SoFi is the best provider of unsecured swimming pool loans because it offers competitive rates, high loan maximums, and quick processing times. We researched 70 personal loan lenders and evaluated them on 31 factors, including cost, loan terms, borrower requirements, and additional features.
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Best Pool Loans for August 2024
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- Best Overall: SoFi
- Best Specialist Lender: Lyon Financial
- Best for Fast Funding: LightStream
- Best for Bad Credit: Upgrade
- Best for Low Interest Rates: Santander
Company | APR | Credit Score est. | Loan Amount | More Details |
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Best Overall : SoFi
- APR Range: 8.99% - 29.49%
- Loan Amount: $5,000 - $100,000
- Loan Terms: 24 months - 84 months
SoFi is our choice as the best overall pool loan lender. Through SoFi, you can get:
- Competitive rates starting at 8.99%
- High loan maximums up to $100,000
- Terms as long as seven years for a smaller monthly payment
- Quick loan processing times with disbursements as soon as you're approved
- No late fees
Even though SoFi doesn't disclose its minimum credit or debt-to-income (DTI) ratio requirements, borrowers tend to have very good to excellent credit with an average score of 747.
No late or prepayment fees
Longer-than-usual repayment terms available
High loan maximum
Very good to excellent credit recommended
Higher rates than some competitors
Charges an origination fee
- Borrowers in all 50 states are eligible for a loan.
- You must be the age of majority in your state (18 in most states).
- You must be a U.S. citizen, permanent resident, or non-permanent resident alien.
- You must be employed, have a job offer with a start date that's within 90 days, or have another source of income.
- SoFi does allow joint applicants.
Best Specialist Lender : Lyon Financial
- APR Range: 7.49% - 17.99%
- Loan Amount: $50,000 - $150,000
- Loan Terms: 36 months - 360 months
Specialty lender Lyon Financial connects borrowers with partner lenders to finance pools. It has the highest ceiling of all of the lenders we evaluated at $200,000, with repayment terms as long as 30 years.
Besides the cost of the pool and its installation, you can also finance other projects for your backyard, such as a new fence or landscaping.
Some considerations include:
- Lyon Financial isn't a lender but works with them, so expect longer processing, approval, and funding times
- There are no pre-qualification options so you have to complete an application and agree to a hard credit inquiry
Lyon Financial has an A+ rating with the Better Business Bureau and has more than 500,000 borrowers across the country.
Highest loan maximum
Longest loan term available
Lower credit score minimum
Longer loan processing time
No loan pre-qualification option
No secured options
- You generally need a credit score of 640 or higher.
- You typically need a DTI of 50% or less (including the requested loan amount).
- Residents of Alaska and Hawaii are not eligible for a loan.
Best for Fast Funding : LightStream
- APR Range: 6.99% - 25.49%
- Loan Amount: $5,000 - $100,000
- Loan Terms: 24 months - 240 months
Look to LightStream if you need financing quickly to lock in an installer or a great deal on a new pool. You could get funds the same day if your application is approved on a business day and you sign your loan agreement and enter your banking information by 2:30 p.m. ET.
You may get an unsecured loan through Lightstream with repayment terms of up to 20 years, which could significantly reduce your monthly payment.
You can't pre-qualify and you must have very good to excellent credit. You must have a Visa or Mastercard for verification purposes. You can't be verified if you only have another card, such as American Express or Discover.
The company was formed after SunTrust Banks purchased online lender FirstAgain LLC in 2012. The Better Business Bureau gives LightStream an A+ rating.
Same-day funding is available
High loan maximum
Longer-than-usual repayment term options
Very good to excellent credit required
No pre-qualification option
Must have a Visa or Mastercard
- You must be the age of majority in your state.
- You must have a valid Visa or Mastercard credit card for verification purposes.
- You must have a verifiable source of income.
- Lightstream permits joint applications.
Lenders like Lightstream that offer longer loan terms can be appealing, but the longer repayment terms will cause you to pay more in interest. Use a personal loan calculator to determine your overall repayment cost.
