Best A/C Unit & HVAC Financing Options For Good & Bad Credit

With many areas of the United States experiencing sultrier summers and chillier winters, there’s never been a better time to install a new heating, ventilation, and air conditioning (HVAC) system in your living space. But, depending on the size of your home and how many rooms in which you want to control the temperature, HVAC systems can be incredibly expensive. Fortunately, HVAC financing plans make it possible for people to purchase new heating and air conditioning systems even if they’re strapped for cash. 

If you’re interested in learning more about home heating and A/C unit financing, here’s an overview of everything you need to know.

Can You Finance a New A/C Unit?

Absolutely! Banks, personal lenders, and HVAC financing companies make it possible to pay for a new air conditioning unit over the course of several months or even years. It’s important to note, though, that only individuals who’ve demonstrated responsible use of credit in the past are likely to qualify for the best financing terms.  

Can You Finance an HVAC Unit?

Yep! Similar to an air conditioning unit, an entire HVAC system can also be financed if you don’t have enough money in the bank to pay for it at the time of installation. As long as a lender deems to be creditworthy, you can qualify for HVAC financing. Bad credit applicants may also get approved depending on the leniency of the lender.

How Much Does It Cost to Replace an A/C Unit?

Nobody likes the thought of replacing an air conditioning unit, but few appliances are likely to last the entire duration of time you live in your home. If your existing A/C unit breaks down or stops working as well as it used to, the cost to replace the unit will typically be between $3,500 and $7,500, but, in some cases, it may cost even more. That’s why many homeowners choose to finance their A/C units.

How Can I Finance an A/C or HVAC Unit?

If you’re considering financing an A/C or HVAC unit, there are a number of routes you could take. Here are some of the most popular options.

  • Finance through the installer
  • Get a subsidized loan from your state of residence
  • Apply for a home equity loan to cover the cost
  • Charge it on a credit card
  • Apply for a federal grant if your income level is low

Best Financing Options for a New A/C or HVAC Unit

There’s no one-size-fits-all financing option for homeowners in the market for a new A/C or HVAC unit. Rather, the best payment option depends on your needs, your credit score, and how much interest you’re willing to pay. With that in mind, here’s a closer look at some popular options and how they work.

Personal Home Improvement Loans

Many modern lenders offer personal home improvement loans you can use to finance an A/C or HVAC unit. Here’s a look at three of the leading lenders and each of their advantages and drawbacks. \


APR range4.99% - 16.79% w/AutoPay1
Available loan terms24 to 144 months1
Loan amountsup to $100,000
Time to fundAs soon as the same day**
FeesOrigination fee: None
Late fee: None
Prepayment fee: None
Credit needed660+
Income neededn/a
Soft Credit Check?Varies
Best forBorrowers with good credit, long credit history, co-signers, debt consolidation, home improvements
Click “Check Rates” to apply to LightStream

» MORE: LightStream Personal Loans Review


APR range9.95% — 35.99%
Available loan terms24 — 60 months
Loan amounts$2,000 — $35,000
Time to fundAs soon as the next business day*
Administration feesUp to 4.75%
Credit score needed580; typical credit score is 600 — 700
Income neededNo set income requirement stated
Soft Credit Check?Yes
Best forPeople with poor or bad credit, debt consolidation
Click “Check Rates” to apply to Avant

Among the internet’s leading lending platforms, Avant offers borrowers with less-than-stellar credit access to loans for HVAC units, whereas most banks would turn these applicants away.

  • Loan Amounts — $2,000 to $35,000
  • APR — 9.95% to 35.99%
  • Origination Fee — 4.75%
  • Time to Funding — Next day
  • Repayment Terms — 2 to 5 years
Pros & Cons
  • Avant is among the best for people with credit scores as low as 580
  • This lender charges late fees and administrative fees
  • Loan payments are flexible, and you only need an annual income of $20,000 to get approved
APR range:34% – 155%
Available loan terms:6 months to 5 years
Loan amounts:$1,000 to $10,000
Time to fund:Usually 1 business day
Origination fee:None
Credit needed:No minimum
Income needed:No minimum
Best for:Borrowers with poor credit
Click “Check Rates” to pre-qualify and receive a personalized rate.

NetCredit is an online lender that considers more factors than simply an applicant’s credit score when determining whether or not to issue them a home improvement loan. 

  • Loan Amounts — $2,000 to $10,000
  • APR — 34% to 155%
  • Origination Fee — None
  • Time to Funding — 1 to 3 days
  • Repayment Terms — 6 months to 5 years
Pros & Cons
  • NetCredit is a great option for applicants with poor to average credit scores
  • Homeowners with decent to excellent credit scores will get better rates elsewhere
  • On-time payments with this lender can help homeowners with bad credit improve their scores 


APR range7.99% — 35.89%
Available loan terms:36 and 60 months
Loan amounts:$1,000 — $50,000
Time to fund:One day
Origination fee:1.5% – 6%
Credit score needed:620
Income needed:n/a
Soft Credit Check?Yes
Best for:Those with a steady income
Click “Check Rates” to apply to Upgrade

Upgrade specializes in low, fixed-rate loans that borrowers can use for major purchases, home improvement, debt consolidation, or to refinance balances on existing credit cards. 

  • Loan Amounts — $1,000 to $50,000
  • APR — 7.99% to 35.89%
  • Origination Fee — 1.5% to 6%
  • Time to Funding — 1 day
  • Repayment Terms — 3 to 5 years
Pros & Cons
  • Upgrade loans are a solid option for applicants with below-average to decent credit scores
  • Many borrowers choose Upgrade because the lender makes it easy to consolidate debt
  • You’re not likely to get approved if you have less than $800 left over at the end of each month

Credit Cards

Some individuals might choose to use a credit card to pay for a new HVAC unit, either because they don’t qualify for any other options or because they want to capitalize on the rewards credit card companies offer, such as points or frequent-flyer miles.

Pros & Cons
  • If you have good credit, you could qualify for a promotional APR of 0%
  • APRs with credit cards are typically far higher than personal loans and lines of credit
  • You could accumulate a tremendous amount of points or miles depending on the credit card 

Lines of Credit

If you’ve developed a substantial amount of equity in your home, or if your personal bank account is in good standing, you may qualify for a home equity line of credit or a personal line of credit to cover the costs of an HVAC unit.  

Pros & Cons
  • APRs on lines of credit are typically lower than rates with credit cards and personal loans
  • If you miss payments on a home equity line of credit, you could potentially lose your home
  • You could end up “underwater” depending on the value of your home and market conditions 

Manufacturer Financing

Many HVAC manufacturers and installers offer their own in-house financing options, making it easy for homeowners to handle installation, maintenance, and financing all through a single company. But are these arrangements really a good deal?

Pros & Cons
  • HVAC companies are more likely to approve applicants with bad credit just to close the deal
  • Interest rates with manufacturers are generally higher than personal loans and lines of credit
  • Financing directly through the manufacturer or installer eliminates the middleman


Now that you know the basics of financing A/C and HVAC units, apply for a loan with any of the above lenders or the other companies featured on our site. You might even qualify for no credit check HVAC financing with the right lender. In any case, these financing options can help you and your family beat the heat in the summer and stay warm in the winter.

Compare Personal Loans

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