Bathroom Remodel Financing for 2024

Bathroom remodel loans can make it easier to fund renovation projects you may have been putting off. You can borrow what you need and repay it over time without draining your savings. A personal loan isn’t the only option when you need cash to cover remodeling costs, but it can be an attractive choice for various reasons.

If you’re considering a personal loan for bathroom remodeling, it helps to know where to find them. It’s also important to weigh the pros and cons, as well as alternative financing options for remodeling. Keep reading for everything you should know to fund your new bathroom..

In this guide:

Cost of a bathroom remodel
4 personal loans to finance your bathroom remodel
How to qualify for a personal loan for a bathroom remodel
Pros and cons of using a personal loan to finance your bathroom renovation
Other bathroom remodel loan options
How to choose the right financing option for your bathroom project
FAQ

Cost of a bathroom remodel

The typical cost to remodel a bathroom is $6,600 to $17,000. The average is $11,519, but costs could reach as much as $28,000 if you remodel a larger or main bathroom.

Factors to consider when estimating the cost of a bathroom remodel include:

Bathroom size
Choice of fixtures
Whether demolition or floor plan changes may be necessary
Permits (if required)
Labor (if you hire someone to handle renovations)
Materials

Ways to save include doing some of the work yourself. However, that may not be realistic if you’re tackling a larger-scale project or one that requires skills you don’t have, such as rewiring sockets and light fixtures or moving plumbing lines.

Tallying the estimated costs can help you better plan for the next step—financing the project.

Erin Kinkade, CFP®, recommends covering at least a portion of the project yourself: “I suggest saving 3% to 10% of the total estimated cost. Of course, you may not need a down payment for the type of loan you have, but financing a portion of the project yourself—or better yet, financing it on your own!—could save significant interest fees. But if the bathroom remodel is necessary and can’t wait, and the loan fits in your budget, despite the overall potential higher interest costs, these options might make sense.”

4 personal loans to finance your bathroom remodel

Personal loans are a popular choice for funding home improvement projects, including bathroom remodeling. A personal loan allows you to borrow a lump sum, which you repay over time with interest. These loans are often unsecured, meaning they don’t require collateral. This sets them apart from funding options such as home equity loans and lines of credit.

Once approved for a personal loan, you can get loan funds deposited to your bank account. From there, you can use the loan proceeds to cover bathroom remodeling costs, which can include:

Paying deposits to contractors if hiring outside help
Purchasing materials or fixtures
Purchasing tools and other necessary equipment if you plan to do the work yourself
Obtaining required permits

Like other types of personal loans, approval for bathroom remodel loans often hinges on your credit scores and income. The higher your credit score, the easier it may be to get approved and secure a favorable interest rate. Getting the lowest rate possible on a bathroom remodel loan can reduce your total cost of borrowing over time.

Click each lender’s name in the table below to find out more about its bathroom remodel loan.

	Best for	LendEDU editorial rating (out of 5)	Loan amounts
SoFi	Good credit	5.0	$5,000 – $100,000
Upgrade	Fair credit	4.9	$1,000 – $50,000
Upstart	Thin (little to no) credit	4.8	$1,000 – $50,000
LightStream	Excellent credit	4.8	$5,000 – $100,000

To compare options, check out our guides to the best home improvement loans and home improvement loans for bad credit.

SoFi: Best for good credit

View Rates

Editorial rating: 5.0 out of 5

Borrow up to $100,000
Same-day funding
No collateral required

SoFi offers unsecured personal loans for home improvement projects, which can include bathroom remodeling and repairs. Loan rates are fixed, allowing for predictable monthly payments. SoFi has no collateral requirements, and you won’t pay an annual fee.

Borrowers with good credit (a FICO score between 670 and 739) or better can take advantage of an autopay rate discount and a direct deposit discount when they open a checking and savings account with SoFi. Once approved, it’s possible to receive funding as soon as the same day.

