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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| Lender | APR range | Min. credit score | Best for... |
|---|---|---|---|
| LightStream | 3.99% - 19.99% | Not specified | Wide variety of repayment term durations |
| Marcus by Goldman Sachs® | 6.99% - 19.99% | 660 | Unique repayment perks |
| LendingClub | 7.04% - 35.89% | Not specified | Applying with a co-borrower |
| Prosper | 7.95% - 35.99% | 640 | Fast loan funding |
| APR range: | 4.49%-19.99% |
|---|---|
| APR range: | 3.99%-19.99% |
| Loan amounts | $5,000-$100,000 |
| Term (months) | 24 to 144 months |
| Origination fee | No origination fee |
| Credit inquiry | Hard Pull |
| Min. credit score | Not specified |
| APR range: | 6.99%-19.99% |
|---|---|
| APR range: | 6.99%-19.99% |
| Loan amounts | $3,500-$40,000 |
| Term (months) | 36 to 72 months |
| Origination fee | No origination fee |
| Credit inquiry | Soft Pull |
| Min. credit score | 660 |
| 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 fee | 3.00% - 6.00% |
| Credit inquiry | Soft Pull |
| Min. credit score | Not specified |
| 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 fee | 2.41% - 5.00% |
| Credit inquiry | Soft Pull |
| Min. credit score | 640 |
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:
Though it’s possible to finance a pool with the company installing it, pool loans are generally lent by three types of financial institutions.
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.
| 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 | ||
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 score | APR | |
|---|---|---|
| 760 and above | 8.83% | |
| 720 to 759 | 12.95% | |
| 680 to 719 | 17.54% | |
| 640 to 679 | 22.74% | |
| Source: LendingTree’s personal loan statistics, as of March 11, 2021 | ||
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.
| Pros | Cons |
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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.
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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.
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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.
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.