Hot Tub Financing for Bad Credit: Does it Exist?

Hot tubs are a luxurious addition to any home, providing relaxation and stress relief after a long day. However, not everyone has the cash on hand to purchase a hot tub outright. In fact, I’m willing to bet most people don’t. 

For individuals with bad credit, the idea of buying a hot tub may seem out of reach. But does hot tub financing for bad credit actually exist? Thankfully, the answer is yes!

Highlights/Key Takeaways

• Financing a hot tub can be challenging for those with bad credit, but it's not impossible. With the right resources and approach, you can secure financing for your dream hot tub.
• There are several financing options available for hot tub purchases, including hot tub loans for bad credit, credit cards, and manufacturer financing programs. 
• Your credit score can have a significant impact on the interest rate and repayment terms you receive for hot tub financing. 
• In addition to traditional financing options, there are also alternative ways to pay for a hot tub purchase, such as using savings, taking out a home equity loan or HELOC, or using a credit card with a promotional interest rate.

Understanding Hot Tub Financing for Bad Credit

Hot tub financing is relatively easy to understand. Generally, you’ll be taking out a personal loan with a set interest rate that will vary depending on the hot tub type, hot tub cost, loan type, and more. 

Is Hot Tub Financing Possible with Bad Credit?

If you have bad credit, you may be wondering if it's even possible to finance a hot tub. The short answer is yes, it’s possible, but it may be more difficult and come with higher costs than for those with good credit.

Traditional lenders like banks and credit unions, typically require good credit scores to qualify for financing. If you have bad credit, you may still be able to get financing through these lenders, but you may need a co-signer with good credit, a substantial down payment, or collateral such as your home or car. Even if you’re able to secure financing, the interest rates may be much higher than for those with good credit, which can significantly increase the total hot tub cost over time.

Some hot tub manufacturers and dealers may also offer in-house financing options for customers with bad credit. These financing options may be easier to qualify for, but again, may come with higher interest rates and fees.

What’s The Minimum Credit Score Required For Hot Tub Financing?

The minimum credit score required for hot tub financing will depend on the lender or financing company. Traditional lenders such as banks and credit unions typically require a good credit score of at least 650 to qualify for financing. However, specialized lenders that focus on providing loans to individuals with bad credit may have lower credit score requirements.

Hot tub manufacturers and dealers may also have their own financing programs with different credit score requirements. Some may not have a minimum credit score requirement, but may still conduct a credit check and use other factors such as income and employment history to determine eligibility.

How Does Bad Credit Affect The Interest Rate For Hot Tub Financing?

Having bad credit can have a significant impact on the interest rate for hot tub financing. Lenders use credit scores as a way to determine the risk of lending money to a borrower. Borrowers with higher credit scores are considered less risky and may be offered lower interest rates, while borrowers with lower credit scores are considered riskier and may be offered higher interest rates.

The interest rate for hot tub financing with bad credit can vary widely depending on the lender, but it's not uncommon to see interest rates in the double digits. It's important to consider the impact of this higher interest rate on the overall cost of the hot tub. 

Can I Get A Co-Signer For Hot Tub Financing With Bad Credit?

If you have bad credit and are having difficulty getting approved for hot tub financing, getting a co-signer with good credit may be an option to consider. A co-signer is someone who agrees to take responsibility for the loan if you’re unable to make payments.

Having a co-signer with good credit can increase your chances of getting approved for hot tub financing and may also result in a lower interest rate. This is because the lender views the co-signer as an additional source of repayment if you default on the loan.

It's vital that you choose a co-signer carefully. Ideally, the co-signer should have a good credit score, a stable income, and be willing and able to make loan payments if you’re unable to do so. It's also important to have a clear understanding of the responsibilities and obligations of both the borrower and the co-signer before agreeing to the loan.

Another thing to keep in mind is that having a co-signer may not guarantee approval for hot tub financing. The lender will still consider factors such as income, employment history, and debt-to-income ratio when evaluating your application.

Is a Down Payment Required For Hot Tub Financing With Bad Credit?

Lenders may require a down payment as a way to reduce their risk and ensure that the borrower has some equity in the hot tub. The amount of the down payment required may also vary depending on the lender or financing company. Some lenders may require a specific percentage of the purchase price as a down payment, while others may have a set minimum amount.

Borrowers with bad credit may want to consider a larger down payment than someone with good credit. This helps instill confidence in you that your credit score might not. 

Providing a down payment can also have benefits for the borrower. A larger down payment can result in a lower overall loan amount and reduce the amount of interest paid over the life of the loan. It can also improve the chances of getting approved for hot tub financing with bad credit.