Best for Bad Credit : Upgrade
- APR Range: 9.99% - 35.99%
- Loan Amount: $1,000 - $50,000
- Loan Terms: 24 months - 84 months
Borrowers with scores lower than that range may struggle to qualify for a loan with other lenders. With Upgrade, you have a better chance of qualifying for a loan with less-than-perfect credit.
Upgrade works with different lenders, and you can qualify with a score below 660. It also offers secured loans and allows joint applications, so there are additional ways to boost your chances of getting a loan.
The loan maximum from Upgrade is $50,000, which is lower than the average cost of installing an inground pool. As a result, Upgrade's loans may not be enough to cover the full cost of your planned project.
Allows co-applicants
Secured loans available for some borrowers
Lower credit score requirement
Potentially high origination fees
Lower loan maximum
Higher APRs
- You must be a U.S. citizen, permanent resident, or live in the U.S. on a valid visa.
- You must be the age of majority in your state.
- You must have a source of income and proof, such as pay stubs or tax returns.
- You must have a valid bank account.
- You must have a valid email address.
If you have good to excellent credit, you can likely qualify for a loan without origination fees. Check out our picks for the best personal loans with no origination fees for 2023.
Best for Low Interest Rates : Santander
- APR Range: 7.99% - 24.99%
- Loan Amount: $5,000 - $50,000
- Loan Terms: 36 months - 84 months
Boston-based Santander is the only bank that appears on our list of lenders for the best pool loan. It is a wholly-owned subsidiary of Spain's Santander Group.
If you're approved for a loan:
- You can receive the loan funds as soon as the same day you apply
- You have up to seven years to repay the loan
- You can reduce your rate by 0.25% with automatic payments
The bank offers lower-than-average rates for unsecured loans with no origination or prepayment penalties.
Santander has a pre-qualification tool, which won't impact your credit score. However, its loans aren't available in all states, and it has a lower loan maximum than other lenders.
Lower-than-average rates
Quick loan disbursement
Longer loan terms available
Not available in all states
Lower loan maximum
Unclear borrower requirements
- You must be the age of majority in your state.
- You must have a valid Social Security number.
- You must be a resident of one of the following states: Arizona, California, Colorado, Connecticut, Delaware, Florida, Georgia, Illinois, Indiana, Maine, Maryland, Massachusetts, Minnesota, Missouri, New Hampshire, New Jersey, New York, North Carolina, Ohio, Oregon, Pennsylvania, Rhode Island, Tennessee, Texas, Virginia, Vermont, Washington, or the District of Columbia.
Compare the Best Pool Loans for August 2024
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The Bottom Line
Although it can enhance your backyard, installing a swimming pool can be expensive. When it comes to financing options, SoFi is our overall best lending option based on its rates, loan amounts, and repayment terms. Lyon Financial may be a good alternative if you want a larger loan (up to $150,000) and terms as long as 30 years. Upgrade makes our list if you have fair to good credit. It has a lower credit score requirement than most lenders and offers secured loans and joint applicants.
Application processing times vary by lender, but many will review and approve your application for a pool loan within minutes. If you need funding quickly, check out the best fast personal loans.
Guide to Choosing the Best Pool Loan
What Are Pool Loans and How Do They Work?
A pool loan is a type of unsecured personal loan that you can use to finance the purchase and installation of a new above-ground or inground pool. It is an installment loan, so you repay it in monthly installments over a specific period, and it has fixed interest rates.
How Much Does a Swimming Pool Cost?
The cost of a new swimming pool varies by location, size, and pool type. Your cost may also vary based on the material used and the style. Keep in mind that your municipality may require you to get permits to install a pool, which your contractor can look after. The table below highlights the national average and average range of building an inground and above-ground swimming pool.
Average Cost of Building a Swimming Pool | ||
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National Average | Average Range | |
Inground | $60,350 | $41,750 to $80,000 |
Above-Ground | $3,350 | $700 to $5,000 |
The cost, of course, does not include the ongoing expenses of keeping a pool. These include things like supplies and equipment, decking, and fencing among others. And don't forget, since your new can boost your property value, your property taxes may increase, too.
