Personal Finance

GreenSky Loans Review 2022

GreenSky Loans is a Goldman Sachs firm that works completely with its GreenSky Professional contractors, that means in an effort to get a house enchancment mortgage you have to be working with a contractor who makes use of GreenSky financing providers.

GreenSky Loans itself isn’t a lender, however as an alternative works as a go-between connecting you, the home-owner, and federally insured banks to search out the most effective financing possibility on your venture.

It’s a totally different solution to get a house enchancment mortgage than you might be used to. This text will clarify the variations, plus execs and cons, to let you understand if this lender is best for you.

What Is GreenSky Loans?

GreenSky is a service supplier for contractors and different distributors that permits them to supply their clients dwelling enchancment loans to finance their dwelling enchancment tasks. Positioned in all 50 states, GreenSky has funded over 22 billion in client loans, funding every little thing from kitchen remodels and deck rebuilds to HVAC installations.

Not like different private loans, you’ll be able to’t merely apply for a GreenSky mortgage on-line. As an alternative, every little thing should undergo a “GreenSky Professional” (a contractor or service provider who makes use of GreenSky’s monetary providers).

The contractor will make it easier to fill out a type, apply for the mortgage, after which, as soon as the mortgage funds, has direct entry to the GreenSky direct fee card known as a Buying Go. This streamlines the method, serving to your contractor have fast entry to funds in order that your venture can proceed with no hitch.

One small draw back we’ve discovered with GreenSky is as a result of every little thing is run by the contractor, GreenSky’s web site isn’t marketed for the typical client. All the data is directed at contractors, making some client data troublesome to search out. Luckly, we dove into the nice print and FAQs and located an important data you want earlier than you join a GreenSky Mortgage.

The way to Apply for a GreenSky Dwelling Enchancment Mortgage

In case your contractor or vendor has supplied you a house enchancment mortgage by GreenSky, then making use of is simple. To start out, all you want is to be no less than 18 years previous and have a U.S. deal with, social safety card, and driver’s License.

In the event you match these fundamental standards, the contractor can take an image of your driver’s license and the mortgage software will auto-populate.Then you definitely simply add in some pertinent data like your Social Safety quantity, annual earnings and requested mortgage quantity after which the applying is full.

From there, GreenSky will approve or deny your software after a verify of your credit score historical past and presumably even fund the mortgage the identical enterprise day.

Even in case you are initially denied, GreenSky will robotically ship you an alternate provide known as an Prompt Counteroffer (ICO). It is a good characteristic for these with lower than good credit score because it doesn’t require one other onerous credit score pull that may harm your credit score rating.

How Does a GreenSky Mortgage Work?

A GreenSky Dwelling Enchancment Mortgage works in another way than a private mortgage that different on-line lenders provide as a result of it capabilities extra like a bank card than a lump sum mortgage.

Principally, when you’re authorized for a mortgage, you obtain a digital GreenSky direct fee card known as a Buying Go. This 16-digit cross works like a bank card with the contractor submitting bills for approval. Then, GreenSky sends a textual content or an electronic mail to you for authorization of the acquisition and as soon as approved, the expense is paid for.

Whilst you do apply for a mortgage quantity and thus have a credit score restrict, you don’t should take all the cash out directly and are solely answerable for what you spend on your property enchancment venture.

Forms of GreenSky Loans

In relation to your precise mortgage, GreenSky will give you a number of decisions, relying on whether or not you’re what GreenSky calls a “money purchaser” or a “finances purchaser.”  Principally, GreenSky has loans which can be helpful if you happen to’re planning on paying off the mortgage rapidly or loans which have decrease rates of interest if you happen to’re planning on paying the mortgage off just a little bit at a time.

Your contractor ought to go over all of your mortgage choices together with your particular month-to-month funds and rates of interest, however a fundamental understanding of the several types of loans supplied will make it easier to make an knowledgeable determination.

