What Are My Air Conditioning Financing Options?

June 19, 2023

An air conditioner is one of the most expensive home appliances to replace. Since ACs usually don’t fail on a schedule, you might not have the budget to pay for a unit upfront. Air conditioning financing takes a lot of stress off your decision. It lets you pay for your air conditioner over time. However, many homeowners are often unaware of their options.

AC financing lets you:

  • Have heating or cooling for your home

  • Purchase a unit you otherwise couldn’t afford

  • Choose from a wider range of options

Some of the most common AC financing options include:

  • Credit Cards: Some HVAC companies accept credit cards for installation and repairs. Just watch out for high-interest rates. A card with an introductory 0% APR can save you if you can pay off the balance over a certain period. Also, determine how the purchase will affect your credit utilization, as increasing it can lower your credit score.

  • Personal Loan: Applying for a personal loan can provide access to the money you need in a couple of days. Each lender sets an interest rate, so it can pay to do your research first and compare rates from different lenders. The type of loan you need often determines the interest rate. However, many lenders have strict eligibility requirements and, unless you have a high credit score, the loan term and interest rate may be prohibitively expensive.

  • Home Equity Loan: A home equity loan works like a second mortgage. It can be obtained from a local bank, credit union, or online lender. Your home is collateral for the loan, so the interest rate is typically lower. But defaulting on payments can result in losing your home. Expect a longer process for the lender to make a credit decision.

  • Federal Housing Administration (FHA): The FHA’s PowerSave Loan Program is an option if you have home equity. You can borrow up to $7,500 and your home won’t be used as collateral. The Low Income Home Energy Assistance Program is a grant available to low-income households.

Apply for Financing with Your HVAC Company

Financing from your HVAC company can enable you to borrow the exact amount you need with an installment loan. It’s usually similar to a personal loan but only for the heating and cooling equipment you purchase. Some HVAC companies collect payments directly, while others work with partner lenders. Equipment financing is convenient because you work through one company. Interest rates differ depending on the company, so you may want to shop around to avoid unreasonably high rates.

At Service Champions, our Know Before You Go Program means you’ll receive financing information when we provide an in-home estimate. We work with various financing providers. Our representatives will help find the right one and connect you with an AC payment plan that works with your budget.

Contact Us to Learn More About Air Conditioning Financing

To learn more about easy payment plans and have us walk you through the steps to getting set up, schedule your visit on the web, chat with a representative online, or call 833-600-0991 today.

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