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Finding out you need dental work can be scary — and scary expensive. Still, the pain and the price could get even worse if you put off getting care. And sometimes delaying just isn’t an option.

If you don’t have enough money stashed away in your emergency fund, and your insurance won’t cover all your costs, you may want to chew on the pros and cons of taking out a dental loan.

What Are Dental Loans?

Dental loans are personal loans that are used to pay for a variety of dental work and related expenses.

Whether you’re feeling overwhelmed by the upfront cost of a root canal or crown, or you expect to pay a substantial amount over time for braces, aligners, or implants, a dental loan can be a quick and convenient way to get the financing you need.

With a dental loan, you can borrow money to pay for your care, then make monthly payments until the loan balance is paid off.

How Do Dental Loans Work?

Dental loans are usually unsecured personal loans, which means you don’t have to put up collateral to secure the loan. Approval for a loan for dental work will be based on your creditworthiness.

If you qualify, you’ll receive a lump sum of money that’s to be repaid in monthly installments consisting of principal and interest. Since dental loans typically have fixed interest rates, your payments should be the same amount each month throughout the repayment period.

💡 Quick Tip: Before choosing a personal loan, ask about the lender’s fees: origination, prepayment, late fees, etc. One question can save you many dollars.

What Can Dental Loans Be Used For?

You typically can use a personal loan to pay for just about anything as long as it’s legal and within the terms of your loan agreement.

Costs related to your dental care might include treatment — even for expensive elective or cosmetic procedures that may not be covered completely or at all by dental insurance — as well as over-the-counter or prescription medications you might require and transportation. You can even use the funds for the milkshake and soup you might need after your procedure.

Here are approximate costs for some common procedures that could be paid for with a dental loan:

Porcelain Crown

The cost of a crown can vary based on the materials used to make it, as well as the size, shape, and location of the tooth that’s being replaced. The average cost of an all-porcelain crown is $1,399. Dental insurance may cover some of that expense, unless the crown is strictly for cosmetic purposes.

Whitening

A basic teeth cleaning may be covered by dental insurance as part of your annual exam. But an in-office teeth bleaching (which can cost around $500-$600) or a laser whitening (which averages $792), likely won’t be covered by insurance.

Root Canal

The average cost of a root canal is $984, but it depends on how severe the infection is and which tooth is affected. Molar root canal treatment averages $1,337.

Aligners

Clear teeth aligners can be pretty pricey. For example, the average cost for a clear aligner is $5,108, but costs depend on how complex the orthodontic problem is. Your insurance provider may pay for some of those costs, but you should check your coverage before ordering.

Veneers

Veneers can range from $800 to $2,000 per tooth, depending on the type and how much prep work is involved. Because the purpose of veneers is cosmetic, the cost is generally not covered by dental insurance.

Typical Dental Loan Application Process

Your dentist may offer an in-house financing plan to help with costs — especially if they specialize in cosmetic procedures. Or the practice may partner with a lender who provides these types of loans. You aren’t obligated to use your dentist’s financing plan, but you may want to check out what the practice is offering. You can also go online to compare dental loan offers from traditional and online lenders.

Compare Offers: Choosing the Right Loan

When you start shopping for loans for dental work, you can go to individual lenders’ websites to see what they have to offer or use a comparison site to conveniently check out multiple lenders.

Getting prequalified with a few different lenders can help you get a good idea of what’s available that will suit your needs. Lenders typically use a soft credit pull during the prequalification process, so it won’t affect your credit score.

Here are a few things to watch for as you shop for financing:

Annual Percentage Rate

A loan’s APR tells you the amount you can expect to pay on top of the principal amount over the course of one year, including interest and any fees or charges you might incur. Because it gives you a complete picture of the cost of the loan (as opposed to just looking at the interest rate), the APR can be a useful tool for comparing various loan offers.

Recommended: APR vs. Interest Rate

Fees

Fees can add up quickly, and they can add to the cost of your loan. Some common fees to look out for could include an application fee, origination fee, late payment fee, returned payment fee, and a prepayment penalty. Low-fee or fee-free loans may save you money over the life of the loan.

Loan Amounts

Some lenders may have loan minimums that require you to borrow more than you need. Before you go loan shopping, you may want to get dental procedure cost estimates to get an idea of how much you’ll have to borrow. Then you can look for lenders who are willing to lend that amount.

💡 Quick Tip: Generally, the larger the personal loan, the bigger the risk for the lender — and the higher the interest rate. So one way to lower your interest rate is to try downsizing your loan amount.

Loan Terms

Another important factor to consider is the loan term, or how long you’ll be given to repay the money you’ve borrowed. Of course, you’ll want to find a loan term that feels comfortable (a longer-term can equal lower payments). But a longer term could increase the amount you pay in interest over the life of the loan. You may want to think about how the loan length could affect your future financial goals.

