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Home siding replacement costs typically run around $11,400, though that’s just a ballpark figure. The amount you could pay will depend on factors such as home size, materials, location, and project timing.

While house siding replacement isn’t a cheap solution, it can be a transformative one. After all, as a homeowner, you know that the appearance of your home reflects your style, pride, and investment.

Before you dive headfirst into this exciting project, it’s important to understand house siding replacement costs so you can proceed with confidence.

What Impacts House Siding Replacement Costs?

Numerous factors influence the cost of replacing house siding, including the size and shape of your house. Here are some important ones to keep in mind.

Home Size

Your home size impacts the cost of your project because a larger house requires more siding. The following is an estimate of potential siding costs for different square footage. Remember, if you live in a two-story home, you’ll add 15% to 30% of the total cost. The additional floor means more hours and materials are needed to finish the job.

Square Footage	Average Cost to Replace House Siding with Vinyl, Aluminum, or Fiber Cement	Average Cost to Replace House Siding with Stone or Brick Siding
1,000	$1,000 to $13,500	$9,000 to $50,000
1,500	$1,500 to $20,250	$13,500 to $75,000
2,000	$2,000 to $27,000	$18,000 to $100,000
2,500	$2,500 to $33,750	$22,500 to $125,000
3,000	$3,000 to $40,500	$27,000 to $150,000

Source: Angi

House Shape

A home with a traditional or simple shape tends to incur lower siding costs. For example, a conventional, square house will likely be less expensive than an H-shaped home when installing siding.

Type of Materials

The material you select for your siding is crucial, and each type has its pros and cons. For example, although bricks cost more than vinyl, they are more durable. So, the higher upfront cost means longevity, while vinyl siding means you could face another siding repair job in several years.

Home Design

Whether your home has multiple stories or gables, for example, the overall design could impact how much you pay to replace the siding. That’s because any differences from a conventional home build could require more time and modified cuts of siding.

Removal of Old Siding

Removing old siding is a possibility when installing new siding. For example, your contractor may want to eliminate pests or rotting material underneath the original siding. On the other hand, if the current siding is in decent condition and you want to cut costs, you may decide to install the new material over the old material.

Condition of Old Siding

Your old siding can increase the project cost if it requires more work to remove. On the other hand, uncomplicated siding removal will help streamline the project.

Time of Year

Generally, homeowners hire contractors during warmer weather. However, some contractors might have deals for homeowners who want work done outside the high season. So, timing your project wisely could save you hundreds or thousands of dollars.

Location

As with other exterior home remodeling projects, location plays a role in how expensive it is to replace your house siding. For instance, this list demonstrates the differences across the country:

City	Average Cost Range
Boston, MA	$9,800 to $24,300
New York City, NY	$8,300 to $20,500
Des Moines, IA	$7,600 to $12,900
Denver, CO	$7,000 to $19,200
Chicago, IL	$6,700 to $18,700
Los Angeles, CA	$3,200 to $10,100
Miami, FL	$1,800 to $6,300

Source: Angi

Siding Installation Cost: Labor

Labor is an unavoidable cost when replacing house siding. The materials, complexity of the job, and your region will affect labor costs. Typically, you’ll pay between $1 and $15 per square foot, with $4 per square foot being the most common rate. So, siding installation costs for labor for a 1,500-square-foot house will likely cost about $6,000.

Permit Costs

Your municipality may also require you to obtain a permit from your county and/or state before you begin work on replacing your house siding. Building permits cost between $150 and $3,000, depending on your location and project scope. However, in some regions, permits aren’t mandatory for minor projects, so ask your county or a contractor before applying for one.

Siding Costs by Type

The type of siding is another major influence on your total project cost. Here’s a breakdown of common materials and their average price:

Siding Type	Cost Per Square Foot
Vinyl	$2 to $13
Wood	$1 to $15
Engineered Wood	$1 to $6
Aluminum	$3 to $6
Fiber Cement	$5 to $14
Brick	$10 to $20
Stone	$7 to $30
Stone Veneer	$5 to $11

Source: Angi

Vinyl

Replacing house siding with vinyl costs $2 to $13 per square foot. Plus, it isn’t challenging to install, and provides dozens of color options. However, it may dent easily and is more susceptible to weather damage than other types. For example, storms and extreme temperatures can make vinyl deteriorate quickly. You can expect vinyl siding to last between 20 and 40 years.

Wood

Wood costs $1 to $15 per square foot, making it an affordable siding option. While it’s vulnerable to pests, water, and rot, its unique aesthetic can be desirable to homeowners. Plus, certain types of wood, such as cedar, can have a higher resistance to damage. Remember, wood siding requires paint jobs and chemical treatments every five years or so to prevent degradation. Wood siding that’s been well cared for can last 20 to 40 years.

Engineered Wood

Costing between $1 and $6 per square foot, engineered wood can be an attractive choice for those on a budget. As the name implies, the manufacturer pretreats the wood to enhance its durability. Mass production methods drive down the cost, and engineered wood needs paint less frequently than conventional wood.

In addition, DIYers often use this material because of its straightforward installation. However, faulty installation can result in moisture damage, so it may be best to hire a contractor. With the right installation technique and proper care, engineered wood lasts between 20 and 40 years.

