A white picket fence, a tire swing, a two-car garage and a backyard swimming pool that could submerge the Titanic. Isn’t that the American Dream?

Swimming pools might add value to your home, both monetarily and recreationally. If you’re in the market for a pool loan, you’re probably overwhelmed by the options. Below are the best lenders to consider when shopping for a swimming pool loan.

LightStream: Best for low APR

LightStream outshines its competitors in a few areas, all of which translate into potentially lower monthly payments. Its 7.49% minimum APR is notably lower than most of its competitors, and it offers terms up to a whopping 144 months.

You’ll also get a 0.50% rate discount simply by enrolling in automatic payments from your bank. And LightStream doesn’t charge origination fees, which can amount to 8% or more of your loan amount. This feature alone can save you thousands of dollars on your pool loan.

Discover: Best for borrowing from a bank

Discover doesn’t offer minimum interest rates quite as low as LightStream — but with the APR starting at 7.99%, it’s competitive. Discover is also famous for its general lack of fees, and personal loans are no exception. You won’t be charged application or origination fees, and you won’t incur a penalty if you pay off your loan early.

It’s worth noting that Discover only extends loans of up to $40,000. For an aboveground pool, that’s more than enough; but for an inground pool, you may need something more. Discover does provide the option to take out a home equity loan of up to $300,000, as long as it doesn’t exceed 90% of your home’s value.

Navy Federal Credit Union: Best for military families

Navy Federal Credit Union is accessible only to those who are current or retired members of the armed forces, as well as their families and household members. If that’s you, this option is one of the absolute best for pool loans.

That’s because it offers a markedly higher home improvement loan amount than even the best banks and online lenders. In fact, you can borrow up to $150,000 without collateral. And you can borrow up to $500,000 with a home equity loan — in the event that you’re hosting the 2024 Summer Olympics.

Upgrade: Best for less-than-perfect credit

If you have a low credit score and generally have a hard time getting approved for loans, Upgrade likely has an option that’ll work for you. The lender offers unsecured personal loans, which data points suggest you may be able to snag even if your credit score is in the low 600s.

You may also be offered a secured loan if you don’t meet the requirements for an unsecured loan. Putting up one of your assets (such as your car) as collateral can be enough to be approved for the pool loan you want.

SoFi: Best for higher-cost pools

SoFi is more generous than most when it comes to loan size. You can apply for up to $100,000 in personal loans — more than sufficient for the average inground swimming pool. Also, SoFi allows you to hold more than one loan at a time with them. As long as you’ve made three on-time payments with your first loan, you can apply for a second.

This option gives you potential access to a lot of money, making it a great choice for those trying to fund an ultra luxury-inspired pool. Just note that SoFi personal loans also start at $5,000, which may be more than you need for an aboveground pool.

Prosper: Best for peer-to-peer borrowing

Prosper isn’t your average lending company. It doesn’t fund the money itself, nor does it work with big banks. It assesses your application and then presents it to individual investors to see if they’d like to loan you the money.

Prosper is lauded for its hardship relief program, which can reduce your monthly payments in certain circumstances until you’re back on your feet. That’s a great feature, as nobody knows what disasters may be right around the bend — but if you’re funding a new swimming pool, you should have plenty of disposable income to mess with. Don’t stretch yourself too thin for such a recreational purchase.

Best Egg: Best for secured loans

Best Egg offers unsecured loans for those who qualify. But if you’re willing to put up collateral such as your car, your home’s cabinets, light fixtures or other valuables, you could get a massive interest rate discount.

Best Egg’s unsecured loans range from 8.99% to 35.99% APR, while its secured loans range from 5.99% to 29.99% APR. The company says that secured loans result in an average APR discount of 20%. For a large purchase like a pool, this could save you thousands of dollars.

LendingClub: Best for aboveground pools

LendingClub doesn’t offer wildly high personal loan amounts. At a maximum of $40,000, it likely won’t be enough for a dream inground pool. It also allows for a maximum term of five years, which is also lower than many competitors.

However, LendingClub does allow you to borrow as little as $1,000, making it a good option for those who don’t need to borrow much. This is better suited for aboveground pools, which run about $1,600 on the low end.

What is a pool loan?

A pool loan is a type of personal loan — often categorized as a “home improvement” loan. Some lenders extend up to $100,000 or more for swimming pool loans, with terms of up to 84 months.

As with any personal loan, you’ll pay in monthly installments that are subject to a variable APR. Depending on the amount of time it takes to pay off the debt, that could add up to thousands of dollars in interest.

How much do pools cost?

