How to Finance a Bathroom Remodel
A personal loan can help you build the bathroom of your dreams, whether you want to install a soaker tub, remove aged wallpaper, or retile your floor.
We’ll go through the cost of remodeling a bathroom, how the best personal loans operate, and other options for financing your upgrades below.
How much does a bathroom remodel cost?
Do you wish for a rainstorm? Or how about stone countertops? Big dreams come at a high price: According to Angie’s List, the average bathroom renovation job costs between $9,600 and $11,000.
But that is the norm. You may spend less or more than the average. You’ll need to take a look at your bathroom and decide how much you want to pay. Understandably, not everyone can afford to spend cash for a bathroom makeover.
Getting a bathroom to remodel loan
A personal loan is one of the most effective financing alternatives for a bathroom makeover. A personal loan can be used to cover almost any need, and it can be paid off over a few months or several years.
You may also tailor your monthly payments to meet your budget.
What is the process of getting a personal loan for a bathroom remodel?
You may also tailor your monthly payments to meet your budget. What exactly is a personal loan? It is money borrowed from a lender and repaid with interest, often in equal monthly amounts.
A personal loan can be used for almost anything; bathroom renovation loans are no particular category. If you’re using a personal loan to finance a bathroom makeover, you’ll apply for a typical personal loan and use the money to pay for your bathroom upgrades.
Pros and cons of personal loans
Some of the reasons you might wish to seek a personal loan for your bathroom makeover are as follows:
- You have a good idea of how long it will take to pay off the debt.
- Every month, you make the same loan payment.
- You may borrow as much or as little as you need; whether you’re repainting or entirely remodeling your bathroom, there’s undoubtedly a loan available in the amount you require.
- Personal loans, however, have significant drawbacks. These are some examples:
- If your credit score is less than 600, you may have difficulty obtaining a loan.
- If you cannot obtain a favorable loan interest rate, your loan may be costly.
- If your income is unstable, you may be unable to make the monthly payments continuously.
Only you can determine if a personal loan is best for you. Use the calculator below to estimate additional payments and loan terms to get a better idea of what a personal loan for a bathroom makeover would look like for you.
Scoring a low-interest bathroom remodel loan
If you can acquire a low-interest personal loan, you can finance any home renovation project, from the main bathroom makeover to a basement or kitchen remodel.
Here’s how to secure a low-interest bathroom remodeling loan:
1- Take steps to improve your credit score
People with good credit can get the best interest rates and loan arrangements. If you need a personal loan to finance a bathroom makeover, but your credit score makes borrowing pricey, think about deferring the project for a few months.
Use that time to improve your credit. Then you may confidently apply for the best personal loans.
Here are some fast strategies to improve your credit:
Examine your credit reports: Examine your credit reports for inaccuracies and submit them to the appropriate credit bureau.
You are legally entitled to one free credit report each year from the three major credit bureaus: TransUnion, Equifax, and Experian.
For example, if TransUnion reports that you owe $20,000 on a car you sold years ago, that mistake might be lowering your credit score.
TransUnion should be contacted about the inaccuracy. Credit bureaus typically investigate your claim between 30 to 45 days. They must delete the harmful content unless they can demonstrate that their report is truthful.
Pay off your debts: If you have a current deficit, it may be affecting your credit score. Before asking for a loan, pay down as much as feasible.
This helps to improve your debt-to-income ratio, which is the amount of debt you have about your wage. If your lender is confident in your capacity to handle your debt burden, they are significantly more likely to grant a bathroom renovation loan.
2- Get pre-qualified with multiple lenders.
How do you know you got the best interest rate if you take the first loan you find?
Getting pre-qualified does not affect your credit score (generally), and it allows you to compare tailored interest rates from other lenders.
Also Read: Bad Credit Furniture Financing
How to Get a Bathroom Renovation Loan
Once you’re ready to apply, here’s how to fund a bathroom makeover using a personal loan. Each lender will have somewhat different criteria.
However, the following are the fundamentals:
Gather all of the documentation you’ll need. For example, be prepared to supply the lender with your Social Security number, employer details, and proof of your income.
The lender may also want a copy of your most recent bank statement and tax return. You will also be required to show identification, such as a driver’s license or passport.
Fill out an online, phone, or an in-person application. Before you apply, find out whether the lender will perform a hard or soft credit check. A hard credit check will lower your credit score.
However, a soft credit check would not. Before choosing, all of the leading lenders run a mild credit check. Find out whether the lender charges an origination fee and offers flexible financing. It’s always best to have as much knowledge as possible ahead of time.
Wait for a response from the lender. When you interact with an online lender, you will usually receive a reply within minutes. If you are authorized for a loan, the lender will inform you of your interest rate and any possible repayment alternatives.
Make a choice. If you opt to go through with the loan, the lender will do a rigorous credit check to verify your information.
Sign your name on the dotted line. When the final verification is finished, it is time to sign the loan agreement. Read the document carefully to ensure that you understand what you agree to. If you have any queries, please ask them before signing.
Obtain funding. Depending on the lender, the money should be in your account within one to three days.
A note on secured vs. unsecured loans
When you’re ready to finance your bathroom makeover, you may apply for either a secured or an unsecured loan.
Secured loans need collateral.
Collateral might be a bank account, a vehicle, or another valuable item. If you fail to make loan payments, the lender has the legal authority to seize the collateral you provided.
