How to Finance a Deck
Updated
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If you dream of starting each morning with a warm mug of coffee in your hand while sitting on a deck in your yard, a personal loan will help cover the cost. Here, we'll talk about how much decks cost, how the best personal loans work, and other options for covering the expense of a new deck.
According to Lawn Guru, you can expect to pay an average of around $8,184 to install a deck, with costs typically ranging from $4,343 to $12,508. How much your deck will cost depends on these factors:
One option for covering the cost of a deck is a personal loan. You can use it for all deck-related expenses and pay it off in monthly payments. Personal loans are customizable in that you decide on terms that impact your monthly payment. For example, if you take out a 60-month loan, the monthly payment will be lower than if you decide on a 36-month loan. However, the longer the loan term, the more you'll pay in interest.
Get the best rates and terms to fit your needs. Here are a few loans we'd like to highlight, including our award winners.
| Lender | APR Range | Loan Amount | Min. Credit Score | Next Steps |
|---|---|---|---|---|
Rating image, 5.0 out of 5 stars.
5.0/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
Fixed: 8.99%-29.99% APR (with all discounts)
|
$5,000 - $100,000
|
680
|
|
Apply Now for Discover Personal Loan
Powered by Credible
Rating image, 5.0 out of 5 stars.
5.0/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
7.99% - 24.99%
|
$2,500 - $40,000
|
660
|
Apply Now for Discover Personal Loan
Powered by Credible |
Rating image, 4.0 out of 5 stars.
4.0/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
6.70% - 35.99%³
|
$1,000 - $50,000¹
|
300
|
A personal loan is money you borrow from a lender and repay with interest, typically through equal monthly installments over a set period of years. These loans can be used for nearly any purpose, including a new deck.
Here's why personal loans are worth considering to fund your new deck:
Personal loans for decks have some cons, too:
Before deciding if a personal loan is right for you, work your budget to ensure you have enough room to make monthly payments.
The goal is to pay as little interest as possible on your deck loan. When determining your interest rate, lenders typically consider the following factors.
Borrowers with high credit scores typically qualify for the lowest rates. If your score is too low to get a competitive rate, consider borrowing the money from a lender that allows cosigners. A cosigner is someone you know with a high credit score who's willing to sign onto your loan with you. When you bring on a cosigner, the lender considers their creditworthiness and could offer you a lower interest rate.
Lenders need to see that you're earning enough money each month to repay the loan. As long as you can provide proof of employment and income, they can get an idea of how easy it will be for you to pay the loan. The more highly qualified you are, the lower the rate you'll be offered.
When you take out a loan with a fixed rate, you know exactly how much you'll pay each month until the loan is paid off. However, a variable-rate loan's payments can increase and decrease over time, depending on what's going on with the economy.
If you prefer not to be surprised, a fixed-rate loan will likely make you happier, even if the interest on a variable-rate loan starts lower. The good news is that most personal loans have a fixed interest rate.
Any time you take out a secured personal loan, you put an asset of value, such as your home or car, up as collateral. Though most personal loans are unsecured, seeking a lender offering secured loans is sometimes a better option. Because a lender knows it can repossess collateral if payments are missed, it views you as a lower-risk borrower and may offer a better interest rate.
As mentioned, personal loans are somewhat customizable. However, if you choose a longer repayment term, the lender is exposed to more risk, and you may be required to pay a higher interest rate.
It's generally best to borrow the smallest amount possible to pay for your new deck. The more you borrow, the more interest you'll pay.
Each lender sets its minimum credit score. Before applying, check your score. The higher your score, the lower the interest rate you'll likely be offered.
If your credit score is low, see if you know someone with a high score who would be willing to cosign the loan. When you bring on a cosigner, the lender considers their creditworthiness, and you may offer a lower interest rate.
To get a loan that works for you, compare multiple lenders. Plenty of reputable online loans are available. You can also consider loans from brick-and-mortar institutions like banks and credit unions in your area. Shopping around is critical to save money, as each lender has its own lending criteria and sets its own interest rates and fees.
Once you determine which lenders best fit your needs, go through the prequalification process with at least three of them. Most lenders will ask you to provide basic information, such as:
If you prequalify for a loan, it means the lender believes you're a good candidate and are likely to make it through the loan approval process. Once you've heard back from all lenders, compare offers and decide which one will work best for you.
The significant difference between a complete loan application and a prequalification application is the amount of information you'll need to provide. For example, you'll be asked to provide proof of income and a list of monthly debts, and more details regarding your financial situation.
