What are the best bad credit home improvement loans of 2025? Improving your home can significantly increase its value, comfort, and functionality.
Whether you’re planning to remodel your kitchen, upgrade your bathroom, or add new energy-efficient features, renovations often require a substantial financial investment.
However, if you have bad credit, securing the funding for these improvements can feel like a daunting challenge. The good news is that, even with low credit scores, you still have options.
In 2025, there are several lenders that are offering home improvement loans specifically designed for borrowers with bad credit.
In turn, this helps homeowners to renovate without financial strain.
What to Consider When Looking for a Bad Credit Home Improvement Loan
When you’re dealing with bad credit, you must be made aware of the fact that not all loan options are created equal.
You must understand the features that distinguish one loan from another. High interest rates, short repayment terms, and hidden fees can all impact the affordability of a loan.
Firstly, you can start by identifying the total cost of your renovation project, then determine how much you can afford to borrow and repay monthly.
Next, consider whether a secured or unsecured loan is better suited to your situation. Other important factors that you must evaluate are:
- APR (Annual Percentage Rate)
- Loan term length
- Monthly payments
- Fees (origination, late, prepayment penalties)
- Eligibility requirements
- Funding time
Top Bad Credit Home Improvement Loan Providers of 2025
In 2025, several lenders are standing out by offering accessible home improvement loans tailored to borrowers with poor credit histories.
Here are the top providers you might want to consider:
Upgrade
Upgrade is a personal loan lender that provides loans to borrowers with credit scores as low as 560.
What’s more, it’s a great option for home improvement projects due to its fixed interest rates and fast funding.
Upgrade offers an easy online application and quick approval process, which makes it ideal for urgent renovation needs.
OneMain Financial
OneMain Financial specializes in loans for people with poor to fair credit. They have physical branches and offer both secured and unsecured loans, increasing your chances of approval.
With face-to-face service and flexible criteria, OneMain is great for borrowers who want a personalized experience.
Avant
Another great online lender you can consider that caters to borrowers with low credit scores is Avant.
They are known to cater to borrowers with low credit scores starting around 580.
Now while the APRs are on the higher side, their transparency and speed make them a popular choice. Some key features they offer include:
What’s more, Avant is a good fit for smaller renovation projects and those seeking predictable monthly payments.
LendingPoint
LendingPoint offers personal loans to borrowers with fair credit and is known for its user-friendly platform.
Their credit models look beyond just your score, taking into account your income and financial behavior.
What’s more, the flexibility ofLendingPoint and broader credit evaluation make it ideal for borderline credit profiles.
FHA Title I Property Improvement Loan
This is a government-backed loan for home improvements that don’t require equity in your home. It’s ideal for people with low income or poor credit.
FHA Title I loans provide a secure and affordable option for lower-income homeowners who may not qualify elsewhere.
How to Improve Your Chances of Getting Approved
Even with bad credit, there are steps you can take to improve your loan approval odds and secure better terms. You can:
- Check and correct credit report errors.
- Limit your loan request to what you need.
- Apply for a secured loan if you own your home.
- Consider a co-signer with good credit.
- Show proof of stable income or employment.
Lenders look at your entire financial picture, not just your credit score, so presenting yourself as a responsible borrower is key.