Aluminum

Another low-cost option, aluminum siding costs $3 to $6 per square foot. This material helps with temperature control and is resistant to temperature changes, rust, and pests. However, it can produce loud sounds during storms and can develop scrapes and discoloration. As with the previous options, aluminum siding lasts 20 to 40 years.

Fiber Cement

Although you could mistake this material’s appearance for wood, fiber cement tends to stand up better to insects and the elements. It needs less care and painting than wood as well. However, because it is made of cement bound by cellulose fibers, its weight can be a drawback. The siding’s price ranges from $5 to $14 per square foot and will last about 50 years.

Brick

When you change the siding on a house to brick siding, it costs $10 to $20 per square foot and provides a solid, traditional look. While heavier than other materials, brick is touted for its resilience and longevity. Brick siding will last 100 years or more.

Stone

Usually the most expensive option, stone siding costs $7 to $30 per square foot. It provides a dignified, stately aesthetic and ultimate sturdiness. Unlike wood or vinyl, stone is extremely slow to deteriorate and is impervious to rot and pests. Stone siding lasts at least 100 years.

Stone Veneer

If you like stone but not its cost, stone veneer may offer you the happy medium. It costs $5 to $11 per square foot and looks like natural stone, although it’s a mix of cement, aggregates (like gravel or concrete), and iron molecules for coloring. Stone veneer is an excellent insulating material and lasts between 20 and 75 years.

DIY Home Siding Replacement Cost

Installing new siding by yourself may not be the most suitable DIY endeavor. For starters, there’s the safety of you and your home to consider. Plus, the weight and cumbersome nature of siding make it challenging to handle. And improper installation can result in substantial water damage, insulation problems, or pest infestations.

That said, if you have the expertise, installing siding is feasible, with vinyl being the most doable. Having the necessary tools and securing a construction permit without a contractor’s help can reduce labor costs by $1 to $3 per square foot.

Professional House Siding Replacement Cost

A professional house siding replacement job can cost $2 to $50 per square foot, depending on the materials and the other factors listed above. However, a skilled contractor can provide peace of mind through quality work, not to mention saving you hours sweating in the sun while you install material.

How to Reduce the Cost of Home Siding Replacement

Going with a professional for a house siding replacement project doesn’t have to mean burying yourself in debt. Here’s how to decrease the costs of your project without sacrificing quality:

Research and Compare Quotes from Multiple Contractors

A price comparison between contractors can help you get the best deal. When you’re searching for contractors for your project, referrals are an excellent place to begin. Ask neighbors, family, and friends who recently had siding repairs or replacements for their recommendations. There’s a good chance you’ll find plenty of siding installers in your area, and referrals will help you narrow down your choices.

As you research contractors, it’s wise to reach out to at least three different companies to gather price estimates. Then, request a detailed quote to gauge the pricing options available in your area. When comparing prices, remember that not all contractors solely focus on siding. Some general contractors and handypersons offer siding installation as part of their broader range of services.

To ensure a fair comparison, contact at least two companies specializing in siding and one general contractor. Keep in mind that while a general contractor may be versatile, they may not have the same level of expertise and experience as a dedicated siding professional.

Negotiate with Contractors

You can haggle with contractors to get a discount. For example, you might decide to delay your project until late autumn, when contractors have more gaps in their schedules. Likewise, you can ask for lower prices for tearing off the existing siding yourself or getting the required permit on your own. These tactics could help you shave hundreds off your final bill.

Consider Financing Options

If affordability is keeping you from replacing siding, financing the project can help you get started sooner instead of later. For example, a personal loan is a straightforward option that can get the necessary money in your account within a few days.

In addition, you could leverage your home equity to obtain a home equity loan or home equity line of credit (HELOC). These options turn your equity into cash, meaning they’re helpful for homeowners who have paid off a significant amount of their mortgage. Remember, financing means paying the loan plus interest every month, so it’s best to ensure your budget has the space before you borrow.

What to Consider Prior to Replacing House Siding

Because changing the siding on the house is an investment, you must consider a few things before starting your project. Here’s what to keep top of mind before shopping for siding materials or ripping off the old siding.

HOA Rules

Read your HOA covenants, conditions, and restrictions (CC&Rs) to ensure you’re correctly following guidelines on allowed siding materials, colors, and more. In addition, you may need to apply for preapproval from your HOA board before starting the project.

Likewise, your HOA may require you to hire a licensed and insured contractor to perform the work. Remember, not every contractor has the same licensure, insurance, and certifications, so it’s best to shop around. Plus, you’ll need to communicate your HOA’s rules and standards to the contractor so they understand the project’s parameters. It’s also crucial to obtain permits from your municipality. Your HOA might also require notification when the project is finished.

Siding Quality

Various siding materials have different durability and appearance, so it’s best to ask yourself what kind of siding you want. Siding quality will also affect pricing and maintenance.

Siding Colors

Next, it’s time for the fun part: choosing a color. While you may have an initial preference, it’s beneficial to follow these tips and steps:

•  Determine your siding type. Different types of siding may have limitations on color options. For example, brick and wood sidings offer fewer choices, whereas vinyl sidings offer endless possibilities.

