Personal loans are not your only source of financing for home improvement. Depending on your current situation, there are other options available that may get you the cash you need.

Home equity loans and HELOC

Homeowners with the equity in their home – the home’s current market value minus the remaining mortgage balance – may be able to get a home equity loan or home equity line of credit (HELOC). Both allow you to pull on your home, which means your home secures the transaction and the lender can repossess it if you don’t pay it back.

Home equity loans are disbursed as lump sums, while HELOCs restrict you to withdraw funds as needed. Either way, you can use these funds to finance your home improvement projects.

Related: HELOC Vs. Home loan: which one is right for you?

Refinancing of collection

Refinancing with withdrawal replaces your existing mortgage with a new, larger mortgage. You take the difference between the two mortgages and use the money as you see fit, including renovations. However, you will need at least 10-20% equity after refinancing. This percentage varies depending on your lender and whether you are willing to pay for private mortgage insurance (PMI) on the new loan.

Related: Is the pandemic remodeling boom looming? Refinancing of withdrawals reaches highest level in 13 years

Credit card

In addition to loans and lines of credit, you can also use credit cards. However, these are generally suitable for small home improvement projects, not your $ 20,000 bathroom remodel. Still, credit cards can be a great way to access a credit limit that you can reuse when paying off your balance. And you won’t pay interest on unpaid balances until the end of your billing cycle.

However, if your credit score is at least 670, you may be eligible for a 0% APR rate credit card. These cards typically offer 0% interest for an extended period, typically six months to 21 months. During the introductory period, your balance will not bear interest; however, any outstanding balances at the end of the introductory period will be. This means that if you pay off your balance before the end of the 0% annual interest rate period, your home improvement project could be interest free.