Rates: 8.99% – 25.81% APR
Loan amounts: $5,000 – $100,000
Terms: 24 – 84 months
Origination fee: None
Soft credit check: Check your rates without affecting credit scores
Minimum credit score required: 660

Upgrade: Best for fair credit

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Editorial rating: 4.9 out of 5

Borrow up to $50,000
No prepayment penalties
Fixed rate and term

Upgrade’s personal loans allow you to borrow up to $50,000 for bathroom remodeling or other home repairs. Rates are fixed, and borrowers make a single monthly payment over a 36-month or 60-month term. Should you pay your loan off ahead of schedule, Upgrade won’t assess a prepayment penalty.

Upgrade charges a one-time origination fee for its loans, which it deducts from your loan proceeds. Checking your rates can give you an idea of what you might pay and you can view quotes without affecting your credit scores. We recommend this personal loan for borrowers with fair credit (FICO between 580 and 669).

Rates: 8.49% – 35.99% APR
Loan amounts: $1,000 – $50,000
Terms: 36 or 60 months
Origination fee: 1.85% – 9.99%
Soft credit check: Check your rates without affecting credit scores
Minimum credit score required: 580

Upstart: Best for thin credit

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Editorial rating: 4.8 out of 5

No hidden fees
Next-day funding
Borrow up to $50,000

Upstart offers personal loans ranging from $1,000 to $50,000, with no minimum credit score requirement in most states. Get loan funds as soon as the next day once you’re approved. There’s no impact on your credit scores when you check your rates online.

Upstart will give you two loan term options, so you can choose a payment schedule that fits your budget. If you decide to pay your loan off early, Upstart charges no prepayment penalty. We recommend this lender for borrowers with little to no credit history or a FICO score below 580.

Rates: 5.20% – 35.99% APR
Loan amounts: $1,000 – $50,000
Terms: 3 or 5 years
Origination fee: 0% – 12%
Soft credit check: Check your rates without affecting credit scores
Minimum credit score required: None in most states

LightStream: Best for excellent credit

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Editorial rating: 4.8 out of 5

Get up to $100,000 for bathroom remodeling
Choose from a range of repayment terms
No origination fee

Lightstream personal loans can provide you with up to $100,000 to pay for bathroom remodeling costs. Take up to 144 months—12 years—to repay your loan. (But choosing a longer term can mean paying more interest total overall.) LightStream won’t charge an origination fee or a prepayment penalty.

You’ll need excellent credit—a FICO score of 800 or better—to secure LightStream’s lowest interest rates. Enroll in autopay to earn a rate discount, which can help reduce your loan costs. LightStream doesn’t offer the option to prequalify with a soft credit check, so you must apply for a loan with a hard credit pull to find out your rates.

Rates: 7.99% – 25.49% APR
Loan amounts: $5,000 – $100,000
Terms: 24 – 144 months
Origination fee: None
Soft credit check: Not available
Minimum credit score required: 660

How to qualify for a personal loan for a bathroom remodel

Lenders can consider a number of factors to make approval decisions for bathroom remodel loans.

Items that can affect your ability to qualify include your:

Credit history and credit scores
Income
Debt-to-income ratio
Employment history

Credit scores are often central to the decision-making process. Lenders prefer to offer loans to borrowers who are likely to pay them back, but minimum credit score requirements can vary from lender to lender.

Checking your credit reports and scores can give you a framework for comparing bathroom remodel loans from different lenders. For instance, if your credit score is 650, that might put personal loans for excellent credit just out of reach. So you could do one of the following:

Shop around for personal loans for good credit instead
Work on improving your credit scores to qualify for a wider range of loan options

If your bathroom remodeling project can wait, it might make sense to focus on boosting your credit scores. Qualifying for a lower rate could yield substantial interest savings over the life of the loan. It may also allow you to borrow a larger amount to cover your remodeling needs.