Eligibility Requirements

Before you settle on a particular personal loan for dental work, you may want to check out the lender’s eligibility requirements. In the process of estimating your personal loan rate, many sites will review your credit scores, credit history, income, and other personal financial information to determine whether you qualify for a particular interest rate or other loan terms.

Many lenders will accept a fair credit score (a FICO® Score of 580 to 669 is considered fair), but a good FICO Score (670 to 739) could qualify you for a more favorable interest rate and other terms. If you have a poor score (lower than 580), lenders may consider you to be a high lending risk, which could affect your eligibility. You may be able to find a loan, but the interest rate will likely be more expensive.

Approval and Funding Timeline

If you can’t get your treatment until you can pay for it — and you need it soon — a quick approval time and rapid funding could be important considerations. One of the major pluses of using an online lender can be the convenience and fast application time. If you have all your information ready, it can be easy to apply using an online form. And if you qualify, the money generally can be available within a few days.

Customer Service

Does the lender have a reputation for good customer service? You may want to check how various lenders deal with consumer questions and problems. At the same time, you can see if there are any perks to building a relationship with a lender that might benefit you in the future.

Applying for a Dental Loan

If you find a lender and loan terms you like, and you’re ready to apply, your next step will be to complete a formal application. You can expect to be asked to verify your identity, income, and current address, and it can make things easier if you gather up the necessary documents ahead of time. You’ll probably need your driver’s license, Social Security number, recent pay stubs and/or bank statements, and a utility bill or some other proof of address.

Once you apply, lenders usually do a hard credit check, which may cause your credit score to temporarily drop by a few points. The lender will evaluate your ability to repay the loan and, if you qualify, your loan will be funded.

Pros and Cons of Dental Loans

Whether you need money for a one-time emergency procedure or for a series of treatments that could add up to a big expense, a dental loan may be an option worth considering. Here are some pros and cons that could help you decide if a personal loan makes sense for your situation:

Pros

Convenient Online Comparison

Applying for a personal loan online can be convenient and quick. Many online lenders offer personal loans that can be used for dental treatment, so you can shop for the loan amount and terms that suit your needs. You may be able to get your approval within a few hours (maybe even a few minutes), and you could receive your money within a few days.

Competitive Terms

If you have a solid credit history, a stable income, and a Fair or better credit score, you may qualify for a competitive interest rate and a repayment period you feel comfortable with. (The interest rate on a dental loan is typically lower than the interest rate on a credit card.)

Fixed Payments

With a dental loan, borrowers typically receive a lump sum of money that is repaid in fixed monthly payments. This can make it easier to budget and manage your payments.

Cons

Fees and Penalties

Some dental treatment loans come with fees and penalties that can drive up the overall cost of borrowing. You may be able to keep your costs down by finding a low- or no-fee loan.

Alternatives May Cost Less

If you can qualify for a credit card with a low or 0% promotional rate for purchases, it may be a less expensive way to borrow money — at least for a while. Zero-interest credit cards charge no interest during an introductory period, which typically lasts six to 18 months. Paying the balance in full within the promotional period is essential to making the most of an offer like this.

Fixed Payments

Having a fixed monthly payment can make budgeting easier, but it doesn’t provide flexibility if you can’t make that payment for some reason. A different financing option, such as a credit card, might offer more adaptable minimum monthly payments.

Alternatives to Personal Loans

If you can’t afford the dental work you need, there are options besides dental loans that you might want to check out. A few to consider include:

Credit Cards

If you already have a low-interest credit card, you may want to compare the interest you’d pay if you used that card vs. the cost of a dental loan. Or you might want to consider the pros and cons of applying for a low or 0% introductory-rate credit card — if you think you can pay off the balance during the designated promotional period. If you end up using a high percentage of your available credit, however, your credit score could be negatively affected.

Dental Office Financing

Your dentist may offer some type of in-house financing to patients who can’t afford to pay upfront for the treatments they want or need. The practice might partner with a lender that offers loans for dental procedures, for example, or the dental office might suggest a medical credit card with a low or 0% introductory rate. These offers may be worth reviewing and comparing to similar options, as long as you’re clear on all the repayment terms.

Grants

There are grant programs aimed at helping seniors, adults, and children living in low-income households, and those who have special needs. The Dental Lifeline Network is a nonprofit organization that provides access to dental care for people who can’t afford it.

Some dentists may offer partial grants to attract new patients who need extensive and expensive treatment. Just be aware that the cosmetic dentistry grants you see advertised online are mostly scams. Red flags include high pressure tactics and the promise of automatic or guaranteed approval.

Explore Personal and Dental Loans with SoFi

A dental loan can be a quick and convenient solution if you need cash to pay for an unexpected dental procedure or an elective treatment you’ve been thinking about for a while (like braces, aligners, or implants). Whether you’re considering an expensive cosmetic procedure or you need a crown or root canal ASAP, SoFi may offer a personal loan that works for your unique financial situation.

Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. See your rate in minutes.

