Home Improvement Loans
Helping you improve your home in small or big ways. Find out which home improvement loans you’re eligible for with our partner Aro through their trusted panel of lenders. Just like Asda Money, Aro is a credit broker, not a lender.
If you take out a product through Aro, Asda Money will receive a commission payment from Aro. The amount charged will be in connection with the specific product selected and so different amounts of commission are received. For more information please see our FAQs.
When you check your eligibility below you will be transferred to our partner Aro.
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From a fresh lick of paint to extra space for the family, a home improvement loan could give you the funds you need to add value to your property. No matter the size of your project, Aro's lender panel have you covered with access to borrowing amounts from £1,000 to £25,000.
Aro work with a panel of trusted UK lenders who can help you find the right loan at the right rate for you. We check if you’re eligible for a loan without impacting your credit score and give you a decision in minutes.
Why choose Asda Personal Loans?
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The Asda advantage
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Loan options that work around you
What is a home improvement loan?
You can use a home improvement loan to pay for work to improve your home and increase its value. This could be anything from installing a new kitchen or bathroom to building an extension or loft conversion.
You can consider two loan types for your home improvement project: an unsecured personal loan, or a secured loan. The key difference is that the lender does not secure an unsecured loan against your assets, such as your home.
Unsecured personal loans
- Access offered by Asda Money
- Usually a small, fixed-rate loan for personal use
- Normally for amounts between £1,000 and £25,000
- The amount you can borrow and the interest rate available depend on your personal circumstances and your credit score
Compare home improvement finance options
Secured personal loans
- Not offered by Asda Money
- Typically for sums over £15,000
- Generally repaid over longer periods (5 to 25 years)
- The amount you can borrow and the interest rate depend on credit history, your assets and personal circumstances
- Lenders need security in the form of an asset (usually your home). This means that your home could be repossessed if you do not keep up the repayments on any debt secured against it
Your home may be repossessed if you do not keep up the repayments on a mortgage or any other debt secured against it.
What can I use a home improvement loan for?
You can use a home improvement loan for:
- Decorating
- Furniture
- A new kitchen
- A new bathroom
- Single storey extensions
- Conservatories
- Loft extensions
Looking for a loan to fund something outside the home? At Asda, we help you compare loans for everything from Weddings and Holidays to Cars and Debt Consolidation.
How much can I borrow?
Choosing the right loan amount for you involves careful consideration. Aro provide access to a wide panel of lenders that will provide multiple loans offers that are tailored to you and your circumstances.
Aro's panel of lenders offer loans up to £25,000 with repayment terms between one and seven years. The individual lender will determine the interest rate and exact repayment term.
Things to consider when taking out a home improvement loan
As with all loans, you’ll pay back more than you borrow due to interest rates.
Consider that you may not add the equivalent value to your property through home improvements made with a loan.
You must ensure you’re able to afford your monthly payments and make them on time. If you miss any payments or default on the loan, this will negatively impact your credit score.
A low or bad credit score may reduce the loans available to you in future, and result in higher interest rates.
How do our home improvement loans work?
A home improvement loan isn’t a specialist loan product. Instead, you apply for a personal loan to fund your home improvement project.
Aro give you access to their panel of trusted lenders. Simply check your eligibility online with them and detail your borrowing needs. They will then search their panel for loans that could work for you.
After this, you can compare home improvement loans to find one that’s right for you, then continue directly to the lender.
What are the pros and cons of home improvement loans?
Consider the pros and cons of loans for home improvement before you apply:
Benefits of a home improvement loan:
- A home improvement loan can help you increase your living space
- New kitchens, bathrooms and extensions can all increase the value of your home
- You could borrow the full amount or part of the total for your renovation project
- You can choose a repayment term that suits you (generally between one and seven years)
- After a successful application, the money could be in your account in a couple of days
Drawbacks of home improvement loans:
- Late or missing payments could affect your ability to take out another loan in future.
