Home Improvement Loans: Personal Loan, HELOC or Card?
A "home improvement loan" is usually an unsecured personal loan that you spend on your house. It's fast, fixed-rate, and your home isn't collateral. A HELOC or home equity loan is usually cheaper for large projects if you have equity, but it takes weeks to set up and your home secures the debt. For small projects you can pay off within about 18 months, a 0% intro APR card can cost the least.
Terms checked September 23, 2026. Your rate depends on your credit, and lenders show it after a soft-pull check.
Which one fits your project
| Project | Usually best | Why |
| Under about $5,000, paid off within 18 months | 0% intro APR card, or save up | No interest if you clear it in time |
| $5,000–$50,000, or needed within days | Unsecured personal loan | Funds in 1–2 business days, no appraisal, and your home isn't at risk |
| $50,000+, with plenty of equity | HELOC or home equity loan | Lower rates, but 30–60 days to close, and your home is collateral |
| An urgent repair (roof, furnace) | Personal loan | Speed matters more than a few points |
Personal loan lenders compared
| Lender | APR range | Amounts | Terms | Fees | Worth knowing |
| LightStream | 6.49%–24.89% | $5,000–$100,000 | Up to 20 years for home improvement loans over $25,000 | None | Needs good to excellent credit (minimum 660) |
| SoFi | 7.74%–35.49% | $5,000–$100,000 | 2–7 years | Optional fee | Large amounts for good credit |
| Upgrade | 7.74%–35.99% | From $1,000 | 2–7 years | Origination fee 1.85%–9.99% | Accepts fair credit (minimum 600) and small loans |
Check your rate with a soft credit pull, with loans from $1,000. It suits smaller projects and fair credit. The origination fee comes out of the loan, so borrow enough to cover the job. See Upgrade →
Personal loan vs HELOC
| Personal loan | HELOC | |
| Secured by your home | No | Yes |
| Rate | Fixed | Usually variable |
| Time to get the money | 1–2 business days | Usually 30–60 days |
| Upfront costs | An origination fee on some loans | Appraisal and closing costs on some |
| Tax-deductible interest | No | Sometimes, if spent improving the home (IRS Publication 936) |
| Borrow as you go | No | Yes |
A HELOC suits a long renovation paid in stages. A personal loan suits a single, priced job.
Before you borrow
- Get two or three written quotes. Borrow what you need plus a 10–15% buffer.
- Prequalify with soft pulls at a few lenders. See what a hard inquiry does.
- Compare the total cost, not just the monthly payment.
- Be careful with contractor financing. It can come with deferred interest or high rates.
FAQ
Can I get one with fair credit? Yes, from lenders like Upgrade, but at higher rates. For a small project, compare the APR, including the fee, against a 0% card.
Will the project raise my home's value? Some projects do, but most don't recover their full cost.
Figures and rules in this article are checked against the official sources below. Where they disagree with us, they win.
- NerdWallet home improvement loans (Sept 2026): LightStream 6.49%–24.89%, $5K–
- 00K, min 660, up to 20 yrs for home improvement over
- Upgrade 7.74%–35.99%, min 600
- SoFi 7.74%–35.49%, $5K–
- 00K. IRS Pub 936
