Home decoration not only adds in comfort, style, and looks of the house but also is a wise investment adding considerably to its resale value. Unfortunately, many of us don’t have enough financial resources to improve our houses.
Sometimes the home itself needs repairs and maintenance while many times the owner wants to rebuild according to modern designs and outlook. But restructuring or improving just a room can cost up to hundreds of dollars. Following are the possible options which you can choose:
- Personal Loans: You can get a personal loan from any bank, credit unions and a variety of other online lenders. Personal loans are unsecured. They don’t need to use your house as collateral to qualify; rather the interest rate and qualification will be based on your credit score.
Your house will remain safe if you are unable to pay back the installments on time but the interest rates are higher than the secured loans.
Charging fees for application processing, late payments, and even prepayments can be the other problems faced by you.
- Home equity loan: These are secured loans. This means that they are backed by your home. They have lesser interest rates as compared to unsecured loans but if you are unable to pay back at the time, then your home can get foreclose.
One condition for these loans is that the value of the house should be much higher than the amount in which you are asking for the loan.
- Credit cards: You can rely on your credit card if you are doing minor upgrades in your home. Many credit cards offer a 0% interest rate for the 1st year. Also the more you spend, the more cash back you will earn.
But financial planning is necessary for it because exceeding the limits is always risky. If you will not be able to pay back at the time, you will have to face exceptionally high-interest rates.
- Home improvement loans: These loans work similarly to personal loans. You will be getting the loan through direct deposit or paper check. They are unsecured; they are approved based on credit history and income and do not require collateral. Some of the home improvement loan providers are:
- Sofi: Fixed payments, low-interest rates, and no hidden fees make Sofi the best choice. it offers $5,000 to $100,000 of loan. They are very selective. The average borrowers have over 700 credit score and over $100,000 in income.
- Avant: If your credit rating is less than stellar and you are struggling to approve your loan from other lenders, then Avant is the best option for you. It offers fast funding; sometimes you will be getting your funds on the next working day.
The interest rates on the other side are much higher. With an opening rate of 9.95% APR, the offer is not affordable for middle-income borrowers.
- Upstart: Upstart takes an innovative approach in helping young people with little credit history but strong future earning potential. Along with your credit, it also considers your education and job history. The compromising thing here is the 8% origination fee of the borrowed amount.