The simplest ways to improve your credit score include paying bills on time and reducing debt. You can qualify for personal loans with less-than-perfect credit. However, you might pay a higher interest rate on the amount you borrow.

Pros and cons of using a personal loan to finance your bathroom renovation

Should you use a personal loan for bathroom remodeling? It depends on your personal and financial situation. Here’s a quick rundown of the main pros and cons to consider.

Pros

Using a personal loan to finance bathroom remodeling means you don’t have to draw cash out of savings.
Unlike home equity loans, which are secured by your home, most personal loans don’t require collateral.
A good credit score could help you tap into a larger loan amount and snag lower interest rates.
Depending on the lender, you might be able to get loan funding the same day.

Cons

Taking on a larger loan requires careful consideration of your budget to ensure the payments will be manageable.
A lower credit score could translate to a higher rate—meaning a more expensive loan.
Origination fees and prepayment penalties could add to the cost of borrowing if you work with a lender that charges those types of fees.

Other bathroom remodel loan options

Looking for alternatives to personal loans? You can also use home equity loans or lines of credit, credit cards, and store financing to pay for bathroom remodeling.

Home equity loans and home equity lines of credit (HELOC)

A home equity loan is a loan secured by your equity. Equity is the difference between what you owe on the home and its current market value. A home equity line of credit is similar, but instead of a lump sum, you get access to a revolving credit line you can use as needed.

Pros

You might be able to get a larger loan if you have significant equity.
Home equity loans can offer low, fixed rates to creditworthy borrowers.
With a HELOC, you only pay interest on the part of your credit line you use.

Cons

The amount you can borrow is tied to the amount of equity you have.
Choosing a variable-rate HELOC means your rate and monthly payment could increase over time.
Your home secures the loan, which is risky if you find yourself unable to keep up with the payments.

Your ability to get a home equity loan or HELOC typically hinges on the amount of equity you have, your credit scores, and your debt-to-income ratio. Many lenders require borrowers to have at least 15% equity in their homes, so this option may not be available to new homeowners. (Read our guide to calculating home equity if you’re unsure whether you might have sufficient equity.)

If you’re considering a home equity loan or HELOC, you might start with your current bank or mortgage lender. But it’s helpful to weigh options from online lenders who may offer more favorable loan terms and rates. Keep in mind you’ll likely need an appraisal to move ahead with either loan option.

To find out more, check out our guides to the best home equity loans and best home equity lines of credit.

Credit cards

Credit cards allow you to charge purchases for bathroom remodeling and then pay them off over time. You must pay at least the minimum due to keep your account in good standing. You can use a credit card to purchase supplies and materials or pay a contractor’s fees to complete bathroom renovations.

Pros

Using a credit card you already have to pay for bathroom remodeling means you don’t need to go to the trouble of applying for a loan.
Depending on the type of card you’re using, you might be able to earn cash back or other rewards on your purchases.
Charging remodeling costs to a credit card can make it easier to separate those expenses and keep track of them.

Cons

Carrying a balance month to month could get expensive if your card has a high annual percentage rate (APR).
You may need to charge purchases to multiple cards if you have low credit limits.
Maxing out one or more credit cards for home improvements could hurt your credit scores.

If you’re considering using a credit card to pay for bathroom remodeling, one with an introductory 0% financing offer might be best. You may get six to 18 months to pay it off without interest before the regular APR kicks in, so you should plan your budget to pay it off in time.

A credit card could allow you to earn cash back, points, or miles on purchases. A card with a flat cash-back rate, such as the American Express Cash Magnet, can help you earn cash rewards everywhere you spend without worrying about rotating bonus categories.

Store and company financing

Store financing allows you to buy fixtures and other supplies now and pay for them later. If you’re hiring an expert team to handle bathroom renovations, company financing can help you fund the cost of materials and labor in a single package.

Pros

A perfect credit score isn’t required to qualify for most store or company financing.
Zero-interest financing may be available, allowing you to pay no interest for a set period.
Collateral usually isn’t a requirement.

