Many or all companies we feature compensate us. Compensation and editorial research influence how products appear on a page. Personal Loans Best Loans for Plumbing Financing Updated Dec 06, 2023   |   10-min read Written by Lauren Ward Written by Lauren Ward Expertise: Mortgages, real estate, investing, credit, debt, small businesses Lauren Ward is a personal finance writer who regularly covers topics like mortgages, real estate, and investing. Learn more about Lauren Ward Reviewed by Rand Millwood, CFP® Reviewed by Rand Millwood, CFP® Expertise: Financial planning, investments, education planning Rand Millwood, CFP®, CIMA®, AIF®, is a partner at Guardian Wealth Partners in Raleigh, North Carolina. His firm assists clients of all ages and areas of life (with a strong background in the medical and legal fields) in planning, investing, and preparing for retirement and other financial goals. Learn more about Rand Millwood, CFP® An emergency plumbing issue isn’t usually something you can wait to fix at your house. Leaking water or burst pipes quickly spread and may cause lasting damage. But if you don’t have an adequate emergency fund on hand, paying for those repairs can be costly. Small issues like a pipe leak average between $150 and $850 to fix, while repiping your entire plumbing system could cost $15,000 or more. No matter the scale of your issue, plumbing financing is a solution to consider to quickly cover your costs and take care of the problem before it gets worse. We’ll explore options such as personal loans and financing from plumbing companies, plus share how to choose the right one. Table of Contents Skip to Section The best loans for plumbing financingPros and cons of a personal loan for a plumbingPlumbing companies that offer financingPros and cons of plumbing customer financingHow to choose plumbing financingHow to apply for financing for plumbing repairs Alternatives for plumbing financingPlumbing financing FAQ The best loans for plumbing financing The first option to consider for your plumbing financing is a personal loan. You don’t have to tap into your home equity as you would for a home equity loan or line of credit, which makes the application process faster. Plus, you don’t have to worry about using your house as collateral. Personal loans used for home improvement also may come with lower interest rates and higher borrowing limits compared to credit cards. Here are four online lenders that offer fast financing to cover emergencies like plumbing issues. We’ve broken down each one by credit score category they specialize in so you can easily find a good fit. FICO credit score categoryCredit score range800+ Exceptional670 – 799Good580 – 669FairLess – 580Poor Tip Unsure of your credit score? Check with your bank or credit card company, which may offer free credit score monitoring. Otherwise, you can access a free educational credit score from a reputable website like Credit Karma. LenderBest forLendEDU ratingDeposit timeSoFiGood credit5.0As fast as same dayUpgradeFair credit4.91 business dayUpstartThin credit4.81 business dayLightStreamExcellent credit4.8As fast as the same day SoFi: Best for good credit View Rates Powered by Credible LendEDU rating: 5.0Borrow up to $100,000Autopay and direct deposit discounts available Consider a personal loan from SoFi to use for your plumbing financing if you have a good credit score and need a fair amount of work completed. Loan amounts range from $5,000 to $100,000 so this isn’t an option if you have just a small plumbing repair to finance. Soft credit pull to check rates? YesDeposit time: As fast as same dayOrigination fee: NoneLate fee: NoneInterest rates (APR): 9.49% to 26.31% APR Repayment terms: 2 to 7 years Upgrade: Best for fair credit View Rates LendEDU rating: 4.9Variety of loan amounts availableHigh origination fee Fair credit borrowers with plumbing issues should consider Upgrade. One advantage is that personal loans go as low as $1,000. Even if you have a plumbing issue in just one area of the home, you can cover the expense with Upgrade. Just note the origination fee, which can go as high as nearly 10%. That amount is deducted from your deposit, so you may need to cover a portion of your plumbing costs in cash or borrow a bit more than the project total. Soft credit pull to check rates? YesDeposit time: 1 business dayOrigination fee: 1.85% to 9.99%Late fee: $10Interest rates (APR): 8.49% to 35.99% APRRepayment terms: 2 to 7 years Upstart: Best for thin credit View Rates LendEDU rating: 4.8Uses a unique approval model to help people with minimal credit history Borrow between $1,000 and $50,000 Thin credit means you don’t have a very established credit history. If a plumbing emergency pops up, Upstart can help you secure a personal loan thanks to an approval model based on factors beyond just your credit score. Soft credit pull to check rates? YesDeposit time: 1 business dayOrigination fee: 0% to 12%Late fee: $15 or 5% of payment Interest rates (APR): 5.20% to 35.99% APRRepayment terms: 3 or 5 years LightStream: Best for excellent credit View Rates LendEDU rating: 4.8Long repayment terms availableAutopay discount available When you need fast funding to take care of a plumbing emergency, LightStream can deliver cash to your account as quickly as the same day. You will need excellent credit in order to qualify, however. Plus, the minimum loan amount is $5,000, making this personal loan better for large plumbing repairs. Soft credit pull to check rates? NoDeposit time: As fast as the same dayOrigination fee: NoneLate fee: NoneInterest rates (APR): 8.49% to 26.49% APRRepayment terms: 2 to 12 years Ask the expert Rand Millwood CFP® Initially, taking out a personal loan or using plumbing financing will negatively impact your credit score as they will be 1) new debt and 2) likely be utilizing the full balance of the loan. Over time as the loan is paid down, your credit score will rebound, but this may take a few years. Pros and cons of a personal loan for