•  Consider your home’s style. Your home’s architectural style can guide you in selecting the most suitable siding colors. For instance, white, gray, and subtle colors complement colonial homes, while bold colors and textures work well with Victorian-style homes.

•  Evaluate the front door, windows, and roof. Choose a siding color that harmonizes with other exterior elements. You can contrast a dark front door or roof with lighter-colored siding. And remember that you can always replace your front door affordably to match your new siding.

•  Explore neighboring homes. Walk around your neighborhood to gather inspiration and ideas from other homes. Look for houses that you admire and share a similar style and construction. Additionally, if homes are for sale nearby, check their values online to see if the siding color has contributed to a higher resale value.

Maintenance

To ensure the longevity of your new siding and prevent potential damage to your home, be sure to provide proper care and maintenance. Regular cleaning and inspections will help you identify any areas that require attention.

Remember, various siding types have specific maintenance and cleaning requirements. Therefore, becoming an expert in the siding type of your choice can add years to its life. Simple tasks like caulking and painting can make a significant difference in high-moisture climates. By addressing these maintenance tasks proactively, you can save hundreds of dollars in costly structural repairs.

Energy Efficiency

Siding guards your home against adverse weather, such as strong winds and extreme heat, can influence your home’s energy usage. In addition, energy-efficient siding offers superior insulation to traditional siding, reducing energy consumption for temperature control. It does so by including insulation (like spray foam or foam board) beneath your chosen siding material. In contrast, traditional siding often lacks this feature.

While uninsulated siding may be more affordable initially, the long-term savings on monthly utility bills through insulation can offset the project cost. Additionally, opting for energy-efficient siding increases your home’s value if you sell it.

To gauge the return on investment (ROI) for energy-efficient siding, consult a siding contractor and inquire about the typical energy bill savings experienced by homeowners in your area after installing insulated siding. Depending on your location, your savings could be 20% off your previous energy bill.

The Takeaway

Several factors influence the cost of house siding replacement, including the size and shape of the house, the type of siding materials chosen, the condition of the old siding, and the house’s location. Other factors, such as the time of year and the need for permits, may also affect the expenses. Researching and comparing quotes from multiple contractors, negotiating with contractors, considering financing options, and planning may help reduce the cost of a siding replacement project without compromising quality.

If you’re ready to roll up your sleeves and get some home repairs or renovations done, see what a SoFi personal loan can offer. With a SoFi Home Improvement Loan, you can borrow between $5k to $100K as an unsecured personal loan, meaning you don’t use your home as collateral and no appraisal is required. Our rates are competitive, and the whole process is easy and speedy.

Turn your home into your dream house with a SoFi Home Improvement Loan.

FAQ

How long does it take to replace the siding on a house?

The time it takes to replace siding on a house usually takes about 10 to 14 days. However, the exact time depends on various factors, such as the home’s size and the siding material.

What are the benefits of replacing siding on a house?

Replacing house siding can improve insulation and temperature control, protect against pests, and beautify the house’s appearance. As a result, replacing siding can often increase a home’s value.

Can I replace the siding on my house myself, or do I need a professional?

A DIY siding replacement project eliminates labor fees ranging from $40 to $90 per hour, which leaves materials as the sole expense. However, DIY can be challenging if you lack experience. Hiring a professional siding contractor ensures the job is done correctly, efficiently, and with access to better material prices, along with their expertise and knowledge of potential risks.

How do I choose the right type of siding for my home?

It’s best to choose siding for your home according to your priorities. For example, your budget, preferred materials, and insulation concerns will influence the type of siding for your project.

Are there any tax credits or incentives for replacing house siding?

Installing energy-efficient insulation with your siding can make you eligible for the Energy Efficient Home Improvement Credit. The credit is up to 30% of the project cost.

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About the author

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Photo credit: iStock/patty_c

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.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

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.

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Insurance plans typically don’t cover cosmetic surgery, which can make paying for one of these pricey procedures a challenge. But if cosmetic surgery is a priority for you, there are ways to make it more affordable.

If you’re ready to get some work done, here are financing options to consider and tips to help you take the next step with confidence.

Understanding the Costs of Plastic Surgery

The cost of plastic surgery varies widely and is impacted by a number of factors. These include:

•   Location: Where you get the surgery can make a big difference in how much you end up paying. Surgery in big cities tends to cost more than in smaller towns, often due to demand and higher living costs.

•   Surgeon’s experience: Newer surgeons may charge less, but as they gain experience and recognition, their prices can go up. It might be tempting to save money by choosing a new surgeon, but it’s important to select a surgeon who’s certified and has extensive experience with the procedure you want.

•   Medical facility and anesthesia: Besides paying the surgeon, you’ll also have to pay for the operating room and anesthesia, and these costs can vary based on the facility.

•   Type of surgery and materials: Some surgeries are more complicated and require more materials, so they tend to cost more. For example, a lip implant might cost $2,500, while a full facelift can be well over $11,000. Generally speaking, the more complex the surgery, the higher the cost.

