GreenSky, LLC

GreenSky provides point-of-sale consumer financing for home improvement projects. Rather than offering loans directly to consumers through its own channels, GreenSky works through a network of contractors, home improvement retailers, and service providers. When a contractor offers you financing at the time of a project estimate or sale, the financing may be facilitated through GreenSky's platform and funded by one of its partner banks.

GreenSky is commonly used for projects such as roofing, HVAC replacement, windows, flooring, kitchen and bath remodeling, and similar home improvements. The loan offer typically comes up when you are finalizing a contract with a participating contractor rather than when you apply independently at a bank.

Many GreenSky financing products include a promotional period during which interest is deferred. It is critical to understand what deferred interest means: it does not mean zero interest. It means interest is accumulating during the promotional period but is not charged to your balance if you pay off the full amount before the promotion ends. If you do not pay the entire balance by the end of the promotional period, all of the accumulated interest from day one of the purchase is charged to your account at once. This is very different from a true zero percent APR offer, where no interest accrues during the promotional period. Read the financing terms carefully before agreeing.

GreenSky loans are funded by partner banks, which are FDIC insured. GreenSky itself is a technology and program administrator, not the actual lender.

Before accepting financing through a contractor using GreenSky, ask for the full terms in writing, including the promotional period end date, the deferred interest amount, the regular interest rate that applies after the promotional period or if the balance is not paid in full, and any fees. Compare this against other financing options such as a personal loan or home equity product.