FAQ

What credit score do you need for dental implant loans?

Many lenders will offer a dental loan to a borrower with a fair credit score. A FICO Score of 580 to 669 is considered fair. But a good or better score could improve your interest rate and other terms. If you have a poor score (lower than 580), lenders may consider you to be a higher risk, which could affect your eligibility.

Can you get your teeth fixed with no money?

You may be able to find a research clinic or university dental program that provides free services to volunteer patients who need care. And some dental practices may occasionally offer free care to low-income patients. There are also grants that could help cover costs.

Can you put dental work on a credit card?

Yes, you can use a regular credit card or a medical credit card to pay for dental work. But if you come close to using up all the available credit on your card, it could affect your credit utilization ratio, which can have a negative impact on your credit scores. Putting dental work on a credit card can considerably add to the cost of your treatment if you are not able to pay it off quickly.

Photo credit: iStock/Sanga Park

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

SOPL-Q126-026

Having to get a root canal is painful enough — but then comes the prospect of paying for it.

While the specific cost of a root canal will vary depending on your geographical location, your dentist, the location of your tooth, and other factors, it can easily cost as much as $2,000 or more if you don’t have insurance, and a few hundred dollars even if you do have coverage.

Fortunately, there are a variety of ways to finance dental work, making it possible for you to afford the care your teeth require. Here’s what you need to know.

What Is a Root Canal Treatment?

A root canal is a dental treatment that can remove infection and bacteria from the pulp beneath the hard exterior of a tooth. It’s a pretty common procedure, as millions of them are performed each year.

While root canals are often labelled as unpleasant, modern dentistry means this medical intervention can take place relatively painlessly while preserving your natural tooth, both for chewing and complementing your smile. If you’re in need of a root canal, you’re not alone.

Reasons for a Root Canal

There are many different reasons your dentist might prescribe a root canal, including:

•   Deep tooth decay

•   Large cavities affecting the nerve

•   Chips or cracks in tooth enamel

•   Dental trauma that damages the pulp

In any of these situations, bacteria may infect the pulp of the tooth and, if left untreated, spread to the surrounding structures, such as gums, other teeth, or even the jawbone. In extreme cases, severe dental infections can spread to the bloodstream and become life-threatening.

Taking good care of your teeth can help prevent these outcomes, but sometimes, accidents or predisposition to decay are added to the equation. In any case, if your dentist prescribes a root canal, it’s probably worth heeding their advice.

How Much Does a Root Canal Cost on Average?

While the cost of a root canal procedure varies depending on several factors, which we’ll dive into in more depth below, the cost can range from $620 to over $2,000 without insurance. With insurance, your bill could be considerably lower depending on your coverage and the extent of the procedure.

Recommended: Guide to Dental Loans

How Much Is a Root Canal With a Crown?

In many cases, you may also require a crown along with a root canal, which can help protect the tooth for future chewing and use. A crown can add a substantial amount to the overall bill: as much as $2,000 if you’re paying out of pocket.

Factors That Impact the Cost of a Root Canal

Here are some factors that can affect the cost of your root canal treatment.

Insurance Coverage

Obviously, the cost of any dental or medical procedure is likely to be higher if you don’t have insurance coverage or if your provider is outside of your insurance company’s network. Because root canals are usually medically necessary, as opposed to just cosmetic, it’s likely that your insurer will cover at least a percentage of the procedure.

Tooth Location

The location of the infected tooth in your mouth can also have an impact on the total cost of the root canal. That’s because certain teeth are more difficult for dentists to work on than others.

For instance, molars, which are set more deeply in the mouth, are harder to reach and thus command higher costs for dental procedures. Bicuspids, or premolars, and front teeth needing root canals are likely to cost the least.

Geographical Location

Like most other goods and services, the cost of a root canal can vary significantly depending on the local economy or the prices set by the dental professional you choose.

Type of Dentist

While most general dentists can perform a simple root canal, some teeth with more complicated infections might require an endodontist, who specializes in dental pulp (the part that’s treated during the procedure).

Specialist root canal treatment may be more expensive than treatment from your general dental professional, partly due to the use of high-tech equipment such as an ultrasonic needle or water laser.

Root Canal Complications

Although they’re very common and generally safe, like most other medical procedures, root canals still come with some risk.

For example, the root canal can fail due to a breakdown of materials or the provider’s failure to remove all of the bacteria during the procedure. In addition, sometimes the tooth becomes slightly discolored after the procedure due to bleeding on the inside of the tooth.

Ways to Pay For a Root Canal

Although root canals can be expensive, there are many ways to pay for this vitally important procedure without chewing through your savings.

Dental Insurance

Carrying dental insurance is a great way to lower the cost of procedures such as a root canal — but keep in mind you’ll be responsible for monthly premiums as well as potential copay or coinsurance costs.

Health Savings Account

A health savings account is a tax-incentivized account that can help you save and pay for out-of-pocket medical expenses. However, you must have a high deductible health plan to contribute to one.