Common Cosmetic Procedures and Their Average Costs

As you think about budgeting for a cosmetic surgery, it helps to know how much you might be expected to pay. Here’s a look at the average costs of some popular procedures, according to the 2023 Plastic Surgery Statistics Report from the American Society of Plastic Surgeons:

Procedure	Average Cost
Noninvasive Fat Reduction (ex. CoolSculpting® or Emsculpt®)	$1,157
Buccal Fat Pad Removal	$3,142
Upper Blepharoplasty (Eyelid Surgery)	$3,359
Breast Implant Removal	$3,979
Liposuction	$4,711
Breast Augmentation	$4,875
Mastopexy (Breast Lift)	$6,816
Rhinoplasty (Nose Reshaping)	$7,637
Breast Reduction	$7,800
Abdominoplasty (Tummy Tuck)	$8,174
Facelift	$11,395

Insurance Coverage for Plastic Surgery

Your health insurance plan is usually meant to cover procedures and treatments that are needed for health reasons. Often, coverage doesn’t extend to elective surgeries, including most plastic surgery.

Because of this, using health insurance for plastic surgery can be tricky. For example, rhinoplasty isn’t typically covered because it’s often done for cosmetic reasons. But if you have trouble breathing due to a deviated septum or another health issue, nose surgery might qualify for coverage.

When Insurance Might Cover Cosmetic Procedures

Whether or not insurance covers your procedure really depends on the situation. Here are some common surgeries that might be covered, though you’ll want to speak with your insurer about costs associated with your procedure:

•   Breast augmentation or reconstruction after breast cancer surgery (mastectomy)

•   Breast implant removal for health issues related to implants

•   Eyelid surgery (Blepharoplasty) for vision issues

•   Rhinoplasty for breathing or sleep issues

•   Skin removal surgery for ongoing rash, infection, or similar conditions

Navigating Insurance Claims for Reconstructive Surgery

Ultimately, the decision to cover your reconstructive procedure or any cosmetic procedure rests in the hands of your insurance provider. But the good news is, there are a few things you can do to increase your chances of getting your plastic surgery covered.

•   Take photos and jot down notes about your condition.

•   Keep a record of every doctor visit, hospital trip, or treatment you’ve tried, including any products or therapies.

•   Make sure you can show that you’ve tried everything else and that surgery is your last option.

•   Get letters from your doctor and other medical professionals stating that the surgery is needed for medical reasons (known as a Letter of Medical Necessity).

•   Choose a skilled, certified surgeon and a trustworthy treatment center.

Self-Funding Options

If your insurance doesn’t cover your plastic surgery, one of the best ways to pay is by saving up. Since surgeries are often scheduled months after your first consultation, you’ll have time to make a savings plan and consider other financing options. Putting money into a high-yield savings account savings account can also help, as you may earn extra money through interest.

Keep in mind that using tax-advantaged health care accounts like flexible spending accounts (FSAs), health savings accounts (HSAs), or health reimbursement arrangements (HRAs) to pay for cosmetic surgery is usually not allowed. This is because most cosmetic procedures aren’t meant to treat a medical problem or improve the patient’s health.

However, there are some exceptions. If a cosmetic procedure is needed because of a congenital disability, injury, or severe illness, you may be able to pay for it with your FSA, HSA, or HRA. To do this, you need a Letter of Medical Necessity explaining why the procedure is medically needed and how it will help with the issue.

Recommended: How to Set up a Health Savings Account

Financing Options for Plastic Surgery

Along with saving up for your surgery, there are a few other ways to help you cover your cosmetic surgery cost.

Payment Plan

Some surgeons offer payment plans that let you break up the cost of plastic surgery into smaller payments. Sometimes, these plans don’t charge interest or require a credit check. Just keep in mind that some doctors might suggest a medical credit card or a third-party lender that can come with interest and other requirements. It’s a good idea to ask your doctor about all available options.

Medical Credit Card

Designed to cover medical expenses, medical credit cards may come with 0% APR or a reduced APR if you pay off your balance within a certain period of time. For example, CareCredit offers 0% APR on eligible charges of $200 or more if the charge is paid back within six to 24 months.

But here’s the catch: If you don’t pay off the balance by the end of the 0% APR period, you may have to pay deferred interest. And those rates are usually 15% or higher.

Credit Card

Some credit card companies offer 0% APR for qualifying purchases (like plastic surgery) or for transferring a balance from one credit card to another if you pay off the balance within a set time. Usually, this time frame runs up to 21 months. But if you can’t pay it all off by then, you’ll likely face extra interest charges once the promotional period ends.

To qualify for this kind of card, you usually need a credit score of 670 or higher.

Personal Loan

Personal loans lets you borrow a specific amount of money, which you then pay back over time in monthly payments with interest. You can use the funds for things like debt consolidation, home renovations, and even plastic surgery procedures.

Plastic surgery loans are usually unsecured loans, which means you don’t need to put up collateral, like your house or car. Because of this, lenders often have stricter approval requirements than they do for secured loans.

The average interest rate on a personal loan can vary widely, depending on the lender, your credit, and financial situation. As of October 30, 2024, the average interest rate on unsecured personal loans was 12.40%. But also remember that some loans come with extra costs, like origination fees (usually a percentage of the total loan amount), which can increase the overall amount you’ll pay back.

How difficult is it to get a personal loan? If you have a good credit score and proof of income, you may find the process fairly simple and straightforward. However, there are steps you can take to improve your chances of getting approved, including working to reduce existing debt and checking your credit report and credit score regularly and addressing any errors you see.