Top Personal Loans FAQs:
- Why choose a Personal Loan?
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Asda have partnered with Aro, who are a leading credit broker. This means customers can get access to a carefully selected lender panel who provide personal loans.
- How does it work?
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With one simple check, you can search Aro’s panel of selected lenders to see what loan options you have. Once you’ve been approved you will receive your funds, which in some instances could be on the same day.
- How much can I borrow?
- Will applying affect my credit rating?
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No. One of the best things about working with our partner Aro, is you get access to their panel of trusted lenders with no hard credit footprint left on your credit file. When you apply, a soft search is completed which doesn’t harm your credit score.
However, if you do proceed with an offer from your search with them, the lender will complete a hard search. This will show on your credit file.
- What credit score do I need for a bank loan?
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Strictly speaking, there is no minimum credit score for you to be approved for a personal loan. If you have a strong credit score, more lenders may be willing to lend to you with better interest rates on offer. If you have a lower credit score and have had problems borrowing in the past, you may find a smaller pool of lenders are willing to lend to you. You may even have to look for a specialist lender that offers loans for bad credit.
- Can I get a loan with a CCJ?
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If you have a county court judgement (CCJ) against your name, you may struggle to get a personal loan with mainstream lenders. However, you may find specialist lenders that are willing to lend to you.
- Can I borrow money with bad credit?
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If you have bad credit or have had money problems in the past, you may find that some lenders aren’t willing to lend to you. Those that are may only do so with higher interest rates. It’s worth looking at specialist lenders for bad credit loans. Or you can work on your credit score to improve it before applying for a loan.
- Why won’t my bank give me a personal loan?
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Lenders look at a variety of factors when deciding on whether or not to offer you a loan. They each have their own criteria which will take in your credit score, job, monthly income and more. If you have been rejected by a lender, you can always ask them why and hope they will give you some insight into their lending criteria. They may direct you to one of the main three credit bureaus to find out more information
- Can I borrow money with a poor credit score?
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If you have a poor credit score or have had money problems in the past, you may find that some lenders aren’t willing to lend to you. Those that are may only do so with higher interest rates. It’s worth looking at specialist lenders for bad credit loans. Or you can work on your credit score to improve it before applying for a loan.
- How to get the lowest rate for a personal loan?
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The interest rates offered by lenders depend on a range of factors including how much you’re borrowing and the length of the loan. They will also look at your credit score. To help get a lower rate, you can look to improve your credit score by signing up to the electoral register, closing old accounts, checking for any errors on your report, and paying all your bills on time. You may also consider increasing the length of the loan or borrowing less.
- Can I take out a loan if I already have one?
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Yes, you can. When you apply for a new personal loan, lenders will look at your existing borrowing to see if you can afford the second loan. Many people choose to take out a new loan to consolidate existing borrowing – whether loans or credit cards – into one loan with a single monthly repayment.
- If I already have bad credit, what could this mean for my application?
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When you apply for a personal loan with a lender, this will show up on your credit file. Your credit score may take a very small hit in the short term once you take the loan out. But if you pay your monthly payments on time and in full, this can have a positive impact on your credit score.
About our trusted provider, Aro
We’ve partnered with Aro to provide our customers the very best loan options from a panel of handpicked trusted lenders. Asda is in partnership with Aro. Both Asda Money and Aro are credit brokers, not lenders.
Following one simple eligibility check, your loan options with be displayed. It’s also a safe way to view your options without negatively affecting your credit rating.
ASDA Money is a trading name of Asda Financial Services Ltd who are an Introducer Appointed Representative of Aro who are authorised and regulated by the Financial Conduct Authority. Aro acts as a credit broker and not as a lender.
Terms and conditions apply. UK residents aged 18 and over. If you take out a loan, Asda Money and Aro receive a commission payment from the lender. Different amounts of commission are received from different lenders and the amount will be either a fixed amount or a percentage of the amount you borrow and dependent on the lender you select. We will not charge you a fee for our services.