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Kiah Treece is a small business owner and personal finance expert with experience in loans, business and personal finance, insurance and real estate. Her focus is on demystifying debt to help individuals and business owners take control of their finances. She has also been featured by Investopedia, Los Angeles Times, Money.com and other financial publications.
Kiah Treece is a small business owner and personal finance expert with experience in loans, business and personal finance, insurance and real estate. Her focus is on demystifying debt to help individuals and business owners take control of their finances. She has also been featured by Investopedia, Los Angeles Times, Money.com and other financial publications.
Jordan Tarver has spent seven years covering mortgage, personal loan and business loan content for leading financial publications such as Forbes Advisor. He blends knowledge from his bachelor's degree in business finance, his experience as a top performer in the mortgage industry and his entrepreneurial success to simplify complex financial topics. Jordan aims to make mortgages and loans understandable.
Jordan Tarver has spent seven years covering mortgage, personal loan and business loan content for leading financial publications such as Forbes Advisor. He blends knowledge from his bachelor's degree in business finance, his experience as a top performer in the mortgage industry and his entrepreneurial success to simplify complex financial topics. Jordan aims to make mortgages and loans understandable.
Lead Editor, Mortgages & Loans
Reviewed
Updated: May 1, 2024, 10:21am
Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors' opinions or evaluations.
Building a new deck can increase the living area of a home and improve the property’s resale value. But it’s not cheap, which is why many homeowners turn to deck financing to cover project costs.
The best deck loans are those that have the lowest interest rates and fees as well as the most accessible borrower requirements. By comparing options from various deck loan lenders, you can save money and get the best deal for your needs before signing on the dotted line.
Why you can trust Forbes Advisor: Our editors are committed to bringing you unbiased ratings and information. Our editorial content is not influenced by advertisers. We use data-driven methodologies to evaluate financial products and companies, so all are measured equally. You can read more about our editorial guidelines and the loans methodology for the ratings below.
29 nationwide lenders researched
16 data points evaluated and scored
Average deck costs calculated
Best Deck Loans May 2024
BEST OVERALL DECK LOAN
SoFi®
4.0
Our ratings take into account loan cost, loan details, eligibility and accessibility, customer experience and application process. All ratings are determined solely by our editorial team.
SoFi is an online lending platform that offers unsecured fixed-rate personal loans in every state. Founded in 2011, SoFi has extended over $50 billion in loans and stands out for allowing high loan amounts and its availability of extended loan terms.
Loans are available from $5,000 to $100,000, making SoFi a great option for those with excellent credit who need to borrow a large amount of money. Loan amounts available may vary by the state you live in. Repayment terms range from two to seven years, making SoFi an incredibly flexible option for those with sufficient credit (minimum 650) and annual income (at least $45,000). SoFi also lets prospective borrowers submit joint applications—although co-signers are not permitted.
Approved borrowers are rewarded with comparatively low APRs. What’s more, SoFi doesn’t charge origination fees, late fees or prepayment penalties—a stand-out feature because personal loan lenders often charge origination or late payment fees at a minimum.
However, if you’re considering a debt consolidating loan from SoFi, keep in mind that the lender does not offer direct payment to a borrower’s other creditors. This means the loan proceeds will be deposited to your bank account and you’ll have to pay off your other lenders individually. The platform does offer customers a number of other perks and discounts.
Pros & Cons
Prequalification without a hard inquiry
Same-day approval possible
Can pay off third-party creditors directly
High credit score requirement
Co-signers not permitted
Details
Eligibility:
Minimum credit score required. 650
Minimum annual income. $45,000
Co-borrowers. Permitted
Co-signers. Not permitted
Expert’s Take
What I find impressive about SoFi is its innovative approach to lending, with a focus on providing borrowers with personalized loan options tailored to their unique financial situations.
As a small business owner, I benefited from SoFi’s competitive rates and borrower-friendly terms, which include no origination fees or prepayment penalties. Also, SoFi’s member benefits, such as career coaching and financial planning resources, add value beyond just the loan itself, making it an attractive choice for entrepreneurs looking to grow their businesses while managing their finances responsibly.
— Michael Ashley, finance expert, Richiest.com
BEST FOR LOW INTEREST RATES
LightStream
4.0
Our ratings take into account loan cost, loan details, eligibility and accessibility, customer experience and application process. All ratings are determined solely by our editorial team.
LightStream offers loans with both a low minimum and maximum interest rate, along with a rate-beat program. LightStream’s unsecured personal loans range from $5,000 to $100,000 with loan amounts varying based on the loan purpose. In addition to offering appealing and flexible terms, LightStream charges no origination, late payment or prepayment fees. The lender also offers a 0.50% rate discount for borrowers who enroll in autopay.
