Swimming Pool Loans

Pool loans are simply personal loans that are used to finance a swimming pool. These are typically unsecured installment loans, which means you don’t need collateral to qualify. You’ll repay your debt in fixed monthly payments over a set period of time, typically two to five years. 

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Financing companies that offer pool loans

LenderAPR rangeMin. credit scoreBest for...
LightStream5.74% - 19.99%Not specifiedWide variety of repayment term durations
Marcus by Goldman Sachs®6.99% - 24.99%720Unique repayment perks
LendingClub7.04% - 35.89%Not specifiedApplying with a co-borrower
Prosper7.95% - 35.99%640Fast loan funding

 

See personalized offers

Lightstream

APR range:4.49%-19.99%
APR range:5.74%-19.99%
Loan amounts$5,000-$100,000
Term (months)24 to 144 months
Origination feeNo origination fee
Credit inquiryHard Pull
Min. credit scoreNot specified

Marcus by Goldman Sachs

APR range:6.99%-19.99%
APR range:6.99%-24.99%
Loan amounts$3,500-$40,000
Term (months)36 to 72 months
Origination feeNo origination fee
Credit inquirySoft Pull
Min. credit score720

LendingClub

APR range:7.04%-35.89%
APR range:7.04%-35.89%
Loan amounts$1,000-$40,000
Term (months)36 or 60 months
Origination fee3.00% - 6.00%
Credit inquirySoft Pull
Min. credit scoreNot specified

Prosper

APR range:7.95%-35.99%
APR range:7.95%-35.99%
Loan amounts$2,000-$40,000
Term (months)36 or 60 months
Origination fee2.41% - 5.00%
Credit inquirySoft Pull
Min. credit score640

What to consider when comparing pool loans

 APR

The loan APR includes the interest rate plus any fees the lender charges. It’s a more comprehensive measure of the cost of the loan than just the interest rate alone, so be sure you compare the APRs when shopping for loans.

 Loan amount and length

You’ll have a certain number of years or months to pay off your loan. This is known as the repayment term. Also consider the loan amount — if you borrow too much money, you may be stuck paying interest on money you didn’t need.

 Fees and penalties

Many lenders charge an origination fee that can equal 1% to 8% of the loan amount or higher, and it may be subtracted from the funds you receive or added on top of your balance. Some lenders charge a prepayment penalty for paying off your loan early. And if you fall behind on payments, you may have to pay a late fee. You could consider no-fee lenders, but remember to compare APRs to determine whether or not they are a worthwhile option.

 Eligibility requirements

To reduce their risk, lenders want to be sure you can repay the loan. They’ll usually check your credit score, income and other debt payment obligations, plus consider the loan amount. You can always ask the lender about the credit score needed to finance a pool and whether they offer pool loans for bad credit.

 Prequalification

Some lenders let you prequalify for a personal loan to check your eligibility and estimated APR without affecting your credit score. This allows you to shop around for a pool loan with multiple lenders without any negative marks on your credit.

 Monthly payments

Make sure you can fit your monthly payment into your budget. If you default on your loan, your credit score will drop and you could end up paying fees and penalties that will increase the cost of borrowing. Use this pool payment calculator to estimate what your monthly payments would look like:


 
 

Where to get pool loans

Though it’s possible to finance a pool with the company installing it, pool loans are generally lent by three types of financial institutions.

  1. Online lenders: By working with an online-only institution, you might be more likely to enjoy unique perks, such as faster funding, mobile app account management or speedier customer service. These companies also offer competitive rates while accepting some applicants that traditional banks decline.
  2. Banks: If you have the strong credit history to meet banks’ typically more stringent eligibility requirements, you might like the idea of borrowing where you already have savings or checking accounts, particularly if you’re opting for a secured loan.
  3. Credit unions: With usually the most accessible personal loans and competitive rates, credit unions could be a good option if you’re already a member or don’t mind paying a small joiner’s fee. You might also like the non-profit status of credit unions, too.

Average cost to build a pool

The cost of building a pool in your backyard will vary greatly depending on the scope of your project and whether you want an above-ground pool or an in-ground pool. The average cost for an above-ground pool is around $2,800. In-ground pools require excavation, which can be an expensive service. As a result, in-ground pools cost more money on average at about $35,000.

How much does it cost to install a pool?

Above-ground pool$1,800-$5,000
In-ground pool$28,000-$55,000
Source: HomeGuide

Don’t forget swimming pool maintenance costs. The cost of maintaining a pool can range from $400 to $2,800 per year for basic upkeep, but you should also consider the costs of electricity and the increased costs of homeowners insurance and real estate taxes. Other pool expenses include:

Lighting$700-$1,800
Lighting$700-$1,800
Diving board$300-$800
Pool cover$550-$3,000
Pool deck$2,800-$23,000
Source: HomeGuide

Pool loan rates

APR is the most significant factor that determines the cost of your pool. Here is the average of the best APRs offered to borrowers of four different credit score ranges.