Cons

The regular variable APR for store or company financing may be higher than personal loans or other financing options.
You may need to spend a minimum amount to qualify for either financing option.
Failure to pay off zero-interest financing in the lender’s specified time frame could result in accrued interest charges being added to your balance.

If you’re interested in store financing, your options might include big-box home improvement stores, such as Lowe’s or Home Depot, as well as smaller, local businesses that sell plumbing supplies, hardware, and fixtures. The company might offer financing upfront when you request a quote for services, but if not, you can ask what’s available.

With both types of financing, it’s vital to read the fine print, particularly if you’re taking advantage of a 0% interest deal. You’ll want to know how long you have to pay the balance off before the regular interest rate kicks in. Terms often range from 12 to 24 months, but that can vary based on the store or company.

How to choose the right financing option for your bathroom project

Bathroom remodel loans are just one avenue you might consider to fund your home improvement efforts. When deciding whether to use a loan or one of the options listed above, it helps to ask the right questions.

How much do you need to borrow?
Would you prefer a lump sum or a revolving credit line?
How long will you need to repay what you borrow?
Are you interested in any special benefits or perks, such as credit card rewards or autopay discounts?
Which financing options are you most likely to qualify for, based on your credit scores?

A personal loan could be best if you need to borrow a larger amount of money and you prefer a fixed interest rate. The better your credit score, the lower your rate might be.

You may opt for a home equity loan or HELOC if you have a significant amount of equity, and you’re comfortable using your home to secure the loan. If you’re weighing a HELOC, consider whether a fixed or variable rate option makes the most sense.

If you’re considering a 0% APR credit card or zero-interest in-store financing, think about the big picture. Remember that to avoid interest charges, you’ll have to pay your card or store financing in full by a certain deadline. If you think you’ll need more time to pay, a low-rate personal loan could be the better choice.

Our expert’s take

Erin Kinkade

CFP®

I would first recommend saving a portion of your income in a designated (interest-bearing) savings account to fund the project on your own. However, recognizing that is not an option for everyone and sometime emergencies arise that need to be fixed ASAP, I recommend evaluating the cost of the remodel and seeking the lowest-cost financing as possible. This will depend on your financial condition. If you need assistance, consult a trusted friend, family member, or financial professional.

FAQ

What credit score do I need to get a personal loan for a bathroom remodel?

The minimum credit score you’ll need to qualify for bathroom remodel loans can depend on the lender. Some lenders may require a score of 660 or higher, but others have no minimum credit score requirement. Taking time to shop around can help you find a lender that fits your credit profile.

How fast can I get approved for a bathroom renovation loan?

It’s possible to get approved for a bathroom renovation loan the same day you apply, but it depends on the lender’s policies and approval process. Once approved, you may be able to get loan funding the same day or the next business day.

Can I use a personal loan for something other than the bathroom remodel?

You can use personal loans to cover a variety of expenses. Common uses for a personal loan, aside from home improvements, include debt consolidation, medical expenses, vacation expenses, wedding expenses, new baby expenses, RV and boat purchases, and emergency expenses.

What documents do I need to apply for a personal loan?

You’ll typically need to provide a copy of a valid, government-issued ID to apply for a personal loan. Lenders may also ask for copies of your bank statements, recent pay stubs, or tax returns to verify your income.

Are there tax benefits to using a personal loan for home improvement?

No tax benefits are associated with using a personal loan to finance home improvement projects. You can, however, deduct interest paid to home equity loans or home equity lines of credit (HELOCs) when you use the money to make certain home improvements or repairs.

How do I calculate the total cost of my bathroom renovation?

An online calculator can help you add up the individual costs associated with a bathroom remodel. You can then use that number to determine how much you need to borrow if you get a personal loan. A personal loan calculator can help you estimate the total cost of borrowing with interest and fees added.