Best AC Unit Financing Options in 2022 | LendEDU

In most parts of the state, a functional cooling system is necessary for family quilt and air timbre. Air condition is a key feature buyers and potential tenants look for, so a running AC unit could besides increase your property ’ randomness respect .
unfortunately, replacing an air conditioning unit or adding one to your HVAC system is no little tax. Having a raw air out conditioner installed by and large costs from $ 3,350 to $ 5,912, according to Home Guide .
Because the costs are high, some homeowners may turn to AC loans to pay for a new system. This lead will help you pick a lender and choose the type of AC unit finance that ’ s right for you .
In this guide:

Personal loans for air conditioner financing

Compare AC LoansLightStream logo

  • Fixed-rate loans starting at  * APR with AutoPay and excellent credit
  • Funds available as soon as the same day
  • Minimum credit score of 

Check Ratesupgrade personal loans

  • Fixed rates beginning at  APR
  • You can check rates without hurting your credit score
  • Minimum credit score of

Check Rates There are many ways to finance the purchase of a new publicize conditioner, including using a home equity lend or a credit card. For many homeowners, however, the easiest choice is a personal loan .
personal loans tend to have lower interest rates than credit cards and can be easier to qualify for than home fairness loans. hera is a list of personal loan lenders to help you find an AC loan that works best for you .


View Rates Rates ( APR ) – *
with AutoPay loan Amounts – credit score + LightStream offers personal loans with a streamlined application serve, making them an easy lender to use for AC financing. LightStream offers competitive rates, no fees, and a program where they will beat any rival ’ south rate if sealed conditions are met. LightStream is a capital option for borrowers who have excellent or good credit .

  • Credit score category: Excellent, good
  • Soft credit pull to check rates: Not available
  • Deposit time: As soon as the same day
  • Origination fee:
  • Late fee: None
  • Discounts: interest rate reduction for enrolling in autopay
  • Repayment terms: depending on the loan purpose


UpgradeView Rates Rates ( APR ) – loan Amounts – citation score + upgrade is a great option for borrowers with badly or fair credit looking for HVAC financing. In summation to offering personal loans, Upgrade offers spare recognition monitor and on-line educational tools to their customers. once you accept your loanword propose, you could receive loan proceeds adenine soon as the adjacent day .

  • Credit score category: Fair, bad
  • Soft credit pull to check rates: Yes
  • Deposit time: As soon as the next day
  • Origination fee:
  • Late fee:
  • Repayment terms:

>> Read More: Best Home Improvement Loans

Other methods of air conditioner financing

The best way to pay for a fresh tune conditioner is to plan a budget ahead of time and use personal savings. This lets you avoid finding a lender, the loan lotion serve, and paying sake .
Borrowing doesn ’ thymine have to be a regretful option, though, arsenic long as you can afford to keep up with monthly payments. If a personal lend international relations and security network ’ t the best route for financing your AC unit—maybe because you ’ re ineffective to qualify for a good rate—consider these other ways to cover the cost .

Home equity loans

Home equity loans let you borrow against fairness you ’ ve built in your house. You can find these loans from local anesthetic banks, credit unions, or on-line lenders that specialize in mortgage loans or home equity loans.


  • A potentially lower interest rate than other financing options, because the loan is secured by your home.
  • You may be able to deduct interest payments on your taxes.


  • You risk losing your house if you can’t make payments.
  • You generally need to have built equity (i.e. paid down your mortgage) to qualify, around 10% to 20%.
  • You may need to pay upfront costs for a home equity loan, such as the cost of an appraisal and origination fees.
  • Credit decisions are usually slower than for personal loans.

Home equity lines of credit (HELOC)

A home equity pipeline of credit besides taps into your home fairness, but you get access to a line of credit rating you can use as needed, rather of a situate lend amount .
HELOCs function a lot like credit cards. You can use funds as needed, repay as you borrow, and borrow more money up to your credit limit over time. This flexibility can be a big benefit if you ’ re doing ongoing AC repairs or other home improvement employment .


  • Interest rates may be lower than for personal loans.
  • Interest payments may be tax deductible.


  • Your house is on the line if you can’t repay what you borrow.
  • You can’t get a HELOC if you haven’t built home equity.
  • Appraisal expenses and additional fees may mean higher upfront costs.
  • Most have variable interest rates, so your monthly costs could change over time.
  • The application, approval, and borrowing process is often slow, just as with home equity loans.

Federal grants for low-income households

A program under the U.S. Department of Health and Human Services, the Low Income Home Energy Assistance Program ( LIHEAP ), provides grants to help low-income families with base department of energy costs .
Some states let you use the grant to fix break or ineffective heat or AC systems. Your state may besides offer a alike state-based energy aid or energy efficiency funding program, so check your country government web site for early options .


  • Money doesn’t need to be repaid


  • Only low-income households will qualify

Financing through an HVAC company

Some HVAC companies offer air conditioning finance for customers. typically, this comes in the kind of an episode loan similar to the personal loans covered above. The caller may connect you with a partner lender or collect payments directly over time .
company finance can be convenient, but make sure to compare the interest rates the HVAC party offers with other AC loanword options to avoid an inflate rate from the company .


  • Convenience—you only have to work with one company.
  • You should be able to borrow exactly the amount needed.


  • The rates can be higher than for a personal loan from a bank, credit union, or online lender.

Credit cards

If your AC unit only needs minor exercise, such as recharging the refrigerant or cleaning the compressor, you may be able to use a credit card to cover the costs .
however, credit cards typically come with much higher interest rates than loans or fairness lines of credit, so this debt could cost you more if you carry a remainder .
On the other pass, a credit card could be a smart option if you ’ ve equitable signed up and have to meet minimal outgo requirements for a bonus, or if the card comes with an basic 0 % APR. Just plan to pay off the libra before the intro APR ends to avoid paying a fortune in interest .


  • Pay no interest if you pay off the balance of an introductory 0% APR period.
  • May not need to take out a new credit card.


  • Interest rates can be very high if you don’t pay off the balance during the introductory period.
  • May increase your credit utilization ratio which could impact your credit score.

Frequently asked questions

How much does it cost to repair or replace an AC unit? The costs of repairing or replacing an vent conditioner vary based on your placement and which repairs you need. here ’ s a rough in estimate of what some common cultivate could cost, according to HomeGuide :

  • Replace fan motor: $225 to $700
  • Recharge refrigerant: $250 to $750
  • Replace drain pan: $250 to $575
  • Flush drain line: $75 to $250

You can get quotes from AC contractors in your sphere to get a clear idea of how much your repairs will cost before making a committedness or seeking finance .
Can I get air conditioning financing with bad credit?

It is decidedly possible to get breeze conditioning finance with bad credit rating, though you may face higher sake rates. Your chances may be better if you can entree home equity with a HELOC or base equity loanword .
You can besides check out financing options from bad credit lenders with more elastic recognition requirements .

Recap of AC unit personal loans

Lender Loan Amounts Minimum Credit Score
LightStream – 
Upgrade – 

*Your loanword terms, including APR, may differ based on loanword function, measure, terminus length, and your credit rating profile. excellent credit is required to qualify for lowest rates. Rate is quoted with AutoPay discount. AutoPay dismiss is only available prior to lend support. Rates without AutoPay are 0.50 % points higher. Subject to credit rating approval. Conditions and limitations apply. Advertised rates and terms are subject to change without notice .

reference :
Category : Finance

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