Whether it’s fixing a leaky faucet or replacing your aging water heater, a plumbing project can be expensive. While paying cash might be the cheapest way to fund your home improvement, not everyone has thousands of dollars lying around for an unexpected plumbing emergency or upgrade. In those cases, financing is often the next best option. In this article, we’ll explore some of the most common plumbing financing for bad credit options and help you decide which is right for you.
There are a few different ways to finance your home renovation or repair project, but the most popular is to use a personal loan. Unlike mortgage loans, which require homeowners to put up their home as collateral, personal loans are unsecured, meaning you don’t have to risk foreclosure if you fail to pay back the loan. Personal loans are also easy to obtain, with many lenders offering same-day approval and competitive rates.
If you have a high credit score, a personal loan may be your best option for plumbing financing. Companies like LightStream offer fast, same-day financing with competitive rates and no hidden fees. They look at your credit history, income, repayment habits, and more to approve your application. In addition, they’ll let you know if your application is approved or declined before making a hard inquiry on your credit report.
Another alternative to personal loans is a home equity line of credit (HELOC), which allows you to borrow against the value of your house and use it like a credit card. This type of plumbing financing requires a good credit score and some level of equity in your home, but it offers lower interest rates than a traditional mortgage and the flexibility of a revolving credit facility. HELOCs can be a great choice for homeowners with bad credit who don’t want to risk losing their homes.
For a smaller plumbing repair or upgrade, you can also try to use savings from your budget or family members to pay for the project. This is the cheapest plumbing financing for bad credit and can be done as quickly as within 24 hours.
If you’re a new plumbing business owner, or need to replace old equipment and supplies, a startup loan might be the solution for you. These types of loans are designed specifically to get small businesses off the ground and have flexible terms that allow for the growth of your plumbing company.
A bad credit rating is a hurdle that can prevent plumbing businesses from getting the capital they need to grow or weather a slow period. Fortunately, there are many financing solutions available for a plumbing business with bad credit. Some of these lending options have the added benefit of helping improve a plumbing business’s credit.