Once your application goes through underwriting, the lender will let you know whether you've been approved. At this point, you'll need to read the loan contract carefully and ask questions if you need help understanding anything. Finally, you'll sign the agreement and await loan proceeds to hit your bank account.
As you consider the pros and cons of using a personal loan to pay for a deck, now is a good time to evaluate your other options.
Some deck builders offer financing, often through a partner lender. If your contractor offers you a financing solution, take a look. It's good to have options to compare.
As convenient as it may be to accept the financing offer without rate shopping multiple lenders, it's still a good idea to compare loans. And if no one else beats the interest rate and repayment term of the contractor's lender, you can always circle back around to it.
As a homeowner, you have the option of using some of the equity in your home to fund home improvement projects, like a new deck. Home equity loans are fairly straightforward.
Let's say your home is worth $275,000 but you only owe $175,000 on the mortgage. That means that you have $100,000 in equity.
Borrowing against that equity allows you to snag a loan at a low interest rate. That's because your home acts as collateral -- something that you own that can be used to secure the loan. If you fail to make payments as agreed, the lender has the legal right to take possession of your home, sell it, and recover its loss.
A HELOC is similar to a home equity loan, with a couple of key differences.
When you take out a traditional home equity loan, all loan proceeds are disbursed right away, and you repay them in equal monthly installments.
With a HELOC, once the lender approves you, you're given a credit limit. You can take out as much or as little of that limit as you need. Once a portion is repaid, you can borrow it again, typically up to 10 years from the time the loan is granted.
Another perk of having excellent credit is the ability to qualify for a credit card with a 0% promotional rate. These cards typically give you 12-18 months of interest-free borrowing (or sometimes longer).
If you can swing the monthly payment, a 0% promotional rate card is a great way to finance a beautiful new deck. For example, if your deck costs $10,000 and your promotional rate lasts 18 months, 18 equal payments of $556 will pay off the project in full. And there will be no interest if you pay it off on time.
Even if you must postpone your dream until you boost your credit score, don't give up on it. A new deck gives you something to look forward to as your financial situation continues to improve.
A deck loan isn't a specific type of loan. Instead, it's a personal loan that's used to pay for a deck.
It's up to you to determine how much you should borrow. However, the larger the loan, the more interest you'll pay and the more the total cost of your deck project will be.
Any time you borrow against the equity in your home, you're putting your house up as collateral. If you miss payments, the lender has a legal right to repossess your property, sell it, and recoup its losses.
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Motley Fool Money does not cover all offers on the market. Motley Fool Money is 100% owned and operated by The Motley Fool. Our knowledgeable team of personal finance editors and analysts are employed by The Motley Fool and held to the same set of publishing standards and editorial integrity while maintaining professional separation from the analysts and editors on other Motley Fool brands. Terms may apply to offers listed on this page.
*SoFi Personal Loan Disclaimer
Fixed rates from 8.99% APR to 29.99% APR. APR reflects the 0.25% autopay discount and a 0.25% direct deposit discount.
SoFi Platform personal loans are made either by SoFi Bank, N.A. or , Cross River Bank, a New Jersey State Chartered Commercial Bank, Member FDIC, Equal Housing Lender. SoFi may receive compensation if you take out a loan originated by Cross River Bank. These rate ranges are current as of 09/18/24 and are subject to change without notice.Not all rates and amounts available in all states. See SoFi Personal Loan eligibility details at https://www.sofi.com/eligibility-criteria/#eligibility-personal. Not all applicants qualify for the lowest rate. Lowest rates reserved for the most creditworthy borrowers. Your actual rate will be within the range of rates listed above and will depend on a variety of factors, including evaluation of your credit worthiness, income, and other factors.
Loan amounts range from $5,000–$100,000. The APR is the cost of credit as a yearly rate and reflects both your interest rate and an origination fee of 9.99% of your loan amount for Cross River Bank originated loans which will be deducted from any loan proceeds you receive and for SoFi Bank originated loans have an origination fee of 0%-7%, will be deducted from any loan proceeds you receive.
Autopay: The SoFi 0.25% autopay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. Autopay is not required to receive a loan from SoFi.
Direct Deposit Discount: Direct Deposit Discount: To be eligible to receive an additional (0.25%) interest rate reduction on your Personal Loan (your “Loan”), you must set up Direct deposit with a SoFi Checking and Savings account offered by SoFi Bank, N.A., or enroll in SoFi Plus by paying the SoFi Plus Subscription Fee, all within 30 days of the funding of your Loan. Once eligible, you will receive this discount during periods in which you have enabled Direct Deposit to an eligible Direct Deposit Account in accordance with SoFi’s reasonable procedures and requirements to be determined at SoFi’s sole discretion, or during periods in which SoFi successfully receives payment of the SoFi Plus Subscription Fee. This discount will be lost during periods in which SoFi determines you have turned off Direct Deposit to your Checking and Savings account or in which you have not paid for the SoFi Plus Subscription Fee. You are not required to enroll in Direct Deposit or to pay the SoFi Plus Subscription Fee to receive a Loan.