Recommended: How to Apply for a Personal Loan

Evaluating Financing Options

If you’re considering taking out a loan to finance plastic surgery, here are some key things to look for:

•   Fees: Watch out for extra fees, like origination fees, which can add to your loan costs. Also, see if there are any penalties for paying off the loan early.

•   Interest rates: A lower interest rate usually means smaller monthly payments and less interest to pay overall. Having good to excellent credit (among other factors) can help you qualify for the best rates.

•   Monthly payment: Check how long the loan term is. A longer term can mean lower monthly payments, but it might also mean you’ll pay more in interest over time. A personal loan calculator can give you a sense of how your monthly payments can change based on interest rates and payment terms.

•   Prequalify: Some lenders let you see the rates you might qualify for without impacting your credit score (this is called a “soft pull”). This step gives the lender a chance to estimate your rate based on your finances. Comparing rates from a few lenders can help you find the best terms.

•   Financial hardship protection: If you miss or delay loan payments, your credit score could be negatively impacted and you may have to pay late fees. If you’re struggling to make payments, ask your lender what options are available to you.

Risks and Considerations

As you weigh your cosmetic surgery financing options, keep in mind a few key factors:

•   Timing needs: If you need money quickly, a personal loan could be a good choice, as many lenders offer fast funding.

•   Affordability of payments: Make sure you can comfortably afford the monthly payments. Creating a repayment plan can help you stay on track without putting unnecessary strain on your budget.

•   Current debt: If you already have a lot of debt, adding a personal loan or credit card debt will stretch your finances even further and impact your long-term savings. It will also raise your debt-to-income (DTI) ratio, which lenders often consider when reviewing loan applications.

•   Credit: If your credit score is lower (FICO considers 579 or below “bad”), it might be harder to get a good interest rate or to qualify for a loan at all. It could be a smart move to work on improving your credit before taking on new debt.

The Takeaway

Cosmetic surgery can be pricey, but plastic surgery financing options can help make this big expense a little more manageable. Comparing different financing choices can help you determine what works best for your budget and your financial health.

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.

SoFi’s Personal Loan was named NerdWallet’s 2024 winner for Best Personal Loan overall.

FAQ

What are the common financing options for plastic surgery?

Some common ways to finance cosmetic surgery include taking out a personal loan, saving up the money, and using credit card or medical credit card. As you compare your options, consider things like interest rates and repayment terms so you can pick the best choice for you and your budget.

Does insurance cover any cosmetic procedures?

Insurance usually only covers surgeries that are needed for health reasons. Cosmetic surgeries, like most plastic surgeries, are usually not covered. So, before you schedule anything, check with your insurance provider to find out what is and isn’t covered.

Are there any risks associated with financing plastic surgery?

Yes, financing your plastic surgery can come with some risks. For example, using a personal loan or credit to pay for a procedure usually means you’ll pay interest, and over time this adds to the overall cost of the surgery. Plus, if you miss a payment, your credit score may be impacted. It’s a good idea to make sure you can handle the payments and understand all the terms before you commit.

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Photo credit: iStock/Nastasic

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.

Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.


Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

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.

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Thinking about buying a horse? While it’s an exciting move, it’s also quite an investment. The average cost of a horse can range from a few hundred dollars to over $50,000, sometimes even more depending on the type of horse you’re buying. Using a horse loan, also called equine financing, can help make this purchase more manageable.

Read on to learn what you need to know about getting a horse loan so you can make an informed decision when welcoming a new horse into your family.

Can You Get a Personal Loan for a Horse?

Personal loans offer a flexible way to borrow money for big ticket items, like paying off high-interest debt, completing a home renovation, or even buying a horse. You can find a personal loan through banks, credit unions, and online lenders.

When you get a personal loan, you receive a lump sum of money and then pay it back in monthly installments, which include interest. There are different types of personal loans. Here are some common ones:

•  Secured and unsecured loans: Secured loans are backed by something valuable, like your home or car, while unsecured loans aren’t tied to any assets.

•  Fixed-rate and variable-rate loans: Fixed-rate loans have an interest rate that stays the same, while variable-rate loans have an interest rate that can go up or down based on changes in the market.

•  Single borrower vs. cosigner loans: With some loans, just one person is responsible for payments. But others allow a cosigner, or someone who agrees to help with payments if needed.

Pros and Cons of a Personal Loan for a Horse

To help you decide if a personal loan is a good option to finance your horse, it’s helpful to look at both the pros and cons.

Pros:

•  Personal loans usually have lower interest rates than credit cards. For example, the average rate on a personal loan is around 12.40%, as of October 2024. Meanwhile, the average interest rate on credit cards is closer to 21.76%. This means that unless you qualify for a 0% introductory APR on a credit card, using a personal loan might save you money on interest in the long run.

•  You don’t have to touch your savings. A good rule of thumb is to keep three to six months of income saved for emergencies. If buying a horse empties your savings, you could be in a tough spot if an unexpected expense comes up. A personal loan lets you keep your savings safe while still making your purchase.

•  Wide range of lending requirements. Since each lender has its own criteria, some may approve a personal loan even if your credit score isn’t the best.

