GreenSky Home Improvement Loans Review 2025: Risks, Costs, and Better Alternatives

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Home Improvement Loans

• Fast funding
• Ability to afford larger projects
• Potentially zero interest

• Temptation to overspend
• Potential for uninformed decision-making
• Deferred interest
• No transparency online
• Fees
• History of unauthorized lending

Table of Contents

1. What are GreenSky loans?
2. How do GreenSky home improvement loans work?
3. Pros and cons of GreenSky loans
   1. ✅ Pro: Fast funding
   2. ✅ Pro: Ability to afford larger projects
   3. ✅ Pro: Potentially zero interest
   4. ❌ Con: Temptation to overspend
   5. ❌ Con: Potential for uninformed decision-making
   6. ❌ Con: Deferred interest
   7. ❌ Con: No transparency online
   8. ❌ Con: Fees
   9. ❌ Con: History of unauthorized lending
4. Alternatives to GreenSky home improvement loans

What are GreenSky loans?

GreenSky offers home improvement loans, but not directly to consumers. Instead, contractors that offer financing through GreenSky will present this as a financing option when they give you a quote for an expensive job. However, GreenSky is not your only option for financing home improvements—and I highly recommend looking elsewhere.

Not only does GreenSky get atrocious ratings on customer review sites like Trustpilot, but the financial technology (fintech) company also got in major trouble with the Consumer Financial Protection Bureau (CFPB) a few years back for allowing contractors to get loans for their customers without their authorization.

That’s right: Contractors were taking out GreenSky loans on behalf of their customers, often without telling them—meaning vulnerable homeowners facing expensive repairs suddenly found themselves in debt they didn’t ask for.

For a select few, GreenSky’s home improvement loans may have some sort of appeal; for instance, homeowners may be able to avoid interest entirely if they pay off the loan fast enough. But the risk is high, the company’s ethics are questionable, and unexpected merchant fees can make borrowing expensive, with or without interest.

How do GreenSky home improvement loans work?

The only way to get a GreenSky home improvement loan is through a contractor (“merchant”) that has a GreenSky program. Consumers don’t typically seek GreenSky out; instead, they’ll hire a contractor for repair work, and when the homeowners are shocked by the high quote, the contractor may offer financing options through GreenSky.

The contractor should provide instructions, but you’ll typically need to provide some basic info, including your name, address, Social Security number, and monthly income.

Assuming you are approved, the contractor will be able to show you your options through GreenSky. If you decide to move forward, you’ll approve the transaction to pay the contractor, and then you’ll make monthly payments to GreenSky until you’ve paid off what you borrowed.

Pros and cons of GreenSky loans

For most homeowners, the drawbacks of GreenSky loans far outweigh the advantages. Weigh these pros and cons before signing.

✅ Pro: Fast funding

The nice thing about GreenSky is that the fintech company works closely with your contractor. As soon as you’re approved and authorize the transaction, your contractor will get paid and can begin work on your home immediately.

✅ Pro: Ability to afford larger projects

Whether you’re hiring a contractor to repair a major issue in your home or to renovate a part of your home to make it more livable, you might be put off by the quote cost. A tight budget might mean you have to choose a less effective repair option or a less ambitious remodel.

Borrowing through GreenSky means you can theoretically afford the repair or renovation you want (up to $100,000, the max financing amount with GreenSky).

✅ Pro: Potentially zero interest

In some cases, GreenSky offers homeowners deferred interest, or 0% financing. This comes with strings attached, however. To avoid paying interest, borrowers must pay off the loan during a short introductory period. Otherwise, interest will be reinstated.

This is a great advantage if you can pay off what you borrowed in a matter of months, but for most borrowers, it’s not likely within reach.

❌ Con: Temptation to overspend

Some contractors may recommend additional services you don’t necessarily need, but assure you that it’s fine because you can finance them through GreenSky. Never finance renovations or repairs you don’t need.

❌ Con: Potential for uninformed decision-making

If you need an emergency repair, you may feel pressured to accept the first quote you get from a contractor, and to sign the GreenSky home improvement loan they offer.

But you should always get at least three quotes from contractors, and take the time to compare any GreenSky loan offers against the best home improvement loans available, to see where you’ll get the best deal.

❌ Con: Deferred interest

Some homeowners may be tempted into getting a GreenSky loan because of a 0% interest promise, but there’s a lot of fine print to these offers. If you don’t pay off the loan quickly, you could wind up spending a lot more in interest.

Redditors often point to the confusing fine print in their loan agreements regarding this intro period.

Confused by the terms of my greensky loan
byu/bitterhello inpersonalfinance

❌ Con: No transparency online

Because GreenSky isn’t a direct lender, it’s hard to find any information about loan terms, credit score requirements, and interest rates. I’ve combed through rate sheets (check out example 1, example 2, and example 3) from various GreenSky partners, and they’re all over the map.

But the recurring theme is these loans often have high interest rates and additional fees (“merchant fees”) that other loans don’t have.

❌ Con: Fees

Each GreenSky contract looks different, but homeowners often end up paying activation fees, merchant fees, and contractor fees. Some contractors may pay these fees, but those are usually reflected in higher prices from the contractor.

❌ Con: History of unauthorized lending

The biggest red flag for GreenSky is the fact that it previously allowed contractors to take out loans on behalf of customers, without their consent. The CFPB caught wind of this and required GreenSky to cancel or refund $9 million in loans in 2021, as well as pay a $2.5 million civil penalty.

Alternatives to GreenSky home improvement loans

In almost every scenario, I would encourage homeowners to fund their home improvements or repairs through some other means. The funding may not be as fast as GreenSky, but the company’s reputation speaks for itself.

Poor customer reviews, plus plenty of Reddit threads with customers talking about scams or confusing fine print, should be enough to steer you toward other ways to finance home improvements such as:

• Savings: If you have an emergency fund, draw from it to pay for home repairs instead of taking on more debt.
• Personal loans: You can use personal loans for almost anything, including home improvements. Stick with a reputable lender.
• Home equity loans or HELOCs: Assuming you have enough equity, you can borrow money at a lower rate with a home equity loan or home equity line of credit (HELOC).