Pros & Cons
Long loan terms available
Low interest rates
Fast approval and funding
No prequalification option
High minimum loan amount
Low average customer rating on Trustpilot
Details
Eligibility:
Minimum credit score. 660
Minimum income. Does not disclose
Co-borrowers. Permitted
Expert’s Take
Lightstream, a division of Trust Bank, is known for its range of loan options and competitive rates. The downside can be its strict eligibility criteria, making it difficult for those with less-than-stellar credit history to gain approval.
— Jonathan Feniak, general counsel and head of finance, LLC Attorney
BEST FOR FAST FUNDING & BELOW-AVERAGE CREDIT
LendingPoint
3.0
Our ratings take into account loan cost, loan details, eligibility and accessibility, customer experience and application process. All ratings are determined solely by our editorial team.
LendingPoint is an online lender based in Atlanta that offers personal loans to prospective borrowers in 48 states and Washington D.C.; it does not offer loans in Nevada and West Virginia. Prospective borrowers in eligible states can apply online and benefit from quick funding.
LendingPoint personal loans range from $2,000 to $36,500; Georgia loans have a minimum loan amount of $3,500. Repayment terms range from 24 to 72 months—or two to six years.
There are two main disadvantages to LendingPoint: high maximum APRs and origination fees. While you can typically avoid high APRs by maintaining a high credit score, LendingPoint origination fees (up to 10%) depend on the state you live in.
Pros & Cons
Quick funding
Low credit score requirements
No prepayment penalty
Origination fee up to 10%
Co-signers or joint loans not permitted
Not available in Nevada and West Virginia
Details
Eligibility:
Minimum credit score. 600
Minimum annual income. $35,000
Co-signers. Not permitted
Expert’s Take
LendingPoint can be a good option for those who may not have a high credit score. They focus more on the potential borrower’s job history and income when determining loan eligibility and rates.
— Jonathan Feniak, general counsel and head of finance, LLC Attorney
BEST FOR BAD CREDIT
Upgrade
3.5
Our ratings take into account loan cost, loan details, eligibility and accessibility, customer experience and application process. All ratings are determined solely by our editorial team.
Upgrade was launched in 2017 and provides accessible online and mobile credit and banking services. Since that time, the platform has made more than $3 billion in credit available to over 10 million applicants and continues to expand its online and mobile services. Although maximum APRs are on the high end compared to other online lenders, Upgrade makes loans available to those with poor credit history.
Loans amounts, which range from $1,000 to $50,000. Upgrade has two- to seven-year terms available. Upgrade charges an origination fee between 1.85% and 9.99% of the loan, and borrowers will encounter a $10 fee if their payment is more than 15 days late or if the payment does not go through; there are no discounts for autopay. That said, Upgrade borrowers are not subject to a prepayment penalty, so you can reduce the overall cost of the loan if you’re able to pay it off early.
Beyond offering accessible personal loans, Upgrade streamlines the lending process with a mobile app that lets borrowers view their balance, make payments and update personal information. Upgrade’s Credit Heath tool also makes it easy to track your credit score over the life of your loan.
Pros & Cons
Flexible eligibility requirements
Can pay off creditors directly
High loan amounts available
High APR range
Fees for late payments and insufficient funds
Charges origination fees from 1.85% and 9.99%
Details
Eligibility:
Minimum credit score. 580
Minimum income. None
Co-applicants. Permitted
Expert’s Take
Upgrade’s personal loans come with a unique feature—mandatory automatic payments. While this is an effective default prevention measure, it might not suit everyone, especially those with irregular income streams.
— Jonathan Feniak, general counsel and head of finance, LLC Attorney
BEST FOR COMPARING MULTIPLE OFFERS
Universal Credit
3.5
Our ratings take into account loan cost, loan details, eligibility and accessibility, customer experience and application process. All ratings are determined solely by our editorial team.
Universal Credit is an online lending platform that offers personal loans between $1,000 to $50,000 through its partners. Repayment terms range from three to seven years.
While Universal Credit makes finding a personal loan accessible even to those with damaged credit, it comes with a few tradeoffs. First, it charges high APRs, well above the most competitive rates seen on our list. Second, Universal Credit charges a 5.25% to 9.99% origination fee on all personal loans. Because this is deducted from your loan proceeds, you’ll need to factor this in when determining your loan amount to ensure you receive the necessary amount after the fact.
