Home improvement projects are a significant investment that needs careful financial planning. This project involves a lot of costs ranging from construction materials, permits, hiring contractors, and so on. The financial burden can be quite heavy even for medium-sized projects.
One common way homeowners deal with the financial aspect of home improvements are to apply for loans. There are several types of loans that you can avail to finance your home improvement project. These include but not limited to home equity loans, mortgage refinance loans, home equity line of credit, and more.
With all these options, why should you get a LendingTree Personal Loan for home improvement? To answer this question, we first need to discuss the two types of these loans.
Two Types of Personal Loans
1. Secured personal loan for home improvement
To apply for a secured personal loan for home improvement, you need to use an asset as collateral which the creditor can seize in case of non-payment. This is a high-risk loan, but it usually has a lower interest rate than unsecured loans. This loan is perfect for you if you don’t mind using your assets as collaterals.
2. Unsecured personal loan for home improvement
Unsecured personal loans don’t require collateral’s or assets to put against your loan. This means that you won’t risk losing any of your assets in case of defaults or failure to pay the loan. The catch here is that if you don’t have a high credit score, you’re likely to pay high-interest rates. This is because creditors view a low credit score as a sign that the risk of you not paying on time is high, so they use a higher interest rate as a protection.
We have two conclusions based on the discussion of the two types of personal loans:
- A personal loan is better than a home equity loan if you are not comfortable in putting your mortgage on the line.
- You will need a good credit standing to get the best deals out of a personal loan.
LendingTree Personal Loans for Your Home Improvement Project
LendingTree connects borrowers to creditors in one simple, easy-to-use website. You, the borrower, will simply have to sign up and apply for the loan online. Once you input relevant details such as the purpose of your loan, you can immediately get loan offers from different creditors.
The key here is to select the loan offer with the best terms such as the interest rate and repayment conditions. It’s important that you also know who you’re dealing with. Although LendingTree verifies the background of their affiliate creditors, it’s still sensible to double-check their credibility. Research the creditors and see if you can find customer reviews for this particular lender.
The website also offers educational materials that will enhance your understanding of what a personal loan is and what benefits and risks it entails. This will allow you to make a more informed decision on whether or not you will get a personal loan.
Using LendingTree Personal Loans for your next home improvement project is one of the best options for you if you’re planning to have a medium-sized home renovation. Choose between the two types of personal loans by weighing their benefits and risks. Take your time in researching and understanding a personal loan from all angles to get the best possible deal for you.