Personal Loans for Bathroom Remodel Financing

Bathroom remodel loans can make it easier to fund that new bathroom you’ve been dreaming of. A personal loan isn’t the only option to cover remodeling costs, but it can be an attractive choice since you’ll make predictable payments over several years. 

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.

4 personal loans to finance your bathroom remodel

Personal 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. 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

5.0 _/5

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Why it’s one of the best

• 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 open a checking and savings account with SoFi and take advantage of an autopay rate discount and a direct deposit discount. Once approved, they can receive funding as soon as the same day. 

Loan details

Rates (APR)	8.99% – 29.49%
Loan amounts	$5,000 – $100,000
Repayment terms	24 – 84 months

Upgrade

Best for Fair Credit

4.9 _/5

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Why it’s one of the best

• 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 24 to 84 months. Upgrade won’t assess a prepayment penalty if you pay your loan off ahead of schedule. 

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).

Loan details

Rates (APR)	9.99% – 35.99%
Loan amounts	$1,000 – $50,000
Repayment terms	24 or 84 months

Upstart

Best for Little to No Credit

4.8 _/5

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Why it’s one of the best

• 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.

Loan details

Rates (APR)	7.80% – 35.99%
Loan amounts	$1,000 – $50,000
Repayment terms	3 or 5 years

LightStream

Best for Excellent Credit

4.8 _/5

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Why it’s one of the best

• 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.

Loan details

Rates (APR)	6.99% to 25.49%
Loan amounts	$5,000 – $100,000
Repayment terms	24 – 144 months

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Best Personal Loans 

Cost of a bathroom remodel

Home improvement sites will offer up a range of numbers for bathroom remodels, from $5,000 on the low side to perhaps $48,000 on the super high side. The national average is often said to be a little over $12,000. It’s impossible to go into a project knowing exactly how much a bathroom remodel will cost, but there are numerous factors to go into determining that final price:

• Bathroom size: The more square feet, the more you’ll pay.
• Choice of fixtures: High-end faucets and lighting, for instance, can run into the low thousands of dollars
• Whether demolition or floor plan changes may be necessary: That’s going to require more materials and labor
• Permits (if required): Generally, this will run several hundred dollars, perhaps $200 to $800, depending on your location
• Labor (if you hire someone to handle renovations): If the bathroom model takes weeks rather than days, that’s where your costs balloon
• Materials: Ceramic tile, for instance, is cheaper than marble

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.

Our expert’s advice: Finance at least a portion of the project yourself

Erin Kinkade

CFP®

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, these options might make sense despite the overall potential higher interest costs.

How to qualify for a personal loan for a bathroom remodel

Lenders can consider several factors to make approval decisions for bathroom remodel loans. 

Various personal loan requirements, such as credit history and annual income, can affect your ability to qualify for a personal loan.

If you don’t have good or excellent credit and if your bathroom remodeling project can wait, it might make sense to not apply for a personal loan just yet. Instead, work on boosting your credit scores. Qualifying for a lower rate could yield substantial interest savings over the life of the loan.

Improving your credit score also may allow you to borrow a larger amount to cover your remodeling needs. 

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, a cash-out refinance, 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.

Why a HELOC might be a good idea for a bathroom remodel: What’s smart about using a home equity loan for a bathroom remodel is that while you’re taking on debt, you’re hopefully making your most valuable asset even more valuable. You may someday sell your home for even more because prospective buyers are excited about your revitalized bathroom.

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

Cash-out refinance

A cash-out refinance is similar to a home equity loan, with a minor difference. In this case, you’ll refinance your home and take out a larger mortgage than what the house is worth; the extra cash over your home’s value, you will get. With that cash, you can then remodel your bathroom.

Why a cash-out refinance might be a good idea for a bathroom remodel: This is another instance of investing in your most valuable asset and making it worth more. That’s arguably a better idea than, for instance, using a cash-out refinance to buy a car since that’s an asset that will quickly depreciate over time.

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 also help you pay for the cost of materials and labor in a single package. 

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.

Why a cash-out refinance might be a good idea for a bathroom remodel: You may appreciate the simplicity – as long as you’re approved for the loan, there’s not much else to think about. It also is a good way to add value to your home—without borrowing any money against your home.

It’s vital to read the fine print, however, 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.

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 home improvement loans or one of the options listed above, it helps to think about numerous scenarios.

Scenario	Consider …
If you aren’t sure of the final price…	A revolving credit line, to borrow as needed
If you know the final price…	A lump sum of money from a personal loan is probably the way to go
If you feel this will be a good investment in your home…	A home equity loan or cash-out refinance may make a lot of sense
If you like simplicity and have confidence in a remodeler…	Store and company financing
If you feel your finances are shaky…	Waiting until your finances improve and work on raising your credit score

Ultimately, a personal loan could be best if you need to borrow a larger amount of money and 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. Variable rates sometimes work out well, but your monthly payments may not be consistent and predictable.

If you’re considering a 0% APR credit card or zero-interest in-store financing, think about the big picture. Remember: 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. 

What our expert suggests

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 this is not an option for everyone and that sometimes 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. Consult a trusted friend, family member, or financial professional if you need assistance.

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. However, you might be able to deduct interest paid on home equity loans or home equity lines of credit (HELOCs) when you use the money to make certain home improvements or repairs and itemize deductions. 

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.

How we selected the best personal loans to finance your bathroom remodel

Since 2017, LendEDU has evaluated personal loan companies to help readers find the best personal loans. Our latest analysis reviewed 1,029 data points from 49 lenders and financial institutions, with 21 data points collected from each. This information is gathered from company websites, online applications, public disclosures, customer reviews, and direct communication with company representatives.

These star ratings help us determine which companies are best for different situations. We don’t believe two companies can be the best for the same purpose, so we only show each best-for designation once.

Recap of the best personal loans for bathroom remodel financing