Cons:

•  Your debt-to-income ratio will likely go up. Taking on more debt changes the balance between your income and what you owe. Lenders use this debt-to-income ratio (DTI) to decide on your loan approval and interest rate. Most lenders look for a ratio under 36%, so if you make $5,000 a month, your monthly debt should be under $1,800. Some lenders are more flexible, but staying within this limit could improve your chances of getting a competitive rate and terms.

•  You’re taking on additional debt. Buying a horse is a major purchase, so make sure you’re able to repay any money you borrow.

•  Missing or late payments may harm your credit score. Lenders may report late or missing payments to credit bureaus, and this could make your credit score drop. You may also have to pay a late fee, which can add to your costs — especially if it happens more than once.

Recommended:Where to Get a Personal Loan

How to Qualify for a Horse Loan

Before applying for a personal loan, here are a few questions to ask yourself:

•  How much do you need to borrow?

•  What can you afford to pay each month? (A personal loan calculator can help you determine potential monthly payment amounts based on interest rates and terms.)

•  How long do you need to pay it back?

Once you have a good idea of what you’re looking for, it’s wise to check your credit score since lenders use it to decide if you qualify. You can get a free copy of your credit report once a week from the major credit bureaus — Equifax, Experian, and TransUnion — at AnnualCreditReport.com. Take a look to make sure everything is accurate, and address any errors you see.

Ready to apply for your equestrian loan? See which lenders offer prequalification, which will give you an idea of the rates and terms you could qualify for before applying. To prequalify, you’ll typically need to provide basic information like your ID, address, income, and employment status.

Each lender has different requirements, so prequalifying with a few different lenders could help you find the best rates and terms. Once you choose a lender, they’ll guide you through the application process. They’ll likely do a hard credit check at this point, which may lower your credit score slightly, but this is usually only temporary.

Once you’re approved, the lender will ask you to sign a loan agreement. If you have any questions, make sure to speak with your lender.

Recommended:How Hard is It to Get a Personal Loan?

Tips for Successfully Repaying Your Horse Loan

Bringing your new pony home is a great feeling, but it also means it’s time to start repaying your loan. To streamline the process, here are a few strategies to help you repay the amount you borrowed.

Make a Budget

Setting a budget helps you see where your money is going and how much you’ll have left after each loan payment. Budgeting apps can make this easier by tracking your spending, setting limits, and even creating savings goals.

Set Up Autopay

To ensure you never miss a payment, consider setting up autopay. This way, your loan payment is automatically taken out of your account each month without any extra effort. Some lenders even offer discounts for using autopay.

Combine Your Debts

If you have multiple loans or debts, you might consider combining them into a single loan. This is called debt consolidation, and it involves taking out a separate loan to pay off your debt balances. Consolidating your debt can make paying down debt more manageable.

Make Extra Payments

If you want to pay off your loan faster, you could try making extra payments or switching to biweekly payments. By paying off your loan early, you can potentially save money on interest. But check with your lender to see if there’s a fee for early payoff.

Alternative Financing Options

Horse loans aren’t the only way to finance your purchase. Here are a few other options to consider:

Savings

If you can wait a bit before buying a horse, saving up for this big purchase can be a smart move. First, decide how much you’ll need, then set a timeline for reaching that goal. You may also want to consider setting up automatic transfers, which can help you put your savings on autopilot.

Keeping your money in a separate account, like a high-yield savings account, can also help it grow over time. Just keep in mind that once you have the horse, you’ll still need a budget for ongoing care and maintenance.

Horse Rental

Buying a horse comes with extra costs for things like care, food, and shelter. If you’re not ready for these ongoing expenses, renting a horse could be a better option. This way, you can enjoy riding without the full commitment.

Sharing Ownership

You could also consider sharing ownership with someone you trust and splitting the cost of the purchase and ongoing care of the horse. However, keep in mind that if the co-owner decides to back out of the arrangement, you might be responsible for all the expenses yourself, which could be financially burdensome.

Credit Card

Using a credit card to buy a horse might work if you have a high enough credit limit. But keep in mind, credit cards usually come with high interest rates, so if you can’t pay off the full balance right away, you could end up paying more in interest than with other financing options.

However, if you have good credit, some credit cards offer a 0% introductory APR. This lets you avoid interest — provided you pay off the balance before the introductory period ends. If you can’t pay it off by then, you may face a higher interest rate.

Other Factors to Consider Prior to Buying a Horse

Buying a horse is only the beginning of the costs involved. Depending on where you live, your horse’s needs, and other factors, caring for a horse can average between $8,600 to $26,000 per year.

For starters, horses need regular vet visits, a place to live, food, and lots of daily care. So before buying a four-legged friend, make sure you know your horse’s health history, and you have a reasonable budget set aside for yearly expenses.

Here are a few other important things to keep in mind:

•  Lifespan: Horses usually live between 25 and 30 years. Owning one is a long-term commitment that should be carefully considered.

•  Time: Horses need plenty of attention each day. If you’re short on time, you might have to hire someone to help care for your horse.

•  Training and equipment: Horses need plenty of exercise, which requires pricey equipment like saddles, blankets, bridles, and lead lines.

•  Transportation: If you plan to show or travel with your pony, remember that you’ll need a way to transport them, which adds to your ownership costs.