Personal Loan

Personal loans are a type of financial product that allows you to borrow money for almost any purpose, including dental or medical care. Because they’re unsecured, meaning no collateral is required, they tend to have higher interest rates than auto loans or mortgages — but the rates can be lower than those offered by credit cards.

As with most financial products, your specific rates and terms will vary depending on your credit score and other financial aspects. While rates may be higher, there are still personal loans for low-credit borrowers — and taking one out may still make more financial sense than decimating your emergency fund or putting the procedure on credit.

Credit Card

Although they usually have fairly high interest rates, credit cards are another option for paying for necessary medical interventions in a pinch. If you can qualify for a credit card with a 0% promotional interest rate, you’ll have some time to pay the balance without interest if you can pay it off before the promotional period ends.

Recommended: Can Medical Bills Affect Your Credit Report?

Other Dental Procedures a Personal Loan Can Cover

Along with root canals, personal loans can be used to cover other common dental procedures, including:

•   Periodontal surgery

•   Dentures

•   Tooth bonding

•   Wisdom tooth removal

•   Dental fillings

The Takeaway

Having a root canal can be an important medical intervention to preserve your health and your affected tooth. Although the procedure is expensive, there are ways to pay for it that won’t add financial stress to your dental pain.

Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. See your rate in minutes.

FAQ

How much is a root canal and a crown?

A root canal procedure can range from around $600 to $2,000, and a restorative crown can add another $2,000 to the total cost. Costs vary depending on which part of the country the procedure is performed in and which tooth is being treated.

Why is a root canal so expensive?

Root canals are performed by licensed medical professionals who use specialized equipment. More complex situations may need to be treated by an endodontist, a dental specialist who has completed additional years of training beyond dental school.

What does a root canal cost without insurance?

Depending on a variety of factors, the full, out-of-pocket cost of a root canal without insurance may range from $620 to over $2,000.

Photo credit: iStock/AndreyPopov

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

SOPL-Q126-037

The longer you live in your house, the more obvious it may become that you could use more living space — perhaps for a guest bedroom, home office, or workout space. Your first thought might be to build an addition, but the sticker shock may cause you to shelve that idea and instead consider an attic conversion.

Fortunately, an attic conversion is an idea that may be more economical than a complete home addition. Read on for a full breakdown of the cost to finish an attic.

Should You Convert Your Attic Space?

There are good arguments for converting an attic into usable space, including:

•  The space already exists in your home, making this choice both cost- and time-effective.

•  You don’t need to pour a foundation, again making it a viable and economical option.

•  Wiring is likely already in place and can be modified to suit your needs.

An attic conversion also allows you to use the entire envelope of your home, rather than wasting potential living space.

Before you fully commit to your attic remodel, though, make sure your attic has the potential to become a usable living space (more on that below).

Tips on Converting an Attic

One of the first things you might do before converting your attic is to see if your roof is being supported by W-shaped trusses in your attic. If so, building an addition might be a better choice. If your attic contains A-shaped rafters, though, that’s a plus; if there’s enough open space beneath the rafters, then you can potentially convert your attic into usable space.

Other steps to take before an attic remodel include:

•  Check your local building codes to make sure your remodel will fit. The rules vary by area, but a typical requirement is that the attic space must be at least 7.5 feet high and cover over 50% of the floor area. The thickness of the material will also factor into the final headroom and ceiling height. A sure way to add significant costs to your attic remodel is to be forced to change course mid-project because of a code violation.

•  Determine how you’ll get into the space. Will you need to add a staircase or expand the current one? Stairs that go straight up will need more floor space than, say, spiral staircases. Or perhaps your only option is a pull-down access point; this will limit the furniture and materials you can fit into your attic conversion and how utilitarian the new living space might be.

•  Consider whether you’ll need to add windows. If you’re creating an additional bedroom, codes may require an egress window in case of fire. But even if they aren’t required, you might consider adding windows or punching skylights that open to brighten the space with natural light.

•  Decide how much flooring needs to be reinforced, along with any electrical or plumbing issues. If you ultimately decide that your attic has what’s needed for a successful conversion, it’s time to think both practically and creatively to shape what may well become the most interesting — and potentially challenging — room in your house.

•  Consider your priorities and budget. Once you get a sense of costs (listed below) and what’s most important to you, you’ll want to come up with a budget and a plan for how you’ll pay for the upgrade. If you don’t have enough cash to cover the project, you may want to explore financing. Funding options for finishing an attic include using a credit card (generally a more expensive route), getting a home improvement loan (a type of unsecured personal loan designed for small to mid-sized home renovations), or applying for a home equity loan or line of credit (which uses your home as collateral for the loan).

•  Consult with a professional unless you’re already an experienced builder. Ask friends, family members, and building associations for recommendations and referrals, then request quotes from at least three contractors to understand the possibilities and associated costs. When you contact contractors, ask them for credentials. Compare bids, and, tempting as it may be, don’t automatically choose the lowest one. Make sure the contractor describes what will be provided as well as the estimated time frame.

