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PERSONAL LOANS
Best Personal Loans for Home Improvement 2026
PARTNER OFFERFrom 6.3% APRat Upstart · Soft credit check only
📋 By Marc Fleury · Updated September 2026 · Editorially independent
Secure the ideal personal loan to fund your home renovation dreams with our independently scored top picks for 2026. Transform your living space without tapping into home equity or incurring high-interest debt.
WiseIQ Expert Tip
Before accepting any loan offer, calculate the total cost of the loan (principal + all interest + fees). A lower monthly payment often means paying thousands more over the life of the loan.
Quick Comparison: Best Personal Loans for Home Improvement at a Glance
WISEIQ TOP PICK
PERSONAL LOANS
Upstart
Best for fair & thin credit · AI-powered approval
APR RANGE
6.3%–35.99%
LOAN AMOUNT
$1K–$50K
MIN. CREDIT
300
✓ No prepayment penalty✓ Funds in 1 business day✓ Soft pull pre-qualification✓ Considers education & job history
WiseIQ may earn a referral fee if you apply through this link. Rates shown are representative and may vary. See Upstart's website for full terms.
Market Rate Context
National average personal loan APR: 12.35% — The national average is 12.35% APR. Source: Federal Reserve G.19 Consumer Credit Report, May 2026.
Rates verified May 2026 · Updated weekly
Lender
APR Range
Loan Amount
Fees
Best For
LightStream
2.49%-25.49%
Up to $100K
No fees
Excellent credit, large projects, fast funding
SoFi
8.99%-29.49%
Up to $100K
No fees
Same-day funding, no collateral, good credit
Discover
7.99%-24.99%
Up to $40K
No fees
Fixed rates, no fees, medium-sized projects
Upgrade
9.99%-35.99%
Up to $50K
Origination fee (1.85%-9.99%)
Flexible options, fair credit, fast funding
Before you accept an Upstart offer
Getting approved and getting funded are two different steps, and most people who lose the loan lose it in between. Three things that decide it:
Ask for what your score supports. Under a 660 score, $5,000 to $15,000 gets approved far more often than $25,000 and up. A smaller request usually means a real offer instead of a decline.
Accept and verify the same day. Offers expire. Have a recent pay stub or bank statement ready to upload, and answer the verification email or call quickly.
The origination fee comes out of the deposit. It runs 0% to 12%. A $10,000 loan with an 8% fee puts $9,200 in your account, so size the request with the fee in mind.
A personal loan is not the right tool for every situation. Consider alternatives if any of the following apply to you:
You have home equity: A HELOC typically offers rates 5–10% lower than personal loans. If you own your home, compare HELOC rates before taking a personal loan.
Your debt is primarily credit card debt: A balance transfer card with a 0% intro APR (typically 12–21 months) will cost less than a personal loan if you can pay off the balance within the intro period.
You need less than $1,000: Most personal loan lenders have minimum amounts of $1,000–$2,000. For smaller needs, a credit union payday alternative loan (PAL) or a 0% APR credit card may be more appropriate.
Your credit score is below 500: Most personal loan lenders — including those that accept "bad credit" — have practical minimums around 500–560. Below this, secured loans, credit-builder loans, or co-signer arrangements are more realistic options.
You are in active bankruptcy: Personal loan lenders will decline applicants in active Chapter 7 or Chapter 13 proceedings. Resolve your bankruptcy first.
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Not sure which lender fits your credit range?
See who actually approves your score range — and the APR to expect.
APR Range Comparison: Personal Loans 2026 — Starting and maximum APR for a $10,000 loan. Rates verified May 2026.
How We Chose the Best Personal Loans for Home Improvement
Our Selection Criteria
Competitive Rates & FeesWe prioritized lenders offering low Annual Percentage Rates (APRs) and minimal to no fees, including origination, prepayment, and late fees, to ensure affordability.
Loan Amounts & TermsWe considered lenders that provide a wide range of loan amounts to accommodate various project sizes, from minor repairs to major renovations, along with flexible repayment terms.
