Hot Tub Financing: Cozy Up With These Funding Options

Owning a hot tub is not only enjoyable, but it could contribute to your home’s resale value. However, acrylic hot tubs can be quite expensive — they cost between $4,000 and $11,000, according to HomeAdvisor, and that’s not including installation.

Depending on your budget, available savings and credit score, you may need to consider hot tub financing to afford your purchase.

Where to find hot tub financing

Personal loan lenders

If you have good credit, applying for an unsecured personal loan could be your best bet for getting favorable interest rates and terms, as well as higher lending limits. This type of personal loan has few restrictions on how you may use the funds, and you won’t likely need to put up any collateral.

Here’s one lender to consider, but we encourage you to seek out other lenders you may qualify for. You can often apply with a soft credit check to get a feel for the terms you could end up with, but also consider a lender’s fee structure.

LightStream

LightStream specifically offers hot tub financing — to qualify for its interest rates, which start from 6.99% , you’ll need good credit. Terms range from 24 to 144 months, but we recommend you repay your debt ASAP to minimize costs.

This fixed-rate unsecured loan has no fees or home equity requirements, nor will an appraisal won’t be required. If approved, you could receive funds — from as little as $5,000  — on the day you apply.

LightStream advertises that it will beat rates (by 0.10 percentage points) offered by competing lenders, provided certain terms are met.

In-store

If you pursue in-store financing from a hot tub dealer, you may be offered competitive promotions or holiday-specific deals. Here are a couple options, with rates and terms accurate as of Nov. 4, 2021:

Beachcombers

Beachcombers offers hot tub financing up to $100,000 through its partner lender, FinanceIt. It offers repayment terms up to 240 months and rates between 7.99% and 12.99%.

As with financing from LightStream, there are no penalties for paying off your hot tub early.

American Pool and Spa

American Pool and Spa, based in Kentucky, works with two companies to offer financing. Eligibility is based on credit rating and other criteria.

• HFS Financial Services offers secured and unsecured loans up to $500,000. Rates start at 2.99%, while terms can go up to 20 years. There are no fees or penalties for paying off your loan early.
• You may be eligible for a revolving line of credit through a program they offer via Wells Fargo, and you could qualify for a 0% interest promotional period. You’ll need to check with American Pool and Spa for the details of this offer.

Through the manufacturer

If you’ve got your heart set on a specific brand, you could apply for financing directly through the manufacturer.

Hot tub manufacturers, such as ThermoSpas or Strong Spas, offer financing that you can apply for online. ThermosSpas offers financing via Wells Fargo, while Strong Spas works with GreenSky Consumer Program Financing.

Hot tub financing with bad credit (Is it possible?)

Some companies may offer hot tub financing even if you have bad credit — or no credit at all.

While hot tub financing with bad credit or hot tub financing with no credit check may sound tempting, these companies will typically charge extremely high interest rates or enforce other conditions that could make it prohibitively expensive in the long run.

It’s important to consider why you need a hot tub, and whether it’s worth the cost. Make sure the financing you apply for includes the long-term costs of maintaining and owning a hot tub, as well as any unforeseen expenses that could come up.

Consider the reasons why you might have bad credit and whether increasing your credit utilization on top of the added stress of paying off a large purchase could further hurt your credit score.

Other hot tub financing options

If getting financing through a dealer, manufacturer or personal lender isn’t getting you what you need, there are a few other options to help you pay for a new hot tub.

• Pay with a credit card: The average APR for new credit card offers is 46% — but because they come with such high rates, it’s financially risky to charge your hot tub on a credit card. If you’re carrying a balance over from month to month, you could end up with burdensome debt that’s difficult to pay off. However, using a credit card could be a reasonable option if you’re able to open a card with an introductory 0% APR and pay off the balance before the promotion is over (some credit card companies will offer such a promotion for a year or even longer). But if you’re going to take advantage of it, make sure you can pay off your balance before the promotional period ends; what’s more, keep in mind that exceeding 30% of your overall credit limit can hurt your credit score. So before using a credit card to pay for a hot tub, make sure you’ve thought through all the potential risks.
• Pay with cash: If you have savings stashed away, this could be a good time to withdraw your funds to pay for your hot tub in part or in full. That being said, if the cash is sitting in an emergency fund or designated to be used elsewhere, you shouldn’t dip into this reserve.
• Take out a home equity loan or home equity line of credit: Because home equity loans or home equity lines of credit (HELOCs) involve using your home as collateral, you may be able to benefit from lower interest rates, longer terms and the ability to withdraw more funds. However, you risk losing your home if you default on your payments. Plus, you’ll pay closing costs with both of these options, which boosts how much you need to borrow.

Compare your options for hot tub financing

When you factor in the associated costs of permits, accessories, delivery, utility bills, maintenance and landscaping, a hot tub can be a very expensive and long-term proposition. Comparison shopping will be essential.

As you should for any other type of purchase, it’s important to read the fine print on financing agreements and calculate whether you can afford to pay it off.