Love your home even more

The rate for a home improvement personal loan is fixed, and credit card interest rates are variable, so using the loan usually results in less interest to pay. An exception might be if you have a card with an introductory interest rate that is lower than the home improvement loan rate. In that case, using your credit card might be better. 

Additionally, credit card payments can vary from month to month, making it hard to save money and pay off your debt. Home improvement loans have fixed monthly payments, which means no surprises on how much you owe each month. In either case, remember that you can always pay off the debt early without penalty to save even more.

When you click “Check Your Rate,” PenFed does a soft credit pull to check the financing you’re eligible for — that does not affect your credit score. Once you accept an offer and rate, we will perform a hard credit pull to verify your information. When we perform a hard credit inquiry, your credit score may lower slightly for a short period of time.

Yes! You can use it to pay off existing home improvement installment loans or to pay off invoices that have accrued on past and current projects. If your aim is strictly to pay off debt, however, you may want to use a PenFed Credit Card Consolidation Loan or PenFed Debt Consolidation Loan.

A HELOC is a secured loan that requires collateral — the equity in your home. The process usually requires a home appraisal, which incurs a fee, and often requires fees for a title search as well as closing costs. Additionally, obtaining a HELOC will mean that the equity in your home is reduced by the amount of the line of credit. 

The process of getting a PenFed Home Improvement loan is a lot simpler, and your home’s equity is not touched. You can apply online without providing information about your home, and there are no fees involved.