Best group loans of March 2022

Company Starting interest rate Minimum credit score Loan conditions Maximum loan amount
LightStream

Best overall
4.94% 680 36–144 months $100,000
Discover

Better repayment terms
5.99% Not disclosed 36–84 months $35,000
Improve

Ideal for bad credit
5.94% 550 24–84 months $50,000
The APRs are current at the time of publication.

Guide to choosing the best pool loan

Do you need a pool loan?

If you are considering installing a swimming pool, it is important to research your pool financing options. To pay for a new pool, you can dip into your savings, apply for a home equity loan or home equity line of credit, or opt for an unsecured pool loan.

When deciding which one is best for you, start by weighing the pros and cons of unsecured loans.

Advantages
  • Potentially increase the value of the house

  • No collateral required

  • Quick and easy application process

The inconvenients
  • Higher APRs than secured loans

  • Shorter repayment times

  • Does not cover routine maintenance costs

Unsecured pool loans can help you achieve the backyard oasis you can imagine without risking your home or going through a lengthy application process. You can apply online quickly and, if approved, receive your money the same day.

Can a pool loan be profitable compared to the value of your property? It depends. According to the National Association of Realtors, before the COVID-19 pandemic, the impact of a swimming pool on the value of a home was quite minimal. A home with a pool would sell for about $16,137 more than a similar home without a pool. During the pandemic, demand for swimming pools skyrocketed, and a home with a pool sold for $27,199 more on average. It’s unclear how pools will affect home values ​​post-pandemic, so increasing home values ​​shouldn’t be your sole motivation for installing a pool.

While a loan can help increase the value of your home, be sure to consider the loan’s APR, repayment terms, fees, and total repayment cost. And, keep in mind that pool loans usually only cover installation and setup costs. Ongoing materials and maintenance, including water, chemicals, heating, and filtration systems, can cost thousands of dollars each year.

Compare loan pool lenders

There are many lenders who offer pool loans. To find the best group loans, consider the following factors:

  • APR: You will find a wide range of rates for unsecured pool loans; our major providers offer APRs of 4.94% to 35.97%. The APR (which includes the interest rate and some fees) is the most important factor affecting your total repayment cost, so shop around and compare offers to get the best rate.
  • Discounts available: Some lenders offer special discounts to borrowers who are existing customers or sign up for automatic payments. Taking advantage of these offers can save you time and money.
  • Co-applicants: If you don’t meet the lender’s requirements on your own, some lenders allow you to apply with a relative or friend to improve your chances of getting a loan.
  • Costs: Some personal lenders charge high origination fees, application fees, and late fees, which affect your overall cost. Look for lenders that offer low or no fees. For example, neither LightStream nor Discover charge an assembly fee.
  • Repayment Terms : Unlike home equity loans, which can have repayment terms of up to 30 years, group loans tend to have shorter terms, so you’ll have a higher monthly payment. Our leading loan providers offer unsecured pool loans with repayment terms ranging from 24 to 144 months.

Apply for a pool loan

If you decide that an unsecured loan is the best pool financing option for you, you can use the lenders’ pre-qualification tools to get quotes and choose an affordable loan. Once you are ready to move forward with the application, you can apply online through the lender’s website.

Lenders will ask for your personal information, including your social security number and your employer. You will be required to consent to a credit check and may be required to submit proof of your identity, such as a copy of your driver’s license.

Once approved, the lender will send you a finalized loan agreement that outlines the loan’s APR, repayment term, and total repayment cost. If you agree to the terms, sign the agreement and return it to the lender. The lender will disburse the funds, usually by depositing them directly into your bank account. Going forward, you will be able to manage your account and make payments through the lender’s website or mobile app.


Frequently Asked Questions

How do group loans work?

Pool loans are unsecured personal loans specifically designed to pay for the purchase and installation of an above-ground or in-ground swimming pool. They do not require collateral; instead, the lender reviews your application and decides whether to approve you based on your credit score, credit history, and income.

Like other personal loans, pool loans are installment loans with fixed monthly payments and a fixed repayment date.

Is it hard to qualify for a pool loan?

Most lenders require borrowers to have good to excellent credit. However, some lenders, such as Upgrade, lend to borrowers with fair or poor credit. And some lenders allow you to apply with a co-signer to get a better rate.

What types of loans can be used to obtain a pool?

When it comes to financing a new pool, there are four main types of loans:

  • Home Equity Loan: A home equity loan, also known as a second mortgage, lets you borrow against the equity in your home. The loan amount is based on the difference between the current value of your home and what you owe on your existing mortgage.
  • HELOC: Like home equity loans, HELOCs allow you to tap into the equity in your home to fund your pool installation. But rather than getting your money in a lump sum, HELOCs are a revolving line of credit, so you can use the line of credit over and over again during the drawdown period.
  • Refinancing by collection: With a cash refinance loan, you replace your existing mortgage with a new one for more than you owe, getting the difference in a lump sum.
  • Personal loan: Unlike the other three options, personal loans are unsecured, so you don’t have to use any property as collateral. Personal loans tend to have higher interest rates than other types of financing, but you can get the money you need fast without risking your home.

How long can group loans last?

The repayment term for your pool loan depends on the type of loan you have but ranges from two to 30 years.

  • Home Equity Loans: If you take out a home equity loan, you can choose a loan term ranging from five to 30 years, depending on the lender you select.
  • HELOC: With a HELOC, you have a drawdown period followed by the repayment period. The repayment term can vary from 10 to 20 years.
  • Refinancing by collection: With cash-in refinance, you usually have 15 to 30 years to pay off the loan.
  • Personal loans: Personal loans generally have shorter repayment terms because they are unsecured. Typically, you have 2 to 12 years to repay your loan.

Are the pools worth the cost?

The value of a pool loan depends on several factors, including:

  • Amount borrowed: Interest is calculated based on the amount you borrow. If you need to borrow a large sum of money and take several years to pay it back, you can pay thousands more in interest than you originally borrowed.
  • APR: If you have good to excellent credit, the best pool lenders offer fairly low rates. But if your credit isn’t perfect, your APR could be in the double digits, causing you to pay a lot of interest.
  • House value: Depending on where you live and your home, adding a pool could increase the value of your home and make it easier to sell.

A swimming pool is a substantial investment, so think carefully about the pros and cons of adding one to your property and taking out a pool loan before making a decision.


How we choose the best pool loans

Our team evaluated 38 lenders and collected 1,520 data points before narrowing down our top picks. We weighted more than 20 criteria and gave a higher weight to those having a more significant impact on potential borrowers.

Top picks were selected based on factors such as membership requirements (15% weighted), average fixed APR (15% weighted), and average origination fee (10% weighted).

We also considered flexible repayment terms, helpful features such as pre-qualification, and whether co-signer or joint applications are allowed to ensure borrowers have the best possible experience. For more information on our selection criteria and process, our full methodology is available.


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