What Are the Risks of Getting GreenSky Loans?

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Ready to turn your humble house into your dream home? Major renovations like remodeling your kitchen, adding a new bathroom, transforming your basement into an entertainment zone and replacing your roof can beautifully transform your home — and significantly boost its value — but these kinds of upgrades don’t come cheap. You need a lot of cash to pull off major home transformations, and that’s where GreenSky comes in.

GreenSky has carved a reputable niche in the consumer finance market by providing low-interest, point-of-sale (POS) loans to help consumers finance various home improvement projects. Additionally, the company’s unsecured loan program helps individuals and families pay medical bills using affordable financing plans they can apply for in a matter of minutes. What makes GreenSky different from many other lenders? While secured loans (like car loans) must be backed by collateral, the unsecured loans offered by GreenSky don’t require collateral.

Unsecured loans typically have higher interest rates, but in many cases, GreenSky's deferred loan repayment plans don’t accrue interest for a specified period, which is an appealing money-saving feature for those who can pay off the loan balance in full by the end of that term. As appealing as that sounds, these types of loans do come with certain risks, and it’s important to understand every one of them. Start with this analysis of some of the risks of GreenSky loans before deciding if the lender can meet your borrowing needs.