*Upstart Loan Disclaimer
¹ Your loan amount will be determined based on your credit, income, and certain other information provided in your loan application. Not all applicants will qualify for the full amount. Minimum loan amounts vary by state: GA ($3,100), HI ($2,100), MA ($7,000).
³ The full range of available rates varies by state. A representative example of payment terms for an unsecured Personal Loan is as follows: a borrower receives a loan of $10,000 for a term of 60 months, with an interest rate of 18.60% and a 8.51% origination fee of $851, for an APR of 23.07%. In this example, the borrower will receive $9149 and will make 60 monthly payments of $258. APR is calculated based on 5-year rates offered in December 2024. There is no downpayment and no prepayment penalty. Your APR will be determined based on your credit, income, and certain other information provided in your loan application. Not all applicants will be approved.
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Motley Fool Money does not cover all offers on the market. Motley Fool Money is 100% owned and operated by The Motley Fool. Our knowledgeable team of personal finance editors and analysts are employed by The Motley Fool and held to the same set of publishing standards and editorial integrity while maintaining professional separation from the analysts and editors on other Motley Fool brands. Terms may apply to offers listed on this page.
*SoFi Personal Loan Disclaimer
Fixed rates from 8.99% APR to 29.99% APR. APR reflects the 0.25% autopay discount and a 0.25% direct deposit discount.
SoFi Platform personal loans are made either by SoFi Bank, N.A. or , Cross River Bank, a New Jersey State Chartered Commercial Bank, Member FDIC, Equal Housing Lender. SoFi may receive compensation if you take out a loan originated by Cross River Bank. These rate ranges are current as of 09/18/24 and are subject to change without notice.Not all rates and amounts available in all states. See SoFi Personal Loan eligibility details at https://www.sofi.com/eligibility-criteria/#eligibility-personal. Not all applicants qualify for the lowest rate. Lowest rates reserved for the most creditworthy borrowers. Your actual rate will be within the range of rates listed above and will depend on a variety of factors, including evaluation of your credit worthiness, income, and other factors.
Loan amounts range from $5,000–$100,000. The APR is the cost of credit as a yearly rate and reflects both your interest rate and an origination fee of 9.99% of your loan amount for Cross River Bank originated loans which will be deducted from any loan proceeds you receive and for SoFi Bank originated loans have an origination fee of 0%-7%, will be deducted from any loan proceeds you receive.
Autopay: The SoFi 0.25% autopay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. Autopay is not required to receive a loan from SoFi.
Direct Deposit Discount: Direct Deposit Discount: To be eligible to receive an additional (0.25%) interest rate reduction on your Personal Loan (your “Loan”), you must set up Direct deposit with a SoFi Checking and Savings account offered by SoFi Bank, N.A., or enroll in SoFi Plus by paying the SoFi Plus Subscription Fee, all within 30 days of the funding of your Loan. Once eligible, you will receive this discount during periods in which you have enabled Direct Deposit to an eligible Direct Deposit Account in accordance with SoFi’s reasonable procedures and requirements to be determined at SoFi’s sole discretion, or during periods in which SoFi successfully receives payment of the SoFi Plus Subscription Fee. This discount will be lost during periods in which SoFi determines you have turned off Direct Deposit to your Checking and Savings account or in which you have not paid for the SoFi Plus Subscription Fee. You are not required to enroll in Direct Deposit or to pay the SoFi Plus Subscription Fee to receive a Loan.
*Upstart Loan Disclaimer
¹ Your loan amount will be determined based on your credit, income, and certain other information provided in your loan application. Not all applicants will qualify for the full amount. Minimum loan amounts vary by state: GA ($3,100), HI ($2,100), MA ($7,000).
³ The full range of available rates varies by state. A representative example of payment terms for an unsecured Personal Loan is as follows: a borrower receives a loan of $10,000 for a term of 60 months, with an interest rate of 18.60% and a 8.51% origination fee of $851, for an APR of 23.07%. In this example, the borrower will receive $9149 and will make 60 monthly payments of $258. APR is calculated based on 5-year rates offered in December 2024. There is no downpayment and no prepayment penalty. Your APR will be determined based on your credit, income, and certain other information provided in your loan application. Not all applicants will be approved.
