A comfortable home makes a happy family. So as your family grows and changes, your home decor also needs to be improved to match their needs. Unfortunately, home improvement projects aren’t always cheap and can be quite a strain on your pockets. In these cases, a home renovation loan can come in handy—unless you have a bad credit score.
Is It Possible to Refurbish Your Home with Bad Credit?
Home renovation loans are a great way for homeowners to manage the cost of home improvement projects. But as most lenders typically prefer borrowers with less risk, it can be difficult to secure a loan if you have a bad credit score. Credit scores below 670 are generally considered to be bad. Some lenders might be willing to offer subprime loans to borrowers with credit scores as low as 580. But, these loans usually have more limitations, higher interest rates, and additional fees.
If you are one of the 42% of Americans who have poor credit scores and wish to refurnish your living room or upgrade your kitchen, worry not—there are several other alternative solutions to home renovation loans that can help you pay for your new furniture and kitchen appliances.
Alternative Solutions for Upgrading Your Home
Home Equity Loans
These loans allow homeowners to borrow a fixed loan amount against the equity of their home. Borrowers can pay back this amount through monthly payments over a specified repayment period.
Home Equity Line of Credit
This type of loan also lets you borrow against your home's equity. But, unlike a home equity loan, you will only be able to borrow a specified amount of money, much like a credit card. You need to pay back this line of credit before borrowing more money.
If you are 62 or older, reverse mortgages are a viable option to fund your home upgrades. This allows senior homeowners to convert their home equity into cash income and fund their home’s refurbishing, without having to make loan payments. And the best part, reverse mortgages don’t have a minimum credit score requirement.
There are various government loan programs that provide homeowners with loans for home improvements. The FHA’s Streamlined 203(k) is one such loan program, where homeowners can finance up to $35,000 into their mortgage to repair or upgrade their home.
In-store financing can be very helpful in funding your home upgrades, especially when you have a low credit score and don’t qualify for home renovation loans.
Though home improvements are necessary to create a comfortable home, you shouldn’t have to use up all your saving to buy that new sofa. This is where Okinus Credit Solutions’ lease-purchase programs come in. With a quicker approval process and flexible repayment options, this solution is one of the smartest ways to fund the purchase of new furniture, air conditioning, and even kitchen appliances.
Whether it is buying new furniture or upgrading your kitchen appliances or HVAC systems, our lease-purchase options are the best way to bring home what you need when you need it—with no credit requirements or long waits for approval. Please fill out our lease-purchase application form or contact Okinus Credit Solutions at 844-450-0221 for more information.