Best Kitchen Remodel Financing Options

As a source of warmth and nourishment, kitchens serve as the heart of many homes, and they play a pivotal role as the backdrop for countless family meals. And it’s because this space is so important that it’s also among the most frequently remodeled.

If you’ve had a kitchen remodel on the back-burner of your brain, you likely know that they don’t come cheap. Kitchen appliances are costly and often require routing gas, water, and electricity in a more complicated manner than other rooms. And if you don’t have the cash in the bank to cover the cost of a remodel, you might think you’re stuck with outdated countertops and crumbling cabinets.

Fortunately, there are ways to give your kitchen a facelift even if you’re not flush with cash. This article will tell you everything you need to know about how to finance a kitchen remodel.

How Do You Finance a Kitchen Remodel?

When it comes to paying for a kitchen remodel, relatively few home-owners can afford to fork over a lump sum of cash to cover the costs. That’s where kitchen remodel financing comes into play. Kitchen finance plans come in a variety of forms from numerous different sources. (More on those later.) For the most part, however, the process of applying for a loan and repaying it is relatively similar regardless of which lending route you pursue.

What Kind of Loan Do I Need for a Kitchen Remodel?

The type of loan you need for a kitchen remodel depends on several different factors, including your credit score, how much money you’re seeking, and the amount of cash you have to put toward the project. Based on these considerations among other criteria, one type of loan might be a better fit for you than another. For instance, you might be eligible for a lower interest rate with a home equity line of credit (HELOC) than you would be with a bank loan or a credit card. For those reasons, a HELOC loan might be the exact loan you need.

Can You Get Kitchens on Finance?

Yes! Depending upon your creditworthiness and how much money you require for a remodel, it’s entirely possible to have a whole new kitchen built into your home and you can pay for it over time.

What Credit Score Do You Need to Get a Kitchen Remodel Loan?

Different lenders have different criteria when it comes to qualifying for a kitchen remodel loan. In general, individuals with scores above 750 will qualify for more favorable interest rates and more flexible terms, while applicants with scores in the low 600s will face higher interest rates and more rigid repayment options.

How to Finance A Kitchen Remodel

As mentioned earlier, there are several ways to go about acquiring the funds necessary for a kitchen remodel. Here’s a quick look at each of them along with a brief breakdown of their advantages and drawbacks.

Personal Loans

If you’re a relatively new homeowner who hasn’t developed much equity yet, you might consider a personal loan to cover the costs of your kitchen remodel. Depending on how extensive of a remodel you’re contemplating, a large personal loan can have a drastic impact on your credit score.


  • Won’t affect your mortgage in any way
  • Interest rates are lower than credit cards
  • High loans amounts give your project room to grow


  • Rates aren’t as low as equity-based arrangements
  • Terms are fixed and there may be fees and penalties
  • Can significantly lower your credit score, even if you never miss a payment

If you’re considering a personal loan to cover the cost of your kitchen remodel, here are three lenders worth looking at.

Personal Loans For Good Credit


APR Range:4.99 — 16.99% with AutoPay
Loan Terms:2 to 7 years
Loan Amount:$5,000 — $100,000
Time to Funding:As soon as same day
Credit Score:660+
LightStream:Read Our Review
Click “Check Rates” to apply to LightStream


APR Range:5.99%—29.99%
Loan Terms:3 to 5 years
Loan Amount:$2,000—$35,000
Time to Funding:As early as same day
Credit Score:640+
Best EggRead Our Review
Click “Check Rates” to apply to BestEgg

Personal Loans For Average Credit


APR range:6.95%—35.97%
Available loan terms:36-60 months
Loan amounts:$2,000—$40,000
Time to fund:One day
Origination fee:2.41%–5%
Credit needed:620+
Income needed:Varies
Soft Credit Check?Yes
Best for:Those with a steady income
Click “Check Rates” to apply to Prosper


APR Range:15.49%—35.99%
Loan Terms:2 to 4 years
Loan Amount:$2,000—$25,000
Time to Funding:One business day
Credit Score:600+
Income needed$20,000+
LendingPointRead Our Review
Click “Check Rates” to apply to LendingPoint


Loan amounts:$1,000–$40,000
Interest rate (APR):6.95%–35.89%
Minimum credit score:660
Repayment terms:3–5 years
Origination fee:1.00%–6.00%
Cosigners Accepted:Yes
Prepayment fee:None
Late fee:The greater of $15 or 15% of the payment amount
Hard or Soft Credit Check:Soft
Time to funding:Typically within one week
Click “Check Rates” to apply to LendingClub

LendingClub is a leader in the personal loan space and among the most popular options for Americans seeking access to cash.

