Feeling comfortable in your home often requires controlling the temperature with the help of a heating, ventilation and air conditioning&#;or HVAC&#;system. New HVAC systems cost around $7,000, on average, so many homeowners turn to financing rather than paying cash. The best HVAC financing options offer competitive interest rates, flexible loan terms and fast funding speeds.
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Why you can trust Forbes Advisor: Our editors are committed to bringing you unbiased ratings and information. Our editorial content is not influenced by advertisers. We use data-driven methodologies to evaluate financial products and companies, so all are measured equally. You can read more about our editorial guidelines and the loans methodology for the ratings below.
Minimum Credit Score
650
APR range
8.99% to 29.99%
with autopay
Loan amounts
$5,000 to $100,000
Compare Rates
Via Credible.com&#;s Website
650
8.99% to 29.99%
with autopay
$5,000 to $100,000
Editor&#;s Take
SoFi is an online lending platform that offers unsecured fixed-rate personal loans in every state. Founded in , SoFi has extended over $50 billion in loans and stands out for allowing high loan amounts and its availability of extended loan terms.
Loans are available from $5,000 to $100,000, making SoFi a great option for those with excellent credit who need to borrow a large amount of money. Loan amounts available may vary by the state you live in. Repayment terms range from two to seven years, making SoFi an incredibly flexible option for those with sufficient credit (minimum 650) and annual income (at least $45,000). SoFi also lets prospective borrowers submit joint applications&#;although co-signers are not permitted.
Approved borrowers are rewarded with comparatively low APRs. What&#;s more, SoFi doesn&#;t charge origination fees, late fees or prepayment penalties&#;a stand-out feature because personal loan lenders often charge origination or late payment fees at a minimum.
However, if you&#;re considering a debt consolidating loan from SoFi, keep in mind that the lender does not offer direct payment to a borrower&#;s other creditors. This means the loan proceeds will be deposited to your bank account and you&#;ll have to pay off your other lenders individually. The platform does offer customers a number of other perks and discounts.
Pros & Cons
Details
Eligibility
Expert&#;s Take
What I find impressive about SoFi is its innovative approach to lending, with a focus on providing borrowers with personalized loan options tailored to their unique financial situations.
As a small business owner, I benefited from SoFi&#;s competitive rates and borrower-friendly terms, which include no origination fees or prepayment penalties. Also, SoFi&#;s member benefits, such as career coaching and financial planning resources, add value beyond just the loan itself, making it an attractive choice for entrepreneurs looking to grow their businesses while managing their finances responsibly.
&#; Michael Ashley, finance expert, Richiest.com
Minimum Credit Score
660
APR range
6.99% to 25.49%
with autopay
Loan amounts
$5,000 to $100,000
Compare Rates
Via Credible.com&#;s Website
660
6.99% to 25.49%
with autopay
$5,000 to $100,000
Editor&#;s Take
LightStream offers loans with both a low minimum and maximum interest rate, along with a rate-beat program. LightStream&#;s unsecured personal loans range from $5,000 to $100,000 with loan amounts varying based on the loan purpose. In addition to offering appealing and flexible terms, LightStream charges no origination, late payment or prepayment fees. The lender also offers a 0.50% rate discount for borrowers who enroll in autopay.
Pros & Cons
Details
Eligibility:
Expert&#;s Take
Lightstream, a division of Trust Bank, is known for its range of loan options and competitive rates. The downside can be its strict eligibility criteria, making it difficult for those with less-than-stellar credit history to gain approval.
&#; Jonathan Feniak, general counsel and head of finance, LLC Attorney
Minimum Credit Score
600
APR range
7.99% to 35.99%
with autopay
Loan amounts
$1,000 to $36,500
Compare Rates
Via Fiona.com&#;s Website
600
7.99% to 35.99%
with autopay
$1,000 to $36,500
Editor&#;s Take
LendingPoint is an online lender based in Atlanta that offers personal loans to prospective borrowers in 48 states and Washington D.C.; it does not offer loans in Nevada and West Virginia. Prospective borrowers in eligible states can apply online and benefit from quick funding.
LendingPoint personal loans range from $1,000 to $36,500; Georgia loans have a minimum loan amount of $3,500. Repayment terms range from 24 to 72 months&#;or two to six years.
There are two main disadvantages to LendingPoint: high maximum APRs and origination fees. While you can typically avoid high APRs by maintaining a high credit score, LendingPoint origination fees (up to 10%) depend on the state you live in.
Pros & Cons
Details
Eligibility:
Expert&#;s Take
LendingPoint can be a good option for those who may not have a high credit score. They focus more on the potential borrower&#;s job history and income when determining loan eligibility and rates.