Pros & Cons
Flexible qualification requirements
Next-day funding
No prepayment penalty
High APRs
All personal loans charge a 5.25% to 9.99% origination fee
Details
Eligibility:
Minimum credit score. 580
Minimum income requirement. Does not disclose
Co-signers. Does not disclose
Co-borrowers. Does not disclose
BEST FOR NO INTEREST IF REPAID WITHIN 30 DAYS
Discover
3.5
Our ratings take into account loan cost, loan details, eligibility and accessibility, customer experience and application process. All ratings are determined solely by our editorial team.
Discover is an online bank that also offers customers credit cards, retirement solutions and personal loans in all 50 states. As a lending platform, Discover stands out because of its online application and mobile banking tools, well-reviewed customer support team and quick funding.
In general, loans are available from $2,500 to $40,000 and may be issued for between three and seven years. So, while borrowers may get a larger loan from another lender, the repayment terms are fairly flexible. Discover charges a late payment fee and does not offer an autopay discount; however, it does not charge any origination fees or prepayment penalties, making it competitive with other top personal loan providers.
We reviewed 29 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 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, annual percentage rate (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.
When looking for the best deck loans, compare all of your options based on factors like interest rates, fees and borrower requirements. Follow these tips to find a deck loan that meets your needs:
Evaluate your qualifications. When assessing deck loan applications, lenders consider the prospective borrower’s credit score, income and borrowing needs. Lenders typically look for a credit score of at least 670 to qualify for a personal loan. To evaluate your approval odds before applying for a deck loan, check your credit score and compare it to each lender’s minimum requirements.
Choose a lender that offers a prequalification process. Prequalifying for a loan lets you see what rates and terms you’re likely to qualify for based solely on a soft credit check. Unlike hard credit inquiries, soft credit inquiries don’t affect your credit score, so you can shop around before submitting a formal loan application.
Compare interest rates and other fees. In general, personal loan interest rates range from 4% to 36%, depending on borrower creditworthiness. Many lenders also charge additional fees, such as origination fees and late payment fees. Choose a lender that offers a competitive cost of borrowing for your credit profile.
Find a loan term that meets your needs. Lenders offer several types of deck financing. These range from short-term loans with higher monthly payments and lower interest rates to long-term loans with steeper rates but reduced payments. Evaluate each lender’s offering based on your budget and borrowing needs.
Check if the lender charges prepayment penalties. Many lenders charge prepayment penalties if you pay off your loan early. This can increase the overall cost of borrowing, so look into each lender’s policy if you intend to pay off your loan before the end of the term.
What Is Deck Financing?
Deck financing is a type of loan that helps homeowners pay for both the materials and labor involved in constructing or repairing a deck. This includes the expansion or enclosure of existing outdoor spaces.
Depending on the lender and your needs, deck financing may come in the form of a personal loan, credit card or contractor financing. Some borrowers also opt for a home equity loan or home equity line of credit (HELOC) when financing the construction of a deck.
How Much Does It Cost to Build a Deck or Patio?
The cost to build a deck or patio varies depending on the size of the structure, the materials and whether the homeowner hires a contractor or takes the do-it-yourself (DIY) route.
On average, though, building a new deck costs between about $4,000 and $16,000, with additional costs for screening, enclosing or covering the deck. A new patio costs between $1,900 to $5,500 on average. That said, a deck could cost as much as $20,000—or more—depending on size, material quality and local labor costs.
If you’re hiring a contractor to build your deck or patio, get at least three bids before hiring someone. This can help you get a lower price while still working with a qualified contractor who has sufficient experience building decks.
Common Deck Financing Options
There are several common options for financing your deck project, including personal loans, home equity loans and credit cards. The best way to finance a deck depends on several factors, such as the cost of the project, your credit score and whether you’re able to qualify for a low-interest loan or no-interest credit card. Consider these common deck financing options:
Personal Loans
Personal loans are installment loans that provide borrowers with a lump sum of cash to cover personal expenses. This type of deck financing is available from traditional banks and credit unions as well as from online lenders. Personal loan APRs vary between 4% to 36%, depending on borrower qualifications. Most lenders require a minimum credit score of at least 670, though some financial institutions specialize in borrowers with fair or poor credit.
Choose a personal loan to finance your deck if you need to access the funds quickly and don’t want to use your home as collateral. Also make sure you have sufficient monthly cash flow to pay off the loan quickly.
Home Equity Loans
A home equity loan is a fixed-interest loan that lets homeowners borrow against the equity in their home—or the home value minus the mortgage debt. This type of financing is repaid over time and, because it is secured by the home, usually comes with low interest rates (3.25% to 7.94%, as of August 2022).
