What we like:
Loans with deferred interest
| Rates (APR) | 4.99% – 23.99% |
| Loan Terms | 42, 66, or 90 months |
| Loan Amounts | Up to $65,000 |
| Fees | Not provided |
Home renovations can increase property value and create a living space that sparks joy in homeowners. More often than not, improving your digs comes with a high price tag, so you might need to finance your home improvement project.
A GreenSky home improvement loan could be your solution to get your renovation across the finish line. This GreenSky loan review will cover the basics of the loan, its pros and cons, the application and approval process, and alternatives.
In this review:
- GreenSky Home Improvement Loans: At a glance
- What is GreenSky?
- What can a GreenSky loan be used for?
- Pros & cons of GreenSky lending
- How to get a GreenSky loan
- Where to find GreenSky alternatives
GreenSky Home Improvement Loans: At a glance
| GreenSky Direct Personal Line of Credit | |
| Loan amount | Caps at $55,000 |
| Draw term | 6 months |
| Term length | 42 months to 90 months |
| Intro APR | 0% for 12 months |
| Standard APR | 6.99% to 23.99% |
What is GreenSky?
GreenSky, Inc., founded in 2006 and based in Atlanta, Georgia, is a financial technology company that partners with federally insured financial institutions to offer consumer loans for home improvements. Consumers can apply directly with GreenSky or through over 17,000 merchants. It also offers financing for medical procedures.
What is the GreenSky Direct Personal Line of Credit?
This GreenSky home improvement loan is more like a credit card with a direct line of credit that converts to a loan. Once approved, you’ll receive a GreenSky Home Improvement Payment Card with a set limit. The line of credit can be used at any home improvement store or with a contractor.
You have a six-month purchase window to spend what you need. After the purchase window ends, your balance converts to an installment loan with a fixed monthly payment until it’s paid off. You only pay back what you spend, up to the credit limit.
You might be able to land a promotional 0% interest rate for 12 months if you make purchases through its in-network merchants or contractors. However, if you stretch your payments out over a term length of 48-, 72-, or 96-month, you’ll pay more interest in the long run.
What can a GreenSky loan be used for?
A GreenSky loan can be used for indoor or outdoor home improvement-related purchases and projects. Home renovations you may use GreenSky for include:
- Bathroom or kitchen remodel (See other financing options)
- New floors
- HVAC installation
- Replace roof (See other financing options)
- Plumbing (See other financing options)
- Hurricane shutters
- Air conditioner
- Basement remodel
- Window or door installation
- A new deck or screened patio (See other financing options)
- Pergola
- A new driveway (See other financing options)
Pros & cons of GreenSky lending
Pros
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GreenSky offers a flexible spending amount so you’re not forced to take out more than you need.
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You can apply within minutes and receive a payment card within a few days.
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You can pay no interest in interest for 12 months if you work with an in-network contractor.
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Co-applicants are accepted.
Cons
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It has poor customer reviews, mostly about an undisclosed monthly financing fee and problems with automatic payments.
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Any borrower using a GreenSky merchant’s promotional deferred interest loan must pay a lump sum of accrued interest if they don’t pay the balance in full by the end of the promotional period.
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Your application will count as a hard credit pull and possibly make your credit score dip.
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You need a high credit score to qualify for funding.
How to get a GreenSky loan
The easiest way to apply for a GreenSky home improvement loan is online. You can also work with a representative over the phone or submit a loan application through one of its in-network merchants if they have the GreenSky Merchant app.
To apply, you’ll need to provide basic personal information, including your Social Security number, annual income, the loan purpose, requested loan amount, and repayment term. There’s an option to add a co-applicant, which could boost your chances of approval. (Read more: Personal loans with a co-applicant)
Once you’re approved, you’ll receive an email with a copy of your loan agreement. It includes your credit approval amount, key dates and loan terms, details for the online payment portal, and your “shopping pass” account number so you can make purchases. You’ll be mailed a physical card and a hard copy of the loan agreement, too.
Eligibility Requirements
GreenSky does a hard credit pull when you apply, which means it checks your credit right on the spot. In 2018, the average credit score of its consumers was 768, which means you’ll need a good to excellent credit score to qualify.
Whether you apply directly on the website or through one of its in-network contractors, you’ll have to disclose your annual income. GreenSky doesn’t specify its income requirements.
Where to find GreenSky alternatives
There are several financing options on the market for home improvement loans. Renovations can cost thousands of dollars, so be sure to compare GreenSky to other options. You can use our guide to the best home improvement loans as a starting point. If interested in expanding your search, you can check out the best personal loans too.
If you’re unsure about using a GreenSky loan, consider a federal Title I property improvement loan program, a home equity loan or HELOC, or a promotional 0% APR credit card. Always research other lenders or borrowing alternatives to find what’s best for you.