How Philip or Flop Used a Personal Loan for DIY Home Improvements

Philip’s followers read his blog or Instagram account to watch the step-by-step process he uses for each of his projects, which range from installing landscape lighting to revamping his kitchen’s range hood.

For the porch project, though, costs began to outgrow his budget. So he turned to a Discover® personal home improvement loan to help bring his dream porch to life.

Saving for a DIY home remodel

The existing open-air wood deck was only about 10 feet by 10 feet and could barely fit an outdoor table. Philip wanted a much larger screened porch, complete with a sitting area, fireplace, and eating space.

Philip and his wife make a regular habit of setting aside money for their DIY home projects. They developed a plan and budgeted for the porch project. But as often happens, they saw costs rise during the five-month project:

“We saved A LOT for this porch. But with the run-up in building prices in 2021, we needed some extra to cover the gap that created,” he said. “We used our Discover personal loan to help us pay for some of the materials to complete the construction.”

Options for financing DIY home projects

When Philip learned that his savings wouldn’t cover his DIY home improvement costs, he explored these other options and their pros and cons before settling on a personal DIY loan:

Using an existing credit card

The main benefit of using an existing card is easy access to funding. But the credit limit might not be high enough depending on the project budget. Plus, interest and fees can add up fast if the whole balance isn’t paid every month.

Opening a new credit card with an interest-free introductory period

A new credit card may allow extra time to pay with no interest. But any remaining balance at the end of that period might rack up very high interest charges.

Using home equity for credit

A home equity loan or a home equity line of credit (HELOC) could make sense for DIY home projects that cost more. Interest rates might be lower than for credit cards and personal loans, but these loans can take longer to fund. In addition, HELOCs typically come with variable interest rates, which means they could get more expensive if the Federal Reserve raises interest rates.

Using a personal loan for DIY home remodel

Discover personal loans range from $2,500 to $40,000, which gave Philip flexibility when he budgeted for the higher cost of materials. “We didn’t need a large sum of money where a home equity line might have been more useful,” Philip said. “And we didn’t want to use our credit card. So, a personal loan really made the most sense.”

As a first-time personal loan borrower, Philip was surprised at how simple Discover Personal Loans made the experience. At Discover, you can design your loan around you. Pick the amount you need and the repayment term from options offered to fit your budget. For example, if you get approved for a $15,000 loan at 13.99% APR for a term of 72 months, you'll pay just $309 per month.  Plus, most people get a decision the same day. And at Discover, you can put more of your funds to work with no fees of any kind—as long as you pay on time.

“We have not taken out a personal loan before, but we love how easy this process was,” he said. “It was a 10-out-of-10 experience. It was really fast and really easy to get through all the steps. Financial transactions can sometimes be confusing, and I felt that Discover’s process was designed really well.”

Making progress with a home improvement project

Discover’s dedicated loan specialists also played a role in his ultimate choice of loan product. “I really liked that, to finalize the loan in the last stage of the process, I got to talk to a real person on the phone who could answer any of my additional questions,” Philip said. “Computer systems are pretty smart these days. But there is still nothing like talking to an expert on the phone.”

Once the financing was in order, Philip and his father worked hundreds of hours to make his vision a reality. The finished porch looks like it was always part of the house. The best part is that he thinks an observer would be hard-pressed to believe it was a DIY project and not one that used professional contractors.

Taking the stress out of home DIY projects

Now the family has a beautiful backyard retreat where they can relax and enjoy a meal, a wood-burning fire, or a cup of coffee in the morning. Philip believes that the addition also adds value to his home, and a Discover personal loan made it possible. In fact, he says the entire process was so easy the loan doesn’t cross his mind anymore.

“We are really glad that Discover gave us the option to set up automatic payments,” he said. “Now that we have those in place, we really don’t even have to think about it again until it is paid off!”

Planning for your DIY home project

If you are considering a DIY project to enhance your family’s comfort or to add resale appeal to your home, it’s important to make a plan to set yourself up for success.

You can begin by drawing a sketch of each aspect of your project—including actual measurements—to see how much space is needed. Be sure to list all of your renovation priorities, from the biggest part (such as refinishing a wood floor) down to the smallest details.

This can help you separate “must-haves” from “nice-to-haves” if you run into budget issues. 

Knowing the potential costs of DIY home projects

Home renovations come with a range of price tags. Here’s what you might expect to spend, on average, for some common DIY projects:¹

• Bathroom remodel: $3,776
• Kitchen remodel: $8,204
• Bedroom addition/renovation: $7,183
• Rec room addition/renovation: $9,013
• Roof replacement: $5,682

Making DIY home improvement dreams a reality

Remember to develop a budget that is flexible, because costs for home improvement projects can have variables and sometimes surprises. If the cost of a DIY project does exceed your budget, you can cut back by using less expensive hardware or lighting. Or you could refer to your list of priorities and decide which parts of the project could be left out to trim expenses. 

If you decide to take out a home improvement loan to help pay for your project instead, be sure to compare offers for various loans, since not all repayment terms will be the same. It can be helpful to work with a flexible, experienced lender like Discover Personal Loans to create a home improvement loan to fit your budget.

Learn more about how you can use a Discover personal loan to fund your dream home improvement project.

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