GreenSky Deferred-Curiosity Loans

Greatest for Fast Payoff

Key Options

  • Deferred curiosity
  • Greater curiosity than different choices

GreenSky provides deferred-interest loans that means that you can keep away from paying curiosity throughout a set promotional interval of 6 to 24 months. In the event you repay the deferred-interest mortgage in full earlier than the promotional interval ends, you keep away from paying curiosity all collectively. If not, you pay the curiosity that accrued throughout that interval and something that continues to accrue after.

GreenSky Deferred-Curiosity Loans

Rate of interest ranges

6.99% to 29.99%

Minimal credit score rating

None disclosed

Mortgage quantities

As much as $65,000

Reimbursement Schedule

Promotional interval of 6 to 24 months then a time period as much as 7 years


$39 account activation payment

Extra Info About GreenSky Deferred-Curiosity Mortgage

A deferred-interest mortgage works by deferring the curiosity till after a set interval is over. Whereas this implies you may be capable to keep away from paying curiosity, that doesn’t imply the curiosity doesn’t exist. 

Principally, throughout the promotional interval, curiosity is billed to you, however you’re not answerable for paying for it till that set interval is over. In the event you repay the mortgage throughout the promotional interval, the curiosity is waived and also you keep away from paying curiosity in any respect. But when not, you’ll should pay all of the curiosity that accrued thus far and something that continues to accrue after. 

Every billing interval, the invoice will present the mortgage stability, the curiosity billed (even if you happen to’re not answerable for it but), and the date that the promotional interval ends. This lets you hold observe of the curiosity even if you happen to’re not answerable for it but. 

Some GreenSky deferred-interest loans require funds throughout the promotional interval and a few don’t – simply take note of your particular mortgage phrases to grasp your particular mortgage. 

Whereas GreenSky’s rate of interest vary is aggressive, lots of GreenSky’s deferred-interest mortgage charges are discovered on the upper set of the vary. So, whereas it’s an amazing alternative if you happen to’re planning on paying off the mortgage throughout the promotional interval, you may find yourself paying plenty of curiosity if you happen to don’t.

GeenSky Decreased-Fee Loans

Greatest for Longer Reimbursement Intervals

Key Options

  • As much as 12-year compensation interval
  • APR 0% to 11.99%

GreenSky provides a Decreased Fee Mortgage with aggressive charges and lengthy compensation durations. A GreenSky Decreased Fee Mortgage is an effective mortgage possibility if you understand you’ll want longer than a number of months to repay your mortgage.

GeenSky Decreased-Fee Loans

Rate of interest ranges

0% to 11.99%

Minimal credit score scores

None disclosed

Mortgage quantities

As much as $65,000

Reimbursement Schedule

As much as 12 years


$39 account activation payment

Extra Info About GeenSky Decreased-Fee Loans

With aggressive charges and lengthy compensation durations, a GreenSky Decreased Fee Mortgage is perhaps a very good possibility if you understand you’ll be able to’t repay your mortgage rapidly.  

Whereas GreenSky does declare to supply curiosity free loans for individuals with good credit score, most everybody will find yourself with an rate of interest of some sort. GreenSky’s web site doesn’t listing particular rate of interest ranges, however a number of revealed fee sheets for GreenSky retailers present charges starting from 5.99% to 11.99%. 

We’d love extra data on the GreenSky web site itself, however these charges are aggressive and we like that the GreenSky Professional ought to stroll you thru all of your choices together with the specifics in your month-to-month fee earlier than you formally signal for the mortgage. 

Simply keep in mind that each forms of loans have a $39 origination payment that’s charged together with your first month-to-month fee.

Options to GreenSky Loans

In the event you’re not working with a GreenSky Professional or just need to take a look at different choices to cowl your property enchancment prices, try some alternate options under or learn our greatest methods to finance your property enhancements.

