Best Pool Loans in December 2024

If you’re looking to add a swimming pool to your home but don’t want to pay for the entire project upfront, a pool loan could be the best solution. While most lenders don’t offer loans specifically for swimming pools, you can find a personal loan or home equity line of credit (HELOC) that covers the cost and allows you to pay for your pool over time.

In this article, we identify the best loans for purchasing a swimming pool.

Best pool loans compared

Our recommendations

Best for people with excellent credit: LightStream

LightStream is an online lender offering personal loans to applicants with good to excellent credit. You can borrow up to $100,000, which should easily cover all the costs of building a decent pool. Rates vary based on the loan amount and the applicant’s credit rating. We found the lowest rate for borrowers with excellent credit to be 7.99%. However, the annual percentage rate (APR) can also go as high as 25.99%.

If you don’t have an excellent credit score, the loan could be expensive, although LightStream does offer a unique Rate Beat program that guarantees you a rate of at least 0.10% better than any other unsecured personal loan you’re approved for with the same terms.

You can borrow with a term from 24 to 144 months. The lending process is generally quick and efficient, and loans are offered with no fees. There are no origination, prepayment, or late fees. You’ll only pay interest.

LightStream is owned and operated by Truist Bank and its loans are offered in all 50 states. If you have qualifying credit, it could be an excellent choice.

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Best for no fees and fast funding: SoFi

SoFi is an online bank offering just about any financial service you may need, including banking, investing, and lending products. SoFi personal loans are a reasonable choice for a swimming pool because they carry no origination, prepayment, or late fees and arrive quickly. If you are approved for a SoFi loan, the money can arrive as soon as the same day.

You can check your interest rate and approval status with a very short pre-approval form, which doesn’t impact your credit score. SoFI’s home improvement loans range from $5,000 to $100,000, with payoff terms from two to seven years. Considering all of the above, it’s likely a good idea to include SoFi on your list when shopping around for a personal loan for a swimming pool.

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Best for credit union loan: PenFed

PenFed is a credit union offering personal loans nationwide. While you need to be a member to receive a loan, anyone can join PenFed by opening and maintaining a savings account with a $5 balance. Being a credit union means PenFed is a nonprofit, which often leads to more favorable interest rates and fees that are available from for-profit banks and lenders.

Personal loans are offered for up to $50,000, which is often enough to cover the cost of an in-ground pool. Interest rates are very competitive for borrowers with excellent credit, and there are no origination or prepayment fees. Terms are available for up to 60 months, and you can check your interest rate without impacting your credit score, even if you’re not yet a member.

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Best for less-than-perfect credit: Avant

Avant is an online lender offering personal loans and credit cards. If you’re looking to build a new pool and have less-than-perfect credit, an Avant personal loan could be the right choice. The typical Avant borrower has a credit score between 600 and 700 and Avant claims its absolute minimum is 580. That’s lower than many lenders demand, although there is a caveat: With lower credit scores, you could pay as much as a 35.99% APR.

If you decide to go with Avant, loans are available for up to $35,000, with payback terms of 12 to 60 months. You can start your application and find out if you qualify without impacting your credit score, and the final decision can sometimes be made in minutes. After approval, funds may be received as soon as the next business day.

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Best for applying in person: OneMain Financial

OneMain Financial has more than 1,300 branches nationwide, all dedicated to loans for borrowers with less-than-perfect credit. You can apply in person, online, or by phone. The biggest downside, however, is the interest rates. OneMain charges 18% to 35.99% APR, which can easily be double what you would pay elsewhere. But if you have a mediocre credit history, it could be one of your only borrowing options.

One of the perks of in-person borrowing is the potential to get your payment as quickly as an hour after closing your loan. That’s great if you’re looking to get a pool in a hurry. But remember, don’t rush into an expensive loan without shopping around to ensure it’s the best deal for your finances. You can check your loan options without harming your credit score.

