The minimum credit score for a home improvement loan is 580 or higher, depending on the lender. Home improvement loans are usually just personal loans that people use for home improvements, and some personal loan providers will approve you with 580+ credit score. That’s not too difficult to attain, either – it’s within the bad credit range and below the average American’s credit score.
You may be able to get a home improvement loan with an even lower score if you get a secured personal loan. Secured loans tend to not have a minimum credit score at all. That’s because they require collateral, which the lender can take possession of if you don’t pay back the loan. There’s very little risk for the lender, so they can afford to accept people with bad credit.
Minimum Credit Score for Home Equity Loans
Another way to get a home improvement loan is through a home equity loan or home equity line of credit. The average credit score needed for home equity loans and lines of credit is 680, according to Experian, though it may be possible to get approved with lower scores. Your chances are best if you have a score of at least 700.
If you don’t know what your score is, you can check your latest credit score for free. But your credit score isn’t the only factor that goes into approval for a home improvement loan.
To get the best sense of your odds, try using WalletHub’s free pre-qualification tool to see which lenders offer good chances of acceptance.
This answer was last updated on 01/29/24 and it was first published on 07/15/19. For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.
