A swimming pool is a great way to cool off on a hot summer day. It’s also a great way to add value to your home. But a good swimming pool can be expensive.

Thankfully, there are lots of options available to help you afford the pool you’ve always wanted. This article will cover how to finance your new swimming pool. We’ll go over the different options you have when it comes to pool loans and financing. Then we’ll explain why personal loans are the best option to finance your pool. Finally, we’ll look at the different options for personal loans for a pool.

Use this information to make an informed decision about the best way to get the pool you’ve always wanted. After all, just because the temperatures high, that doesn’t mean your expenses need to be as well.

There are five primary ways to finance a swimming pool. Seller financing, credit cards, home equity loans, pool loans, and personal loans. We’ll go over each one briefly before explaining why a personal loan is the best option.

Seller Financing

Most pool sellers realize that the majority of people don’t have the cash on hand to afford a new pool. That’s why a lot of them offer financing options right at the store. Sometimes the seller does the financing themselves. Other times they work with a specific loan provider or underwriter.

Credit Cards

Credit cards are another option when it comes to financing your swimming pool. You can use various tricks to try and save money on the financing. For example, some people use a credit card with no interest for the first 12 months. Then they plan to pay off the credit card before interest charges kick in. However, this is a risky strategy. If you don’t pay off the full balance in the introductory period, then you’re hit with all of the interest charges from the preceding 12 months. That can result in a huge financial blow.

Home Equity Loan or Line of Credit (HELOC)

A home equity loan lets you borrow money against the equity you’ve established in your house. Banks are usually quite willing to give a home equity loan or line of credit for home improvements, as these increase the value of the house itself. Moreover, the rates and terms you get on these products are usually quite favorable. You can usually get an even better deal if you’re working with the same lender that supplied your original mortgage.

Pool Loan

There are also several companies available that offer specific “pool loans”. These loans are a specialized type of personal loan that is used specifically to purchase and install a pool at your house. The lender might have a better deal than some personal loan options, as they understand the risks and benefits involved with the particular industry better than a general practice lender.

Personal Loans

Personal loans are our recommend option to finance a new swimming pool. They offer a wide range of benefits compared to in-store financing and credit cards. We’ll go over the different benefits to using a personal loan for a new pool in the next section.

How to Finance a Swimming Pool with a Personal Loan

Benefits of Using a Personal Loan to Finance a Swimming Pool

There are three main benefits to using a personal loan for a new pool. You can get better interest rates, you have more options, and it’s easier to refinance the loan.

Better Interest Rates

First, personal loans will almost always have better interest rates than credit cards. Credit cards use a higher interest rate because the company never knows how much you’re going to charge on a month-to-month basis. That means the company needs a larger profit to cover the risk you’ll suddenly max out your card.

Getting the best possible interest rate on pool financing is important. Many people fail to take the amount they’ll pay in interest into account when they’re considering a pool. There’s a huge difference between paying off a pool at a 10% rate for a loan or a 20% rate for a credit card. The difference can be hundreds or even thousands of dollars over the course of repayment, depending on the cost of your pool.

Additionally, a lower interest rate means that you’ll have lower monthly bills. That makes it easier to get a pool without breaking your budget. It also makes it easier to make extra payments on the loan, so you can pay it off early. That means you’ll pay even less in interest over the course of your loan.

There’s also one more thing to consider. Most credit cards offer a variable interest rate. That means your interest is pegged to the prime market rate. If that rate goes up, then your interest also goes up. Therefore, your bill can change from month to month. That makes it hard to plan a budget and predict your finances. This is a problem, as any financial expert will tell you that predictability and planning are the two more important keys to financial success.

More Options

Using a personal loan to buy a pool means that you’ll get more options than are available through seller financing. Pool sellers usually have an exclusive deal with one or two lenders. The seller gets a financial bonus from the lender for using their services. That allows the pool seller to make more and ensures the lender has a steady stream of customers.

However, when you only work with one or two lenders, you might not be getting the best deal. Sellers and lenders know that people financing a pool at the store aren’t going to take the time to shop around. That means they can get away with charging higher interest rates. A lack of competition never works out better for the buyer.

Also, many pool sellers add fees to their in-store financing. They’re essentially filling out loan paperwork for you, and so they charge you for the convenience. That adds to the total cost you’re paying to own the pool.

When you have the ability to shop around for different pool loans you can compare them all. That lets you find the best deal. It also gives you more options on things like the term of the loan and other important aspects of the deal. As a result, you get more control over the cost of your monthly payments. You also get to pick the lender with the best rates and lowest fees, which saves you money.

