Installing a fence on your property is an investment in the value of your home. The wide variety of fencing available makes this an opportunity to beautify your home, enhance your security and privacy, keep trespassers out and keep pets and young children in. If your credit score is high enough, you can finance your fence installation through a traditional lending institution. If you have poor credit, other options may be available to you.
Check your credit report. The country’s three consumer reporting companies all offer a free credit report online once a year. Once you know how your credit looks, you’ll have a better idea how to approach lenders.
Make a list of the lending options available to you. Depending on the price of the fence you want, these could include a home equity loan, a personal loan, a line of credit, installment finance or credit card finance.
Contact your mortgage company for a quote on a home equity loan. This type of loan is secured credit that will require you to put up the equity in your home as collateral. The equity, or difference between the market value of the home and the amount you owe on it, will need to be greater than the amount of the loan.
Approach your bank for a personal loan or line of credit. Find out whether the loan would be enough to cover the cost of the fence, and what the repayment terms and the interest rate would be.
Obtain a quote from the fence company you have selected to install the fence. Many companies offer in-house financing at competitive rates to get the business. Also, some home-improvement warehouse chains offer fence installation as well as their own financing arrangements, which may include a fixed period of interest-free financing.
Calculate the rate of interest that you would pay if you used a credit card to finance the installation, and compare it to the repayment terms offered by the other finance options.
Choose the finance option that offers you the most convenient payment terms and the best value for money. Secured financing such as a home equity loan may attract a lower interest rate because of the reduced risk to the lender, but using your home as collateral is a risk.
Select your preferred form of financing, and ask the lender for a copy of the standard agreement. Run it past your legal counsel to make sure that the terms and conditions are acceptable and that you understand the implications of paying it off early, or of defaulting on the payments.
Contact your fence installer and proceed with the new fence project.
Tracey Sandilands has written professionally since 1990, covering business, home ownership and pets. She holds a professional business management qualification, a bachelor's degree in communications and a diploma in public relations and journalism. Sandilands is the former editor of an international property news portal and an experienced dog breeder and trainer.