How Can You Finance Landscaping using Personal Loans?

How much does a landscape project cost?

To put into perspective why financing for a landscape project may be necessary, it’s important to look at the average cost for a landscaping project. On the low end, a landscaping project can cost as little as $50 if there are minor renovations being done, but major renovations can be as much as $7,000. The average landscaping project costs closer to $700, which can still be a tough expense for a person to pay upfront.

Personal loans for landscaping

One of the most common options for financing is to use a personal loan for the project. For those unfamiliar, a personal loan allows a person to borrow a lump sum of money that they repay over time. These repayments will include any interest or fees associated with the loan.

On average, a personal loan will have a tenor of two to seven years, with interest rates ranging from 6%-36% depending on a person’s credit worthiness. With loan amounts going all the way up to $100,000, a personal loan can provide more than enough funds for a landscaping project.

Related: How do personal loans work?

Pros and cons of landscaping loans

As with any form of borrowing, there are a few key pros and cons to consider prior to taking out a landscaping loan. Starting with the pros, a borrower may see benefits including:

• The instant ability to complete the landscaping project.
• Lower interest rates depending on your credit.
• You know exactly how much you need to borrow upfront.
• Freedom to spread payments out over a longer period.

While the above benefits can improve any landscaping project, there are several drawbacks that anybody should consider, including:

• Potentially higher long-term cost if you are unable to repay the loan quickly.
• You may not be eligible for a low interest rate.
• You may need to secure the loan with collateral.

How to get a personal loan for landscapes?

A landscaping loan can allow a person to finance any project they want. Learning how to get a personal loan can speed up the process:

1. Contact different lenders to see what they can offer.
2. Examine your own financial circumstance to see what you can afford.
3. Select a lender who offers terms that you can afford.
4. Gather all personal information prior to applying.
5. Submit your application.

How much will a landscape loan cost?

A landscape cost will, at a minimum, cost as much as the landscaping project itself. The all-in cost for a financing landscape project, however, will be the base cost of the project plus all interest and fees on top. If you have poor credit, this value could be thousands more than you intended to pay.

Things to keep in mind before getting a landscape loan

Prior to applying for a landscaping loan, keep in mind some of the following considerations:

1. Your landscaping budget

The budget you set for your project will partially determine the type of financing you need. Alternatively, it may not be a high enough amount to warrant financing in the first place. If you can afford the expense out of pocket, it will always be cheaper than taking out a loan.

2. Your credit score

Your credit score will have a direct impact on the interest rate and fees you are provided with. With a good credit score, a financing loan can be relatively cheap. However, as your credit score slowly decreases, the cost of your loan will steadily increase.

3. Your goals with landscaping

Think about what the end goal with your landscaping project is prior to applying for the loan. After all, you don’t want to request too small an amount, which may force you to take out another loan later.

4. Scope of your project

Building off the prior consideration, consider the extent of your landscaping project. This will help you determine the exact value you need to take out with the loan.

Other options of landscape financing

Traditional finance landscaping options may not be right for you, but there is a myriad of other options to consider for your project.

1. Credit cards

For those with a high credit limit, putting the landscaping expense on your credit card can be an excellent choice. However, if you are going to carry a balance month over month then the interest rate that comes on credit cards may not be worth the long-term cost.

2. Builder financing

As opposed to loans for landscaping, many builders will offer their own method for how to finance landscaping in the form of a customized payment plan. This can be an excellent option, but the interest you are charged may be higher than a personal loan interest rate depending on your credit score.

3. Home Equity Loans and HELOC

For backyard landscape financing, home equity loans or a home equity line of credit could be excellent secured options for borrowing. These forms of debt use your home as collateral when taking out either a lump sum of money or a line of credit. The latter can be helpful if you aren’t certain what the total cost of your project will be.

Related: Home Equity Loans vs HELOC

4. Personal savings and cash

At the end of the day, your personal savings account and cash balance will always be the cheapest way to finance a loan. To finance backyard landscaping, using your personal finances won’t incur interest but it will drain your rainy-day fund if the money wasn’t set aside previously.

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