Undertaking a home renovation project can significantly boost your property value and quality of life, but finding the right financing can be challenging, especially when dealing with bad credit (generally defined as a FICO score below 620). Traditional lenders often shy away from applicants with low scores or require collateral.

The good news is that securing an unsecured home improvement loan is possible, but it requires a strategic approach. These loans don’t require you to use your home equity as collateral, making them less risky for you, though they often come with higher interest rates to compensate the lender for the increased risk.

Top 3 Unsecured Loan Options for Bad Credit

Since you cannot rely on low-interest home equity products, the best options focus on personal loans and credit building strategies.

1. Personal Loans from Online Lenders

Online financial technology (FinTech) lenders are often the most flexible and accessible option …