Renovating your home can be expensive. A new kitchen might cost $25,000, while a bathroom remodel averages $15,000. For homeowners with good credit, securing financing doesn't have to be a struggle. You've got several options, each with different rates and terms.

Quick answer: For those with good credit (FICO score 670+), the best home improvement loans are often personal loans or HELOCs (Home Equity Lines of Credit). Personal loans offer fixed rates, usually from 5.99% to 18%, for amounts up to $100,000 without collateral. HELOCs can offer lower rates, often 4.5% to 8%, by using your home equity.

How to Choose the Right Loan for Your Project

Choosing the right loan involves more than just finding the lowest interest rate. You'll want to consider the loan amount, repayment term, and whether you're comfortable using your home as collateral. A 2024 Bankrate study found that 23% of homeowners regret their financing choice due to unexpected fees or high monthly payments. Don't make that mistake.

Here are the key factors to evaluate:

  • Interest Rate (APR): This is the total cost of borrowing, including fees. With good credit (700+ FICO), you should aim for personal loan APRs under 10% or HELOC rates below 7%.
  • Loan Amount: Do you need $5,000 for a small paint job or $75,000 for a major addition? Lenders like LightStream offer up to $100,000 for qualified borrowers.
  • Repayment Term: Personal loans often have terms from 2 to 7 years. HELOCs can have much longer draw periods (10 years) and repayment periods (20 years). Longer terms mean lower monthly payments, but you'll pay more interest overall.
  • Collateral Requirements: Personal loans are unsecured. HELOCs and home equity loans are secured by your home, offering lower rates but risking foreclosure if you default.
  • Fees: Watch for origination fees (1% to 8% of the loan amount), application fees, and prepayment penalties. Many top lenders, like SoFi, don't charge origination fees.

Top Home Improvement Loan Options for Good Credit

Good credit opens doors to competitive rates and flexible terms. We've identified several strong options based on typical borrower profiles and current market offerings.

1. LightStream Personal Loans

LightStream is a popular choice for home improvement, especially if you're seeking larger unsecured loans. You'll need excellent credit, generally a FICO score of 720 or higher, to qualify for their best rates. APRs start as low as 5.99% for loan amounts up to $100,000. Their loans are unsecured, meaning you don't pledge your home. Repayment terms range from 24 to 84 months. There aren't any origination fees or prepayment penalties, which can save you hundreds of dollars. According to a 2025 NerdWallet survey, 44% of LightStream borrowers reported same-day funding. This makes them ideal for time-sensitive projects.

  • Best for: Large, unsecured home improvement projects with excellent credit.
  • APRs: 5.99% - 18.99%
  • Loan Amounts: $5,000 - $100,000
  • Fees: No origination, application, or prepayment fees.

2. SoFi Personal Loans

SoFi offers personal loans up to $100,000 with competitive fixed rates starting around 6.99%. They cater to borrowers with good to excellent credit (FICO 680+). SoFi stands out because they also offer unemployment protection, which can pause your payments if you lose your job. This provides a safety net. Repayment terms are typically 2 to 7 years. Like LightStream, SoFi doesn't charge origination fees. This can significantly reduce your upfront costs. If you're considering a small electrical upgrade, this could be a good fit. You can read more about basic electrical wiring in our guide.

  • Best for: Borrowers seeking competitive rates and unemployment protection.
  • APRs: 6.99% - 24.99%
  • Loan Amounts: $5,000 - $100,000
  • Fees: No origination, application, or prepayment fees.

3. Discover Personal Loans

Discover provides personal loans with fixed rates from 6.99% to 24.99%. Loan amounts range from $2,500 to $40,000. While their maximum loan amount is lower than some competitors, Discover is known for its strong customer service and transparency. They typically require a FICO score of 660 or higher. There are no origination fees, but late payment fees apply. Repayment terms are usually 36 to 84 months. This option works well for smaller projects, like caulking and sealing at home.

  • Best for: Smaller to medium projects, reliable customer service.
  • APRs: 6.99% - 24.99%
  • Loan Amounts: $2,500 - $40,000
  • Fees: No origination fee, late payment fee may apply.

4. Home Equity Line of Credit (HELOC)

A HELOC works like a credit card, letting you borrow against your home's equity as needed. You only pay interest on the money you use. Rates are variable, often tied to the prime rate, and can start as low as 4.5% for well-qualified borrowers. You'll typically need at least 15% to 20% equity in your home and a credit score of 680 or higher. Most HELOCs have a 10-year draw period, followed by a 20-year repayment period. The primary drawback is that your home serves as collateral. If you default, you could lose your home.

  • Best for: Ongoing projects or uncertain costs, lower variable rates.
  • APRs: 4.5% - 8.0% (variable)
  • Loan Amounts: Up to 80-90% of your home's equity.
  • Fees: May include application fees, closing costs (0.5% to 2% of the line), and annual fees.

Comparing Loan Options

This table summarizes the key features of the top home improvement loan options for borrowers with good credit. You'll see how they stack up.

| Lender/Loan Type | Min. FICO Score | Min. APR | Max. Loan Amount | Collateral Required | Typical Fees | | :-------------------- | :-------------- | :--------- | :--------------- | :------------------ | :--------------------------- | | LightStream Personal | 720 | 5.99% | $100,000 | No | None | | SoFi Personal | 680 | 6.99% | $100,000 | No | None | | Discover Personal | 660 | 6.99% | $40,000 | No | No origination fee | | HELOC | 680 | 4.5% (var.)| Up to 90% equity | Yes (Home) | Closing costs, annual fees |

When to Call a Pro

You're dealing with substantial sums of money when financing a home improvement. While personal loans are generally straightforward, HELOCs and home equity loans can be complex. If you're unsure about the terms, fees, or how a variable interest rate might impact your budget, consult a financial advisor. A professional can help you understand the long-term implications of borrowing $50,000 or more. Don't sign anything you don't fully understand.

Sources

  • Bankrate. "2024 Homeowner Finance Survey." Accessed August 7, 2026.
  • NerdWallet. "LightStream Personal Loan Review." Published May 1, 2025.
  • Federal Reserve Board. "What's a home equity line of credit (HELOC)?" Last modified June 12, 2024.

FAQ

What credit score do I need for a good home improvement loan?

Lenders typically consider a FICO score of 670 or higher to be good credit. For the best rates, you'll want a score above 740, which can qualify you for APRs as low as 5.99% on loans up to $100,000. It's an important distinction.

Can I get a home improvement loan with no equity?

Yes, you can get a personal loan for home improvements even without equity. These are unsecured loans, meaning they don't use your home as collateral. Interest rates may be higher, often starting around 7.99%, compared to secured options like a HELOC.

How do personal loans compare to HELOCs for home improvements?

Personal loans offer fixed interest rates and predictable monthly payments. They're unsecured, so your home isn't at risk. HELOCs provide variable rates and flexible borrowing against your home's equity. You'll only pay interest on what you use, but your home serves as collateral. Choose a personal loan for fixed costs; a HELOC for ongoing, uncertain expenses.