Best pool loans of October 2024

The average cost to build a pool is between $24,723 and $57,663, according to HomeAdvisor. Your final cost could be different, however, depending on the size and type of pool. A pool loan can make this expense more manageable by spreading out the cost over several years instead of paying it all upfront.

Best pool loans

The best pool loans offer sufficient loan amounts to build the pool you want and long-enough loan terms to afford the monthly payments. Before you compare pool loans, know your FICO credit score to narrow down lenders you're more likely to qualify with. Also, know how much you'll need to borrow and how much of a monthly payment you can afford.

SoFi: Best overall

Upgrade: Best for fair credit

Discover: Best for no origination fees (and low rates)

Universal Credit: Best debt consolidation loans for bad credit

LightStream: Best home improvement loans and low rates

Best Egg: Best for high close rates if pre-approved

BHG Financial: Best for large personal loans

LendingClub: Best online experience

Avant: Best for all credit types

Upstart: Best fast personal loans for all credit types

Methodology

We evaluated the best personal loan lenders for pool loans based on factors such as customer experience, minimum fixed rate, maximum loan amount, funding time, loan terms, fees, discounts, and whether cosigners are accepted. Our team of experts gathered information from each lender's website, customer service department, directly from our partners, and via email support. Each data point was verified by a third party to make sure it was accurate and up to date.

Read our full lender rating methodology for more information.

What is a pool loan?

A pool loan is a type of home improvement loan specifically used to build a pool. It could be a personal loan, a home equity loan or line of credit, or a credit card.

Personal loan

Best if: You don't have sufficient home equity to qualify for a home equity loan or don't want to use your home as collateral.

A personal loan is a type of installment loan, typically with a fixed interest rate and fixed monthly payments. Loan amounts are available up to $100,000 or more, depending on the lender and what you can qualify for. Repayment terms can range from one to seven years, but some personal loans are available with repayment periods of 12 years or more if used for home improvements.

Personal loan interest rates depend on your credit, income, and current debt, but typically range from 7% to 36%. Funding times for a personal loan can be as soon as the same day you apply, but could take two to five business days.

Home equity loan

Best if: You want a lower rate than a personal loan and are willing to use your home as collateral.

A home equity loan is a type of loan that lets you access the equity in your home. Equity is what your home is worth, minus what you owe on your mortgage. Typically, you'll need at least 20% available equity in your home to qualify. Like a personal loan, you receive the cash in a lump sum. Unlike a personal loan, you don't have to clear the loan's purpose with the lender. However, it can take a month or more to close on a home equity loan, and closing costs can be upwards of 2% of the loan amount.

Home equity loan rates and payments are typically fixed; repayment terms range from five years to thirty years. APRs on home equity loans average between 8% and 10%, depending on your income and credit.

Alternatively, you could tap the equity in your home with a home equity line of credit (HELOC) or a cash-out refinance.

• HELOC: A HELOC is a revolving credit line that's best if you have recurring cash needs - like for an ongoing project that requires ongoing payments to a contractor. It may either have a draw period that lasts for a number of years, such as 10, and is followed by a repayment period. Or it may have a continuous draw period.
• Cash out refinance: A cash-out refinance is when you refinance your entire mortgage, but increase the amount you owe, and take the difference as cash. Generally, a cash-out refi only makes sense if you can lower the interest rate on your mortgage.

Because your home is used as collateral in a home equity loan, line of credit, or cash-out refi, you could lose it if you default on the loan.

Credit card

Best if: Short-term funding needs with a 0% APR

Credit cards typically have a variable interest rate that is much higher than other pool financing options. For example, the average credit card APR is 21.59%, while the average APR on a two-year personal loan is 12.49%.Unlike personal loans and home equity loans, credit cards also charge compounding interest, which means your card issuer assesses interest on the unpaid balance daily. This is one reason why not paying your balance off monthly can lead to increasing credit card debt.

Paying for a pool with a credit card makes the most sense if you can get a 0% APR credit card with a lengthy introductory period (0% APR periods tend to last no more than 24 months), and if you can pay off the loan before the rate adjusts. Do the math to make sure you can avoid payments - if not, you could end up paying more for your pool using a 0% APR credit card than you would using a personal loan.

Where to get a pool loan?

You can apply for a pool loan from banks, online lenders, and credit unions. Pool installers and contractors may offer special financing options as well.

How do pool loans work?

It depends on the type of pool loan you get. For example, if you use an unsecured personal loan or a home equity loan, you'll generally receive money in a lump sum in your bank account that you can use to pay for your new pool. Personal loan funds can be available within days of applying, whereas home equity loan funds may take weeks or months.

If you use a credit card or HELOC, you can make payments to build or upgrade your pool as needed. While credit card funds are available immediately, a HELOC can take up to a month or more to close.

In any case, you'll need to repay the money - often over a period of years - with interest. Run the numbers at different interest rates to get a sense of how much your new pool will cost in total.

