Deck Loans: Finance Your Deck or Patio in 2024
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A backyard deck or patio can be a peaceful place to sip your morning coffee or gather for family dinners. If you’re planning to add one, an important decision is how to pay for it. Personal loans are a fast way to finance your new deck; other options are home equity, credit cards and contractor financing. Compare deck financing options to find the one that works for your project.
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- 35+ personal loans reviewed and rated by our team of experts.
- 20+ years of combined experience covering personal loans and financial topics.
- Objective, comprehensive star rating system assessing 20+ categories and 70+ data points.
- Governed by NerdWallet's strict guidelines for editorial integrity.
Compare personal loan rates in just 2 minutes
Check rates from multiple lenders at once Explore loans up to $100,000 There’s NO impact on your credit scoreDeck Loans: Finance Your Deck or Patio in 2024
8.99-29.99%
$5K-$100K
None
- Must legally be an adult in your state.
- Must be a U.S. citizen, permanent resident or non-permanent resident with valid documentation.
- Must be employed, have sufficient income or have an offer of employment to start within 90 days.
- Origination fee: 0% to 7%.
- Late fee: None.
8.49-35.99%
$1K-$50K
560
- Minimum credit score: 560.
- Minimum number of accounts on credit history: One account.
- Maximum debt-to-income ratio: 75%, including the loan you're applying for.
- Minimum length of credit history: Two years.
- Minimum income requirement: None. Lender accepts income from alimony, retirement, child support, Social Security and other sources.
- Origination fee: 1.85% to 9.99%.
- Late Fee: $10.
- Failed payment fee: $10.
7.99-24.99%
$2.5K-$40K
660
- Minimum credit score: 660.
- Must be at least 18 years old.
- Must have a valid U.S. Social Security number.
- Minimum individual or household annual income of $25,000.
- Must have an active email address.
- Origination fee: None.
- Late fee: $39.
6.99-25.49%
$5K-$100K
660
- Must be a U.S. citizen or permanent resident.
- Must be at least 18 years old.
- Minimum credit score: 660.
- Must have several years of credit history with multiple account types and few or no delinquencies.
- Must have assets like retirement, investment and savings accounts.
- Origination fee: None.
- Late fee: None.
- Minimum credit score: 560; borrower average is 710.
- Minimum income: No minimum requirement; borrower average is $122,000.
- Maximum debt-to-income ratio: 50% (excluding mortgage); borrower average is 41% (including mortgage).
- Must be at least 18 years old.
- Must provide Social Security number and a U.S. bank account.
- Origination fee: 1% to 9.99%.
- Late fee: 5% of monthly payment or $15, whichever is greater.
- Insufficient funds fee: $15.
- Pay by mail fee: $5.
8.99-35.99%
$2K-$50K
600
- Minimum credit score: 600.
- Must be a U.S. citizen.
- Minimum credit history: 24 months and 1 account.
- Minimum annual income: $3,500.
- Maximum debt-to-income ratio: 40% or 65% including mortgage.
- Origination fee: 0.99% - 9.99%.
9.12-29.99%
$2K-$45K
640
- Minimum credit score: 640.
- Must be a U.S. resident.
- Must be at least 18 years old in most states.
- Origination fee: 2.98% to 9.34%.
- Late fee: $15.
- Unsuccessful payment fee: $15.
- Must legally be an adult in your state.
- Must be a U.S. citizen, permanent resident or non-permanent resident with valid documentation.
- Must be employed, have sufficient income or have an offer of employment to start within 90 days.
- Origination fee: 0% to 7%.
- Late fee: None.
- Minimum credit score: 560.
- Minimum number of accounts on credit history: One account.
- Maximum debt-to-income ratio: 75%, including the loan you're applying for.
- Minimum length of credit history: Two years.
- Minimum income requirement: None. Lender accepts income from alimony, retirement, child support, Social Security and other sources.
- Origination fee: 1.85% to 9.99%.
- Late Fee: $10.
- Failed payment fee: $10.
- Minimum credit score: 660.
- Must be at least 18 years old.
- Must have a valid U.S. Social Security number.
- Minimum individual or household annual income of $25,000.
- Must have an active email address.
- Origination fee: None.
- Late fee: $39.
- Must be a U.S. citizen or permanent resident.
- Must be at least 18 years old.
- Minimum credit score: 660.
- Must have several years of credit history with multiple account types and few or no delinquencies.
- Must have assets like retirement, investment and savings accounts.
- Origination fee: None.
- Late fee: None.
- Minimum credit score: 560; borrower average is 710.
- Minimum income: No minimum requirement; borrower average is $122,000.
- Maximum debt-to-income ratio: 50% (excluding mortgage); borrower average is 41% (including mortgage).
- Must be at least 18 years old.
- Must provide Social Security number and a U.S. bank account.
- Origination fee: 1% to 9.99%.
- Late fee: 5% of monthly payment or $15, whichever is greater.
- Insufficient funds fee: $15.
- Pay by mail fee: $5.
- Minimum credit score: 600.
