Financing a new swimming pool? These are the best personal loan lenders to consider

A pool can be a wonderful addition to your backyard, useful for both outdoor entertainment and exercise. And in certain housing markets, it can even add value to your home. However, a pool installation can be an expensive project, setting homeowners back $35,000 on average.

If you're planning to add a pool to your home and need financing, a pool loan can be an option. A pool loan is an unsecured personal loan that allows you to receive funds for your pool without using it as collateral or tapping into your home equity.

CNBC Select compared multiple personal loan providers to find the best options for a pool loan, based on interest rates, fees, loan amounts and more (learn more about our methodology below).

• Best overall: LightStream Personal Loans
• Best for lower credit scores: Upgrade Personal Loans
• Best for no fees: SoFi Personal Loans
• Best from a big bank: Discover Personal Loans
• Best from a credit union: First Tech Credit Union Personal Loan

Who's this for? A LightStream personal loan can be an excellent choice for your pool installation project thanks to its relatively low interest rates, especially if you enroll in Autopay. Even better, Lightstream runs a Rate Beat Program where it will beat a competitor's interest rate by 0.10 percentage points (provided you've been approved for an unsecured loan with the same loan terms at a lower rate).

LightStream offers loans from $5,000 to $100,000, so you can finance large and small pools. Plus, the term can be as long as 144 months (12 years), which is the longest-term option among the lenders on our list. That said, keep in mind that a longer term comes with more interest charges, which can add up in the long run.

With LightStream, you can receive your funds as soon as the day you apply if your application is approved and you complete all the required steps by 2:30 PM Eastern Time on a banking business day. The lender charges no origination fees, administration fees or early payoff fees.

Who's this for? Upgrade can be a solid choice if your credit score isn't perfect. The lender works with borrowers with fair credit and offers loans of up to $50,000 which should be enough for the average pool installation project.

Upgrade allows you to check your interest rate online with a soft inquiry, meaning your credit score won't be affected until you apply. You can also receive several offers and pick what works best for you. Once you accept a loan offer and complete all the necessary verifications and paperwork, you can receive the funds within a day.

Additionally, you'll have the option to choose between a fixed or variable APR. A fixed interest rate stays the same over the life of the loan, and the consistency makes it easier to budget for your loan payments. A variable APR, on the other hand, can fluctuate, meaning you can save money if it goes down — but it can also go up at any time.

Who's this for? SoFi allows you to save on potential extra costs that typically come with a pool loan. The lender doesn't charge any origination fees or prepayment penalties. There are also no late fees, which isn't as common for a personal loan. That said, if your payment is late, you'll accumulate more interest. Not to mention, missed or partial payments can lead to a loan default.

To help you save more, SoFi offers a 0.25% interest rate discount if you set up automatic monthly payments. Borrowers have 24 to 84 months to pay back the loan, and loan amounts range from $5,000 to $100,000.

Another noteworthy feature of the loan is unemployment protection. If you lose your job and you're not at fault, you can request unemployment protection. If your loan is in good standing, SoFi may modify your monthly payments and provide job placement assistance. Note that interest will continue to accrue while you're in forbearance.

As with other lenders on our list, you can check the rates and terms you can qualify for with SoFi with a soft credit check. The lender will only perform a hard pull once you apply.

Who's this for? Smaller online lenders may offer excellent loan terms, but if you'd rather stick with a big-name bank, Discover can be a good choice for your pool loan.

Discover offers personal loans, including for home improvements, of up to $40,000. This should cover an average pool installation project, but if yours is on the more expensive side, you might want to consider other options.

You can check your rate with no impact on your credit until you apply. Borrowers who submit a complete application without any errors can receive the funds as early as the next business day.

Discover's rates are on par with other online lenders. Your term can be between 36 and 84 months, and you can pay off the loan early without penalties. There's, however, a late fee of $39 if you miss a payment.

Who's this for? First Tech Federal Credit Union is a good choice for those who prefer to bank with a credit union.

You can borrow as much as $50,000 and get a term from 24 months to 84 months. There are no origination fees, application fees or prepayment penalties. You can check your rate for a two-year loan before applying without dinging your credit score.

As is the case with most credit unions, you need to be a member to apply for a loan. First Tech offers many ways you can join, including working for a company on First Tech's partner list, joining the Computer History Museum or the Financial Fitness Association and more.

• Is a pool loan a personal loan?
• How do you get a loan for a pool?
• What credit score do you need to finance a swimming pool?
• How long does it take to get a pool loan approval?

While some financial institutions may advertise swimming pool loans, these loans are in fact standard unsecured personal loans that can be used for various purposes, including home improvement.

Besides getting a personal loan to finance a swimming pool, you can tap into your home equity or look into financing offered by pool installation companies.

Credit requirements vary by lender and type of financing, but a good credit score (680 or higher) can usually get you the best terms.

If you're getting a personal loan to finance a pool, some lenders can approve you within minutes (provided you have all the required information and documentation), while others might take several business days.

If you're planning to add a pool to your property, a personal loan can be a great choice for financing. Ensure to show around for a lender before applying, compare the terms they offer and choose the loan that works best for your situation.

To determine which personal loans are the best for financing a pool, CNBC Select analyzed dozens of U.S. personal loans offered by both online and brick-and-mortar banks, including large credit unions, that come with no origination or signup fees and offer flexible loan amounts and terms to suit various types of swimming pool installation projects.

When narrowing down and ranking the best personal loans, we focused on the following features:

• No (or low) origination or signup fee: The majority of lenders on our best-of list don't charge borrowers an upfront fee for processing your loan. For the ones that do, the fee is relatively low.
• Fixed-rate APR: Variable rates can go up and down over the lifetime of your loan. With a fixed rate APR, you lock in an interest rate for the duration of the loan's term, which means your monthly payment won't vary, making your budget easier to plan.
• Flexible minimum and maximum loan amounts/terms: Each lender provides a variety of financing options that you can customize based on your project budget and how long you need to pay back your loan.
• No early payoff penalties: The lenders on our list do not charge borrowers for paying off loans early.
• Streamlined application process: We considered whether lenders offered same-day approval decisions and a fast online application process. 
• Customer support: Every loan on our list provides customer service available via telephone, email or secure online messaging. We also opted for lenders with an online resource hub or advice center to help you educate yourself about the personal loan process and your finances.
• Fund disbursement: The loans on our list deliver funds promptly through either electronic wire transfer to your checking account or in the form of a paper check.
• Autopay discounts: We noted the lenders that reward you for enrolling in autopay by lowering your APR .

After reviewing the above features, we sorted our recommendations by best for overall financing needs, type of financial institution, no fees and lower credit scores.

Note that the rates and fee structures advertised for personal loans are subject to fluctuate in accordance with the Fed rate. However, once you accept your loan agreement, a fixed-rate APR will guarantee interest rate and monthly payment will remain consistent throughout the entire term of the loan. Your APR, monthly payment and loan amount depend on your credit history and creditworthiness. To take out a loan, lenders will conduct a hard credit inquiry and request a full application, which could require proof of income, identity verification, proof of address and more. 

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