What Is The Typical Repayment Term For Hot Tub Financing With Bad Credit?

The typical repayment term for hot tub financing with bad credit can vary depending on the lender or financing company. Here are some general factors to keep in mind:

• Repayment terms can range from a few months to several years.
• Shorter repayment terms typically result in higher monthly payments but lower overall interest costs.
• Longer repayment terms typically result in lower monthly payments but higher overall interest costs.
• The repayment term may depend on factors such as the loan amount, the interest rate, and the borrower's creditworthiness.
• It's important to carefully consider the repayment term and total cost of the loan when deciding on hot tub financing.

Can I Get Hot Tub Financing with No Credit Check?

Hot tub financing with no credit check may be offered by some lenders or financing companies. This type of financing may be attractive to borrowers with bad credit or no credit history, as it doesn’t require a credit check for approval.

However, it's important to be cautious when considering hot tub financing with no credit check. Lenders won’t offer you financing out of the goodness of their hearts. These types of loans often come with higher interest rates and fees, which can make them more expensive in the long run.

In addition, hot tub financing with no credit check may be associated with predatory lending practices, which can lead to financial hardship for the borrower. Predatory lenders may charge exorbitant interest rates, require unreasonable repayment terms, or engage in other deceptive practices.

If you’re considering hot tub financing with no credit check, carefully research the lender or financing company and read the terms and conditions of the loan agreement. Look for red flags such as high interest rates, hidden fees, and unreasonable repayment terms.

How Much Are Monthly Hot Tub Payments With Bad Credit?

Generally speaking, borrowers with bad credit may face higher interest rates and shorter repayment terms, which can result in higher monthly payments. That said, the exact payment you’ll need to make will depend on your loan’s terms. 

To get an idea of what your monthly payments might look like, it's helpful to use a loan calculator. These calculators allow you to enter the loan amount, interest rate, and repayment term to calculate the monthly payment.

For example, let's say you want to finance a hot tub for $5,000 with an interest rate of 15% and a repayment term of 48 months. Using a loan calculator, the estimated monthly payment would be around $139.

Keep in mind that this is just an estimate and your actual monthly payment may be higher or lower depending on the specific terms of your loan. 

Where Can I Find Hot Tub Financing for Bad Credit? 

If you have bad credit and are interested in hot tub financing, there are several places you can look for options:

Online lenders 

There are many online lenders that specialize in bad credit loans, including loans for hot tub financing. Some online lenders may offer pre-approval without a hard credit check, making it easy to compare options and find the best loan for your needs. 

Here are a few of our favorite companies to consider:

• LightStream. LightStream is an online lender that offers unsecured personal loans, including loans for hot tub purchases. The application process is entirely online, and you can receive funding as soon as the same day you apply.
• SoFi. SoFi is another online lender that offers personal loans, including loans for hot tub purchases. They offer both fixed and variable interest rates. SoFi requires a minimum credit score of 680 to qualify for a loan, but they also consider other factors like your income and employment history. The application process is entirely online, and you can receive funding in as little as a few days.
• Best Egg. Best Egg is a lending platform that connects borrowers with lenders who offer personal loans. The application process is entirely online, and you can receive funding in as little as one business day. Best Egg considers other factors beyond your credit score when evaluating your application.

In-store financing

If you’re purchasing a hot tub from a local retailer, they may offer in-store financing options. These options may include special financing deals or credit cards that offer promotional financing with low or no interest rates. Home Depot and Lowes are two popular retailers that offer hot tub financing:

• Home Depot. Home Depot offers a variety of hot tubs for sale, and they also offer financing options through their Home Depot Project Loan. This loan program allows you to borrow up to $55,000 for home improvement projects, including hot tub purchases. 
• Lowe's. Lowe's is another home improvement store that offers hot tubs for sale and financing options through the Lowe's Advantage Card. This credit card offers special financing options on purchases of $299 or more, including hot tubs. 

Manufacturers

Some hot tub manufacturers offer financing options directly to consumers. These options may include promotional financing deals or loans for customers with bad credit. Here are two manufacturers that offer hot tub financing:

• Jacuzzi. Jacuzzi is a well-known brand that manufactures high-quality hot tubs and also offers financing options for customers. 
• Hot Spring Spas. Hot Spring Spas is another hot tub manufacturer that offers swim spa financing options to its customers. Their financing program is provided through a partnership with local dealers, so you can apply in person. 