- Must be a U.S. citizen.
- Minimum credit history: 24 months and 1 account.
- Minimum annual income: $3,500.
- Maximum debt-to-income ratio: 40% or 65% including mortgage.
- Origination fee: 0.99% - 9.99%.
- Minimum credit score: 640.
- Must be a U.S. resident.
- Must be at least 18 years old in most states.
- Origination fee: 2.98% to 9.34%.
- Late fee: $15.
- Unsuccessful payment fee: $15.
Our pick for
Deck loans for good credit
SoFi Personal Loan
8.99-29.99%
$5,000-$100,000
None
Our pick for
Deck loans with no fees
Our pick for
Deck loans for fair credit
Our pick for
Deck loans for fast financing
Our pick for
Deck loans for co-borrowers
Our pick for
Secured deck loans
Our pick for
Deck loans for excellent credit
Discover® Personal Loans
7.99-24.99%
$2,500-$40,000
660
What is deck financing?
Deck financing is money borrowed from a lender that you use to pay for a new deck. You then repay the loan amount with interest over time.
Cash is an interest-free way to pay for a deck, but financing options include personal loans, home equity loans or lines of credit, credit cards or contractor financing.
A personal loan is among your fastest options — many lenders can fund a loan within a day or two. Personal loan amounts are $1,000 to $100,000, and annual percentage rates range from 6% to 36%. Personal loans are repaid in fixed monthly installments, typically over two to seven years.
A $7,000 personal loan with a 10% APR repaid over two years would require monthly payments of $323. You’d repay a total of $7,752, including interest.
4 deck financing options
How you finance your deck depends on factors like how much home equity you have, your credit and income, and the cost of your project. Here are four financing options to consider.
Personal loans
An unsecured personal loan doesn’t require pledging your home as collateral, so the interest rate may be higher than with a home equity loan or line of credit. Online lenders offer personal loans, as do some banks and credit unions.
When they’re best: Personal loans are best for financing your deck if you don’t have enough home equity or want to use your home as collateral. They're also best when you need funds quickly.
Things to consider about personal loans
Fast funding. Many online lenders can fund a loan within a day or two of approval, while banks may take up to a week. In both cases, you’ll likely get funds faster with a personal loan than with home equity financing.
Unsecured. Getting an unsecured loan means if you fail to repay, the lender can’t take your house or car. On-time payments will build your credit, while missed payments will cause it to drop.
High credit and debt standards. Because lenders assess only your finances and creditworthiness, many have high credit standards and require a low debt-to-income ratio. You can apply for a joint or co-signed personal loan if you think you won’t qualify for a low rate on your own.
» MORE: Personal loans with a co-signer
Home equity loans and lines of credit
Home equity loans and lines of credit are secured by your home and have lower interest rates than other financing options.
You get a home equity loan in a lump sum and repay it in fixed monthly installments, similar to a personal loan.
Home equity lines of credit give you the flexibility of borrowing as you need and repaying only the interest during the initial draw period. The repayment period can be 20 years, but rates are variable, meaning the monthly payment may fluctuate.
When they’re best: Equity financing works best if you’re comfortable using your home as collateral and have enough equity to pay for the project.
Home equity loans are best if you have a firm cost estimate for the new deck or patio. You typically can't borrow more money from your equity once you’ve gotten a loan.
Home equity lines of credit are best if your project has an uncertain timeline or you’re concerned about surprise expenses.
Things to consider about HELOCs and home equity loans
Tax benefits. When you use equity to pay for a home improvement, the interest is tax-deductible.
Secured financing. Home equity options have lower rates than personal loans and credit cards partly because your home is used as collateral.
Long repayment terms. Both home equity loans and lines of credit can have repayment terms of over a decade, while personal loan repayment terms are shorter.
0% APR credit cards
On average, credit cards have higher APRs than personal loans and home equity options. But if you qualify, a 0% APR credit card may be your cheapest option.
When they’re best: These cards are best when you qualify — meaning you have strong credit and little existing debt — and you can pay the full balance by the end of the promotional period, which is usually 15 to 21 months.
Things to consider about credit cards
High credit standards. Cards with a 0% APR introductory period typically require good or excellent credit to qualify. You may be approved for the card, but not for the full amount you plan to spend on the new outdoor area. In that case, you can use the card for supplementary expenses or unexpected costs.
High rates after the promotional period. If you use a 0% APR credit card to finance a deck or patio and don’t pay off the balance, interest begins to accrue when the promotional period ends. Check the card’s post-promotion APR and decide whether you'd be comfortable paying it.
Monthly payments. Cardholders should plan to make monthly payments. If you’re late with your minimum payment, the issuer can cancel the promotion, leaving you with the balance and the card’s regular interest rate.
» MORE: Compare 0% APR cards
Contractor financing
Some contractors offer financing through a third-party lender, like GreenSky. These are often unsecured loans that a contractor offers once you agree on a cost estimate.
When they’re best: This type of loan is best when it’s the least expensive option. Because the financing is offered through the contractor, they may be able to start on the deck or patio quickly if you use it.