a plumbing Taking out a personal loan for plumbing financing comes with both benefits and drawbacks. Consider both before you apply. Pros Fast funding times Online personal loans come with fast approval and funding times. This is convenient when you have a plumbing emergency that needs to be addressed quickly. Cash in your account Many plumbers are small businesses that have limited forms of accepted payment. Getting loan funds deposited into your bank lets you write a check. No collateral required Unlike home equity financing, a personal loan doesn’t require any collateral. There are still negative consequences if you are late or default on the loan, but you don’t have to worry about foreclosure on your home. Cons Fees could lower your funding Some personal loan companies charge an origination fee that is deducted from your loan funds before they even reach your bank account. That means if you borrow the exact amount you need to finance a plumbing project, you might not receive that full amount. Extra debt payments each month A personal loan adds an extra bill to your monthly budget for a set number of years. It’s nice to have a payoff timeline, but you need to feel comfortable with those extra payments. Interest costs you more over time In addition to looking at your monthly payment, see how much your interest payments will add to the total cost of the plumbing project over the years. This could inspire you to pay some in cash or repay the loan faster. Plumbing companies that offer financing Some plumbing companies offer in-house financing for customers. However, in most cases, you’re not taking out a loan with the actual plumber. Instead, the company has one or more financing partners they work with to help customers pay for repairs. You’ll likely need an initial appointment to get an idea of the project scope. Then you may be able to apply online. If you’re nervous that you won’t be approved, call the plumber’s customer service line ahead of time to find out how the process works. If you prefer to shop around for a quote, consider a plumbing company that works with multiple creditors instead of just one. Or compare their financing to an online personal loan preapproval. Plumbing CompanyFinancing DetailsEligibilityMr. RooterWorks with multiple financing partners Varies by locationRoto-RooterPartners with Synchrony BankMust apply via contractorBenjamin Franklin PlumbingFinancing options vary by regionVaries by location If you have an emergency plumbing situation and need work to start immediately, you may opt for a contractor that offers both service and financing. However, it may still be worth getting a few quotes to make the best decision. Ask the expert Rand Millwood CFP® One benefit that may come from using plumbing customer financing is some will offer 0% interest for a period of time, such as six months or a year. If this is available and you are confident you can pay off the loan amount within this time frame, this may be a better option than a personal loan where you will typically start accruing interest immediately. Mr. Rooter Mr. Rooter is a nationwide plumbing company with locally owned and operated franchises. Ideally, you’ll get the service of a small business with the infrastructure of a national company—including financing options. One benefit of plumbing financing through Mr. Rooter is that the company works with multiple credit companies. That means you can compare options and get access to promotional rates if they’re available. However, there isn’t a ton of information available online. You’ll also need to request a plumbing quote as the first step in applying for financing. Roto-Rooter Roto-Rooter is another national network of local plumbing contractors. You must schedule an appointment to get a quote and apply for financing. Roto-Rooter partners with Synchrony and offers flexible payment options, including a credit card. Instead of applying online by yourself, you do need to apply through the contractor’s digital sales tool. If you’re worried about applying for financing and making a decision in front of someone, then you might consider other options. Benjamin Franklin Plumbing Benjamin Franklin Plumbing is available in more than 30 states across the country. Financing partners depend on where you live and include Synchrony and Ally Bank. Synchrony may offer 0% introductory rate promotions while Ally provides personal loans. You may need to work directly through your local plumber’s office to apply for either type of financing. Pros and cons of plumbing customer financing Here’s what to consider before you choose plumbing customer financing. Pros Convenient financing Direct financing from a plumbing company is the easiest way to pay besides cash. Although it may not be the best deal out there, you don’t have to worry about shopping around and navigating multiple options. Quick to start work If you’re in the midst of a plumbing emergency, getting financing directly from the company could help get the job started faster. You don’t have to wait to apply and receive funding from another source; instead, they’ll quickly see whether you’re approved and get you on the schedule. Cons Limited financing opportunities While convenient, the downside of plumbing customer financing is that you don’t have the chance to shop for better rates. You’ll likely only have one financing offer to choose from. May need to apply in person Many plumbing companies use in-home devices (like a smartphone or tablet) to find out if you’re approved. Depending on your finances, you may feel uncomfortable going through this process with a contractor rather than a loan officer. How to choose plumbing financing Deciding between a personal loan and plumbing financing from the service provider depends on your situation. In an emergency, you may choose the fastest option so you can get the problem fixed as soon as possible. But in a best-case scenario, you should also shop around to compare options. Consider interest