How to Finance a Home Renovation

Before you start ripping out walls, you need a plan for how you’ll pay—ideally one that doesn’t leave you with high interest debt you regret later.

Using KOHO Line of Credit

For many medium-sized projects (like a new bathroom, kitchen refresh, or flooring), a line of credit can be more flexible than a lump-sum loan.

You can borrow what you need, when you need it, as the work progresses.

With the KOHO Line of Credit, you get:

• Apply online for about $1,000–$15,000 in available credit

• Get interest rates as low as 19.9%

• Only pay interest on what you actually use, not on your full limit

• Avoid extra charges—no late, annual, or origination fees, just the interest on what you borrow

• Apply without a hard credit hit; checking if you qualify won’t impact your credit score.

Common Ways to Finance a Renovation

1. Savings

Best for smaller projects:

• No interest, no payments later.

• But you’ll want to keep some emergency savings aside—don’t drain everything for a reno.

2. Line of Credit

Good for ongoing or flexible costs:

• You can draw as you go and only pay interest on what you use.

• Easier to handle surprises than a fixed loan.

3. Personal Loan

Better for fixed, one time budgets:

• You borrow a set amount and repay it on a schedule.

• Great if the project cost is clear and you don’t expect big changes.

4. Credit Cards

Okay for small, short-term charges you can pay off quickly:

• Points or cash back can be nice.

• But high interest makes it risky for large, long lasting balances.

How to Choose the Right Option

Ask yourself:

• How big is the project? Small cosmetic updates may just need savings; larger renos often need structured financing.

• Is the budget fixed or flexible? If you expect changes, a line of credit is usually easier to manage than a rigid loan.

• How fast can you pay it back? The quicker you repay, the less interest you pay—no matter what option you use.