5 Best Ways to Pay for Home Improvements

Time for an upgrade around the house?

We know the feeling.

Every once in a while, you need to switch things up to keep your home feeling fun, fresh, and on-trend.

The big question is: what’s the best way to cover the steep cost of many home improvements?

Today, we’ll walk you through what you need to know.

We’ve put together a list of the 5 best ways to pay for home improvements, so you can enjoy the comfort, luxury, and excitement of a newly improved home without breaking the bank.

We think you deserve it.

The 5 Best Ways to Pay for Home Improvements

5 Best Ways to Pay for Home Improvements

Personal loans

Your first option is to take out a personal loan.

Personal loans are lump sums of money or lines of credit offered by banks and other lending institutions.

You can use them for a variety of purposes, but it’s important to note that not all home improvements are considered eligible for personal loans.

That’s because personal loans are most often used for urgent or emergency fixes, like making repairs after a storm, or remodeling a bathroom that has serious defects that make it difficult or impossible to use.

If your home improvement project is urgent, there’s a good chance you’ll be eligible for a personal loan – just be sure to talk to a lending agent about what the best course of action is to get you the cash you need.

Credit cards

For smaller home improvements, it’s hard to beat the good ole fashioned credit card.

If your home just needs a bit of sprucing up, say just a fresh coat of paint and a couple of new furniture pieces, putting it on your card can be a great way to cover costs.

However, this comes with a catch: credit cards often have steep interest rates, sometimes as high as 15%.

That means that, if you don’t pay down your balance quickly, you might start snowballing your home improvement project costs into massive debt.

The key is to carefully plan out your expenses, and estimate your repayment so that you know you can cover it within a reasonable amount of time and not wind up in over your head.

Plus, with the right card, you might even be able to build up some serious points and perks.


For bigger projects, the go-to for most people is a cash out refinance.

Never heard of one?

Here’s how they work.

You basically take out a new mortgage on your home, and the bank or lending agency cashes out your equity – the value of your home that you actually own because you’ve paid down your mortgage balance.

Cash-out refinancing is a great way to finance large projects like adding another room to your house, remodeling your kitchen, or adding another floor.

Be mindful, however, that when you take out another mortgage, that could set you back on your repayment timeline.

For instance, if you’d originally taken out a 15-year mortgage, and only had 5 years left on your balance at the time of the refinance, that timeline could significantly increase.

5 Best Ways to Pay for Home Improvements

Side hustle

It’s just like your dad told you growing up: if you want something nice, you have to work to earn it.

Having those gleaming white granite countertops you’ve always desired is definitely a good example of a case where working hard might just be the best way to pay for it.

You might want to consider a side-gig, like driving for a ride-hailing app service, grocery delivery service, or even dog walking service!

The cash you bring in from your side hustle can help you cover costs directly, or make it easier to make payments on your credit card or personal loan if you choose to go that route.

Save up and wait

Of course, in addition to working hard, you can also choose to be patient when planning your home remodel.

Start a separate bank account – or investment account – to help you build up your savings, then once you have enough, put your hard-earned money toward that home improvement of your dreams!

Sure, it’s not as fast and exciting as using a financing option, but you won’t have any debt to repay, and that’s a huge reward too.

Whatever you choose from these 5 Best Ways to Pay for Home Improvements, with the right financing strategy, your home improvement is a possibility!


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