How Much Does It Cost to Finish an Attic per Square Foot?

According to Angi, on average, you can expect to pay between $7,500 to $35,000 — or $30 to $200 per square foot — to refinish your attic. Converting your attic for storage would be cheaper than converting it for a living space.

Overall, costs vary depending on the overall square footage and the materials you use.

How Much Does It Cost to Finish an Attic per Task?

If you hire individual contractors for each aspect of your attic remodel, then it’s easy to see what each portion of the remodel is costing you. However, if you hire a contractor to manage the entire project, you likely won’t receive the project budget broken down into great detail.

What follows is a breakdown of common costs involved in an attic renovation.

Cost of Walls and Ceilings

New walls and ceilings can effectively transform an unfinished attic into a space that’s both comfortable and livable. Although prices vary depending on where you live, attic drywall can cost an average of $987 to $3,216 to install, with ceilings costing anywhere from $900 to $1,300 for a small bedroom.

Other aspects to consider: Will you paint the walls and ceilings? Add wallpaper? Do you need trim and crown molding? All of these features will incur additional costs and can quickly cause your project budget to skyrocket.

Cost of Flooring

Flooring is another important consideration, so first think about what’s located directly below the attic space. Do you need soundproofing? If a bedroom is located below the attic space, you’ll likely want some sound control. Insulation provides that to some degree, and carpeting adds even more dampening.

The cost of attic flooring will depend on the current state of the attic and what materials you choose. Replacing floor joists to beef up the strength will cost anywhere between $1,000 and $20,000, while installing subfloor typically runs between $900 and $3,000. Installing the flooring itself averages between $1,529 and $4,852, depending on material and square footage.

Cost of Windows and Skylights

If there currently are no windows in your attic, you may want to add an egress window, which will run you between around $700 and $9,500, as a safety precaution. You also might want windows or skylights to brighten the space with natural light. Expect to pay an average of $6,000-$25,000 for a dormer window and $1,011-$2,808 for a skylight.

Cost of Heating and Cooling

Your attic conversion might require additional heating and cooling. The average price to install an attic fan is $625, and a standard window AC costs about $138 to $527 per unit. A skillful contractor could also potentially tie in your current climate control system.

For heat, a baseboard heater costs between $200 and $1,100 on average, plus installation costs. If you need to add HVAC ductwork and vents to extend your home’s AC and central heating systems to the attic, you can expect to pay $10 to $25 per linear foot.

If your attic is difficult to access during the renovation period, contractors may tack on a surcharge. To get an idea of how much your attic renovation will cost, you may want to use an online home improvement cost calculator.

How Much Does It Cost to Finish an Attic Yourself?

It’s generally cheaper to go the DIY route than to hire a professional — though you will need some know-how. If you’re making minor improvements to your attic space (such as adding an attic fan and cleaning it up, you may be looking at an attic remodel cost as low as $300. However, if you’re looking to make a total transformation, your costs for materials could run as high as $50,000.

Though you’ll certainly save on labor costs, make sure to take into account the time involved if you decide to do it yourself as opposed to hiring a professional.

Recommended: Four Ways to Upgrade Your Home

How Much Does It Cost to Finish an Attic by Type?

How much it costs to finish an attic will also vary depending on the type of attic space you’re creating. Here’s a look at how much an attic remodel costs by attic type.

Cost of Finishing a Walk-Up Attic

The cost of finishing a walk-up attic generally ranges anywhere from $6,600 to $25,500. Large portions of the costs typically involve adding a staircase and installing flooring.

Finishing an Attic as a Storage Space

If you’re finishing an attic to serve as a storage space, your costs are generally a little lower as there isn’t as much polishing involved. Generally, the attic remodel cost for a storage space runs from $4,800 for a simpler setup to $22,000 if the space is larger and you opt for more elaborate storage systems.

Cost to Finish an Attic With a Dormer

Installing a dormer — a window that juts out vertically on a sloped roof — can add some ceiling height and natural sunlight to an attic. However, it will set you back. On average, a dormer conversion can run between $8,000 and $30,000.

Cost to Finish an Attic Above a Garage

The cost to finish an attic above a garage can vary widely depending on what’s involved, such as the installation of heating, insulation, or ventilation. You can typically expect to pay anywhere from $4,600 up to $24,000.

Recommended: Garage Conversion Ideas Worth the Effort

What Factors Influence the Cost of Finishing an Attic?

As you may have guessed from the wide-ranging estimates above, the cost of finishing an attic can vary a lot depending on the work involved and the materials used. Here’s a look at some major factors that can affect the cost of finishing an attic.

•  Square footage: How large your attic is will play a big role in the total costs involved in remodeling. The bigger the attic is, the more materials required and the more time it will take to finish it, which translates to additional labor costs.