&#; Jonathan Feniak, general counsel and head of finance, LLC Attorney
Minimum Credit Score
580
APR range
8.49% to 35.99%
Loan amounts
$1,000 to $50,000
Compare Rates
Via Credible.com&#;s Website
580
8.49% to 35.99%
Goto hbcy to know more.
$1,000 to $50,000
Editor&#;s Take
Upgrade was launched in and provides accessible online and mobile credit and banking services. Since that time, the platform has made more than $3 billion in credit available to over 10 million applicants and continues to expand its online and mobile services. Although maximum APRs are on the high end compared to other online lenders, Upgrade makes loans available to those with poor credit history.
Loans amounts, which range from $1,000 to $50,000. Upgrade has two to seven years terms available. Upgrade charges an origination fee between 1.85% and 9.99% of the loan, and borrowers will encounter a $10 fee if their payment is more than 15 days late or if the payment does not go through; there are no discounts for autopay. That said, Upgrade borrowers are not subject to a prepayment penalty, so you can reduce the overall cost of the loan if you&#;re able to pay it off early.
Beyond offering accessible personal loans, Upgrade streamlines the lending process with a mobile app that lets borrowers view their balance, make payments and update personal information. Upgrade&#;s Credit Heath tool also makes it easy to track your credit score over the life of your loan.
Pros & Cons
Details
Eligibility:
Expert&#;s Take
Upgrade&#;s personal loans come with a unique feature&#;mandatory automatic payments. While this is an effective default prevention measure, it might not suit everyone, especially those with irregular income streams.
&#; Jonathan Feniak, general counsel and head of finance, LLC Attorney
Minimum Credit Score
580
APR range
11.69% to 35.99%
Loan amounts
$1,000 to $50,000
Compare Rates
Via Credible.com&#;s Website
580
11.69% to 35.99%
$1,000 to $50,000
Editor&#;s Take
Universal Credit is an online lending platform that offers personal loans between $1,000 to $50,000 through its partners. Repayment terms range from three to seven years.
While Universal Credit makes finding a personal loan accessible even to those with damaged credit, it comes with a few tradeoffs. First, it charges high APRs, well above the most competitive rates seen on our list. Second, Universal Credit charges a 5.25% to 9.99% origination fee on all personal loans. Because this is deducted from your loan proceeds, you&#;ll need to factor this in when determining your loan amount to ensure you receive the necessary amount after the fact.
Pros & Cons
Details
Eligibility:
Minimum Credit Score
660
APR range
7.99% to 24.99%
Loan amounts
$2,500 to $40,000
Compare Rates
Via Fiona.com&#;s Website
660
7.99% to 24.99%
$2,500 to $40,000
Editor&#;s Take
Discover is an online bank that also offers customers credit cards, retirement solutions and personal loans in all 50 states. As a lending platform, Discover stands out because of its online application and mobile banking tools, well-reviewed customer support team and quick funding.
In general, loans are available from $2,500 to $40,000 and may be issued for between three and seven years. So, while borrowers may get a larger loan from another lender, the repayment terms are fairly flexible. Discover charges a late payment fee and does not offer an autopay discount; however, it does not charge any origination fees or prepayment penalties, making it competitive with other top personal loan providers.
Pros & Cons
Details
Eligibility:
We reviewed 29 popular lenders based on 16 data points in the categories of loan details, loan costs, eligibility and accessibility, customer experience and the application process. We chose the best lenders based on the weighting assigned to each category:
Within each major category, we also considered several characteristics, including available loan amounts, repayment terms, annual percentage rate (APR) ranges and applicable fees. We also looked at minimum credit score requirements, whether each lender accepts co-signers or joint applications and the geographic availability of the lender. Finally, we evaluated each provider&#;s customer support tools, borrower perks and features that simplify the borrowing process&#;like prequalification options and mobile apps.
Where appropriate, we awarded partial points depending on how well a lender met each criterion.
To learn more about how Forbes Advisor rates lenders, and our editorial process, check out our Loans Rating & Review Methodology.
Follow these tips when comparing HVAC loans:
HVAC financing is a specific type of unsecured personal loan that can be used to replace or purchase an HVAC system. Approved borrowers will receive the full loan amount as a lump sum, which is typically repaid over a period of one to seven years. As with other personal loans, amounts range from $1,000 to $100,000, and APRs usually range from 6% to 36%.
Qualifications for HVAC financing vary by loan type and lender, but applicants should have a stable income, low amount of debt and a high credit score to access the most favorable terms. Choose a loan that covers your HVAC replacement without having too much cash left over&#;the more you borrow, the more you&#;ll pay in interest over the life of the loan.
