It’s the question every contractor asks before offering financing: “What if I offer it, my customer applies, and they get denied?” You don’t want to get their hopes up. You don’t want to look bad. You don’t want to waste the appointment.
Here’s the honest answer. A lot more homeowners can be approved than most contractors expect. Let’s look at why.
The short answer: there are ways to find more loan options for more people
Approval depends a lot on how you offer financing.
If you send a customer to one bank, that bank says yes or no based on its own rules. One set of rules. One shot. If that lender’s box doesn’t fit your customer, the answer is no — even if another lender would have said yes.
A multi-lender platform works differently. One application gets matched to many lenders at once. If the first lender passes, the next one might say yes. More lenders means more chances. That’s why these platforms tend to report much higher approval rates.
Why approvals can be higher than you might guess
1. The credit floor is lower than you think
People assume you need great credit. You don’t. A typical loan from a single bank often wants a FICO score around 700 or higher (U.S. News). But platforms that work with many lenders go lower. Hearth’s lending partners can offer options for credit scores as low as 550. That opens the door to a lot of homeowners a single bank would turn away.
2. Many lenders, one application
Your customer fills out one short form. That form gets matched to a whole network of lenders. Each one has different rules and different appetites. So even if one says no, another may say yes. The customer never has to shop around or apply to five places. The platform does the matching.
3. It starts with a soft credit check
This is the part that takes the fear out of it. The first step is a prequalification — a soft credit check. A soft check shows what the customer may qualify for without hurting their credit score at all (Experian). So there’s no downside to checking. Your customer sees real monthly payment options in about a minute, with zero impact on their credit.
What credit score does a customer need?
Here’s a rough guide to what different scores could mean for a home improvement loan:
| Credit score | What to expect |
|---|---|
| 720+ | Strong odds, best rates, highest amounts. |
| 660–719 | Good odds, solid rates. |
| 620–659 | Often approved; rates a bit higher. |
| 550–619 | Still possible through a multi-lender network like Hearth. |
Credit score isn’t the only thing lenders look at. They also weigh income, job stability, debt-to-income ratio, among other factors— how much a customer already owes compared to what they earn. A steady income can help a borderline score get to yes.
“But what if they get denied?”
Here’s the thing to remember: because it starts with a soft check, a “no” costs your customer nothing.
Their credit score isn’t touched. There’s no mark on their report. They simply see that the timing isn’t right, and you move on to other options. No harm, no awkward fallout.
So the downside you’re worried about — getting their hopes up, then a denial that hurts them — mostly isn’t real. Offering financing is low-risk for the customer. It’s only upside for you.
The real risk isn’t a denial — it’s not offering at all
The bigger danger is leaving financing off the table. When you offer it, the numbers move in your favor:
- 75% of homeowners want monthly payment options
- 18% better average close rate when you offer financing on your leads
- 30% higher average ticket on jobs closed with financing
- Customers who prequalify are 26% more likely to move forward with the project
Every customer you don’t offer financing to is a customer who might say “let me think about it” — and never call back.
Bottom line
Will your customers get approved? Probably more than you expect if you’re used to a single lender. A multi-lender network approves far more people than a single bank, reaches credit scores as low as 550, and starts with a soft check that can’t hurt anyone. The question isn’t really “will they get approved.” It’s “why aren’t you offering it yet.”
If you aren’t offering financing, or running into a lot of denials with your customers, we should talk. Click here to get more info.
Frequently asked questions
What credit score do my customers need to get approved for financing?
It varies by lender. A single bank often wants a score around 700 or higher. But a multi-lender platform like Hearth can offer options for credit scores as low as 550, because the application is matched to many lenders instead of just one.
Does checking financing hurt my customer’s credit score?
No, not with Hearth. Prequalification uses a soft credit check, which does not affect the customer’s credit score. They can see their estimated monthly payment options with no impact and no risk.
Why do multi-lender platforms approve more customers?
Because one application is matched to many lenders at once. Each lender has different rules, so if one declines, another may approve. More lenders means more chances to get a yes. This is a big reason why 20,000+ companies are powered by Hearth.
What happens if my customer doesn’t qualify?
Nothing bad. Because it starts with a soft check, there’s no mark on their credit and no harm to their score. You simply explore other options. Offering financing is low-risk for the customer and upside for you.
How fast can an approved customer get funded?
Through Hearth, approved customers can receive funds in as little as 24 hours, so the project doesn’t stall. Most will see funding in 1-5 business days.
