Unsecured swimming pool financing is just as it sounds:  it is a pool loan that is lent without any form of collateral.

Since most home lenders look favorably on swimming pool additions, they will often lend money for a new pool without a lot of equity.  Of course, for the bank to do this (and assume a higher level of risk), there are usually a few more conditions levied on the borrower.  We will discuss the two most common requirements a bank will usually require.

The first requirement is the person seeking the loan must have a higher credit score.  As each lending institution has different requirements, a person seeking an unsecured pool loan would be advised to contact a few different lenders to find one that will approve their credit score.

The next requirement is that the person taking out the unsecured pool loan will pay a higher interest rate than when compared with someone who has equity in their home.  Again, each bank will be different in the amount of interest they require, so it is wise to shop around.  With that said, a person seeking a loan should not be surprised if they are asked to pay between 7 and 10 percent more on their interest rate than someone who has equity in their home.

While these two requirements may sound quite difficult, the reality is that building a new swimming pool will significantly increase the value of your home, while at the same time making it easier to sell.  Therefore, even if you must pay a little more in interest now, oftentimes, you will recapture the investment cost when you sell your home.

As you can see, there is a wide range of flexibility when it comes to unsecured swimming pool loans, so we recommend you check out a few vendors before committing to one.

If you are considering building a pool (regardless of whether it is an inground pool or an above ground pool), you may want to see what your options are.

Obviously, if you have the cash available, you could simply pay for the construction of the pool at one time. But the real question is, is it wise for you to do that?

A very simple way is to find out what the current swimming pool financing rates are and whether you could get a better return on your money somewhere else. As an example, if you can get a swimming pool loan for 7% and you can expect to make 9% in the stock market, it may make sense to finance the swimming pool.

Now if you don’t have the cash available, you have two options. You can 1) use your credit card (resulting in a bad kind of unsecured pool loans) or 2) you can secure swimming pool financing via a lender.

In our opinion, going with the first option is simply out of the question. With credit card rates often floating around the 18%+ range, it makes absolutely no financial sense to use this option.

On the other hand, if loans for swimming pools are hovering in the 8% interest rate range, it makes a lot of sense to use this option (especially when you compare it to an interest rate of 18 %+)

We hope that this section has shown you that there are numerous options available for building your new pool. While you may have the cash available, it may not be in your best interests to spend it. If you do not have the cash available, we hope that you will shy away from using a credit card and will instead contact a lender who specializes in loans for pools.