Pros
- Fast funding.
- Potentially zero-interest financing.
- Offers joint loan option.
Cons
- Must work with a contractor that uses GreenSky.
- May have to pay interest retroactively.
Lender | Est. APR | Loan amount | Min. credit score | |
|---|---|---|---|---|
Limited-Time Offer 5.0 Visit Lenderon SoFi's website on SoFi's website | 8.99-29.99% Get a 0.50% discount | $5,000-$100,000 | None | Visit Lenderon SoFi's website on SoFi's website |
4.5 Visit Lenderon LightStream's website on LightStream's website Check Rateson NerdWallet on NerdWallet | 6.99-25.49% | $5,000-$100,000 | 660 | Visit Lenderon LightStream's website on LightStream's website Check Rateson NerdWallet on NerdWallet |
5.0 Visit Lenderon Upgrade's website on Upgrade's website Check Rateson NerdWallet on NerdWallet | 8.49-35.99% | $1,000-$50,000 | 560 | Visit Lenderon Upgrade's website on Upgrade's website Check Rateson NerdWallet on NerdWallet |
5.0 Visit Lenderon Discover's website on Discover's website Check Rateson NerdWallet on NerdWallet | 7.99-24.99% | $2,500-$40,000 | 660 | Visit Lenderon Discover's website on Discover's website Check Rateson NerdWallet on NerdWallet |
4.5 Check Rateson NerdWallet on NerdWallet | 7.49-23.74% | $3,000-$100,000 | None | Check Rateson NerdWallet on NerdWallet |
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Full Review
GreenSky is a service provider that facilitates home improvement loans in partnership with Synovus Bank. Loans up to $100,000 are offered through home improvement contractors.
For borrowers who take a GreenSky loan and pay it off during the promotional period, it’s a fast and inexpensive alternative for financing home improvements.
How to qualify
GreenSky doesn’t disclose qualification requirements like a minimum credit score. Borrowers typically must provide basic personal information, but documentation like bank statements or W-2s usually isn’t required.
GreenSky financing is available in all 50 states, and borrowers must work with GreenSky member contractors to apply for a loan. Approved loan amounts depend on the borrower’s creditworthiness.
How GreenSky works
Let’s say you’re remodeling your kitchen and the contractor offers financing through GreenSky. You’ll submit a loan application to GreenSky online, through its mobile app or over the phone. The application requires your name, Social Security number, monthly income and the contractor’s Merchant Number. The contractor will ask to see your government-issued ID.
Some merchants offer GreenSky’s pre-qualification option, which lets you see potential loan offers without impacting your credit score. Once a formal application is submitted, GreenSky does a hard credit pull as part of the application process.
If you accept the offer, GreenSky will send your loan documents via email and regular mail.
Most home improvement costs qualify, including kitchen and bathroom remodels, HVAC installations, home automation, windows and pool installation.
» MORE: Compare loans for your kitchen remodel
GreenSky pros and cons
GreenSky pros
No-interest loans: GreenSky’s deferred-interest loans are effectively 0% interest loans if the balance is repaid in full within the promotion period.
Fast funding: GreenSky loans originate at the point-of-sale, so you can get financing from a contractor or merchant almost immediately — faster than getting a personal loan, which can take a few days, or home equity financing, which can take several weeks.
Offers joint loans: Borrowers can file a joint application for GreenSky financing, which means both applicants' credit and income will be considered. Adding someone with better credit than you can help improve your chances of approval.
GreenSky cons
May owe retroactive interest: If you don’t pay off the loan balance during the promotional period, you’ll owe interest billed during that period plus interest that accrues after the period ends.
Negative reviews: GreenSky has a history of negative reviews and over 400 complaints in the Consumer Financial Protection Bureau database in the last five years. In 2021, the company paid a fine of $2.5 million to the CFPB for enabling and processing loans that borrowers did not authorize.
Alternatives to GreenSky
GreenSky is one option for financing home improvement costs. Consider these alternatives before deciding.
Federal programs: Some government programs can help pay for home renovations. The Federal Housing Administration has two programs: Title I loans and Energy Efficient Mortgages.
Credit cards: If you have excellent credit and a smaller home improvement project, you can apply for a 0% interest credit card to cover the expenses. If you qualify, you’ll pay no interest charges for a promotional period, typically 15 to 21 months. Unlike with GreenSky, you won’t be retroactively charged interest if you don’t pay the balance, but you will be charged the prevailing interest rate after the promotional period ends.
Personal loans: If you don’t have a lot of equity in your home or you’d rather not rack up credit card debt, consider a personal home improvement loan. These loans are unsecured, with fixed rates and payments, and usually are funded within a week. Many lenders let you pre-qualify with a soft credit check, allowing you to see your rate and terms with no impact on your credit score.
» MORE: How do home improvement loans work?
Home equity loans and HELOCs: If you have equity in your home, consider a home equity loan or line of credit. These financing options have lower rates and longer repayment terms than personal loans. The risk is you can lose your home if you fail to repay the loan.
» MORE: Home equity loan and HELOC requirements
Cash-out refinancing: With a cash-out refinance, you can refinance your existing mortgage into a larger home loan and use the difference to pay for your renovation. Rates vary by lender, loan amount and the equity in your home. The interest payments on all types of home loans are usually tax-deductible.
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