The Takeaway

Taking out a horse loan can be a smart way to finance a new pony. But before signing a loan agreement, it’s important to understand how equine financing works and to compare your options. Also, keep in mind the ongoing costs of horse ownership.

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.

SoFi’s Personal Loan was named NerdWallet’s 2024 winner for Best Personal Loan overall.

FAQ

How much can I borrow with a personal loan for a horse?

The amount you can borrow for a horse loan depends on factors like your credit score, your lender, and other financial details like your income. Personal loan amounts usually range from $1,000 to $100,000. Before applying, figure out what you can afford and what you’re likely to qualify for.

What is the typical repayment period for a horse loan?

Repayment terms vary by lender, but you can generally find personal loans with terms between two and seven years. Keep in mind that while longer terms may make the monthly payment more affordable, you may end up paying more in interest than you would with a shorter loan term.

Are there any additional costs associated with a horse loan?

Besides interest, some lenders charge extra fees, like an origination fee, which is usually a percentage of your total loan amount. Lenders might also charge a late fee if you miss a payment, so check with your lender to understand all potential fees.

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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.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

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.

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Student loans don’t just help you pay for your college education. They also allow you to build a credit history, which can be useful when it comes time to get a mortgage or take out a car loan. The key, though, is to make regular on-time payment – or you may wind up with the sort of credit history that negatively impacts your ability to borrow money in the future.

Here’s a look at how student loans can affect your credit score.

How Is My Credit Score Calculated?

First, it can be helpful to know how your credit score is calculated. There are several types of credit scores, but FICO scores are the most commonly used by top lenders.

Your FICO score is calculated using five categories of data found in your credit reports, which each category weighted differently.

Category	Weight in Scoring
Payment History	35%
Amounts Owed	30%
Length of Credit History	15%
New Credit	10%
Credit Mix	10%

Based on these calculations, there are a few ways you can build good credit and maintain a good credit score. Paying your bills on time is a big one, since your payment history is the most heavily weighted factor. Paying down existing debt and keeping credit card balances low will also have a big effect. Less impactful, but important strategies, also include diversifying the types of credit you have, avoiding opening too many new accounts at once, and keeping accounts open to lengthen the average age of your credit history.

What Student Loan Factors Affect My Credit Score?

Now that you know how credit scores generally work, you might be wondering how your student loans specifically impact your score.

Again, one of the biggest ways your student loans can affect your credit is whether or not you pay them on time. If you’re a responsible borrower who continually makes on-time student loan payments, you will see positive shifts in your credit score over time.

But if you fail to repay a loan or continually make late payments, your credit score will likely see a dip. If you default on your student loan, your credit score could drop significantly. The lender may also send your account to a collections agency, and you may have a more difficult time securing credit in the future.


💡 Quick Tip: Get flexible terms and competitive rates when you refinance your student loan with SoFi.

How Does a Late Student Loan Payment Affect My Credit Score?

Making payments on time is important, but what you might not realize is exactly how damaging late payments can be. Even if your credit history is pristine, it only takes one report of 30 days past due to change your score. Once a late payment is reported to the credit bureaus, it could remain on your credit report for up to seven years.

To help ensure your payments are on time, you might want to set up an automatic payment plan. Most lenders will even give you a small discount on your interest rate for doing so. If you know you can’t make a payment on time, talk to your lender or loan servicer right away. The Department of Education, which is the lender for four types of Direct Loans, and even some private lenders, offer loan deferment or forbearance. These options allow a borrower to temporarily suspend payments, which will minimize the impact on their credit score.

Does It Hurt to Pay Off Student Loans Quickly?

Repaying student loans quickly will always improve your credit score, right? Not necessarily. In fact, you could even see a small, temporary dip in your credit score right after paying off a loan. There are several reasons for this. If student loans are your primary source of open credit, closing those accounts means you’re no longer building payment history. Prematurely paying off a loan can also change your credit mix or credit utilization.

But credit score is just one factor to consider when deciding how quickly to pay off a student loan. You may want to think about how much extra interest you’d pay by leaving the account open. Carrying a high loan balance could also make it harder to qualify for new loans, which is something to keep in mind when it comes time to buy a home or car.

Notorious Big Bad D’s: Delinquent and in Default

Student loans affect credit scores in a variety of ways, but the worst thing you can do is ignore your monthly loan payment. If you’re even one day late with a payment, you’ll be considered delinquent and may be charged a penalty.

Once a missed payment is more than 90 days delinquent, your loan servicer will report it to the three major national credit bureaus. This could lower your credit score and hurt your ability to get a new credit card or qualify for a car loan or mortgage.

After 270 days of a missed student loan payment, your status changes to default and your student loans are due in full along with any accrued interest, fines, and penalties.

(Note that the on-ramp that’s in place for federal student loan repayment from October 2024 through September 2025 temporarily shields borrowers from the most immediate consequences of delinquency and default.)

Will Rate Shopping Different Student Loan Lenders Hurt My Credit?

When you’re shopping around for the best interest rate possible on a private student loan, lenders may pull your credit file. This is called a hard inquiry, and each one could temporarily knock a few points off your credit score.

To help protect your FICO score, try to finish shopping for rates and finalizing your loan within 30 days. Researching rates and getting quotes ahead of time can give you a good idea of whether you’ll qualify for a loan before you formally apply.