Where to Get a Pool Loan
Pool loans can come from several sources.
- Banks: Traditional banks may offer financing options, including unsecured pool loans and home equity loans.
- Credit unions: Credit unions are non-profits, so they may be able to offer you lower rates than banks.
- Online lenders: Online lenders boast easy applications and quick loan processing times.
Should You Apply for a Pool Loan?
Unsecured swimming pool loans can help you achieve the backyard oasis you imagine without risking your home or going through a lengthy application process. You can apply online quickly and, if approved, receive your money as soon as the same day.
However, taking out a loan for an unnecessary project may not be the best idea. Interest rates can be in the double digits, and many people will end up paying thousands in added interest charges.
When deciding whether a pool loan is a good idea, consider the following:
- Climate: Whether a pool and a pool loan make sense is largely dependent on where you live. For example, if you live in a sunny state like Florida, your pool could be open year-round, giving you more time to enjoy it. By contrast, a pool may be unusable for eight or nine months of the year in northern states.
- Duration: How long you intend to stay in your current home will help inform your decision. If you plan on staying in your home for years or even decades, a pool loan could be a good choice. But if you plan to move within the next few years, you may want to hold off; just 1% of realtors recommended installing a pool before selling a home.
- Return on investment: A pool is a significant investment, and you may be surprised by how little it affects your home value. According to the National Association of Realtors, homeowners recovered just 56% of the cost of an in-ground pool installation.
- Other costs: Besides the cost of purchasing and installing the pool, consider your ongoing maintenance costs. Pumps, filtration systems, heating bills, and chemicals can add up, costing you thousands each year.
According to Investopedia’s 2023 Personal Loan Borrower survey, a home improvement project, such as adding a pool, is the second most common reason for getting a personal loan. Consolidating debt is the most common reason.
Alternatives to a Pool Loan
Besides unsecured pool loans, you can use these alternatives to pay for a new pool.
- Savings: If possible, put off your pool installation until you save enough money to cover it in cash. It may take more time, but you'll save money in interest.
- Home equity loan: A home equity loan, also known as a second mortgage, allows you to borrow against the equity you’ve built in your home. The loan amount is based on the difference between your home’s current value and what you owe on your existing mortgage.
- Home equity line of credit (HELOC): Like home equity loans, HELOCs enable you to tap into your home’s equity to finance your swimming pool installation. But rather than getting your money in a lump sum, HELOCs are a revolving line of credit, so you can use the line of credit again and again during the draw period.
- Cash-out refinance: With a cash-out refinance loan, you replace your existing mortgage with a new one with a larger amount than you owe, getting the difference in a lump sum.
A hot tub may be a great alternative to installing a pool. The cost varies between $2,000 and $11,000 depending on the size and type of the tub as well as the scope of the work involved. On average, people spend $6,000 to install a hot tub on their property. Some of the other costs associated with hot tubs include permits, maintenance, plumbing, and electricity.
Comparing Pool Loans
Many lenders offer swimming pool loans. To find the best pool loans, consider the following factors:
- APR: You’ll find a wide range of rates for unsecured pool loans; our top providers offer APRs from 6.99% to 35.99%. The APR (which includes the interest rate and certain fees) is the single biggest factor affecting your total repayment cost, so shop around and compare offers to get the best rate.
- Available discounts: Some lenders offer special discounts for borrowers who are existing customers or that sign up for automatic payments. Taking advantage of those offers can help you save time and money.
- Co-applicants: If you don’t meet the lender’s requirements on your own, some lenders allow you to apply with a relative or friend to improve your odds of getting a loan.
- Fees: Some personal loan lenders charge high origination fees, application fees, and late fees, affecting your overall cost. Look for lenders that offer low or no fees. For example, LightStream will not charge origination fees.