•  Need for structural changes: You’ll also pay extra if your attic is an odd shape or difficult to access. These challenges could call for structural updates, such as the addition of height, the expansion of space, or the creation of a staircase.

•  Intended use: Your planned purpose for your attic will also influence cost. If you just want to add some additional storage space, you’ll pay a lot less than if you plan to install a full suite complete with a bedroom, bathroom, and closet.

•  Extra features desired: Unsurprisingly, the more features you want in your newly remodeled attic, the more it will cost you. Big-ticket items include windows, electricity, plumbing, and heating and cooling.

Of course, another factor that influences your cost is whether you need to get financing for the project, and, if so, what terms you’re able to secure.

The Takeaway

An attic conversion can be one way to create a unique room and add more usable space to your home. It also tends to be more economical than building an addition to your house. There are a lot of technical aspects to consider, and before getting started, it’s a good idea to check with your local building department if there are any building or permit requirements. You can then come up with a project wishlist and start soliciting bids from at least three contractors.

At the same time, you’ll want to determine if you’ll pay cash or finance all or some of the project. One financing option you might consider for an attic renovation is an unsecured personal loan. These are offered by banks, credit unions, and online lenders, and rates are typically lower than for credit cards. And unlike a home equity loan or home equity line of credit, you don’t need to use your home as collateral to qualify.

FAQ

How much does it cost to finish an attic?

Most attic conversions cost between $7,500 and $35,000, depending on the size of the space and the materials you choose. High‑end or specialized projects can cost more, especially if you add features like skylights, dormers, or upgraded HVAC.

What affects the total price of an attic renovation?

Costs vary based on square footage, structural needs, and the type of finishes you select. Adding insulation, flooring, ventilation, or windows can increase the overall price. Labor rates and regional construction costs also play a role.

Do I need a permit to finish my attic?

Many attic conversions require a building permit because they involve structural, electrical, or HVAC work. Local codes may also require minimum ceiling heights or egress windows. It’s wise to check with your local building department before starting.

Can finishing an attic increase my home’s value?

A finished attic can add usable square footage, which may boost your home’s value. Buyers often see finished attics as bonus rooms or flexible living spaces. The return depends on the quality of the renovation and your local market.

Is it possible to finish an attic on a budget?

Yes — focusing on essential improvements and avoiding major structural changes can help keep costs down. DIY work may reduce expenses, but electrical, HVAC, and structural tasks should be handled by professionals. Choosing cost‑effective materials also helps manage the budget.

Photo credit: iStock/asbe

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

SOPL-Q126-046

Loans have become an integral part of American financial life. We need a mortgage to buy our first home and an auto loan to purchase a car. More recently, people are turning to personal loans to pay surprise bills and avoid high-interest credit card debt. But just because you need a loan doesn’t mean a lender is going to give you the loan — and interest rate — you want.

If you’re struggling to qualify for a loan, a friend or family member may be able to help by becoming a co-borrower. By leveraging their income, credit score, and financial history, you may qualify for better loan terms. Let’s dive into the details.

Understanding Co-Borrowers

As you’re considering your options, a natural first question may be, what is a co-borrower? Essentially, a loan co-borrower takes on the loan with you, and their name appears on the loan alongside yours. They will be equally responsible for paying the loan back and have part ownership of whatever the loan buys. When you take out a mortgage with someone, the co-borrower will own half the home.

Spouses often co-borrow when buying property or taking out a personal loan for a home improvement or remodeling project. In other circumstances, two parties become co-borrowers so they can qualify for a larger loan or better loan terms than if they were to take out a loan solo.

Having a co-borrower can help two people who both want to achieve a financial goal — such as first-time homeownership or buying a new car — put in a stronger application than they might be able to do on their own. The lender will have double the financial history to consider, and two borrowers to rely on when it comes to repayment. Therefore, the loan is a less risky prospect for the lender, which may translate to more favorable terms.

Recommended: All About Variable Interest Rate Loans

Qualifying as a Co-Borrower

If you’re planning to have a co-borrower on your personal loan application, it helps to understand what criteria you both must meet in order to be accepted by the lender. Let’s take a closer look at common factors that lenders consider.

Credit Score

A credit score can have a significant impact on whether your loan application is approved and what terms you’re offered. There’s no magic number, but generally speaking, lenders prefer to see a score of 620 or higher. You and your co-borrower may want to check your credit scores at no cost before you apply.

Proof of Income and Employment

To help determine whether co-borrowers can afford loan payments, a lender will likely want to see proof of a stable income and employment. You may both be asked to provide recent pay stubs, tax returns, and bank statements. You might also be asked to show a letter from your employers verifying your employment status, how long you’ve both been employed, and your salaries.

