Have you ever daydreamed about putting a pool in your backyard, but thought you couldn’t afford it? You might want to consider taking out a pool loan to turn your dream of lounging in your own backyard pool into a reality.
The average 600-square-foot concrete pool can be quite pricey, and there are several add-ons that you may also need or want to purchase, such as:
- A patio
- Safety fencing
Before you start the process of requesting a loan, figure out exactly how much you’ll need to install a pool with all the features you want. Then use an online calculator to help you figure out what type of monthly payment you will be able to afford.
Why Should I Request a Swimming Pool Loan Instead of a Home Equity Loan?
Consumers could request a home equity loan to finance their pool. However, home improvement loans are meant for renovations that add value to your home, so the increased equity offsets the cost of the loan. Despite how much enjoyment you may get out of pool ownership, it usually won’t add value to a home. Going through a bank for a home improvement loan may also require a branch visit, paperwork, and closing costs.
Some consumers might be better off requesting a loan online from a company that specializes in swimming pool loans. Not only is the process usually quick and easy, if you’re approved, you will often receive the money in your bank account within a few days.
How Do I Qualify for a Pool Loan?
Lenders specializing in pool financing are similar to traditional lenders. They will want to see that borrowers have at least five years of credit history, including credit cards, car loans, and a mortgage. Lenders will also want you to have a history of making payments on time, and the necessary income to pay the loan.
To qualify for pool financing, it will help to have a favorable credit score. The better your score, the lower your interest rate could be. If you have bad credit you may still be able to obtain a pool loan, but you will likely be charged a higher APR. One way borrowers with bad credit can potentially lower their APR is by making a sizable down payment. This not only demonstrates your ability to save, but it can lower your risk profile to a potential lender, which might open up additional options.
Oftentimes pool loan terms range between two and seven years. The longer you take to pay it off, the less you’ll pay each month, but the higher the interest rate will be. Try to pay off the loan as quickly as possible, since it could save you hundreds if not thousands in interest.
If you’re thinking about a personal loan, get started with our easy online form to connect with a potential lender from our network:
Disclaimer: This is not legal or financial advice. Please consult a legal or financial advisor for your specific situation.