According to data collected by HomeGuide, an inground pool costs between $80 and $250 per square foot. In 2024, the average inground pool costs $62,500.

An aboveground pool, on the other hand, is significantly cheaper. In 2024, the average price for an aboveground pool is $4,500 (including installation).

Where to get a pool loan

Besides your independently wealthy family and acquaintances, there are really two main options for getting a pool loan:

• Banks and credit unions: Banks and credit unions offer loans for just about anything — backyard bodies of water included.

  Related: Best credit unions

• Online lenders: If you don’t like the deal your bank is offering, an online lender may be more attractive. You can typically find one to meet your needs, even if you’ve got a fair credit score.

• Peer-to-peer lending: It’s possible to borrow money from individuals rather than institutions, whether it be from a dedicated P2P site or something a little less official (like your rich uncle).

  Related: Best peer-to-peer (P2P) loans

How to get a pool loan

Before applying for a pool loan, there are a few things you should do first:

• Check your credit: You should know your credit score before looking for a swimming pool loan. Make sure you don’t apply for a loan that requires a higher credit score than what you’ve got.
• Ask for an estimate: Get installation quotes from a few local contractors. That way you’ll know the exact amount of money you need to borrow.
• Rate shop: Many lenders allow you to prequalify for a loan before formally submitting an application. This allows you to see the terms that you’ll get before committing. Go through the process of prequalifying for multiple loans to see which has the most favorable interest rates and terms.
• Gather financial documentation: Grab any papers that the lender will want, such as pay stubs and a government ID, to make the application process as seamless as possible.

Pros and cons

The pros of a swimming pool loan are similar to that of any personal loan. You’ll often find myriad repayment lengths to choose from, which helps you to receive manageable monthly installations. You can also (typically) get an unsecured pool loan, meaning you don’t have to provide any type of collateral.

On the other hand, pool loans come with cripplingly high interest rates for those with lower credit scores — over 35% APR, even. That’s a higher APR than the vast majority of credit cards. To boot, the interest you pay on a personal loan isn’t tax-deductible. Consider funding your pool with a home equity loan for tax benefits.

Alternative options

Cash

You may not want to part with many thousands of dollars in savings for an expensive swimming pool; readily available liquid assets like that are good to have in case of emergency. But again, paying cash may save you thousands of dollars over the term of your loan.

Home equity loan

If you’ve paid off a significant portion of your mortgage, you may decide to borrow against the property’s equity. For extravagant pools that cost six figures, this can be a great option, as the maximum amount you can borrow may be many times higher than a standard personal loan.

Contractor financing

During your chat with contractors to get an estimate of your total costs, some may present you with a financing offer. You won’t want to make a decision until you’ve sufficiently priced alternatives, but the terms and interest may best suit you through the contractor.

0% intro APR credit card

Wild as it may sound, a credit card could be your best option when it comes to financing a swimming pool. That’s because many cards offer 0% intro APR for an extended period of time. If you can pay your card balance off within the allotted intro APR period, you’ll pay no interest.

A credit card like the Wells Fargo Active Cash® Card comes with 0% intro APR for the first 15 months on both purchases and balance transfers. In other words, you’ll have more than a year to pay off your card without being charged a dime in interest. Plus, you’ll earn cash back.

Methodology

We considered loans for every situation and included the top options based on criteria such as accessibility, term length and loan amount. We also weighed the credit requirements of each lender and analyzed the resulting APR incurred by each lender.

The AP Buyline roundup

A swimming pool can add massive value to your home. But it’s also a massive expense. Fortunately, even those with a credit score in the low 600s can be approved for a pool loan. Just be sure to pay it off as quickly as possible to minimize the interest you’ll pay.

Frequently asked questions (FAQs)

What is a good interest rate for a pool loan?

If you’re paying below 9% APR for a pool loan, you’re within the lowest rates in the industry.

What credit score do I need for a pool loan?

You should have a credit score of at least 600 when applying for a pool loan. Lenders such as Upgrade and Prosper have a reputation for accepting folks with credit scores this low (though many others do not).

How long do most people finance a pool?

Most swimming pool loans are between two and seven years in length.

How long does it take to get approved for a pool loan?

It depends on the lender — and whether you’ve given them everything that they need to approve you without a follow-up. Some lenders instantly approve and fund the same day. Others may require additional steps and take several days.

Is a pool a good investment?

A pool could add some value to your home — but it’s not necessarily a good “investment,” in that you’ll likely not make money from it. An inground pool is estimated to raise your home’s value by up to 8%, which is likely less than you’ll spend to install it.