Easier Refinance

A personal loan is also easier to refinance than a credit card. That means if something happens and you need to work out a new deal, you’re more likely to pull that off with a personal loan. This allows you to take advantage of a drop in interest rates, special refinancing deals, and more. Therefore, you can benefit from this even if you’re not having problems making payments.

How to Finance a Swimming Pool with a Personal Loan

Credit Score Impacts

Finally, there are important credit score impacts to consider. If you use a credit card to finance your pool, then you’re going to be increasing the amount of your revolving credit utilized. That makes up 30% of your credit score. Utilizing more revolving credit can cause your score to take a steep drop.

On the other hand, a personal loan is installment debt. This can help you get a better mix of credit, which makes up 10% of your score. It also won’t affect your credit utilization, which means it will have a much smaller impact on your score.

How to Get the Best Deal on Pool Loans

Now that you’ve got a good idea why personal loans are the best option for financing your new pool, you’ll need to decide where to get your loan from. There are two primary sources for pool loans. You can go to a traditional bank or you can look for online lenders.

No matter what choice you end up making, we recommend that you use a pool loan calculator to ensure that you fully understand the cost of your new pool. These tools can also help you compare different loans to each other so that you can be sure you’re getting the best deal.

Traditional Banks

Traditional banks are one of the primary lenders overall. A traditional brick-and-mortar bank will have an application process and loan requirements for you to meet. You can walk into the bank and talk with a loan officer. That means banks are better for people who prefer to handle financial transactions face-to-face.

Many people like to go to the bank that holds their mortgage. In fact, some banks have special deals for people that have a mortgage with them. They may also recommend taking out a home equity loan for the pool. This can be a smart investment for some people.

A home equity loan lets you borrow against the equity in your home. That means you can get money back from the mortgage payments you’ve already made to the bank. Moreover, you can use a home equity loan for anything you want. That means you can package your pool with other home improvements to increase the value of your house and property.

However, there are a few drawbacks to using traditional banks. First, their application and approval process usually takes more time. That means you’ll need to plan in advance for the pool of your dreams. It also means you might not be able to get the loan in time to get the pool you want while it’s on sale.

Second, banks usually have higher requirements for loans. That’s because they have more costs and overhead. Therefore, if your credit score is fair or worse, the bank might not approve your loan request. If they do approve it, then you can expect to pay more in interest. They also might demand some kind of collateral. This can raise the cost of your new pool and your loan repayment.

Online Lenders

Online lenders are another option for getting your pool loan. These lenders offer a range of options. Like any lender, they have their own list of benefits and drawbacks.

The first benefit of using an online lender for your new pool is that these lenders have a much faster application approval and disbursement process than banks. Online lenders us an automated process that can rapidly determine if you meet their standards for a loan. Most lenders get you your money within 24 hours of approval.

Online lenders also work with a broader range of people than banks. That includes people with less-than-perfect credit histories. As a result, you’re more likely to get approved for a personal loan for a pool through an online lender than a traditional bank. However, you should keep in mind that the lower your credit score is, the more you’re likely to pay in interest.

If you have a pretty good credit score, then you might find that the interest rates you get from online lenders are better than what you find at a bank. That’s because online lenders don’t have as much overhead or costs as a brick-and-mortar bank. Therefore, they can charge less and still turn a decent profit.

Using an online lender also lets you quickly compare different loan options. This is much faster than going from bank to bank to see what kind of deal each one will offer you. You can use this ability to find the best deal on your next pool loan.

There are also some online lenders that specialize in issuing personal loans for pools. You can look into Lightstream pool loans, and Lyons pool loans to start with. A specialized lender might get you the best pool loan rates. However, you should always shop around to be sure.

One thing you need to be careful when using an online lender is fees. These change from lender to lender, so make sure you carefully read all of the fine print. Some common fees include origination fees, processing fees, application fees, and more. These fees can add up and dramatically increase the cost of your pool.

As you can see, there are lots of options when it comes to getting a loan for a pool. We think that it’s pretty clear getting a personal loan is the best way to go when it comes to financing a new swimming pool. It lets you make sure you’re getting the best deal. It also offers stability and predictability that make budget planning possible.

No matter what choice you go with, make sure that you’re getting the best deal. Don’t let yourself feel rushed into making a snap decision about swimming pool financing. After all, it’s a big purchase. Little differences in things like fees and interest rates can add up quickly. The difference can be hundreds or even thousands of dollars more added to the cost of your new pool. However, if you follow the advice in this article, you’ll be enjoying your new pool at a price that you can afford in no time!