  • APR: 6.95%-35.89%
  • Loan Amounts: Average loan is $14,700
  • Repayment Terms: 3-5 years


  • High loan amounts can cover most remodels
  • APRs are much lower than many similar lenders
  • Repayment terms are reasonable


  • Harder to qualify for
  • Only the most creditworthy individuals will get the best rates
  • Will likely lower your credit score for several months or more


NetCredit specializes in personal loans that can be used for a variety of purposes.

  • APR: 34%-155%
  • Loan amounts: $2,600 to $10,000
  • Loan terms: Six months to four years


  • Lower maximum APRs than other lenders
  • Good option to smaller projects
  • You don’t need a great credit score to qualify


  • NetCredit doesn’t operate in many areas of the United States
  • Borrowers have a maximum of four years to repay their loans
  • Loan amounts might not be enough to cover the entire project

Credit cards

Credit cards are usually considered one of the less affordable avenues to take when it comes to kitchen remodel finance options. That’s because credit card companies have a reputation for charging greater interest rates than other lending institutions charge. Here’s a quick look at some common pros and cons of using credit cards to pay for a kitchen remodel.


  • Won’t raise your mortgage payment
  • Easy to qualify for without a lengthy application
  • Many contractors accept credit cards


  • Will likely lower your credit score significantly
  • Loans amounts are lower than alternative options
  • Interest rates can be exorbitant

Mortgage Refinance

For homeowners who’ve developed some equity in their abode, a refinanced mortgage seems like an obvious way to get access to the funds required for a kitchen remodel. This type of arrangement involves applying for a new mortgage, which is used to pay off an existing mortgage and cover the additional cost of a kitchen remodel. And while a refinanced mortgage has its upsides, there are a few notable downsides as well.


  • Interest rates are typically lower
  • Repayment terms are longer
  • Pays off your existing mortgage


  • Your home is at risk if you fail to make payments
  • You’ll likely be paying the debt for decades
  • Market conditions could work against you

Home Equity Line of Credit

A home equity line of credit (HELOC) is similar to refinancing a mortgage in that your home serves as collateral for the loan. Unlike second mortgages and other types of loans, however, borrowing and repayment terms with HELOCs are far more flexible.


  • HELOC loans don’t have rigid repayment terms
  • You have to option to borrow money as you need it
  • On-time payments can improve your credit score


  • Often more expensive than second mortgages
  • Interest rates can fluctuate frequently
  • Failure to make payments can cost you your home

Home Equity Loan

Home equity loans, also known as second mortgages, are long-term, fixed-interest arrangements that effectively add an additional mortgage onto your current repayment plan.


  • Easy to forecast as APRs remain steady
  • Interest rates are lower than most other options
  • Long repayment terms can make your finances manageable


  • You’ll be making two mortgage payments each month
  • You’ll have less equity in your home
  • There may be penalties for prepayment

Save up and pay cash

If you’ve managed to save up enough cash to pay for your kitchen remodel on the spot, that can certainly be an attractive option. At the very least, you’ll avoid paying any kind of interest and you’ll experience peace of mind that comes with having less debt. That’s not to say there’s nothing to lose, however, by opting to pay cash for your remodel.


  • You avoid debt and interest payments
  • Can be a stress-free experience
  • Won’t hurt your credit score


  • Doesn’t benefit your creditworthiness
  • Missed opportunity to grow that cash
  • You lose the protection offered by some lenders


Depending upon your credit score and what size loan you seek, the best way to finance a kitchen remodel might be different for you than it is for your neighbor. Based on the above information, consider which types of arrangements you’re likely to qualify for and apply for a loan today.

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