Credit scoreAPR
760 and above10.09%
720 to 75914.29%
680 to 71919.04%
640 to 67923.94%
Source: LendingTree data, as of June 2022

How to get a pool loan

The application process for a pool loan is similar to that of a personal loan, whether you’re applying with banks, credit unions or online lenders. Follow these steps.

  1. Estimate your pool costs: Doing your own research online and requesting estimates from professional pool installers will help you determine the potential cost of your concrete pond.
  2. Check your credit report AND your credit score: View your credit report via annualcreditreport.com and check your credit score, as these factors will determine your access to pool loans.
  3. Prequalify with lenders: Check eligibility and receive APR quotes from lenders that offer this feature without performing a hard credit check, which can temporarily ding your credit score.
  4. Compare pool loan offers: Judge any quotes you’ve received side by side and consider applying with other lenders, such as banks or credit unions, that may not offer prequalification.
  5. Choose your best pool loan: After reviewing all your options, select the lender with the best overall offer and have your personal and financial documents ready for the formal application process.

3 other pool financing options

1. Home equity loan

ProsCons
  • APRs and monthly payments are fixed.
  • Interest rates are lower than those offered by unsecured financing options.
  • You’ll pay interest.
  • Your home is used as collateral.
  • You may have to pay closing costs.

With a home equity loan, you can borrow from the value you have in your home. To calculate your home’s equity, simply subtract the amount you owe on your mortgage from your home’s market value.

Home equity loans are lump-sum loans that are repaid with a fixed interest rate in predetermined monthly installments, much like a personal loan.

The interest you pay on a home equity loan may be tax-deductible in some cases. However, because you’re using your home as collateral, you risk losing the home to foreclosure if you fall behind on payments.

Also consider: A cash-out refinance would similarly allow you to borrow against your home’s equity, though as part of a mortgage refinancing application.


2. Home equity line of credit (HELOC)

ProsCons
  • You borrow as much as you need, and you only pay interest on what you borrow.
  • Interest rates are lower than those offered by unsecured financing options.
  • APRs are variable.
  • Your home is used as collateral.
  • You may have to pay closing costs.

A home equity line of credit (HELOC) is similar to a home equity loan in that it’s a secured form of financing that lets you borrow from your home’s equity. Plus, the interest you pay may be tax-deductible. However, HELOCs come with a little more flexibility in that you can only borrow as much money as you need, and you only pay interest on what you borrowed.

HELOCs typically come with a variable interest rate, which makes it harder to predict your monthly payments. A HELOC may be a good option if you’re not sure how much you need to borrow.

Since HELOCs also use your home as collateral, you risk losing the roof over your head if you don’t make payments.


3. Pool company financing

ProsCons
  • Convenience of going through one company for installation and financing.
  • Terms vary among companies, making it difficult to compare your options.
  • Interest rates may be high.

Some pool installation companies offer financing directly to consumers or will arrange financing by forwarding your information to lenders. However, financing your pool through the installation company may be more expensive than other options, such as a home equity loan.

Before committing, it’s important to read the fine print. Ask about the APR, repayment terms and fees. Using the APR the pool company offers you, you can even prequalify and shop around for personal loans to make sure you’re getting a good deal without a credit check. Do your research to make sure this is your best financing option and that you’ve chosen a reputable pool installation company.

FAQs: Pool loans

Pool loan terms vary based on the lender but are typically between 24 and 60 months. Some can extend up to 144 months.

Pool loan APRs typically range between 6% and 36%. Your APR will depend on the lender along with several factors, such as your creditworthiness, income and debt-to-income (DTI) ratio. The amount you borrow and the loan term may also impact your APR.

The lowest interest rates generally go to the people with very good to excellent credit, which is a FICO credit score of 740 to 850. You can check your credit score for free using My LendingTree, an app that offers credit monitoring and can help you shop loans.

You can ask lenders about pool financing for poor credit. In general, however, it is inadvisable to finance a pool using a bad credit loan. That’s because you’ll see high APRs that will make your pool much more expensive. Your best option may be to use a secured loan, as interest rates can be lower when you provide collateral.

The monthly and overall costs of pool loans vary significantly, according to factors like the APR and repayment term. To calculate your potential monthly payment on a pool loan, receive rate quotes from lenders and then input those APRs into a personal loan payment calculator.