Things to consider about contractor financing
Not all contractors offer it. Don’t expect every contractor that gives you a quote to provide financing.
It’s usually an unsecured loan. There’s usually no collateral for this type of loan, but missed payments will hurt your credit.
Financing may be offered on the spot. Once you agree on an estimate, the contractor may pull up an application and ask you to submit it right away. Even if it seems like a good offer, take time to review the rate and terms and compare it with other financing options.
How to compare personal loans for deck and patio financing
Qualifications. The loan’s interest rate and the amount you receive are based primarily on your credit, income and existing debts. Lenders want to know that you can cover your regular monthly expenses, plus the additional loan payments. Some lenders cater to people with bad credit (a 629 or lower score), while others seek borrowers with good or excellent credit (690 and higher). Review lender requirements to determine where you may qualify.
APR. A personal loan’s annual percentage rate is the entire cost of the loan, including interest and any fees. The loan with the lowest APR is the least expensive one.
Loan terms. Loans with longer terms often cost more in total interest, though monthly payments will be lower. Choose the shortest repayment term with payments you can still afford to minimize interest costs.
Special features. Some lenders offer features like pre-qualification, which lets you see your rate with a soft credit pull before formally applying. Others may give a rate discount for setting up automatic payments.
How to get a deck loan
Here are the steps to get a deck loan:
Get a firm cost estimate. The cost of your new deck or patio can determine the best way to pay for it. Calculate your total cost and identify how much you need to borrow.
Pre-qualify. Once you have an estimate, pre-qualify with multiple lenders to see potential loan rates and terms. Pre-qualifying requires only a soft-credit check so it doesn't affect your credit score.
Compare lenders. Lenders may offer different rates, funding times and repayment terms. Compare your options and find a loan with monthly payments that fit comfortably in your budget while offering the features you need.
Apply. Many lenders have an application process that is completely online. You’ll be asked to provide documents verifying your income like W-2s, pay stubs and bank statements. Lenders can inform you of a credit decision within a day or two of applying.
» MORE: How to get a personal loan
How much does it cost to build a deck or patio?
A new deck costs $4,347 to $12,492 on average, while a new patio can cost $1,968 to $5,866, according to home improvement website Angi.
Factors that affect the cost include materials used to build the deck or patio and the cost of labor if you hire a contractor. Decks on the second floor of the house can cost more than double those on the first floor, according to Angi.
Keep in mind that a new deck or patio may need outdoor furniture or a grill that can add to your overall cost. Annual maintenance, like a new coat of paint or sealant, can cost an additional few hundred dollars but helps to ensure your outdoor space stays in good condition year after year.
Last updated on May 29, 2024
Methodology
NerdWallet’s review process evaluates and rates personal loan products from more than 35 technology companies and financial institutions. We collect over 50 data points from each lender and cross-check company websites, earnings reports and other public documents to confirm product details. We may also go through a lender’s pre-qualification flow and follow up with company representatives. NerdWallet writers and editors conduct a full fact check and update annually, but also make updates throughout the year as necessary.
Our star ratings award points to lenders that offer consumer-friendly features, including: soft credit checks to pre-qualify, competitive interest rates and no fees, transparency of rates and terms, flexible payment options, fast funding times, accessible customer service, reporting of payments to credit bureaus and financial education. Our ratings award fewer points to lenders with practices that may make a loan difficult to repay on time, such as charging high annual percentage rates (above 36%), underwriting that does not adequately assess consumers’ ability to repay and lack of credit-building help. We also consider regulatory actions filed by agencies like the Consumer Financial Protection Bureau. We weigh these factors based on our assessment of which are the most important to consumers and how meaningfully they impact consumers’ experiences.
NerdWallet does not receive compensation for our star ratings. Read more about our ratings methodologies for personal loans and our editorial guidelines.
NerdWallet's Deck Loans: Finance Your Deck or Patio in 2024
- SoFi Personal Loan: Best for Deck loans for good credit
- LightStream: Best for Deck loans with no fees
- Upgrade: Best for Deck loans for fair credit
- Rocket Loans: Best for Deck loans for fast financing
- Prosper: Best for Deck loans for co-borrowers
- Best Egg: Best for Secured deck loans
- Discover® Personal Loans: Best for Deck loans for excellent credit
Frequently asked questions
- How do people pay for a new deck?
Here are four ways to finance a new deck:
Personal loans don't require collateral and offer fast funding.
Home equity loans and lines of credit are low-rate financing options that have long repayment terms.
A 0% APR credit card is an interest-free way to pay for the new deck if you have strong credit and income to qualify.
Contractor financing is usually on the spot once you settle on an estimate. Compare this unsecured loan option with other offers to be sure you're getting a low rate.
- Can home equity finance a deck?
You can pay for a new deck with a home equity loan or line of credit. To do so, you need enough available equity to cover the cost of putting in a new deck. Consider whether you’re comfortable using your home as collateral for the loan and if the project cost is enough to make the underwriting process and any additional loan costs worth it.