You may also want to ask lenders if they can tell you the interest rate you would receive without doing a “hard” credit pull, which might affect your score. You can’t get a loan without an eventual hard inquiry, but getting prequalified allows you to compare interest rates without impacting your credit score.

Will Refinancing Student Loans Help My Credit?

Because refinancing involves taking out a new loan with new terms to pay off existing debt, refinancing student loans affects your credit score—both positively and negatively.

In the short-term, refinancing will involve a hard credit inquiry and may cause a temporary ding to your credit. Again, as long as you keep your loan shopping to a short period, multiple inquiries will be treated as one, and should have a minimal impact on your score.

In the long-run, refinancing student loans at a lower interest rate can have an indirect positive effect on your credit. For example, if refinancing lowers the amount you pay each month, you may be more likely to make payments on time. You may also pay off your loans faster, which can help you reduce your overall debt and improve your score. (Note: You may pay more interest over the life of the loan if you refinance with an extended term.)

If you refinance federal loans with a private lender — in effect, turning your federal loans into a private loan — rest assured that credit bureaus don’t view these two types of loans any differently. However, when you refinance your federal loans, you will lose certain federal protections, such as income-driven repayment plans, deferment or forbearance, and loan forgiveness programs.

Do I Need a Good Credit Score to Take Out a Student Loan?

Your credit score may be a factor when you’re applying for a student loan. It all depends on the type of loan you’re planning to take out. Most federal loans don’t have a minimum credit requirement, which is why nearly every borrower gets the same interest rate regardless of their financial profile. However, federal PLUS loans for parents require that borrowers do not have an adverse credit history.

Credit scores are typically more of a factor with private student loans. Lenders often consider your score when determining student loan approval and interest rate. In general, the better your score, the better your rate will be.


💡 Quick Tip: Refinancing could be a great choice for working graduates who have higher-interest graduate PLUS loans, Direct Unsubsidized Loans, and/or private loans.

Which Credit Scores Do Private Lenders Use?

When considering your student loan application, most private lenders look at your FICO® score. This score, which ranges from 300 to 850, helps lenders determine whether to extend credit and at what interest rate.

Because FICO is used widely throughout the lending industry, including by mortgage lenders and credit card providers, it gives lenders an apples-to-apples comparison of potential borrowers.

The Takeaway

Student loans can help borrowers establish a solid credit history, which can ease the way for future borrowing opportunities and attractive interest rates. The key is to pay what you owe on time, every time.

Paying a loan off early or shopping around for rates could cause a small, temporary dip in credit scores. Being late with a payment — or stopping payment altogether — may lower your credit score and hurt your ability to qualify for another loan.

Looking to lower your monthly student loan payment? Refinancing may be one way to do it — by extending your loan term, getting a lower interest rate than what you currently have, or both. (Please note that refinancing federal loans makes them ineligible for federal forgiveness and protections. Also, lengthening your loan term may mean paying more in interest over the life of the loan.) SoFi student loan refinancing offers flexible terms that fit your budget.

With SoFi, refinancing is fast, easy, and all online. We offer competitive fixed and variable rates.

FAQ

Do student loans help build credit?

Student loans are an opportunity for borrowers to build credit and establish a solid credit history, which can help when it’s time to get a mortgage or take out a car loan. The key is to make regular, on-time payments.

How can I improve my credit score if I have student loans?

Payment history is one factor of your overall credit score, so making regular, on-time payments on your student loans can help you build credit.

How is my credit score determined?

Your credit score is calculated using five different categories of data. These include payment history, amounts owed, length of credit history, new credit, and credit mix.

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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.

SoFi Student Loan Refinance
Terms and conditions apply. SoFi Refinance Student Loans are private loans. When you refinance federal loans with a SoFi loan, YOU FOREFEIT YOUR EILIGIBILITY FOR ALL FEDERAL LOAN BENEFITS, including all flexible federal repayment and forgiveness options that are or may become available to federal student loan borrowers including, but not limited to: Public Service Loan Forgiveness (PSLF), Income-Based Repayment, Income-Contingent Repayment, extended repayment plans, PAYE or SAVE. Lowest rates reserved for the most creditworthy borrowers. Learn more at SoFi.com/eligibility. SoFi Refinance Student Loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org).

SoFi Private Student Loans
Please borrow responsibly. SoFi Private Student loans are not a substitute for federal loans, grants, and work-study programs. We encourage you to evaluate all your federal student aid options before you consider any private loans, including ours. Read our FAQs.

Terms and Conditions Apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. SoFi Private Student loans are subject to program terms and restrictions, such as completion of a loan application and self-certification form, verification of application information, the student's at least half-time enrollment in a degree program at a SoFi-participating school, and, if applicable, a co-signer. In addition, borrowers must be U.S. citizens or other eligible status, be residing in the U.S., and must meet SoFi’s underwriting requirements, including verification of sufficient income to support your ability to repay. Minimum loan amount is $1,000. See SoFi.com/eligibility for more information. Lowest rates reserved for the most creditworthy borrowers. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change. This information is current as of 04/24/2024 and is subject to change. SoFi Private Student loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891. (www.nmlsconsumeraccess.org).

Disclaimer: 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 .

Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

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.

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