Debt-to-Income Ratio

Debt-to-income ratio, or DTI ratio, is a comparison of your monthly debts to your gross monthly income (before taxes). Lenders use this information to help determine how risky it would be to loan money to a borrower. It can affect your ability to borrow money and the interest rate you’ll receive. Generally, lenders like to see a DTI that’s no higher than 36%, though there may be some wiggle room.

In addition to the above, lenders also usually consider:

•   Financial history. This includes recent bankruptcies, judgments, and liens.

•   Age. Many lenders have a minimum age for co-borrowers, typically 21 to 25 years of age.

•   Citizenship. Co-borrowers generally must be either citizens or permanent residents of the U.S.

Co-Borrower Process

If you’re applying for a loan with a co-borrower, the application process is fairly similar to the one you’d follow if you were applying alone.

A good first step is to reach out to your lender and start the prequalification process. If your co-borrower has a strong credit profile, that could improve your odds of qualifying for better rates and terms.

Next, you and your co-borrower will need to complete the loan application. You’ll also both undergo credit checks, and the lender will evaluate your finances. You may be asked to provide documentation such as pay stubs, bank statements, or tax forms.

Within a few days or so, you’ll find out if you’re approved and what your loan terms are. Once you agree to the terms, your loan funds will be disbursed, usually within a week. Your lender will also share details about how to make monthly payments.

Co-Borrower vs Cosigner

A cosigner plays a slightly different role than a co-borrower. A cosigner’s income and financial history are still factored into the loan decision, and their positive credit standing benefits the primary applicant’s loan application. But a cosigner does not share ownership of any property that the loan is used to purchase, and they will help make loan payments only if the primary borrower is unable to make them.

Cosigning helps assure lenders that someone will pay back the loan. Typically, a cosigner has a stronger financial history than the primary borrower. This can help someone get approved for a loan they might not qualify for on their own or secure better terms.

No matter which route you choose, there are potential credit implications to keep in mind. For example, when you apply for a loan, the lender will likely do a hard credit pull. This may cause credit scores to temporarily dip for you and your cosigner or co-borrower.

Both parties may also see a drop in their credit score if monthly payments are late or missed altogether. (And remember, cosigners will be on the hook for making loan payments if the main account holder can’t.) On the flip side, on-time payments can help boost or build credit scores.

When should you choose a cosigner vs. a co-borrower? The answer depends on your situation and goals. If you intend on sharing ownership of whatever you buy with the loan, then a co-borrower may be a good choice. If you simply need someone with a strong credit history to bolster your loan application, then consider using a cosigner.

Recommended: What Is Revolving Credit?

The Takeaway

Taking out a loan is a big decision, and doing so with a co-borrower carries additional risks. A co-borrower is a partner in the loan and any property the loan is used to purchase. If one borrower cannot make their payments, the co-borrower will be on the hook for the full amount. But if both parties can come to an agreement about how they’ll handle potential financial hardships, co-borrowing can have major benefits. By pooling their income and debt, borrowers may lower their debt-to-income ratio and qualify for a mortgage or personal loan with a lower interest rate and better terms.

Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. See your rate in minutes.

FAQ

Are co-borrowers equally responsible for a debt?

Co-borrowers are equally responsible for the debt. If one borrower cannot pay, the other must cover the entire amount.

Does a co-borrower increase your approval odds?

A co-borrower with a higher income or better credit score can help you qualify for a loan and potentially secure better interest rates.

Does a co-borrower have ownership rights?

A co-borrower typically has ownership rights to the asset being purchased. The co-borrower is a joint owner on the title and has a legal stake in the asset.

Photo credit: Stocksy

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

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Getting married can be a pricey proposition, with the average wedding in the U.S. now running $36,000. If you don’t have access to a large stockpile of cash, you may think you’ll never be able to afford the kind of wedding you envision. But that’s not necessarily the case. The key is to start budgeting and saving well ahead of the big day.

Whether you long for a fairy tale wedding or you prefer something more scaled back, there are ways to save for your dream day that will ensure you have the magical moment you’ve always wanted without having to start off your marriage in debt.

Set a Budget

Do you want a big, lavish wedding worthy of the royals? A destination wedding? Or maybe something more intimate with just a few friends and family? There are different levels of spending when it comes to weddings, and deciding what is most important to you can help you determine how much you’ll need to save. A wedding cost calculator can also be a useful tool as you begin considering your budget.

Is the venue a priority? The number of people? The food? The DJ (or band)? It’s smart to start by making a list and getting a solid estimate of the costs for each of your need-to-haves and your want-to-haves. It’s also wise to leave a little wiggle room for unexpected wedding costs. Little things, such as the marriage license, dress or suit alterations, and even insurance costs, can start to eat into your budget pretty quickly.

Recommended: 8 Ways to Fund Your Wedding

Start a Savings Plan

Before you’ve locked in the date, you and your partner can start a savings plan. Some couples open a separate bank account and set up automatic monthly transfers to that account to build their wedding fund. When savings are automated, you often don’t notice the missing funds. And by picking an account with a competitive interest rate, your money can make money while you continue to plan and save.

