2022 LightStream
Home Improvement
Trends Survey ¹

A home improvement loan is an unsecured personal loan that allows you to borrow money for home upgrades, repairs, renovations and additions. Typically offered by banks, credit unions and online lenders, home improvement loans are an easy, hassle-free way to get funds for your project.

Home improvement loans are a popular choice for home improvement projects because they offer a fast and easy way to finance your project. At LightStream, our home improvement loans are unsecured, which means you don’t need to use your home as collateral and don’t need equity in your home.

Personal loans are a good choice for quick and easy financing. Applying for a home improvement loan is typically faster than applying for a home equity line of credit (HELOC) or a home equity loan. In fact, LightStream allows you to get funds the same day you apply when all conditions are met.  Plus, you don’t have to deal with appraisals or paperwork, and you do not need equity.

LightStream offers fixed-rate loans, which means your rate won't change when the market fluctuates, and you can easily budget your payments. Our home improvement loans offer lower interest rates than a credit card, so you can save more of your hard-earned money.

Applying for a personal loan for your home improvement project is a good idea when:

• You have a great credit profile. LightStream only accepts customers with good to excellent credit.
• Your cash flow can cover your monthly payment.
• You don’t have equity in your home or don’t want to use it for collateral.
• You want to keep your savings intact.

A home equity line of credit, or HELOC, is a secured line of credit that allows you to borrow against the equity you have in your home. Because of this, HELOCs often have lower interest rates. HELOCs offer revolving credit, which allows you to borrow the funds you need when you need them. Applying for a HELOC often takes longer than a personal loan and typically requires significant paperwork. 

LightStream offers a fast, easy online application without requiring any paperwork; you also do not need collateral to borrow funds. Instead, your credit profile and whole financial track record are assessed to decide if you qualify for financing.

Consider the type of project you’re doing, your credit, income, and whether you have equity in your home when evaluating your options.

A home equity loan is also referred to as a second mortgage. Just as with a home improvement loan, you receive requested funds up front and repay them over a designated period of time. 

Unlike home improvement loans, home equity loans do require you to use your home as collateral and, typically, you must own 20% or more of your home to apply.

For minor renovations, using your credit card could be a good option. Some credit cards offer zero percent introductory APR, meaning you don’t have to pay interest for the first few months. However, using a credit card can result in extraordinarily high interest rates if you don’t pay your balance back before the introductory offer expires. 

If you’re using a credit card that does not offer zero percent interest, it’s important to pay back the entire amount you owe before your next billing period. It’s also important to note that credit cards offer variable interest rates, meaning the amount you pay can decrease or increase depending on market fluctuations. 

LightStream's home improvement loans offer lower interest rates than a credit card, so you can save more of your hard-earned money. Our low, fixed-rates make it easy to plan for your monthly expenses and stick to a budget.