How to Finance a Swimming Pool
Updated
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If you've always wanted a pool in your yard but aren't sure how you'll pay for it, a personal loan can help you finance the project. Here, we’ll talk about how much a pool costs, how the best personal loans work, and other options for covering the costs.
The average cost to build a pool ranges from $25,126 to $58,711, according to Angi. How much money you'll pay depends on several factors, including:
One option for covering the cost of a new pool is to take out a personal loan. You use the money to install the pool and pay the loan monthly. A nice thing about using a personal loan to purchase a pool is that you can customize monthly payments to fit your budget.
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 in equal monthly installments. Most personal loans can be used for almost any purpose, including a swimming pool. When you hear about a "pool loan," it's typically a personal loan that's used to cover the cost of a new pool.
Before applying for a personal loan, weigh each pro and con.
Pros
Cons
Getting a low rate on a pool loan depends on these factors:
The higher your credit score, the lower the interest rate. If you're unhappy with your current credit score, you may want to take steps to increase it before applying for a pool loan.
Lenders need assurance you earn enough money to repay the loan. Unless you can provide proof of employment and income, you may have a tough time getting through loan approval. However, a strong employment history and steady income offer the assurance lenders look for, and you may even land a lower interest rate.
You know from day one what your monthly payment will be with a fixed-rate loan because your interest rate never changes. On the other hand, variable-rate loans can increase or decrease over time, making you less sure how much you'll end up paying.
When you take out a secured personal loan, you put an asset of value, such as your home or car, up as collateral. While most personal loans are unsecured, finding a lender that offers secured loans could be your best bet.
When there's collateral on the line, the lender has less risk because it knows it can repossess your collateral, sell it, and recoup any losses. A lender may offer a lower rate to a borrower with sufficient collateral.
If you borrow money over a longer period, the lender is exposed to more risk, and you may be required to pay a higher interest rate. Shorter-term loans typically come at a lower rate.
It's best to borrow the smallest amount possible in nearly all cases. You'll pay interest on the amount you borrow, and the more you borrow, the more interest you'll pay.
Each lender has its own minimum required credit score. Before applying, check your score. The higher your score, the lower your interest rate will likely be.
Compare multiple lenders to find the loan that works best for you. Many reputable online loans are available, or you may find a very attractive loan from a brick-and-mortar institution. Shopping around is a crucial step. Every lender sets its own lending criteria, interest rates, and fees.
Once you decide which lenders best fit your needs, fill out a prequalification application. Most lenders will ask you to provide basic information, such as:
When a lender tells you that you've prequalified for a loan, it believes you are a strong candidate and are likely to make it through the loan approval process. Once all lenders have let you know if you prequalify, compare their offers and decide which one you'd like to go with.
The only difference between a full loan application and the application you fill out to prequalify for a loan is the amount of information you'll need to supply. For example, you'll be asked to provide proof of income and a list of monthly debts.
Once your application goes through underwriting, the lender will let you know where you stand. If your loan has been approved, read the loan contract carefully and ask for clarification if there's anything you don't understand. Finally, sign the loan agreement and wait for the proceeds to hit your bank account.
As you consider the pros and cons of using a personal loan to pay for a pool, here are two other options:
Your first step is to speak with the pool builder. In-house financing from your builder can be the simplest approach to borrowing for a pool because of your builder's existing relationship with the lender. The lender will be familiar with the loan amounts you need since it offers a swimming pool loan as a standard product, and your pool builder may help you with the paperwork.
If you owe less than your home is worth and have equity in the house, you could take out a home equity loan to finance pool construction. When you do this, you borrow against the value of your house, and the home serves as collateral. This makes it a secured loan. The good news is that you'll likely snag a lower interest rate. The bad news is that the lender can repossess your home if you miss payments.
Remember, a pool isn't a necessity or an investment, and borrowing for luxury items often isn't the best idea, since you're paying interest for something you don't really need. Many people borrow for things they want, from swimming pools to vacations, but make sure you think through the tradeoffs and the opportunity cost of securing loan funding before you proceed.
The more you borrow, the more interest you'll pay. If you're borrowing money for a luxury like a pool, consider the project's total price, including interest.
The higher your credit score, the lower the interest rate you'll likely be offered. If your credit score is less than ideal, consider boosting it before applying for a loan.
According to Curbio, whether a pool is a good investment depends on several factors, including the type of pool, the location, and the buyers. In the ideal situation, a pool increases a home's value by around 7%. However, some home buyers consider a pool a hindrance and are not willing to pay more for one.
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.
*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.
*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 3/06/23 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.
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.
*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.
*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 3/06/23 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.