If you’re thinking about financing part of your wedding, you’ll want to start investigating your options, which can range from credit cards to personal loans (which typically have lower rates than credit cards), early on and weighing the pros and cons of taking on debt.

Put the Wedding First

Sure, you may want to go on vacation, eat at fancy restaurants, and buy those new clothes, but you’ll be further from your goal. Instead of spending on those luxuries now, cutting back and putting that money into your shared dream wedding account can help you get to your savings goal quicker.

There are also some simple ways to cut back that won’t make you feel deprived. For example, you can take local day trips or vacations in your state instead of traveling far. Eating out just once a month and cooking at home more can cut costs. You could even get swanky and hold a cocktail hour with friends at your house instead of going to happy hour. Your new bank account will thank you.

Recommended: The Cost of Being in Someone’s Wedding

Do It Yourself

One way to keep wedding costs down is to plan the majority of the wedding yourself. If you already have experience managing projects, then this should be within the realm of your abilities. Researching the typical steps and fees associated with weddings before making any concrete decisions can be helpful, and you might also want to research budgeting tips for weddings. If that feels daunting, keep in mind that the average starting rate for a full-service wedding planner in the US is $3,000.

And though there are advantages to using a planner (they already have a contact list of professionals and know their rates, saving you a lot of time and energy), the downside is that you could be getting a one-size-fits-all experience instead of the personalized ceremony and party you want.

Comparison Shop

Just like other big expenses, getting more than one quote for each service you need can help you find the best price point to fit your needs and wants. Does your preferred venue charge a premium for a wedding but a lower price for a party? You may want to consider negotiating the price. Calling multiple DJs and catering services can help you ensure you are not overpaying. New York City is going to have very different rates than Asheville, North Carolina, for example. This might even be a factor in deciding when to have your wedding, too. For a better idea of how much costs can vary, you can check out this comparison of wedding costs by state.

You can save a ton of money by doing away with an expensive venue altogether and looking at free or inexpensive locations, such as parks, gardens, and beaches.

And if you’re willing to hold your celebration on a weekday or off-season, you’re likely to find some additional savings. For example, you can pick Friday instead of Saturday, or organize a fall or winter event to help lower your costs.

Reassess the Dress

Maybe your dream wedding includes a Vera Wang gown, but your bank account can’t swing that. Consider shopping for a vintage dress and having it altered. Or if you want a more modern look, you don’t necessarily have to buy brand new — wedding dresses are usually only worn once and then either hang in the back of a closet or get sold or donated. Resellers often offer beautiful dresses at a fraction of the initial cost.

Consider this: Wedding dresses less than three years old are usually sold for half their original price. And that Vera Wang might not be out of reach after all if you buy it used. Designer brands can sell for 40% to 80% of their original cost.

Recommended: What Is the Ideal Wedding Budget?

Where Not to Cut Costs

While you might not have much of an appetite on your big day, your guests likely will, so it’s a good idea not to scrimp on the food. It doesn’t have to be a five-star, multicourse meal, but if you want to create a memorable experience for all, it’s smart to offer quality food that doesn’t leave anyone grumbling about “wedding food.”

And what good is a dream wedding if you have bad or no photos to remember it by? A good photographer can capture all the special moments of you and your guests. These are photos that you will cherish, frame and place on your dresser, and send to your family, so avoid costs here. Although the average fee of a wedding photographer ranges from $2,500 to $4,000, it could be the best decision you make for your special day.

The Takeaway

Saving for your dream wedding might seem impossible, but it’s within your grasp if you’re willing to put in the time and effort. By cutting a few everyday costs and making automatic transfers into a high-yield savings account every month, you and your soon-to-be spouse will be able to slowly but surely build your wedding fund.

You can also find ways to trim wedding costs while staying true to your vision for the special day. If you find you’ll still need to rely on some type of financing to pay for your big day, be sure to consider all your options to find the least expensive one.

Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. See your rate in minutes.

FAQ

How much should I spend on a wedding?

A good place to start is calculating what you can afford and adding a 10%–15% contingency to cover any unexpected costs.

When should I start saving?

Ideally, you should start saving for a wedding as soon as you get engaged, or even sooner if you’re planning to get engaged in the near future.

How do I start saving for my wedding?

Set your maximum budget and calculate the monthly amount you can realistically save. Review your spending and identify areas where you can cut down, such as unused subscriptions, eating out, or frequent vacations. It’s also a good idea to open a high-interest savings account.

What are the best ways to cut wedding costs?

Look at off-peak times/seasons for cheaper rates, such as weekdays, Sundays, winter, or early spring. Ask friends and family to get involved by making decorations. Review the guest list to cut down on numbers, look for cheaper, unconventional venues, and get multiple quotes for catering and dining options. You can also avoid smaller costs by skipping favors, buying a second-hand wedding dress, and sending digital invites.

Photo credit: iStock/standret

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

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