Kitchen, bath, HVAC, roof, and window crews often arrive with a financing tablet: GreenSky-style point-of-sale loans, Synchrony or Wells Fargo dealer programs, or manufacturer “0%” promos. Convenience is real. So are dealer fees baked into the cash price, deferred-interest cliffs, and a hard credit pull you did not plan.
Slow the money talk until you have a written scope and a cash price. Use the four numbers in Comparing financing offers. Broader remodel paths: Paying for home improvements and the home improvement vertical. Soft vs hard pulls at the tablet: Hard vs soft credit checks.
What “contractor financing” usually means
| Path | How it shows up | Watch for |
|---|---|---|
| Same-day POS installment loan | Tablet application on-site | Hard pull; rate tied to credit; possible dealer markup |
| Deferred-interest promo | “0% if paid in 12/18 months” | Interest from day one if any balance remains (Deferred interest) |
| True 0% installment | Fixed payments, interest waived as you go | Confirm in writing; rarer than marketing implies |
| Manufacturer / dealer card | Store-style revolving account | High go-to APR after promo |
Sibling product guides for common trades: HVAC financing, Window and roof financing, Solar financing.
Soft prequalification before the hard pull
Ask whether the quote screen is a soft prequalification. Many lenders can show a range without a hard inquiry; the formal application often adds a hard pull. Mechanics: Soft-pull prequalification.
Questions to get in writing or on a recorded call:
- Soft or hard check on this screen?
- Is the financed amount equal to the cash price?
- True 0% or deferred interest? Go-to APR if you miss the promo?
- Any origination, dealer, or “doc” fee added only if you finance?
Worked example: $14,800 kitchen package
Sam has three bids for the same cabinet/counter scope. Cash price on the winning bid is $14,800.
| Option | Amount | Terms | Rough total interest / risk |
|---|---|---|---|
| Credit-union personal loan | $14,800 | 9.9% APR, 48 months | ~$3,200 interest; known amortization |
| Contractor deferred-interest promo | $14,800 | “0% for 18 months,” 26.99% if unpaid | $0 if cleared in 18 months; ~$4,000+ clawback risk if $2,000 remains |
| HELOC draw | $14,800 | Variable; interest-only option | Lien on the house; rate can rise (Home equity loan vs HELOC) |
Sam soft-prequalifies at the credit union first. At the contractor tablet she declines the hard pull until she compares the CU APR to the promo’s go-to rate. She only uses the deferred promo if a sinking fund will clear the balance three months early.
Pressure patterns that mean pause
- “Discount only if you finance today”
- Cash price that jumps when you say you will pay cash
- Refusal to put soft-vs-hard and promo type in writing
- Bundled extended warranties you did not request (Service contracts)
Emergency “no heat” or active leak still allows a phone bid and an APR question. Same-day-only financing is a sales tactic, not underwriting.
Checklist
- Get a written cash price and scope before any credit screen.
- Soft-prequalify elsewhere; ask soft vs hard on the tablet.
- Label the promo: true 0% vs deferred interest.
- Run monthly payment × term and the four comparison numbers.
- Keep emergency reserves intact; use a sinking fund for planned work when you can.
- Re-check credit reports after any hard pull for unexpected inquiries.
Educational only. Not lending, mortgage, or contractor advice. Deep mortgage product shopping belongs with a mortgage specialist—keep home-secured borrowing comparisons shallow here.