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Methodology

To choose the best pool loans, we considered more than a dozen lenders, focusing on interest rates, fees, loan terms, prequalification options, and required credit. We tried to find a variety of lenders meeting various needs, including loans for excellent credit and fair credit. While there’s no perfect loan for all borrowers, you may find the best pool loan for your needs among the lenders in this list.

How to select the best loan for your pool

When dreaming of your perfect backyard oasis, financing the dream can often be the most daunting part. However, picking the best pool loan doesn't have to plummet you into the deep end. Here’s how to navigate the waters of swimming-pool financing, primarily through personal loans, to find the best fit for your financial situation.

• Consider the APR. The APR is crucial in determining the overall cost of your loan. The best pool loan will offer a competitive APR, combining low interest rates with minimal fees. Comparing APRs from multiple lenders could save you a lot of money.
• Evaluate loan terms. The length of your loan term affects both your monthly payments and the total interest paid over the life of the loan. Look for terms that align with your monthly cash flow and financial plan. A shorter loan term means higher monthly payments but less interest overall, while a longer term will lower monthly payments at the cost of more interest paid.
• Understand secured vs. unsecured loans. The pool loans we reviewed are unsecured personal loans, which means they don’t require collateral. This is advantageous if you don’t want to risk your home or other assets, but it can also mean higher interest rates due to the increased risk to lenders. Evaluate your willingness to accept this trade-off when choosing your loan. HELOCs and home equity loans are secured loans that may cost less than many personal loans. And, because a pool is an improvement on your home, the loan interest can be tax deductible if it meets IRS guidelines. This isn’t true of a regular personal loan.
• Check for prepayment penalties. Some lenders charge fees for paying off your loan early. The best pool loan will allow you the flexibility to pay off your loan ahead of schedule without penalty, giving you the freedom to reduce interest costs if you come into extra funds.

Securing the best pool loan requires homework and patience, but the payoff is a backyard retreat you can enjoy for years to come. By focusing on APR, loan terms, the type of loan, prepayment policies, and lender reputation, you’ll be well-equipped to make an informed decision that suits your financial goals.

Nine steps for getting a pool loan

Start by determining the total cost of your pool project, which can be achieved by getting quotes from multiple contractors, including expenses for construction, landscaping, and any additional features you want. This will help you understand how much you need to borrow.

1. Check your credit. Check your credit score to gauge your eligibility for a loan and get an idea of the interest rates you might qualify for. A higher credit score widens your choice of lenders and can lead to better loan terms.
2. Research your options. Research different lenders, including banks, credit unions, and online lenders, and compare their rates, terms, and fees. Some lenders may offer loans specifically designed for home improvement or pool installation.
3. Choose a loan type. Decide between secured and unsecured loans. Secured loans may offer lower interest rates but require collateral, like your home, while unsecured loans don't require collateral but may come with higher interest rates.
4. Prepare to apply. Gather necessary documents before applying, including proof of income, employment verification, and any documents related to your financial history. Lenders will use these to assess your loan application.
5. Get pre-approved. Answer a handful of questions from lenders to see if you might qualify for one of their loans. Pre-approval gives you a better idea of the loan amount and interest rate you qualify for and usually has no impact on your credit score.
6. Review your offers. Review loan offers carefully, paying close attention to the APR, loan term, monthly payments, and any fees or penalties. Choose the loan that best fits your financial situation and offers the most favorable terms.
7. Complete the full application. Complete the loan application process with your chosen lender, providing any additional information or documentation they require. This step may involve a hard credit check, which can temporarily affect your credit score.
8. Review and sign your documents. Once approved, carefully review and sign the loan agreement. Ensure you understand all the terms and conditions before accepting the loan.
9. Loan disbursement. Receive the loan funds, which may be deposited directly into your bank account or disbursed to the contractors. With the funds in hand, you can start your pool project.

Stay on top of your loan payments to avoid any penalties and to maintain or improve your credit score. Consider setting up automatic payments or reminders to ensure you pay on time every month.

