Best Hot Tub Financing Options For Good & Bad Credit

Whether you’re looking to increase the value of your home before you sell it, or simply want a new way to relax, you might be looking at purchasing a hot tub. Hot tubs can help you jazz up a summertime garden party or help you turn your home around for a higher price. Either way, this can be a big expense and may be difficult to finance out of pocket.

Can you finance a hot tub?

The great news is that if you don’t have enough money to fund a hot tub, there are many ways to finance one. Personal term loans are one of the most popular options for doing this and are accessible to borrowers across a range of financial qualifications. Other than standard term loans, you can also consider getting a line of credit or using home equity or home improvement loans.

Can you make payments on a hot tub?

Many hot tub distributors offer monthly payment plans, so you may be able to finance your hot tub without borrowing from a separate lender.

How much does a hot tub cost per month?

Most hot tubs cost somewhere between $3,500 and $12,000, with lenders typically offering repayment periods of up to five years. For example, if you purchase a hot tub for $5,000, with a 9% APR and two-year repayment term, your minimum monthly payment will be $228.42.

How much does a new hot tub cost?

A new hot tub can run you anywhere from $3,500 for the most basic model, all the way up to $20,000 for the largest and most luxurious tubs. Most, however, won’t cost more than $12,000.

Does it matter if my hot tub is above-ground or in-ground?

Deciding to purchase an in-ground hot tub can greatly increase the cost of the project because it will require excavation, landscaping and professional excavation. It can also cost more to heat an in-ground hot tub. If you’re looking for a low cost and efficient option, an above-ground hot tub is the better choice.

What are my options for hot tub financing?

Home Equity Loans

Pros:

Credit score may not be as large of a factor in the approval process than with a traditional loan
May be easier to qualify for than a traditional personal loan
Interest rates may be lower than with an online personal loan
Borrowers may have access to larger amounts or more flexible repayment terms

Cons:

May perpetuate a cycle of debt
Home may be at risk if the borrower does not make timely payments
Borrower may be at greater financial risk if the loan amount exceeds the value of the home
Not tax deductible

Figure


APR range	Starting at 4.99%
Available loan terms	Up to 30 years
Loan amounts	Borrow up to $150,000
Fees	Low origination fee
Credit needed	Minimum credit score 600
Best for	Major Purchases, Home Improvements or Consolidating Debt
Click “Check Rates” to apply to Figure Get Started

» MORE: Figure.com home equity review

Zero-Equity Personal Loans

Pros:

Won’t put your home at risk in case of late payments
Timely payments can help credit score
Higher interest than equity financing
Loans can fund in as little as one business day
Wider variety of lenders and funding options for borrowers across all income and credit brackets

Cons:

Late payments can negatively impact credit score
Rates can be very high
Can be difficult to qualify for a low-interest loan with bad or average credit

Home Improvement Loans

Pros:

Home improvements can increase a property’s value
Allows homeowners to fund major repairs and projects that can’t be paid for out of pocket
Can come with longer repayment terms

Cons:

The cost of the loan and interest rates can surpass the value that the improvement adds to the property
Bad work can cause property to lose value
Can come with high interest rates if your financial qualifications are not up to snuff

Earnest


APR	Starting at 6.99%
Loan amounts	$5,000-$75,000
Time to fund	As Early As 48 hours
Credit needed	680
Best for	Borrowers With Good Credit
Click “Check Rates” to pre-qualify and receive a personalized rate. Check Rates

» MORE: Earnest personal loan review

Pros:

Amounts of up to $75,000
No late payment fee
Rates as low as 6.99%, with a maximum of 18.24%
Easy, online application
Repayment terms of three to five years

Cons:

No option to pay creditors directly
Difficult for new borrowers or borrowers with bad credit to qualify, with a minimum credit score requirement of 680
Not available in all US states

LightStream


APR range	4.99% - 17.49% w/AutoPay¹
Available loan terms	24 to 144 months¹
Loan amounts	up to $100,000
Time to fund	As soon as the same day**
Fees	Origination fee: None Late fee: None Prepayment fee: None
Credit needed	660+
Income needed	n/a
Soft Credit Check?	Varies
Best for	Borrowers with good credit, long credit history, co-signers, debt consolidation, home improvements
Click “Check Rates” to apply to LightStream Check Rates

» MORE: LightStream Personal Loans Review

Pros:

Rates as low as 3.99%
Accepts co-signers
Access to amounts of up to $100,000
Longer repayment terms than many other online lenders
No origination, late or prepayment fees
Loans can fund as soon as the same day

Cons:

Rates may be higher than with a traditional bank or lender
May be difficult for new borrowers to qualify, with a minimum credit score requirement of 660
Hard credit pull on loan applications

SoFi


APR range:	5.99% to 16.99% APR (with AutoPay)
Available loan terms:	24-84 months
Loan amounts:	$5,000—$100,000
Time to fund:	Typically 7 days
Origination fee:	None
Credit needed:	680+
Income needed:	$50,000+
Soft Credit Check?	Yes
Best for:	Young professionals and graduates, good credit
Click “Check Rates” to apply to SoFi Check Rates

» MORE: SoFi Personal Loans Review

Pros:

APR as low as 5.99%
No origination, late or overdraft fees
Flexible repayment terms ranging between two and seven years
Autopay option
Loans of up to $100,000

Cons:

Loans can take up to three days to fund, while many other online lenders offer funding times as short as one to two business days
Difficult for borrowers with low or average credit to qualify, with a minimum credit score requirement of 680

Credit Card Financing

Pros:

Timely payments can boost credit score
More convenient and regular access to funds than with personal loans
Borrowers only pay on what they use

Cons:

Can perpetuate overspending habits
Rates can be much higher than standard personal loans
May come with more fees than personal loans
More susceptible to fraud than a personal loan

» MORE: Compare Credit Cards

Conclusion

A hot tub can be a great investment to help you relax or get a greater return on the sale of your home. Personal and home equity loans are some of the most popular ways to fund this addition to your home. No matter whether you’re going for the most luxurious and top-of-the-line tub on the market or are just going for a basic above-ground installation, make sure that you know exactly how much you want to borrow so that you don’t end up taking out more cash than you need to.