- Repayment terms: Unsecured pool loans tend to have repayment terms between two and 12 years. However, some specialty lenders like Lyon Financial offer terms as long as 30 years, which could give you a much lower payment.
While a loan from a lender that specializes in financing pools has its benefits, namely a high loan maximum, this isn’t necessarily the best option. For instance, specialty lenders can have long repayment terms, up to 30 years. Fifty-seven out of the 70 personal lenders we surveyed have maximum loan terms of 84 months or less. Borrowers looking for lower monthly payments will enjoy the longer repayment timeline, but they’ll also pay more in interest over the life of their loans. As such, you’re likely better suited looking for a personal loan with a much shorter term from a traditional lender. -Sana Siddiqui, Research Analyst, Investopedia
How to Qualify for and Apply for a Pool Loan
To qualify for a pool loan, you generally need to meet some eligibility requirements. The following are a few of the most common things that lenders consider from potential borrowers:
- Your age: Lenders cannot discriminate based on age. However, some states require that borrowers meet minimum age requirements before they can enter a legal financial contract with a financial lender.
- Legal residency: Just like age, lenders can't turn you down because of your national origin. They may ask you about your residency status to determine whether you can pay back the loan. Keep in mind that non-residents and non-citizens may still qualify, but it may be tougher to be approved.
- Income: Almost all lenders ask you for your income and employment information. This is to ensure that your source of income is enough to repay the loan. Some companies may have an income threshold before you can borrow.
- Debt-to-income (DTI) ratio: This ratio represents how much of your income goes to pay off your debts every month. As such, it helps lenders see how much of a risk you are if they approve you for a loan.
- Credit history and score: The majority of lenders use your credit history and credit score to qualify you for a loan. Although these factors don't make or break the decision, they may also influence your loan terms, amount, and interest rate.
The application process for a pool loan is simple.
- Pre-qualify for a loan: Shopping around is critical to find the best rates and terms. Many lenders have pre-qualification tools you can use to get loan estimates without affecting your credit. Once you’re ready to move forward with the application, you can apply online through the lender’s website.
- Fill out the application: Lenders will ask for personal information, including your Social Security number and employer. You’ll have to consent to a hard credit check and may have to submit verification of your identity, such as a copy of your driver’s license. Depending on the lender, you could receive a decision on your application within minutes, or the lender may take a few days.
- Review the loan agreement: Once approved, the lender will send you a finalized loan agreement that outlines the loan’s APR, repayment term, and total repayment cost. If you agree to the terms, sign the agreement and return it to the lender. The lender will disburse the funds, usually by depositing them directly into your bank account. Going forward, you can manage your account and make payments through the lender’s website or mobile app.
Why You Should Trust Us
Investopedia collected and analyzed hundreds of key data points from over 70 companies across three months to identify the most important factors for readers choosing a fair loan lending company.
We used this data to review each company for fees, repayment terms, income requirements, and other features to provide unbiased, comprehensive reviews to ensure our readers make the right decision for their needs. Investopedia launched in 1999 and has been helping readers find the best loans for those with fair credit since 2020.
Frequently Asked Questions
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What Credit Score Do You Need for a Pool Loan?
Personal loans for pools are generally available to people with all credit scores, although you should expect to pay more in interest if you have bad credit. Not all banks lend to people with bad credit, so you may need to seek out certain lenders. See our picks for the best bad credit loans to get started.
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What Is the Average Term for a Pool Loan?
The term for a pool loan depends heavily on several factors. These include the type of pool installed, the materials involved, the location of the home, and the borrower's financial situation. Pool loans can run anywhere from one to 20 years but range, on average, between five to seven years.
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What Is the Average Interest Rate on a Pool Loan?
Pool loans are unsecured personal loans, and the average rate for unsecured personal loans with two-year terms was 12.17% as of the third quarter of 2023. The best pool loans have rates in the single digits, but you'll need excellent credit to qualify.
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What Are the Pros and Cons of Installing a Pool?