Alternatives to taking out a pool loan

Pay from savings

Paying for your pool from savings eliminates the need for borrowing and the associated costs. This option requires significant upfront financial planning but offers the peace of mind that comes with not having debt.

Seller financing

Some pool installation companies offer seller financing, thorough which the pool's cost can be paid directly to the seller over time. This can be a convenient option, but it's important to carefully review the terms and conditions. Sometimes this type of financing can be more expensive.

Visit a community pool

Visiting a community pool is a cost-effective alternative to owning a pool, eliminating maintenance, insurance, and installation costs. This option offers the benefits of pool use without the financial burden and responsibilities of ownership.

More on pool loans

Types of pool loans available

Unsecured personal loan

An unsecured personal loan for a pool does not require collateral, making it a flexible option for borrowers, though it often comes with higher interest rates due to the increased risk to lenders.

Secured personal loan

A secured personal loan requires collateral, such as a home or other asset. If the borrower defaults on the loan, the lender can take possession of the collateral to recoup what it’s owed. Offering collateral lowers the risk for lenders, resulting in lower interest rates. A home equity loan is one type of secured loan. Like a personal loan, you receive a single sum of money at once.

Home equity line of credit (HELOC)

A HELOC is a type of secured loan that allows homeowners to borrow against the equity in their home and get a line of credit to pay expenses. HELOCs offer lower interest rates and potential tax benefits, but the borrower risks losing their home if payments are not made. Additional benefit: You only pay interest on the amount of the credit line that you use.

How do pool loans work?

Pool loans provide financing to cover the cost of installing a pool. These loans can either be secured by collateral or be unsecured. Lenders offer various terms and rates, with repayment periods typically ranging from two to seven years, depending on the loan type and amount. Once approved, the borrower receives the funds (or access to the credit line, if it’s a HELOC). The borrower then repays the loan over time, including interest.

How much do pools cost?

The cost of installing a pool depends on many factors including size, type (in-ground or aboveground), materials, and additional features such as decking, lighting, or landscaping. On average, inground pools can cost between $35,000 and $65,000, while above-ground pools cost anywhere from $1,000 to $8,000. Additional maintenance, insurance, and utilities costs should also be considered in the overall budget for a new pool.

Application process for the best pool loans

The application process for the best pool loans typically starts with researching and comparing loan options from various lenders, such as banks, credit unions, and online financial institutions, to find the most favorable terms and rates.

Applicants need to gather and submit necessary documentation, including proof of income and details about the pool project, through an online application form or in person. They then need to wait for an answer. Responses can arrive in just in a few hours or after a few days.

If approved, the borrower will receive the loan terms for review. Shortly after the contract is signed, the funds will be released and the pool installation project can commence.

Pros and cons of pool loans

TIME Stamp: Review your options to find the best pool loan

If you want to borrow funds to pay for a pool, you have several potential options. While you’ll get the best deal with excellent credit, you can also find financing options with fair credit. To get the best pool loan, identify which options you have available and compare the costs and terms of them.

Frequently asked questions (FAQs)

What is the average interest rate for a pool loan?

The average interest rate for a pool loan varies widely. Loans we reviewed charged anywhere from around 8% to more than 35%, depending on creditworthiness and loan terms.

Is it a good idea to get a pool loan?

Whether getting a pool loan is a good idea depends on your financial situation, the loan terms you qualify for, and the value you place on having a pool.

What credit score is needed for a pool loan?

For most pool loans, lenders prefer a good credit score, which starts around 660 or higher. Options also exist for those with lower scores, but they carry higher interest rates.

How much can I borrow for a pool loan?

The amount you can borrow for a pool loan depends on the lender, your credit score, your income, and whether the loan is secured with collateral. Many lenders won’t offer more than $50,000, though some do stretch to $100,000.

What credit score do I need to qualify for a pool loan?

To qualify for the best rates on a pool loan, you’ll need a credit score of 700 or above. Lower scores can also secure financing, but with potentially higher rates.