Are you planning to create a relaxing backyard retreat with a luxurious hot tub? Smart decision. There’s nothing like a long, hot soak to ease away a long day’s stress. Fortunately, a hot tub is well within your reach and budget. You can now afford the best of models with the available hot tub financing options.

How much does a new hot tub cost?

Average hot tub installation costs approximately $4,000 to $8,500. This includes installation as well as labor costs and the work of an electrician. The cheapest hot tub option is an inflated hot tub for two people at $1,000 and the most expensive hot tub is an acrylic hot tub with a cover lifter for 12 people at $12,000.

The total cost depends on many factors, including the hot tub quality, hot tub design, performance, features, labor costs, and even your location.

Should I finance a hot tub?

Yes. Apart from the fact that a hot tub provides a spa of your own at a very reasonable price, it’s also a significant investment in terms of your health and wellness. Financing a hot tub is a bit different from financing other home improvement projects such as a bathroom renovation or a roof replacement. A hot tub is usually considered a luxury addition instead of a necessity.

However, if you’re planning to sell your home, installing a hot tub would add to its value and make it more attractive to potential buyers. With easy hot tub financing, you can make your home improvements right away at affordable monthly payments that fit within your budget.

Read more: Bathroom remodel & renovation financing options

How much are payments on a hot tub per month?

Your monthly payments depend on the interest rates you have and the loan term. The best-case scenario when you’re able to take advantage of a hot tub zero percent financing promotion. In that case, your monthly payment is just the price of the hot tub divided by the number of months financed. The loan term is typically 36 to 60 months. Such a financial arrangement makes a top-of-the-line hot tub quite affordable.

Be on the lookout for hot tub dealers who offer their customers a zero percent interest rate offer. In such hot tub offers, you’ll only pay the amount you borrow.

Keep in mind that the shorter the repayment term, the more will be your monthly payment; and vice versa. For example, an $8,000 hot tub with an APR of 8% for a loan term of 36 months will cost you $250.69 per month while the same APR for a term of  60 months will cost you $162.21 monthly.

Can you finance a hot tub with no credit check or with bad credit?

Yes. There are some loan options available, including an unsecured personal loan, if you’re not in favor of a credit check or have a tarnished credit score. However, hot tub financing with bad credit comes with high-interest rates and costly fees. 

Also, with a no-credit-check loan, your loan qualification/eligibility is in the hands of your loan lender to a large extent.   

Hot tub financing (no credit check) does not require a hard inquiry into your credit report during the loan application process. That means your credit history is not a huge factor in determining loan approval. Your personal information such as employment history as well as the amount of down payment you’re willing to pay the loan lender is important in order to secure such a loan. 

Having said that, it’s best to work towards improving your credit score and get a better hot tub financing deal with a lower interest rate.

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What are the different hot tub financing options?

If you’re ready to install your hot tub without cash on hand, financing your hot tub installation is the best way to go ahead. You do have several financing options available.

Hot tub financing through home equity loans

You can get the required funds for hot tub financing by tapping into your home equity. Just make sure that you make your payments on time as per the loan agreement. Such types of loans may also carry high application costs and a prepayment penalty if you pay off the loan earlier than its term.

Hot tub financing through zero-equity personal loans 

If you lack equity in your house or do not want to use it as collateral, you can opt for a personal home improvement loan. Especially, if you’re looking at one of the more expensive hot tub models.

Keep in mind that unless you have an excellent credit score, the high-interest rates may make your hot tub financing an expensive affair. 

Hot tub financing through a credit card 

If you’re choosing a reasonably priced hot tub, a credit card may be a great option for hot tub financing. Most credit card companies have a loan minimum of at least $2,000, which is a good amount for a new hot tub. That way, credit cards offer good flexibility and convenience.

Pros and cons of hot tub financing

Once you zero in on the best way to finance your new hot tub, it’s easier to stay on schedule and on the budget for the home improvement project. Trust us, your home remodeling will be easier and more manageable. And, you can get a quality hot tub — without putting a big financial strain on your lifestyle. Just make sure to choose the most favorable interest rates and monthly payments. 

Paying back the loan funds when you’re financing a home improvement can be a bit stressful though. Especially if you’re already experiencing cash flow difficulties. 

Always remember that if you default on your payment schedule, it can adversely affect your credit score and credit rating. However, if you plan your hot tub loan smartly and you will be able to manage your finances well! 

Read more: Deck financing options

Easy Hot Tub Financing Options For Good & Bad Credit was last modified: December 10th, 2020 by Ramona Sinha