There are benefits and drawbacks to adding a pool to your backyard. Some of the advantages of a project like this include increasing the value of your home, adding curb appeal, and providing you with physical and mental benefits. The disadvantages of building a pool include the cost, maintenance, and an increase in your property taxes.
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Can You Use Home Equity to Install a Pool?
A home equity loan may make sense to complete your pool project if you don't have enough money saved. This type of loan typically has better terms and you may get a better rate than a personal pool loan. A home equity loan allows you to borrow against the available equity in your home. This is the difference between the current market value of your home and your outstanding mortgage balance. Home equity loans give you a predictable payment because they come with fixed interest rates.
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Can You Roll a Pool Into Your Mortgage?
Yes, you can roll the pool loan into your mortgage. If you want to explore this option, consider applying for a cash-out refinance loan. This allows you to replace your existing mortgage with a larger loan, and you receive the excess funds as a lump sum to finance your pool or other projects.
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Can You Refinance a Pool Loan?
That depends. If you take out a personal loan to finance your new pool, you could refinance it later to potentially qualify for a lower rate or a different repayment term. Several lenders allow borrowers to refinance existing personal loans. If you use a home equity loan to finance your pool, there's an even better chance that you can refinance it to get better terms or a better rate.
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Companies We Reviewed
We researched and reviewed more than 70 institutions to find the best five lenders you see above on this list. While we write individual reviews for most companies we research, we do not always write reviews for companies we would not recommend. These are the companies we researched, along with links to individual company reviews, to help you learn more before making a decision:
Achieve, Affinity Federal Credit Union, Alliant Credit Union, American Express, Avant, Axos Bank, Bankers Healthcare Group, Best Egg, Bethpage Federal Credit Union, Blue Federal Credit Union, Boatloan.com, Boeing Employees' Credit Union, CapexMD, Citibank, Connexus Credit Union, Discover, Dividend Finance, ENT Credit Union, Fig Loans, First Tech Federal Credit Union, Future Family, GoodLeap, Greenstate Credit Union, Happy Money, Hiway Credit Union, Lake Michigan Credit Union, Laurel Road, LendingClub, LendingPoint, LendingUSA, Liberty Federal Credit Union, LightStream, Lyon Financial, Mariner, Money Key, Mountain America Credit Union, NASA Federal Credit Union, Navy Federal Credit Union, Netcredit, Old National Bank, OneMain Financial, OppLoans, Patelco Credit Union, PenFed, Personify Financial, PNC Bank, Prosper, Reach Financial, Regions, Reprise, Rocket Loans, Santander, Service Federal Credit Union, SoFi, Southeast Financial, Summit Credit Union, SunPower, TD Bank, Teachers Federal Credit Union, Trident Funding, Truist, U.S. Bank, Universal Credit, Upgrade, Upstart, USAA, Vantage Recreational Finance, Wells Fargo.
How We Pick the Best Pool Loans
To evaluate and rank personal loan providers we collected hundreds of data points across more than 70 lenders, including traditional banks, credit unions, fintechs, and special interest finance companies. We researched and evaluated APRs, loan amounts and terms, fees, customer experience, and much more.
To rank the lenders in our database and to generate star ratings, we weighted the data we collected, based in part on what consumers told us were the most important features of a personal loan and lender in a survey we conducted. We grouped those factors into four broad areas:
- Loan costs (advertised APR, fees, and six other factors): 29.25%
- Loan terms (loan amount, repayment term, and three other factors): 22.25%
- Borrowing requirements (credit score, membership requirement, and six other factors): 28.5%
- Additional features (online application, pre-qualification, and eight other factors): 20%
Learn more about how we evaluated personal loans in our complete methodology.
Guide to Personal Loans
Learn more about personal loans:
- What is a personal loan?
- How do personal loans work?
- When are personal loans a good idea?
- How to get a personal loan
- How to apply for a personal loan
- How to use a personal loan
- Where to get a personal loan
- Personal loans vs credit cards
- Alternatives to personal loans
- Personal loan calculator
- Personal loans methodology