Can you get a personal loan for a swimming pool?

Weigh your options for financing a home improvement like a swimming pool. (iStock)

Since the pandemic started, many of us have been spending more time at home. Now that summer’s around the corner, you might be thinking about installing a swimming pool. Having a place to relax and swim right in your backyard could create the perfect staycation.

The average in-ground pool costs $35,000 while an above-ground pool can run as much as $5,000 with professional installation, according to HomeGuide. If you don’t have enough cash on hand, getting a personal loan for swimming pool purchases may be a consideration.

Credible can show you several personal loan lenders and help you find the lowest rates. You can get prequalified rates without affecting your credit score today.

Can you get a personal loan for a swimming pool?

Yes, and since you can use it for any reason, it’s a popular financing option. A personal loan provides the borrower with a lump sum at a fixed interest rate and repayment period. Having a set payment can help you anticipate your monthly bills. You can use Credible’s personal loan calculator to get an idea of how financing your pool will impact your budget.

Since personal loans are unsecured, you won’t have to risk your home as collateral. Your credit score will affect the interest rate and loan terms you’re offered. If you have good or excellent credit, you may be approved for a personal loan for a swimming pool with a rate as low as 4%. This can be a good financing option for someone who has good credit but doesn’t have a lot of equity in their home, which would create other financing avenues.


3 other swimming pool financing options

While a personal loan may be a good choice for some people, other pool finance options may be more attractive, depending on your personal finance situation.

1. Home equity loans

If you have enough equity in your home, you could apply for a home equity loan. The fixed rates are often lower than those for a personal loan. Like a personal loan, you repay the balance over a set term with a fixed monthly payment. You may also be able to deduct the interest on your taxes if funds are used for home improvement projects. Consult a tax professional to determine if you qualify.

The downside to getting a home equity loan is that your home becomes collateral. If you aren’t able to make the payment, the lender could foreclosure on your property. You’re also limited to borrowing no more than 85% of the equity in your home, which may not be enough to cover your pool cost. The approval process also takes longer than a personal loan. This type of financing option is best for people who have sufficient equity in their home and who want a fixed monthly loan payment.

Visit Credible to learn how you can leverage your home's equity.



Another option is a home equity line of credit (HELOC). Unlike a home equity loan, a HELOC provides the borrower with a revolving amount of credit that can be borrowed as needed. As payments are made, the borrower can draw on the available funds again. A HELOC typically has a variable interest rate, which fluctuates with the market.

Like a home equity loan, you’ll need to use your home as collateral, putting it at risk. The amount you can borrow is subject to the same equity percentage limit as a home equity loan. If the market changes substantially, your payment could go up. A HELOC is best for someone who has a good amount of equity in their home and the flexibility to meet variable monthly payments.

If you have questions about home equity loans and HELOCs, Credible can put you in touch with experienced loan officers to get the answers you need.


3. Pool dealer

Finally, some pool companies offer a financing option. Before you go this route, make sure to compare loan rates and terms with other loan options. Direct financing can come with higher interest rates than traditional lenders, but sometimes a pool dealer may offer a special low rate if the loan is paid within a short amount of time.

A loan through the pool company may be the best option for someone who can’t qualify for other forms of funding. Be sure to read the agreement closely, though, to avoid any predatory lending practices.

If you're unsure if this is the financing option to cover your pool cost, a personal loan from a verified loan lender could be a safer bet. An online lender marketplace like Credible can help you find the right swimming pool loan for you at the lowest rates.


Final costs to consider before getting a swimming pool

Whichever financing product you choose, make sure you understand the monthly payment and terms. You can visit Credible to use their personal loan calculator to make sure the numbers are a match for your budget.

Don’t forget to factor in expenses that are related to pool ownership, such as maintenance and supplies. A swimming pool may also increase your utility bills and homeowners insurance premiums. And if you’re thinking of selling your house in the next three to five years, consider how a pool may impact its resale. While it may add value to your property, it may also limit potential buyers since not everyone wants to own a pool.

Before you dive in, make sure you consider all of your options to make the best choice for your financial future. If you decide to take out a personal loan, find the right terms by considering several lenders. Credible makes it easy by helping you compare rates from multiple lenders in two minutes.

Have a finance-related question, but don't know who to ask? Email The Credible Money Expert at and your question might be answered by Credible in our Money Expert column.