Here’s how much a hot tub really costs you all-in

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Consumers with good credit or bad credit may have several options for buying and installing a hot tub. Elite spas can cost more than $20,000, while inflatable hot tubs may cost several hundred dollars.

Consumers may have several options for financing a hot tub purchase and installation, including personal loans, retail financing, home equity lines of credit, and home equity loans. Below we highlight these four hot tub financing options.

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Costs Associated With Financing a Hot Tub

The costs associated with financing a hot tub may include the purchase, delivery, and installation of the spa. As mentioned above, inflatable hot tubs can cost several hundred dollars, whereas elite spas can cost more than $20,000.

Hiring labor to install your hot tub can cost hundreds of dollars or thousands of dollars depending on the make and model. Hot tubs can promote recreation and physical therapy, but they can also carry steep price tags. Some of the options for hot tub financing may include daily simple interest charges.

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Is It Hard to Get Financing for a Hot Tub With Bad Credit?

It can be hard — but not impossible — to get financing for a hot tub with bad credit. Getting hot tub financing with bad credit may require the presence of a creditworthy cosigner. A cosigner is an individual who shares the financial responsibility of repaying the loan alongside the primary borrower, which reduces risk to the lender.

Here are different hot tub financing options you may consider.

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1. Personal Loan

A personal loan may provide you with hot tub financing. The way a personal loan works is you receive a lump sum of money known as the loan principal. You must repay the principal over a set term and any interest charges and fees that may apply.

There are various personal loan types you may consider when looking for hot tub financing. A repayment term on a personal loan can range from 12 months to seven years. Some lenders may charge origination fees and daily simple interest on the loan.

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2. Retail Financing

Retailers may offer in-store financing to help you pay for the cost of buying, delivering, and installing a hot tub. Some retailers may allow you to make interest-free monthly payments over a six-month period.

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3. HELOC

A home equity line of credit, also known as a HELOC, is a revolving line of credit that can help you finance the purchase and installation of a hot tub. With a HELOC, homeowners can borrow against the available equity in their homes during a draw period that may run for several years. Home equity is the value of your home minus any outstanding mortgage loan obligations you may owe.

Homeowners with good credit scores and low debt-to-income ratios have the best chance of getting approved for a HELOC. In addition to hot tub financing, the home equity line of credit may also serve as a pool loan for financing the cost of installing a swimming pool. Failing to repay a HELOC can result in home foreclosure.

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4. Home Equity Loan

Home equity loans can provide homeowners with a lump sum of money to use for financing hot tub purchases. The cost of buying, delivering, and installing a hot tub can exceed $20,000. Home equity loans allow homeowners to borrow against the equity of their homes as collateral.

Some lenders may allow you to borrow up to 80% of the equity in your home or more. Failing to repay a home equity loan can result in home foreclosure.

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Comparing Hot Tub Financing Options

This table compares several hot tub financing options.

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Things to Consider When Financing a Hot Tub

Here are some things to consider when financing a hot tub.

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1. Risk of Default

Borrowing money to finance the purchase, delivery, and installation of a hot tub can have serious consequences if you fail to make required repayments. Failing to pay and defaulting on a personal loan can have a major impact on your credit score. Lenders may also seize your collateral if you default on a secured or collateralized loan product.

Whether you’re getting a $5,000 personal loan or some other amount, lenders generally expect borrowers to repay the principal in full over the life of the loan. Borrowers are also expected to pay any finance charges that may apply.

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2. Approval Not Guaranteed

There’s no guarantee that a creditor will approve your request for hot tub financing. Lenders may take several days before making a decision on whether to approve or deny your credit application. Lenders may give you several ways to check your personal loan application status, including going online or contacting the lender by telephone.

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3. Interest Charges Can Be High

Interest charges on hot tub financing in some cases can be relatively high. The average personal loan interest rates on 24-month personal loans stood at 9.41% as of the first quarter of 2022, according to Federal Reserve data.

Borrowers with excellent credit may qualify for personal loans with interest rates below 6%. Borrowers with bad credit, meanwhile, may get personal loans with interest rates as high as 35.99%.

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4. High Loan Amounts Not Guaranteed

Banks, credit unions, and private lenders may offer large personal loan products up to $100,000. Some borrowers, however, may not qualify for large amounts of principal.

There’s no guarantee that you’ll qualify for a large amount of financing. Lenders in some cases may present you with a counter offer of a lower loan amount than what you’ve requested. Your credit score and debt-to-income ratio may impact the maximum personal loan amount you can get from a lender.

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5. Financing May Serve Other Needs

Some consumer loans may give you wide discretion on how you may use the funds for personal, family, or household purposes. Borrowers may have great versatility on how to spend the loan money.

Among the different ways to use personal loans is spending the money on expenses related to financing a hot tub. You can also use the loan money for other purposes, including debt consolidation.

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Exploring Personal Loan Rates

Unless you have ample savings, it may be difficult for you to buy a hot tub without borrowing money. A spa can cost thousands of dollars as a luxury amenity.

