Reading your low credit financing comparison
What a lower credit score actually costs
On a $24,000 system over 20 years, a 580 to 639 credit tier might see around 11.99% APR, totaling about $63,382, meaningfully more than the roughly $49,950 total cost at 8.49% APR for the 640 to 679 tier. The gap between credit tiers is often larger than people expect, which makes exploring every available option worthwhile, including the low-income solar program eligibility checker if a rebate could offset some of that gap. The CFPB's credit reports and scores resource is a good first stop for checking exactly where your score stands before shopping lenders.
Why a home-equity-secured loan can help even with lower credit
Because a HELOC or home equity loan is backed by your home rather than relying solely on your credit profile, lenders may offer meaningfully lower rates than an unsecured loan even to borrowers with a lower score. On the same system, a secured option around 7.99% APR nets about $40,943, better than either unsecured tier shown here. A small business solar loan calculator is worth checking too if the system is for a business rather than a home.
The real tradeoff with a secured loan
A secured loan uses your home as collateral, meaning a serious default could put your home at risk in a way an unsecured loan does not. The secured vs unsecured comparison covers this tradeoff directly, since the lower rate isn't free of added risk.
Other ways to improve your rate
A co-signer with stronger credit is one option some lenders allow, which the co-signer impact calculator can help you evaluate. Shopping multiple lenders is another, since rates for the same credit profile can vary more than people expect between institutions, and the credit union vs national lender comparison is a good starting point for that search. Your rate depends heavily on your credit, and the Consumer Financial Protection Bureau's guide to credit reports and scores explains how scores and reports work.
Whether waiting to improve your score makes sense
If specific, achievable steps like paying down existing balances or a few months of on-time payments could realistically move you to a better tier, waiting might be worth the rate improvement. There's no guaranteed timeline for credit score changes, so weigh that uncertainty against how urgently you want to move forward with solar. The CFPB's issue spotlight on solar financing covers the broader tradeoffs involved if you're weighing that timing decision. The Consumer Financial Protection Bureau's report on solar financing explains how solar loans are structured and what to watch for.