The cost of a new HVAC system varies greatly, depending on the type and size of the system, the quality of the equipment and local installation costs. On average, you can expect to pay anywhere from $5,000 to $10,000 for a full replacement of a new system. This cost generally covers the new unit and labor as well as removal and disposal of the old system.
Depending on your needs, replacing the entire HVAC system may not be necessary. Instead, you might opt to replace individual components. However, if you need to replace multiple parts, it may still be cheaper to replace the entire unit.
There are a few ways to finance the purchase and installation of a new HVAC system or replacement of individual components. For example, personal loans are unsecured and offer a great deal of flexibility in both loan amounts and funding speeds. However, some homeowners don&#;t have a high enough credit score to get approved for a personal loan or other traditional financing methods.
Similarly, 0% APR credit cards also can reduce the overall cost of borrowing but may only be available to the most creditworthy borrowers. Borrowers who are unable to qualify elsewhere&#;or just prefer a more convenient lending process&#;may qualify for a loan or payment plan through the HVAC contractor, if available.
Borrowers with poor credit&#;or those with no credit at all&#;may not qualify for traditional HVAC financing. Likewise, a personal loan may not be the best solution for every HVAC project. Consider these alternatives if traditional HVAC financing isn&#;t a good fit:
If your efforts to get a traditional personal loan aren&#;t successful, the HVAC company you&#;re working with may offer an in-house financing option. Some HVAC contractors also partner with local lenders to offer loans. This is often the most convenient option, as many contractors and lending partners allow homeowners to combine their installation and equipment costs into one payment plan.
A 0% APR credit card offers borrowers an introductory period&#;usually between six and 18 months&#;with a promotional 0% APR. These cards are often reserved for the most creditworthy borrowers, but they can be an excellent HVAC financing option for those who qualify.
Unlike a personal loan or other types of HVAC financing, the homeowner can access their credit line on an as-needed basis, and interest does not accrue until the promotional period ends.
This means you can pay for a new HVAC or repairs when the need arises, then delay payment without increasing the overall cost of the system. Once the 0% term is over, though, interest will accrue at the usual rate (generally between 13% and 28%).
Depending on your needs and circumstances, a government-backed loan may be an option. The Department of Housing and Urban Development works with homeowners to make their homes more livable and useful through Federal Housing Administration (FHA) Title 1 loans.
Alternatively, an FHA 203(k) loan can help you refinance your current mortgage to cover HVAC costs. Government-backed loans can save you money on financing, but each program has its own requirements, and the application process can slow down the installation of a new system.
Though not technically a financing option, an emergency savings account can come in handy in situations where homeowners need to repair or replace an HVAC system. It&#;s best not to spend an emergency fund unless it&#;s absolutely necessary. However, if any part of your HVAC system breaks down during the summer or winter, this may be considered an emergency&#;especially if you have kids or seniors living in the home.
Some HVAC companies offer financing to homeowners in the form of personal loans or installment payments. In some cases, HVAC contractors partner with local lenders or can otherwise recommend banks or credit unions that offer competitive terms and fast, convenient funding.
The credit score needed to finance an HVAC system depends on the individual lender. In general, however, a borrower should have a credit score of at least 670 to qualify for a personal loan. As with other types of financing, the most creditworthy applicants benefit from higher approval odds and more competitive interest rates and repayment terms.
The national average for a new HVAC system is $7,000. Full unit replacements range from $5,000 to $10,000, or $25 to $60 per square foot. That said, the actual cost will depend on the ductwork length, efficiency rating, home size and the size and brand of the new system.
The best times to buy an HVAC system are in spring and early fall. This is when businesses are generally slower. Because sales are down at these times, manufacturers are more likely to have specials available on equipment. Many contractors also offer discounts to keep money coming in during slow seasons.
Replacing your home&#;s heating and cooling system is a big investment. If you&#;re in need of an HVAC replacement, you&#;ll need to determine how to pay for the new HVAC unit and HVAC installation. This substantial project may demand more money than you have on hand at the moment, so HVAC financing may be a good option for you.
Financing a new HVAC system can be tricky, but it&#;s definitely not impossible. There are multiple financing options offered by HVAC companies, credit unions, third-party lender programs, and banks, so it really depends on what works best for you. Many HVAC companies offer financing to their customers to streamline the HVAC replacement process and paying for it. Banks and credit unions may approve you for a personal loan, home equity line of credit, or a home improvement loan where loan proceeds are used specifically to make the upgrades your home demands. There are even air conditioning financing solutions available for those with bad credit or no credit history.
If you are considering heating and AC financing, Thomas & Galbraith Heating, Cooling & Plumbing can help you better understand your options so you can access the new furnace, heat pump, or air conditioner you need, when you need it. Learn about HVAC financing options for HVAC systems and when to use them in your financial decisions.
