GreenSky review

GreenSky Direct Home Improvement Loan In-depth Review

GreenSky is a financial company that provides bank loans for home improvement projects through a fast and paperless process. Founded in 2006, it has funded $15 billion in loans and has served 2.1 million customers.

According to Forbes, GreenSky is America’s third most valuable fin-tech company after SoFi and Stripe, and a “classic digital era middleman.”

Are you gearing up for a home improvement project? Read on to find out how GreenSky can finance your project, and to decide if it’s the right fit for you.

GreenSky Direct Home Improvement Loan Program

GreenSky helps Americans to get loans for home improvement projects through its Direct Home Improvement Loan Program.

Program highlights:

  • Loan amounts range from $3,500 up to $55,000.
  • Loan terms span for 36, 60, or 84 months.
  • Third-party financial companies like SunTrust Bank provide the loans.
  • GreenSky generates and services the loans.
  • You can use the funds to pay home improvement merchants such as contractors, big box home improvement stores, and local hardware stores.

How GreenSky works

If you apply, get approved, and accept the loan, then you’ll receive a GreenSky Direct Payment Card in the mail within 10 days. GreenSky will also provide you with an account number.

Once you’ve received your card and account number, you can use them to make purchases for up to six months, or until you hit your credit limit. But unlike a credit card, you can’t pay down your balance to make more purchases. Instead, you can only spend up to your set limit. At the end of the six month period, your total balance will convert into a fixed-rate installment loan.

As always, your credit limit and interest rate will depend on your creditworthiness and on how much you borrow. You can find out what you qualify for in minutes by applying online through the GreenSky website or mobile application, or over the phone with the company.

GreenSky online application

How does the online application process work with GreenSky? Just head over to the website or mobile app, click ‘Apply Now,’ and enter the following information.

1. First, provide your personal details.

2. Then share your address.

3. Next, enter your desired loan amount and loan term.

4. Finally, agree to the terms and conditions and submit your application.

That’s it! After you submit the application, GreenSky will evaluate your creditworthiness and let you know what you qualify for.

Note that GreenSky does not offer a prequalification process — the process above is GreenSky’s formal application. That means that applying will trigger a hard credit inquiry, which can cause your credit score to drop a few points. As such, if you have poor credit and suspect that your application will be denied, applying to GreenSky may cause you more harm than good.

What is a GreenSky Pro?

GreenSky Pros are home improvement contractors that GreenSky screens and approves. If you hire one to complete your project, then you can get 18 months with no interest on your loan.

The criteria for approval includes:

  • Business history. Companies must have two years of operating history, or must be part of a sponsor network working with GreenSky. Further, the contractor needs to be operating according to all applicable laws.
  • Online reputation checks. To qualify as GreenSky Pros, companies must have a positive online presence without excessive negative reviews.
  • Criminal records. GreenSky performs background checks on business owners/principals. If any relevant convictions are found, the business won’t be eligible.
  • Social security verification. GreenSky verifies the business owner’s identity.
  • Sex offender search. Applicants can’t have any previous convictions involving sexual crimes.
  • Business licensing and location. Verification of state-required licenses and physical locations.
  • Office of Foreign Assets Control’s (OFAC) Specially-Designated Nationals List. GreenSky ensures that the business owners/principals are not on OFAC’s list.

By choosing a Pro in the GreenSky network, you will get the most out of the loan program.

You can search for a GreenSky Pro near you on the GreenSky website.

Frequently asked questions

Is it easy to qualify for GreenSky?

The application process itself is easy. GreenSky loans are available in all 50 states, and you can quickly apply online or through the mobile app. However, the company targets customers with good-to-excellent credit scores, so it will be difficult to get approved if your credit score is under 680.

What organizations extend the loans?

GreenSky’s lenders are federally-insured equal opportunity banks.

What are some popular alternatives to the GreenSky Direct Program for home improvement loans?

Other common financing solutions for home improvement programs include:

The right solution for you will depend on your credit, income, assets, and preferences. Learn more about the alternatives here.

Is GreenSky Direct right for your next project?

If you are embarking on a home improvement project and need financing, then GreenSky may be the right lender for you. But before you send your application, consider the pros and cons.

WEIGH THE RISKS & BENEFITS

Here is a list of the benefits and the drawbacks to consider.

Pros
  • Same day funding available.
  • Available in all 50 states.
  • Well-established company with many customers served.
  • No-interest promotional periods available when working with a GreenSky Pro.
  • Easy online application and paperless loan origination.
  • Cosigners accepted.
  • Competitive interest rates.
  • Apply online, over the phone, or with an in-network contractor.
Cons
  • Must have good credit to get approved.
  • Application results in a hard inquiry on your credit report.
  • Complaints exist regarding the company’s billing, collections, and services.
  • The company has been sued twice for deceptive business practices. However, GreenSky was able to settle both suits by making changes to its business practices.
  • You can only use the funds for approved home improvement expenses.

Conclusion

If you can qualify (or have a cosigner who can), then GreenSky may be a great fit for you. The program provides an easy route for homeowners to get the financing they need for home improvement projects. Additionally, if you choose a contractor that is a GreenSky Pro, you can take advantage of the interest-free promotional period.

However, be sure to read the fine print of your loan agreement to ensure you understand all of the details. Many complaints stem from misunderstanding the terms. Further, remember to compare GreenSky’s offer to at least three other lenders’ offers to ensure that it’s the best deal you can find.

Click here to learn more about GreenSky. 

If you can’t qualify, you have other options. For example, loans secured by your home equity will be easier to get approved for with competitive interest rates. Or if you don’t own your home, you can find personal loan lenders that cater to fair-to-good credit.

Find your best rates on personal loans here.