Financing your pool in 2021
We found this great article from Forbes.com and thought we’d share with our clients. Since we are one of the largest pool finance companies in the U.S. we can provide pool loans up to $100,000 from 4.99% for 15 years or longer. We offer no credit card options, no prepayment penalties and no interest and no payments for 12 months. You can prequalify for a pool or spa loan by applying here.
Installing a pool typically comes with a large construction price tag, and you may need financing to help cover the costs. If you can afford to meet monthly payments, a pool loan is a handy way to build the backyard of your dreams. You can use pool loans to cover all of your pool construction costs. While banks, credit unions and online lenders offer personal loans for pools, online lenders typically have the best options because they’re often the most affordable. It only takes a few minutes to apply, and you can receive your funds in as little as a few business days. Review our list of the best pool loans to find the right lender for you.
Tips for Comparing Pool Loans
Consider these tips when comparing personal loans:
- Finalize a pool estimate before applying: It’s crucial to have a finalized pool estimate before applying for a pool loan to understand how much money you need to borrow. Your estimate will likely point you in the direction of the best lender for you. For example, if your estimated cost is $50,000, there are some lenders that don’t offer large enough loan amounts.
- Where possible, prequalify. Many personal loan providers offer prospective borrowers the ability to prequalify for a loan. This means the applicant can submit details about their financing needs, income, housing situation and other relevant information to find out what kind of loan amounts, rates and repayment terms they are likely to qualify for. Even better, this process typically requires just a soft credit inquiry so you can shop around without hurting your credit score.
- Keep an eye out for additional fees. Some lenders offer fee-free personal loans that don’t require borrowers to pay origination fees, late payment fees, prepayment penalties or any other common loan costs. But always ask about fees when shopping for the best loan. And, if a lender charges an origination fee, find out whether it’s built into the APR or taken out of the loan amount, as this can impact your total borrowing.
- Evaluate the lender’s customer support options. While customer support may not seem like a big deal in the early stages of your loan, it can make a huge difference if you encounter issues with payments or face a financial hardship during your repayment period. Review the lender’s customer service resources and read reviews from past and current borrowers to make sure it’s a good fit.
We reviewed 16 popular lenders based on 16 data points in the categories of loan details, loan costs, eligibility and accessibility, customer experience and the application process. We chose the six best lenders based on the weighting assigned to each category:
- Loan cost: 35%
- Loan details: 20%
- Eligibility and accessibility: 20%
- Customer experience: 15%
- Application process: 10%
Within each major category, we also considered several characteristics, including available loan amounts, repayment terms, APR ranges and applicable fees. We also looked at minimum credit score requirements, whether each lender accepts co-signers or joint applications and the geographic availability of the lender. Finally, we evaluated each provider’s customer support tools, borrower perks and features that simplify the borrowing process—like prequalification options and mobile apps.
Where appropriate, we awarded partial points depending on how well a lender met each criterion.
What Is a Pool Loan?
Pool loans are typically unsecured personal loans from a traditional bank, credit union or online lender that you can use to finance the cost of installing a swimming pool, along with just about any other expense. This means you can also use a pool loan to help cover the costs of pool accessories, cleaning devices and maintenance supplies.
The best pool loans range from $1,000 to $100,000 and have terms up to 12 years, depending on the lender. You must repay your loan monthly with interest throughout the loan term.
Where to Get a Pool Loan
Pool loans are available through traditional banks, credit unions and online lenders. The right place to get a pool loan typically depends on your specific situation.
- Traditional bank. Traditional banks are typically best if you have an existing relationship with an institution that understands your reputation and offers a competitive pool loan. However, traditional banks may take longer to process your loan and disburse the funds, so consider an online lender if you need funds within one or two business days.
- Credit union. Credit unions typically offer less stringent qualification requirements than banks and online lenders; however, they require memberships, which are usually offered only to those within the community. If you are currently a member of a local credit union, compare its pool loans with online lenders.
- Online lender. Online lenders often provide the fastest funding times, competitive offers and a streamlined application process. High-qualified applicants can access loan amounts as high as $100,000 and low interest rates. If you aren’t tied to a current banking relationship, compare offers with multiple online lenders to find the best pool loan.
How to Get a Pool Loan
While the process varies by lender, follow these general steps to apply for a pool loan:
- Check your credit score. Start by checking your credit score for free through your credit card issuer or another website that offers free scores. This will give you an understanding of your creditworthiness and your qualification chances. Aim for a score of at least 610; however, a score of at least 720 will yield the most favorable terms.
- If necessary, take steps to improve your credit score. If your score falls below 610 or you want to boost your score to receive the best terms possible, take time to improve your score before applying, such as lowering your credit usage or paying off unpaid debts.
- Determine how much you need to borrow. Once you check your credit score, calculate your pool construction budget to identify how much you need to borrow. Remember, though, you’ll receive your money as a lump sum, and you’ll have to pay interest on the entire amount—so only borrow what you need.
- Shop around for the best terms and interest rates. Many lenders will let you prequalify prior to submitting your application, which lets you see the terms you would receive with just a soft credit inquiry. Prequalifying lets you shop around for the best rates without hurting your credit score.
- Submit a formal application and await a lending decision. After you find a lender that offers you the best terms for your situation, submit your application online or in person. Depending on the lender, this process can take a few hours to a few days.
Average Cost to Build a Pool
A swimming pool is a major addition to a home and can come with a high price tag. According to HomeAdvisor, on average, building a pool ranges between $17,016 and $44,920. Inground pools, including fiberglass pools, typically cost between $36,750 to $66,500 while above-ground pools range from $700 to $3,600. And if you’re in the market for a custom pool, like an infinity pool, expect to pay upwards of $100,000.
In addition to installation costs, you may come across a handful of other pool expenses and optional additions, according to HomeAdvisor, that you may need to finance with your pool loan:
- Pool deck or patio costs. $3,000 to $12,000
- Cover or enclosure. $1,500 to $20,000
- Retaining wall cost. $3,000 to $8,000
- Basic maintenance, such as cleaning and winterizing. $1,200 to $1,800 per year
- Utilities and repairs. $1,800 to $3,200 every year
If you’re thinking of adding any additional features, like a deck or enclosure, it typically saves you money to include them during the initial construction, but it will increase your upfront costs. Consider passing on any additions if you want to build a more affordable pool.