Things to Consider When Searching for Bad Credit Hot Tub Financing

When searching for bad credit hot tub financing, there are several important factors to consider, including:

• Interest rates. Borrowers with bad credit may face higher interest rates than those with good credit. Make sure to compare rates from multiple lenders to find the best deal.
• Fees and charges. In addition to interest rates, some lenders may charge additional fees or charges, such as origination fees or prepayment penalties. Be sure to carefully read the terms and conditions of the loan to understand any potential fees or charges.
• Repayment terms. The repayment term of the loan will impact the monthly payment amount and the total cost of the loan. Shorter repayment terms may result in higher monthly payments but may also save you money on interest in the long run.
• Loan amount. The loan amount will also impact the total cost of the loan and the amount of the monthly payment. Be sure to consider how much you need to borrow and whether the monthly payment is within your budget.
• Co-signers. If you have a co-signer with good credit, you may be able to qualify for better loan terms and lower interest rates. Be sure to consider whether you have a co-signer who is willing and able to take over payments if you can’t make them.
• Predatory lending practices. Some lenders may engage in predatory lending practices, such as charging excessive interest rates or requiring unreasonable repayment terms. Be sure to research the lender or financing company and read the terms and conditions of the loan to ensure that you’re not falling victim to predatory lending practices.

How to Apply for Hot Tub Financing for Bad Credit

If you're interested in applying for hot tub financing with bad credit, the application process is typically straightforward. Here are some steps to follow when applying for hot tub financing:

• Check your credit score. Before applying for financing, it's important to know your credit score. You can check your credit score for free online, which will give you an idea of what types of loans you may qualify for.
• Research lenders. Look for lenders that specialize in bad credit loans and offer hot tub financing. Read reviews and compare interest rates, fees, and repayment terms to find the best lender for your needs.
• Gather the required documents. Depending on the lender, you may need to provide documentation such as proof of income, proof of identity, and proof of residence. Be sure to gather these documents in advance to streamline the application process.
• Submit an application. You can typically apply for hot tub financing online or in-store. Fill out the application completely and accurately, providing all required information and documentation.
• Wait for a decision. The lender will review your application and credit history to determine whether to approve or deny your loan. If approved, the lender will provide the loan terms and repayment schedule.
• Sign the loan agreement. If you agree to the loan terms, sign the loan agreement and follow any instructions provided by the lender to receive the funds.

What to Do If You’re Turned Down for Hot Tub Financing Due to Bad Credit

If you're turned down for hot tub financing due to bad credit, there are a few things you can do:

• Try to improve your credit score. This will make you a more attractive borrower to lenders and could help you qualify for better loan terms.
• Shop around for different lenders. There are many different lenders that offer hot tub loans, and the interest rates and terms can vary significantly.
• Consider a co-signer. A co-signer is someone with good credit who agrees to be responsible for the loan if you default. This can help you qualify for a loan even if your credit score is not perfect.
• Look for other financing options. There are a few other financing options available for hot tubs, such as personal loans and home equity loans. These options may have higher interest rates than traditional hot tub loans, but they may be a good option if you’re unable to qualify for a traditional loan.

Alternative Hot Tub Financing Options for Bad Credit

If you don’t like the look of your hot tub financing options, there are plenty of alternatives to consider, including:

• Credit cards. If you have a credit card with a high enough limit, you may be able to use it to purchase a hot tub. However, keep in mind that credit cards typically have higher interest rates than other types of loans, so you’ll want to ensure that you can pay off the purchase relatively quickly.
• Savings. If you have savings set aside, you may want to consider using them to purchase a hot tub outright instead of financing. This can save you a ton of money on interest and reduce the risk of falling into debt.
• Home equity loan. If you own a home, you may be able to take out a home equity loan to finance a hot tub purchase. Home equity loans typically have lower interest rates than personal loans or credit cards, but they also use your home as collateral.
• HELOC. Another option for homeowners is a home equity line of credit (HELOC). This is a type of revolving credit (similar to a credit card) that allows you to borrow against the equity in your home as needed and can be used to finance a hot tub purchase.
• Friends and family. If you have friends or family members who are willing to lend you money, this may be an option to consider. However, be sure to treat this as a formal loan and draw up a repayment plan to avoid damaging your relationship.

Final Word

When you buy a hot tub with bad credit, it may come with higher interest rates and stricter loan terms. It's important to research your options and carefully consider the total cost of the loan before signing an agreement.

If you're unable to secure hot tub financing with bad credit, there are alternative financing options to explore such as using savings, a home equity loan, or a HELOC. However, be sure to weigh the potential risks and benefits of each option before making a decision.

When searching for hot tub financing with bad credit, be aware of the minimum credit score requirements, interest rates, and repayment terms of the company you’re considering. You may also want to consider using a co-signer and making a down payment to improve your chances of approval and lower your interest rate.