Dwelling Fairness Mortgage

A safe mortgage like a house fairness mortgage is perhaps a very good choice to cowl your property enhancements for a decrease value. As a result of dwelling fairness loans use your property as collateral you typically get decrease rates of interest which might make borrowing extra inexpensive. The draw back is your own home is in danger, in order all the time we propose you learn the mortgage paperwork fastidiously to grasp what you’re signing up for.

Different Private Mortgage Lenders

It’s all the time price purchasing round to see what charges you will get from different lenders. Whereas most private loans are particularly for dwelling enchancment tasks, you’ll be able to merely apply the mortgage to your venture. Many on-line lenders additionally permit you to pre-qualify as a way to verify their charges forward of time with out affecting your credit score rating, making it straightforward to match totally different choices.

Credit score Playing cards

In the event you’re a smaller venture, a bank card may cowl your property enchancment bills. Many playing cards provide 0% curiosity throughout a promotional interval very similar to GreenSky, however in contrast to GreenSky, you’re not penalized with retroactive curiosity if you happen to don’t repay your mortgage from the promotional interval. Be certain to learn the nice print if you happen to go this route as a result of many bank cards have excessive APRs after the promotional interval.

Professionals and Cons of GreenSky Loans

GreenSky is usually a nice possibility if you happen to’re planning on financing a house enchancment venture and paying it off throughout the promotional interval. We love the potential for a zero-interest mortgage and even the decreased fee loans have aggressive charges. Simply be certain to verify your mortgage paperwork fastidiously so that you perceive your fee schedule and any charges you may expertise.

Under is how we imagine GreenSky Loans stacks up as an entire that can assist you resolve if taking out a house enchancment mortgage with GreenSky is best for you.


  • Mortgage funds rapidly, even similar day
  • Possibility for zero-interest if you happen to pay the mortgage stability off in promotional interval
  • Joint mortgage supplied
  • No prepayment penalties
  • Prequalifying attainable if you wish to keep away from a tough credit score pull that impacts your credit score rating


  • Should use a GreenSky contracto
  • $39 activation payment
  • Web site is geared towards the contractor

Often Requested Questions (FAQ) About GreenSky Loans

In the event you’re nonetheless questioning about GreenSky Dwelling Enchancment Loans, try our solutions to essentially the most generally requested questions.

What Credit score Rating Do You Want for a GreenSky Mortgage?

GreenSky doesn’t have a disclosed minimal credit score rating, however usually a good rating or above is required. This doesn’t imply which you can’t apply with low credit score, simply know that you simply may get a better APR or be denied altogether.


When you’ve got a low credit score rating, GreenSky does have an Prompt Counteroffer service that is perhaps useful. In brief, if you happen to’re denied for the mortgage you requested for, they’ll ship a counteroffer as another choice, all supplied with no second credit score pull. 

Though GreenSky has this provide for these with low credit score, the higher your rating the higher your provide from GreenSky.  In the event you’re trying to enhance your rating, try these methods to enhance your rating this 12 months.

Who Owns GreenSky Financing?

Goldman Sachs acquired GreenSky, LLC in 2021. Whereas Goldman Sachs owns GreenSky, the precise financing of GreenSky’s loans goes by many alternative federally insured banks all through the nation.

The quick reply is sure. The lengthy reply is extra sophisticated. GreenSky has carried out so much in the previous few years to earn the belief of its clients, however GreenSky has run into some bother within the final couple years. 

In 2021, the Shopper Monetary Safety Bureau (CFPB) introduced a swimsuit in opposition to GreenSky for permitting contractors to take out loans for his or her clients with out the purchasers authorizing them. In brief, individuals had been having loans taken out of their identify by their contractors with out their data or consent. 

CFPB believes that GreenSky was no less than conscious of the issue and didn’t take the correct actions in opposition to it. CFPB is requiring GreenSky to refund or cancel 9 million in loans, pay a $2.5 million civil penalty, and create new procedures to keep away from it taking place sooner or later.

Contributor Whitney Hansen covers banking and investing for The Penny Hoarder. She additionally writes on different private finance subjects,

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