It’s never a good idea to borrow unnecessary money, but when you’re in a pinch, a loan or line of credit can be a great option, saving you time and stress over something that needs to be paid immediately. If you’re looking to embark on a new home improvement adventure, you may be tempted to reach out for help funding the project, but is that a good idea? It all depends on you.

Should You Get Help for Funding That Project? - urgancy, type, project, funding, credit score

Type of Funding

There are a few different types of funding assistance that can help you in these situations. Some are lines of credit that work the same way as a credit card, called home equity lines of credit (HELOC), where you’ll make payments on only the amount of money you borrow. Some are loans, where you’ll receive a lump sum. Other options, such as financing with the company controlling the home project, are available as well.

Regardless of which type of home funding you choose, it will likely involve monthly payments which will include interest. This could be anywhere from 4% to 40% APR and can be fixed or unfixed rates depending on the type of funding you receive. It’s important to do your research and see what type of funding you’re eligible for, and what the smartest type is for you in your unique situation.

Credit Score

If you have great credit and steady, reliable income, a home improvement loan may be a good option for you. The better your credit is, the lower your interest will be, so if you’re anticipating needing a loan sometime soon, now may be the time to boost your credit. Alternatively, if your credit is poor, you’ll be paying a lot more in the long run and you may not even be eligible for enough of a loan to complete the project or afford to fix any unplanned issues that may arise along the way. Hold off on the project or seek alternative funding if your credit worthiness is not where you’d like it to be.


The decision to get a home improvement loan should depend a lot on how urgently you need the project finished. If you’re looking to remodel the kitchen just because you find it aesthetically unpleasing, you may be better off waiting until you’ve saved up enough cash to take on the project without going into debt. If your water heater is broken or your roof starts to leak, those issues will provide a huge inconvenience for your family and may only get worse with time. These projects need to be tackled now, and if you were unable to budget for them, a home improvement loan is a great option.