Learn More:

This article originally appeared on LanternCredit.com and was syndicated by MediaFeed.org.

Lantern by SoFi:

This Lantern website is owned by SoFi Lending Corp., a lender licensed by the Department of Financial Protection and Innovation under the California Financing Law, license number 6054612; NMLS number 1121636. (www.nmlsconsumeraccess.org)

All rates, fees, and terms are presented without guarantee and are subject to change pursuant to each provider’s discretion. There is no guarantee you will be approved or qualify for the advertised rates, fees, or terms presented. The actual terms you may receive depends on the things like benefits requested, your credit score, usage, history and other factors.

*Check your rate: To check the rates and terms you may qualify for, Lantern and/or its network lenders conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, the lender(s) you choose will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.

All loan terms, including interest rate, and Annual Percentage Rate (APR), and monthly payments shown on this website are from lenders and are estimates based upon the limited information you provided and are for information purposes only. Estimated APR includes all applicable fees as required under the Truth in Lending Act. The actual loan terms you receive, including APR, will depend on the lender you select, their underwriting criteria, and your personal financial factors. The loan terms and rates presented are provided by the lenders and not by SoFi Lending Corp. or Lantern. Please review each lender’s Terms and Conditions for additional details.

Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website on credit (https://consumer.ftc.gov/credit-loans-debt)

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Personal Loan:

SoFi Lending Corp. (“SoFi”) operates this Personal Loan product in cooperation with Even Financial Corp. (“Even”). If you submit a loan inquiry, SoFi will deliver your information to Even, and Even will deliver to its network of lenders/partners to review to determine if you are eligible for pre-qualified or pre-approved offers. The lenders/partners receiving your information will also obtain your credit information from a credit reporting agency. If you meet one or more lender’s and/or partner’s conditions for eligibility, pre-qualified and pre-approved offers from one or more lenders/partners will be presented to you here on the Lantern website. More information about Even, the process, and its lenders/partners is described on the loan inquiry form you will reach by visiting our Personal Loans page as well as our Student Loan Refinance page. Click to learn more about Even’s Licenses and DisclosuresTerms of Service, and Privacy Policy.

Personal loan offers provided to customers on Lantern do not exceed 35.99% APR. An example of total amount paid on a personal loan of $10,000 for a term of 36 months at a rate of 10% would be equivalent to $11,616.12 over the 36 month life of the loan.

Student Loan Refinance:

SoFi Lending Corp. (“SoFi”) operates this Student Loan Refinance product in cooperation with Even Financial Corp. (“Even”). If you submit a loan inquiry, SoFi will deliver your information to Even, and Even will deliver to its network of lenders/partners to review to determine if you are eligible for pre-qualified or pre-approved offers. The lender’s receiving your information will also obtain your credit information from a credit reporting agency. If you meet one or more lender’s and/or partner’s conditions for eligibility, pre-qualified and pre-approved offers from one or more lenders/partners will be presented to you here on the Lantern website. More information about Even, the process, and its lenders/partners is described on the loan inquiry form you will reach by visiting our Personal Loans page as well as our Student Loan Refinance page. Click to learn more about Even’s Licenses and DisclosuresTerms of Service, and Privacy Policy.

Student loan refinance loans offered through Lantern are private loans and do not have the debt forgiveness or repayment options that the federal loan program offers, or that may become available, including Income Based Repayment or Income Contingent Repayment or Pay as you Earn (PAYE).

Notice: Recent legislative changes have suspended all federal student loan payments and waived interest charges on federally held loans until 08/31/22. Please carefully consider these changes before refinancing federally held loans, as in doing so you will no longer qualify for these changes or other future benefits applicable to federally held loans.

Auto Loan Refinance:

Automobile refinancing loan information presented on this Lantern website is from Caribou. Auto loan refinance information presented on this Lantern site is indicative and subject to you fulfilling the lender’s requirements, including: you must meet the lender’s credit standards, the loan amount must be at least $10,000, and the vehicle is no more than 10 years old with odometer reading of no more than 125,000 miles. Loan rates and terms as presented on this Lantern site are subject to change when you reach the lender and may depend on your creditworthiness. Additional terms and conditions may apply and all terms may vary by your state of residence.

Secured Lending Disclosure:

Terms, conditions, state restrictions, and minimum loan amounts apply. Before you apply for a secured loan, we encourage you to carefully consider whether this loan type is the right choice for you. If you can’t make your payments on a secured personal loan, you could end up losing the assets you provided for collateral. Not all applicants will qualify for larger loan amounts or most favorable loan terms. Loan approval and actual loan terms depend on the ability to meet underwriting requirements (including, but not limited to, a responsible credit history, sufficient income after monthly expenses, and availability of collateral) that will vary by lender.

Life Insurance:

Information about insurance is provided on Lantern by SoFi Life Insurance Agency, LLC. Click here to view our licenses.

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