Accessibility & Credit RequirementsOur selection includes options for borrowers across different credit profiles, from excellent to fair, ensuring that a broader audience can find suitable financing.
Funding Speed & Ease of ApplicationWe evaluated lenders based on how quickly funds are disbursed and the simplicity of their application process, favoring those with fast approvals and minimal paperwork.
Who Should Apply?
Homeowners with Excellent Credit
If you have a strong credit history and a high credit score (typically 700+), lenders like LightStream offer the most competitive rates and terms. You'll benefit from lower APRs and potentially larger loan amounts with no fees, making it ideal for significant home improvement projects.
Borrowers Needing Fast Funding
For those who need funds quickly to start their home improvement project, SoFi and Upgrade are excellent choices. Both lenders are known for their fast approval and funding processes, often depositing funds within one business day of approval.
Individuals Seeking Unsecured Loans with No Fees
If you prefer not to use your home as collateral and want to avoid extra costs, LightStream, SoFi, and Discover offer unsecured personal loans with no origination or prepayment fees. This provides peace of mind and keeps your overall loan cost down.
Homeowners with Fair to Good Credit
For borrowers with less-than-perfect credit (e.g., in the fair credit range), Upgrade provides accessible personal loan options. While they may have origination fees, their flexible eligibility criteria and potential for secured loan options can make home improvement financing attainable.
Marc started WiseIQ to give people with fair credit straight answers about borrowing, building credit, and insurance, including exactly which companies pay us. Every page is researched from lender disclosures, regulator data, and the credit bureaus' own documentation, and every product is scored on the same published criteria. Marc is not a licensed financial advisor, and nothing here is personalized advice. More about Marc →
Frequently Asked Questions
What is a personal loan for home improvement?
A personal loan for home improvement is an unsecured loan that you can use to finance various renovation or repair projects for your home. Unlike home equity loans or HELOCs, these loans do not require your home as collateral, meaning your property is not at risk if you default.
What can I use a home improvement loan for?
You can use a home improvement loan for a wide range of projects, including kitchen and bathroom remodels, roof repairs, landscaping, adding a new room, upgrading appliances, improving energy efficiency, or even purchasing new furniture to complement your renovations.
How much can I borrow with a home improvement personal loan?
Loan amounts vary by lender and your creditworthiness, typically ranging from $1,000 to $100,000. Lenders like LightStream and SoFi offer up to $100,000, while Discover offers up to $40,000, and Upgrade up to $50,000. The amount you qualify for will depend on your income, credit score, and debt-to-income ratio.
Are there any fees associated with home improvement personal loans?
Many top lenders, including LightStream, SoFi, and Discover, offer personal loans with no origination fees, no prepayment penalties, and no late fees. However, some lenders like Upgrade may charge an origination fee, which is typically a percentage of the loan amount and is deducted from the disbursed funds. Always check the fee structure before accepting a loan offer.
Understanding Personal Loan Rates
Pros and Cons of Unsecured Loans
Financing Major Home Renovations
People Also Ask
Focus on the Annual Percentage Rate (APR), which includes both interest and fees. Compare minimum credit score requirements, funding speed, loan amounts, and repayment terms. Read recent customer reviews on Trustpilot and the BBB. Getting pre-qualified lets you see real personalized offers.
The interest rate is the base cost of borrowing. APR (Annual Percentage Rate) includes the interest rate plus all fees (origination fees, closing costs, etc.), expressed as a yearly rate. APR gives you a more complete picture of the true cost of a loan — always compare APRs, not just interest rates.
Credit scores have a dramatic impact on rates. On a $20,000 personal loan, the difference between a 720 score (8% APR) and a 580 score (25% APR) is over $9,000 in additional interest over 5 years. Improving your score before applying can save thousands.
Reputable online lenders use bank-level encryption (256-bit SSL) to protect your data. Look for HTTPS in the URL, check that the lender is registered in your state, verify their BBB rating, and read privacy policies before submitting personal information. Avoid lenders who contact you unsolicited.
Upstart