Plumbing issues and emergencies can happen at any time. These problems are expensive and may require plumbing financing.
Integrated customer financing solutions like ServiceTitan help homeowners with low credit scores qualify for loans. These companies look at factors including previous credit, income, and stability to offer competitive rates.
Home equity loans (second mortgages) use your home as collateral, and carry the risk of foreclosure if you fail to pay back the loan. Alternatively, personal loans are available at a range of lenders.
Credit cards are an excellent option for financing a small plumbing project. Many plumbers offer a home improvement credit card that offers a low or no interest rate for the first year or more. However, if the customer fails to pay off the balance within the introductory period, interest charges will apply and could quickly put the borrower in debt. Additionally, some plumbers tack on a 5% surcharge to cover the cost of accepting cards.
Another method of financing a plumbing repair is through personal loans. These can be obtained from lenders who don’t require collateral and have a lower minimum credit score requirement than home equity loans. The problem is that personal loans come with extremely high interest rates, making them unfinancial viable for homeowners.
Integrating plumbing financing solutions into ServiceTitan makes it easier for your customers to receive the services they need, even if they have less-than-stellar credit scores. This type of solution also opens your business up to new market segments that may not have aligned with you before.
Home equity loans
Home equity loans allow homeowners to borrow against the value of their homes and typically come with lower interest rates than credit cards. However, a home equity loan is a second mortgage and can put your house at risk if you fail to make payments.
Homeowners who need financing for plumbing work can often find better deals on personal loans. These unsecured loans typically use your credit score to determine eligibility and can be approved in as little as 24 hours.
Many lenders offer competitive plumbing loan rates, and some can even approve borrowers with low FICO scores. For example, LightStream considers multiple factors when determining approval, including credit history, income, savings, and repayment history. It also offers fast funding and a simple online application process. Check out our guide to the best personal loans for more information on rates and requirements. Also, be sure to compare the costs of a personal loan with those of a home equity loan.
Lightstream is an online lender that offers personal loans of up to $100,000 with terms of 24 to 144 months. These unsecured loans are designed for people with excellent credit, a stable income and liquid assets (including checking and savings accounts) to prove they can afford to repay their loan. The company offers competitive interest rates, an APR discount for autopay enrollment and a rate-beat program.
To qualify, borrowers must have a minimum credit score of 780 and a debt-to-income ratio of less than 50%. Other criteria include the ability to save and an established credit history free of late payments and other delinquencies.
Borrowers can apply in minutes and receive a response during business hours. They can then e-sign their loan agreement and have funds deposited into their account as soon as today. Lightstream is a division of Truist Financial Corporation, SunTrust Bank, an Equal Housing Lender. Copyright 2020 Truist Financial Corporation. All Rights Reserved.
Your plumbing contractor
While a clogged toilet may only cost you an hour of your time, major plumbing repairs can quickly deplete the cash you have on hand. Thankfully, there are many options for financing plumbing work that can save you money in the long run.
Unlike home equity loans, which require the use of your house as collateral and carry high interest rates, personal loans are unsecured and offer lower rates. Some online lenders, such as Upstart, have low minimum loan amounts and make it easier to qualify by using a broader range of data.
Some large plumbing companies also offer customer financing options. If you are ready to take the plunge into a renovation project, be sure to shop around for rates before accepting any offers. Getting personalized rate quotes in 60 seconds is free and does not affect your credit score. Paydivvy can help you find the best offers from reputable lenders. Fill out our simple application now.plumbing financing for bad credit