When you&#;re ready to start shopping for a new HVAC system, the best place to start is by getting an estimate from a local HVAC contractor. They will be able to tell you what kind of system you need and how much it will cost.
When an HVAC company comes to your home to give you an estimate on a new HVAC system, they typically perform a comprehensive inspection of your home and ductwork to determine the size and type of system that is best suited for your needs. They will also provide you with a detailed estimate of the cost of the new system and installation.
A new HVAC system is a significant investment for any homeowner. The cost of the unit itself will vary depending on the size and type of system you need. In addition, installation costs can vary widely, depending on the complexity of the job. Homeowners should also factor in the cost of any necessary ductwork. Once all of these factors have been considered, homeowners can expect to spend anywhere from $3,000 to $10,000 on a new HVAC system.
While this may seem like a lot of money upfront, it is important to remember that a new HVAC system can help you save money in the long run by reducing your energy bills. As a result, it is important to consult with a qualified HVAC contractor to get an accurate estimate of what your new system will cost.
No matter how you end up paying for your new system, it&#;s important to do your research first. Make sure you compare prices and find the best deal possible. That way, you can rest easy knowing that your home is comfortable and affordable.
When it comes time to pay for a new HVAC system, the stress can be real. If you need to replace your old unit on short notice, coming up with the money can be difficult. Your family can&#;t be without heating or cooling when outdoor temperatures are extreme, so what do you do if you don&#;t have the money on hand?
Fortunately, there are a few ways to pay for your new HVAC system. You could take out a loan from your bank or use a credit card. You could also look into financing options through the HVAC company itself.
Financing can be a great way to pay for a new HVAC system, but it&#;s important to know when it&#;s the right time to use it. Here are a few things to keep in mind when deciding whether or not to finance your HVAC system:
How long will you be in your home?
What are the interest rates?
Is there a down payment required?
If you&#;re going to be in your home for a while and the interest rates are low, financing may be a good option. Just be sure to factor in the down payment and other associated costs.
A new HVAC system can be a major expense, but there are ways to finance the purchase that can make it more affordable. For those with low or no credit, there are special financing options available that can make the purchase more manageable.
One option is a payment plan through an AC financing company. With this plan, you can break the cost of the HVAC system into monthly payments that fit your budget. This option may not require a down payment, and you may be able to get a low-interest rate.
Another option is a home equity loan. This loan allows you to use the equity in your home to finance the HVAC system. You may be able to get a lower interest rate than with other types of loans, and you may not need to put any money down.
A personal loan from your bank may be obtainable as well. Or, you may be able to pay for the HVAC replacement using a personal credit card.
Whichever financing option you choose, be sure to compare interest rates and terms before you sign anything. Taking the time to research your options will help ensure that you get the best deal on your new HVAC system.
Whether you choose to apply for a personal loan or home improvement loan from your bank, a home equity loan, or HVAC company financing, the application process will vary between institutions. Here is some general information about what to expect.
When applying for HVAC financing, be prepared to provide information about your income, assets, and credit score. The lender will also want to know the make and model of the HVAC system you are looking to buy, as well as the cost of the system. Having this information ready will help ensure a quick and easy application process.
The application process for a personal loan from your bank to buy a new HVAC system is relatively simple. You will need to provide some basic information about yourself, such as your name, address, and income, and you will also need to provide information about the loan itself, such as the amount you want to borrow and the purpose of the loan.
It&#;s important to note that not all banks offer personal loans for home improvement purposes. If your bank doesn&#;t offer this type of loan, you may want to consider contacting a financial institution that does. Home improvement loans can be a great way to finance a new HVAC system, as they often have lower interest rates and longer repayment terms than traditional personal loans.
A home equity loan is a loan that you can take out against the value of your home. The loan is secured by the equity in your home, that is, the difference between the amount you owe on your mortgage and the value of your home. Home equity loans are a type of second mortgage.
The application process for a home equity loan is similar to the process for a regular mortgage. You will need to provide documentation about your income, assets, and debts. You will also need to have a credit check.
Home equity loans are a good option if you need money for a large purchase, such as a new HVAC system. The interest rate on a home equity loan is usually lower than the rate on a credit card or other unsecured loan. And, because the loan is secured by your home, you may be able to get a lower interest rate than you could with a regular mortgage.
So, you&#;ve decided it&#;s time for a new HVAC system. Great! Now the next question is: how do you finance it? Don&#;t worry; we can help you with that. At Thomas & Galbraith Heating, Cooling and Plumbing, our financing options make it easy to get the funds you need to upgrade your heating and cooling system. We have different programs depending on your credit score and other factors, so there&#;s likely an option that will work for you. Give us a call today to learn more about our HVAC financing options- we&#;re happy to answer any questions you have.
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