 TITLE: How to Finance a Swimming Pool CONTENT: Five Ways to Finance a Pool\n---------------------------\nNo matter what kind of pool you want, you don't need to fund it all at once to make your swimming pool dreams a reality. Let's take a look at the five best ways to finance a pool, each of which have their own pros and cons.\n1.  ### Credit Card\n    You may choose to charge your pool expenses on a credit card with a low annual percentage rate (APR) or, even better, find a card with a 0% APR intro offer. That way, you can spread out the bulk of your payments over months without incurring any interest. Plus, rewards credit cards can give you a return on your purchase in the form of points, travel miles or cash back. If you're applying for a new card, one with an introductory bonus for new cardholders can also help save you some money.\n    **What to watch out for**: High interest rates can drive up the original price of your pool if you don't pay off the full amount before the end of your 0% APR period. Using a credit card for a major purchase is unwise if you don't have a plan to pay it off quickly. A high credit card balance can also cause your credit utilization to skyrocket—potentially affecting your credit scores.\n2.  ### Personal Loan\n    Possibly branded \"pool loans,\" personal loans are offered by banks, credit unions and online lenders, sometimes even in collaboration with your pool company of choice. Like with a traditional credit card, you won't have to put your home or other property on the line for a personal loan. The borrowing process tends to be fast and simple compared with other financing options. Personal loan lenders include Upstart and OneMain Financial.\n    **What to watch out for**: You may find a personal loan's interest rates aren't worth the convenience. Compare costs of home-secured loans (next on our list) to the costs of personal loans from different lenders.\n3.  ### Home Equity Line of Credit (HELOC)\n    A HELOC is secured by the value of your home. You can use a HELOC to pay for your pool and be charged a lower interest rate than you can get from many credit cards and personal loans—only paying interest on the money you withdraw. Also, the interest on your HELOC may be tax-deductible if you use it to upgrade your living space (for example, by adding a pool).\n    **What to watch out for**: Unlike credit cards, HELOCs put your house on the line, which means it can be repossessed by the lender if you fail to repay your debt. Additionally, HELOCs typically have variable interest rates, so your monthly payments may vary. When the 10-year draw period on your HELOC ends, you could face high monthly payments on the remaining balance if you haven't already paid off your pool.\n4.  ### Home Equity Loan\n    As with a HELOC, a home equity loan lets you borrow against the value of your home. Instead of a line of credit, however, a home equity loan offers a lump sum of cash you can use to pay for your pool, usually with a fixed interest rate.\n    **What to watch out for**: Taking out a home equity loan has potentially steep closing costs and also uses your home as collateral.\n5.  ### Cash-Out Mortgage Refinancing\n    Depending on the amount of equity you have in your home, you may be able to get cash when you replace your current mortgage loan with a new one. When you refinance, you can secure lower interest rates on your new mortgage and cash out up to 80% of your home equity.\n    **What to watch out for**: As with a home equity loan, refinancing means going through the whole mortgage borrowing process all over again—forms, closing costs and all. You'll also most likely stretch out the timeline to pay off your mortgage, which could result in paying significantly more in interest.\nBefore you dive into any applications, check your credit score. A shining credit score could help you secure more favorable interest rates on your credit cards and loans. If your credit isn't perfect, take a few steps to clean it up. END