Roofing, siding, and foundation contractors will attest that some home improvements can’t wait. Unlike aesthetic makeovers, storm-caused repair and replacement projects do not give you the luxury of time to explore every avenue to prepare your budget. Even if you are financially unprepared to foot the bill, you can’t put off the construction, for stalling it will only make matters worse.
To finance your time-sensitive home improvement ASAP, consider doing the following to get the funds you need on time:
Online personal loan lenders usually act faster than their traditional counterparts. They use technology to maximum effect, allowing them to automate most of the loan application process. You might still be required to submit some documents, but it is not uncommon to receive the cash you need the next day if your credentials meet your prospective lender’s criteria.
If you have a thin file, an online lender can still accept your business. Thanks to alternative data, you might be deemed as creditworthy even if your FICO scores tell a different story due to short payment histories.
Aside from online finance companies, peer-to-peer lending platforms can also help you fund your home improvement in no time. Financial technology has democratized unsecured lending across America.
Find a Cosigner
If your credentials do not meet the requirements of your prospective lender, using a cosigner can make you appear as a less risky borrower. This person will be held liable for your loan in case you default on your financial obligation.
Of course, you can’t just ask anyone to be a cosigner. Lenders usually have a shortlist of people you can use, so find out whether or not you can have the person you have in mind to assume your loan if you run into trouble during repayment.
Use Your Credit Card
You can buy almost anything using your plastic, but it can’t be used to cover home improvement expenses all the time. Typically, contractors themselves do not accept major credit cards.
Fortunately, home improvement companies are adopting fintech solutions and offer more payment options. If you are allowed to pay with plastic, you can fund any home project you need on credit.
While it is always convenient to spend the money you have not earned yet, think about the potential implications of charging your project to your credit card to the financial aspect of your life. Find out how much interest will be added to your balance and when will be charged.
Furthermore, overusing your credit can knock a lot of points off your FICO scores. Unlike installment loans, revolving consumer credit is more impactful to your credentials. If you exceed 30% of your total credit limit, you will drive down your FICO scores due to a high credit utilization rate.
Secure the Loan
If you are desperate enough to access funds for your home improvement, take out a secured loan instead. As its name implies, it involves some form of collateral to give your lender something to sell in case you stop repaying the loan.
Securing a loan can reduce the risk that your prospective lender takes in the deal, but it does not automatically translate to less interest. For instance, title loans (if allowed in your state) are secured, but they might cost more to borrow than personal loans and even cash advances.
Tackling a home project with a sense of urgency is not an excuse not to exercise due diligence. You treat an emergency like an emergency, but you should not act hastily because you might wind up spending more money without getting quality workmanship in the end.