rates, repayment terms, and any fees or penalties you must pay throughout the life of the loan. Many personal lenders allow you to prequalify and get these details in a loan quote before formally applying. There’s no impact on your credit score when there’s just a soft pull. When considering direct plumber financing, ask when your credit score is pulled. Once you decide on the type of financing you want, you can sign the loan agreement to initiate the deposit. Then call your plumber to get on their schedule once you know when the funds are set to arrive in your bank account. How to apply for financing for plumbing repairs Here’s what you’ll likely need to do when applying for any type of plumbing financing. Get prequalified: If possible, find out how much financing you qualify for and with what kind of loan terms. Ideally, the financing company will only perform a soft credit check for this step.Gather documentation: Once you choose your plumbing financing, get the right documentation in order. Usually, you’ll need proof of identity (like a driver’s license) and income verification (like recent pay stubs). Submit an application: Next, you’ll fill out some personal and financial details, as well as submit copies of requested documents. At this point, the lender also performs a hard credit check. Review financing terms: You may get an approval decision on the same day you apply or may need to wait a few business days. If approved, review your paperwork to make sure you understand all of the loan details, including payment structure and fees.Sign loan agreement: Next, you’ll sign the loan agreement to finalize the funding. Receive funds: It could take a few days to receive the funding. Submit any outstanding documents as well as bank account information to speed up the process. When applying for an online personal loan, you’ll complete all of these steps on your own device at home. If you choose plumbing financing from the contractor, you’ll likely do these steps together. Alternatives for plumbing financing In addition to using a personal loan or financing from a plumber, there are a few alternatives to consider. Home equity loan A home equity loan is based on the amount of equity you have in your home. The house is used as collateral, which makes it easier to qualify. You may also see lower interest rates since the loan is secured. However, you may need a home appraisal and experience a longer approval period. Pros Lower interest rates Easier eligibility requirements Cons May have to pay for appraisal and closing costs Long funding time House used as collateral (risk of foreclosure) HELOC A home equity line of credit (HELOC) is similar to a home equity loan. But instead of receiving a lump sum, you can access a credit line to draw on as you need. This could be a good option if your plumbing needs are part of a larger home renovation project. Pros Lower interest rates Interest only accrues on drawn funds Credit line is replenished as you pay down balance Cons May have fees Long funding time House used as collateral (risk of foreclosure) Ask the expert Rand Millwood CFP® Tapping into your home equity is typically the primary recommendation for paying for plumbing repairs and upgrades. I would recommend having an available HELOC to handle these types of repairs and upgrades. Having a HELOC open will allow you to immediately access the necessary cash while maintaining some of the better interest and payment terms for this kind of work. Credit card Credit cards are revolving credit, which means that as you pay off your balance, that money once again becomes available. There are many types of credit cards on the market, some of which come with 0% intro APR, while others come with great rewards and bonuses. Depending on the scope of your plumbing project, it is possible to get a credit card with a high enough credit limit to finance the entire thing. However, you may need to have a strong credit score to get approved for such a card. Pros Can make minimum payments Do not have to use a high-value asset as collateral to secure the loan Can earn points and rewards Cons Higher interest rate than most loans Lower loan amount than you would get with a secured loan A maxed-out credit card can hurt your credit score Savings or cash If you have the cash, you may consider paying for your plumbing project out of pocket. Whether the money is in a savings account or in an asset that can be easily liquidated, there are a few reasons why you may want to avoid banks and lenders. Pros Avoid application fees and high interest payments No monthly payments Credit score will remain unchanged Cons Will lower or deplete your savings You may not have enough cash to cover the entire project Ask the expert Rand Millwood CFP® If you have a significant amount of savings built up in a checking and savings account that is not really earning any interest, it would make sense to you some of this to cover some or all of a plumbing repair, but ensure you keep a sufficient amount on hand—typically three to six months worth of expenses, in the event of an unforeseen emergency that requires immediate cash. Plumbing financing FAQ Can I get plumbing financing for bad credit? There are many loan products on the market for borrowers with subprime credit. When choosing which one to use, make sure to compare APRs and fees. How long does it take to get approved for a plumbing loan? It depends on the loan product. Some are available the same day, while others may need a week or two. If you are choosing a secured loan, such as a HELOC, your home or other asset will need to be appraised before the loan can be approved, which can take two weeks or more. Does plumbing financing require a down payment? No, plumbing financing does not require a down payment. Typically only mortgages and car loans require down payments. You won’t be asked to put any money down, but there may be an application or loan origination fee for either a personal loan or financing with a plumbing company.