Pros and cons of pool loans

Pros

• Variety: Because different types of loans are available for pool financing, you can compare interest rates, amounts available, collateral requirements, time to fund, and more to find the best for you.
• Flexible: Pool loans are flexible, meaning you can use them to pay for just about any pool-related expense, like installation, landscaping, and equipment.
• Potentially fast funding: With an unsecured loan, you'll typically receive your funds quickly, especially if you choose direct deposit. You won't have to wait weeks or months to begin your pool project.

Cons

• May need good credit: Most lenders offer pool loans to borrowers with good to excellent credit, usually defined as a FICO score of 670 or higher. If you have no credit or bad credit, you might not get approved or have to settle for a higher annual percentage rate (APR), which includes the interest rate and upfront fees.
• Closing costs: Some lenders charge upfront fees for pool loans, such as closing costs on a home equity loan or origination fees on a personal loan.
• Collateral might be required: You may have to secure a pool loan with collateral, like your home or car. If you fail to make your payments, the lender can seize your collateral.

Pool costs

Before you apply for a pool loan, consider the long-term expenses of having a pool. An inground pool can cost up to $250 per square foot on average, but the costs don't stop there. Depending on the type of material you use for the pool you build, your maintenance and upkeep costs could vary. While a vinyl inground pool is cheaper upfront on average, the liner will need to be replaced about every ten years.

In comparison, a concrete pool is more money upfront, but can last up to 50 years with resurfacing done every fifteen years. While concrete pools last longer on average, they are also susceptible to algae and require more maintenance to keep them clean.

Overall costs for the following pool types with a 7-year personal loan at an 18% APR look like this:

Consider your lifestyle and finances when choosing a type of pool. For example, if you want the lowest cost of maintenance long-term, consider going with a fiberglass pool. The downside to fiberglass pools, however, is that they often have limited shapes compared to vinyl or concrete, which are more customizable.

How to qualify for a pool loan

Each lender has its own requirements for who qualifies for a pool loan. But most lenders look for the following:

• Good-enough credit: Typically, lenders will check your credit after you apply for a pool loan. They often prefer good to excellent credit (a FICO above 670), especially if the loan is unsecured, meaning there is no collateral.
• Steady income: Lenders want to know you'll have the money to repay your pool loan. You may have to provide proof of income in the form of pay stubs, bank statements, or tax forms.
• Low debt-to-income ratio (DTI): Your DTI shows your monthly debt obligations compared to your gross monthly income. A DTI of less than 36% is ideal, but some lenders are more lenient and will accept a higher ratio.

How to apply for a pool loan

Follow these steps to apply for a pool loan.

1. Check your credit: Go to AnnualCreditReport.com or use a free credit monitoring service to find out where you stand, credit-wise. This can give you an idea of which pool loans you may qualify for.
2. Compare lenders: Not all lenders are created equal. Shop around to find the lender that offers the lowest rate and most favorable terms. You may be able to prequalify online, without any negative impact to your credit. Prequalification is not an offer of credit, however, so remember the final rate you receive could be higher.
3. Fill out the application: Once you choose a lender, complete an application. Be prepared to submit documents, like a government-issued ID and paystubs. At this point, the lender will conduct a hard credit check, which can lower your score by a few points.
4. Get your funds: Upon approval, review the loan agreement, and sign if it looks good. Most lenders will distribute your funds via direct deposit. You may receive them the same day you get approved, within 24 hours, or in a few business days.

Alternative options for a pool loan

Besides a personal loan, home equity based loan, or credit cardt, there are other options available to finance a pool.

• Pool dealer financing: Some pool companies offer their own financing. Each company has its own rates, fees, and terms, so be sure to read the fine print before you commit to an offer.
• Above-ground pool: If you don't have the financial means to pay for a pool loan, or don't want to add to your debt, consider getting an above-ground pool instead. This kind of pool is significantly cheaper than an inground pool, costing on average up to $7,500.

FAQ

Should I get a secured or unsecured pool loan?

If you have good credit and can qualify for a low interest rate, an unsecured pool loan could protect your home from creditors if your financial situation changes and you can't afford payments. If you have bad credit, a secured pool loan might be the only option available to you. In either case, your rate will generally be lower with a secured loan, but your collateral is at risk if you default on the loan.

Can I use a pool loan for other home improvement projects?

A pool loan is often flexible. You can typically put the proceeds toward pool construction, accessories, and maintenance, or other home improvement projects, such as a bathroom remodel or deck addition. Just check with the lender to be sure you're loan purpose isn't limited.

How long does it take to get approved for a pool loan?

A pool loan from an online personal loan lender could be approved the same day you apply. Whereas, a home equity loan or HELOC could take a month or more to approve.

Are there any prepayment penalties for pool loans?

Pool loans typically don't have prepayment penalties. But if you have plans to repay your pool loan early, check with your lender to be sure.

Can I get a pool loan if I have an existing mortgage on my home?

Yes, you can often get approved for a pool loan with an existing mortgage. Lenders will look at your credit score, income, and debt-to-income ratio to determine if you can afford the monthly payment associated with a pool loan.