ll only pay interest on the funds that you withdraw
How funds are paid out You’ll get a lump sum to work on your project You can withdraw funds on an as-needed basis over a set period
Potential fees
  • Closing costs (typically 2%-5% of the loan amount)
  • Application fee
  • Appraisal fee
  • Notary fee
  • Title search fee
  • Origination fee
  • Prepayment penalties
  • Document preparation fee
  • Closing costs (may be lower than for a home equity loan)
  • Appraisal fee
  • Origination fee
  • Notary fee
  • Title search fee
  • Annual maintenance fees
  • Inactivity charges
  • Early termination fees
  • Documentation preparation fee
Note: All rate averages above were current as of July 21, 2021

4. Charge a rewards credit card

Responsible credit card users might consider putting their accounts to good work as a way of earning rewards points, travel miles or cash back. But interest rates may be higher than what you’d pay if you use a personal loan for home improvement.

The average credit card interest rate in June 2021 was 19.47% for new card offers. Those with strong credit may get a better interest rate through a personal loan. So, this option is best employed when you have a card with an introductory 0% APR period.

Much like store financing offered by some retailers, you would have a grace period in which you aren’t charged interest. Some cards offer introductory APR periods from 12 to 21 months. If you don’t pay off your balance during that period, though, you’ll be charged back interest. So if you choose this option to finance your fence installation project, make sure you can pay back the balance in full before that promotion ends.

5. Budget months in advance and pay cash

Finance your fence the old-fashioned way by creating a budget and squirreling away money for your project. Follow these steps:

  1. Get an estimate for your fence installation project. Home improvement stores may be able to give you a price quote on materials and installation services.
  2. Find out how much room you have for savings in your budget. Determine if you can put away $100, $250 or even $500 per month toward your home improvement budget.
  3. Map out a timeline for your home improvement project. If you want to begin fence installation in six months and your project will cost $1,800, then you should put away $300 per month.

By using the steps above, you can adjust your expectations accordingly. Say you want to get your fence ready for next summer, but you can’t afford to put away $300 per month with the holidays approaching. Maybe you could settle for cheaper materials, or you could settle by pushing your project back a few months.

Fence financing FAQs

If you still have questions about fence loans, hopefully it’s answered in our frequently asked questions section.

Can you finance a fence?

Yes, you can finance a fence and, fortunately, there are a variety of options available. You could…

  • Borrow the funds from a financial institution in the form of a fence loan, home equity loan or credit card.
  • Borrow directly from the fence retailer that will be installing or repairing your fence.
  • Budget and save for the projected cost of your fence project over a period of months or years.

It’s a good idea to review all of these fence financing options in detail before choosing the route that’s best for you.

What credit score do I need for fence loans?

Lenders offering personal and home improvement loans like to see good to great credit scores from borrower applicants. A FICO Score of 670 or above, for example, could help you secure a low interest rate. Be aware, though, that you might need an excellent credit score (high 700s and above) to access the lowest fixed and variable APRs you might see advertised online.

What about fence financing with bad credit?

The majority of reputable lenders for fence loans require a credit score in the 600s. Keep in mind that if you spot a lender with a lower credit requirement, you’re likely to face an especially high APR that would make your repayment costly. One way to circumvent this is to apply for fence financing with a creditworthy cosigner, perhaps a family member, who agrees to repay the debt if you aren’t able to. Their stronger credit profile could help you become eligible for a fence loan, and at a lower interest rate.

How much does the cost of fencing depend on the type of material?

It’s obvious that the dimensions of your fencing factor into cost, but so does material. If you’re shopping around with retailers, ask about how their financing options stack up for wood, aluminum, vinyl, metal, chain-link or other materials. Then you can make side-by-side comparisons if you’re not married to one fencing type over another.

Other factors that could affect pricing include the fence’s style, the area where it will be installed and your location. For example, the average fence installation in the Gulf region started at $3,055, according to Home Depot’s 2020 customer data, but jumped to $4,300 in the northern Plains.

Should I borrow a fence loan or budget and save up?

You might be tempted to opt for a bigger fence built with top-tier materials because you can put off payments with financing. But you shouldn’t build outside of your budget just because you have financing. After all, when you finance a home improvement project, you’re still spending your money, not the bank’s or lender’s.

Additionally, never take out debt you can’t repay. If you get in over your head with a bill you can’t pay, you could run your credit score into the ground. Don’t give debt collectors a reason to come knocking. If you can’t afford to build a fence right now, then determine how you can rearrange your finances and make room in your budget.


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