Last Updated on February 14, 2024 by Nasir Hanif
Your HVAC system breaks down, leaving you with a home that’s too hot or too cold.
But you can’t afford the cost of a new system (which can range from $3,250 to $12,586 on average). And you don’t have good credit to easily secure HVAC financing. What do you do?
There are a few ways to replace your old HVAC system to keep your family comfortable.
Use these tips to finance HVAC system with bad credit.
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Look for Financing Companies That Accept Bad Credit
This is one of the safest options when you need to replace your HVAC system.
Just because you have bad credit doesn’t mean you can’t access loans. You just have to find companies that accept people with a low credit score. And when you pay off your loan each month, you can actually work towards improving your credit score.
The key is to look for air conditioning financing that offers a flexible payment schedule with low-interest fees.
Choose Rent-to-Own Programs
Another option is to rent a new HVAC system through a rent-to-own program. If you can’t afford the full cost now, work towards earning it by investing each month.
These programs typically accept those with no credit or bad credit.
Make sure you check carefully for hidden fees and costs. A good rent-to-own program will be affordable and without hefty fees.
Try a Different Kind of Loan
Some loans are specifically for financing HVAC systems. But that’s not your only option when your AC or heater breaks down.
Consider other types of loans that have competitive interest rates. For example, a home improvement loan is one loan that can still be applied to the cost of replacing your HVAC system. And these loans are still relatively friendly to those with less-than-stellar credit.
Home equity loans and other personal loans may also be used when needing financing.
Consider a variety of loan types when looking for financing.
Search for Grants
If you’re struggling to find financing, or if you need help covering some of the costs of your loan, the government may be able to help.
Depending on where you live and your income, you may be eligible for federal grants. These grants can help you pay for the out-of-pocket cost of replacing your HVAC system.
Use a Credit Card
Financing your new HVAC system with credit cards may not be the safest choice, but for some, it’s the quickest and easiest option.
Even with bad credit, you may already have an available line of credit or can apply for one easily. Then, you can charge the purchase and installation costs to your credit card, paying it off each month.
Be aware that a significant charge on your credit card, and the risk of missing a payment, can further damage your credit score.
How to Finance HVAC System With Bad Credit
Bad credit shouldn’t stop you from spending time comfortably in your home. And regardless of your financial situation, you shouldn’t have to live with a broken HVAC system.
Use these strategies to help you finance HVAC system with bad credit.
For more on financing home purchases, read our finance and home improvement articles!