Home equity loans are generally available from banks and credit unions, and they’re disbursed as a lump sum of cash. To qualify, borrowers should have a minimum credit score of 680, plus 15% to 20% home equity and a debt-to-income (DTI) ratio of 43% or less.
Home equity loans are best if you have sufficient home equity and want to receive a lump sum of cash to pay for deck construction. However, keep in mind that you risk losing your house if you can’t make your payments.
Home Equity Lines of Credit
A HELOC provides homeowners access to a revolving line of credit that uses the borrower’s home equity as collateral. The borrower can draw against the line of credit on an as-needed basis and will only pay interest on the outstanding balance. This makes HELOCs ideal for lengthy deck projects that can be completed over time.
HELOCs are available through traditional banks and credit unions, and they have similar requirements as home equity loans. In general, borrowers should have a credit score of at least 620 to qualify, and most lenders require the homeowner to have at least 15% to 20% equity. Consider this option if you have sufficient equity in your home and prefer to withdraw funds gradually—though remember that the lender could seize your house if you can’t keep up with your payments.
0% APR Credit Cards
A 0% APR credit card provides an initial promotional period of interest-free borrowing to qualified applicants. Consumers with a credit score of at least 670 have the highest chances of being approved for a 0% interest card. The promotional rate typically lasts for around six to 18 months, though this may extend up to 21 months. Once the 0% period ends, APRs range anywhere from 13% to 28%.
A 0% APR credit card may be the best way to finance a deck because of the low borrowing costs. However, it can be difficult to qualify for 0% APR credit cards, and they only offer savings if you have enough income to pay off the balance before the 0% period ends.
Contractor Financing
Some contractors offer in-house financing for deck construction and other home improvements. With this type of financing, the contractor may offer a loan through a third-party lending partner, like a local credit union. APRs and interest rates vary but are generally similar to those available with personal loans.
How to Get Deck Financing
The best way to get financing for your deck project is to compare loan offers from multiple lenders and choose the one with the lowest interest rate and fees. From there, the application process varies by lender, but most follow the same general process. Follow these steps to get financing for a deck:
Check your credit score. Lenders will use your credit score to determine your loan eligibility and terms. Before choosing a lender and submitting an application, check your credit score to see whether you’re likely to qualify. If your score is low, it may make sense to focus on building it up—such as by paying down outstanding debts—before beginning your deck project.
Determine the cost of your deck. Estimate how much money you need to complete the project and what interest rates and fees you can realistically afford. Your project’s biggest costs will be the cost of materials and labor if you hire a contractor.
Compare lenders. Once you know the amount and type of financing you need, compare multiple offers to find the best deal. Where possible, take advantage of lenders’ payment calculators and prequalification processes to identify the most suitable option.
Submit your application. Gather the documents required by your lender and submit your application online or in person. Lenders may require proof of income, proof of homeownership and proof of identity.
Provide additional documents. Depending on the type of financing, you may need to provide additional documentation as part of the application process. If so, a loan officer will contact you to request the information. Keep an eye on your email and then submit the requested documents as soon as possible so your loan can progress through underwriting.
Receive your funds. If you’re approved, the lender will disburse the funds directly to your account or provide online access to your line of credit. You’ll also receive loan documentation that includes your total monthly payment amount and due date.
Frequently Asked Questions (FAQs)
Can you finance a deck?
Decks can be financed with a variety of loan products, including personal loans, home equity loans and credit cards. The best deck loans depend on a variety of factors, such as the borrower’s needs and qualifications.
How long can you finance a deck for?
Most lenders offer loan repayment terms of 12 to 60 months, depending on your credit score and the loan amount. However, some lenders offer terms as short as three months or as long as 12 years.
Is building a deck a good investment?
Building a deck can be a good investment if you choose materials and designs that add value to your home. In general, decks have a high average return on investment (ROI) of around 70%. If you’re not sure whether building a deck is right for you, speak to a real estate agent or home improvement contractor familiar with your local market.
How do people pay for a new deck?
There are a few different ways to finance your deck project, including personal loans, home equity loans and credit cards. Others save up and pay for the project with cash.
Information provided on Forbes Advisor is for educational purposes only. Your financial situation is unique and the products and services we review may not be right for your circumstances. We do not offer financial advice, advisory or brokerage services, nor do we recommend or advise individuals or to buy or sell particular stocks or securities. Performance information may have changed since the time of publication. Past performance is not indicative of future results.
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Kiah Treece is a small business owner and personal finance expert with experience in loans, business and personal finance, insurance and real estate. Her focus is on demystifying debt to help individuals and business owners take control of their finances. She has also been featured by Investopedia, Los Angeles Times, Money.com and other financial publications.
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