Did you just buy a new house or move into a new apartment? If so, you probably need some new furnishings. Purchasing furniture for your home can be expensive. It can eat up a significant portion of your savings and even leave you in debt. To make things a bit easier, you should look into getting furniture on finance.

What is furniture financing?

Furniture financing is a type of payment option that retailers offer to customers who want to buy furniture. It allows customers to purchase furniture via a defined payment plan. It is especially useful for people who are making a large purchase but are unable to pay for the full amount up front. It lets the customers walk away with their desired furniture after agreeing to a deferred payment plan.

Who can get furniture financing?

Buying furniture on finance is possible if you meet the criteria set by the retailers. Usually, those who are eligible to apply have to be:

  • At least 18 years old
  • Have a reliable source of income
  • Able to present valid identification

It is also not uncommon for retailers to take into consideration the credit scores of the applicants. Those who want to buy furniture with bad credit may have a more difficult time getting approval than those with good credit. If you are looking to buy furniture with bad credit, you can try to work on improving your credit score first to increase your chances of approval. Alternatively, you can look for places that do not run credit checks for their financing, or those who are willing to work with customers who have low credit scores.

What are the types of furniture financing?

There are several types of furniture financing available including:

Credit card – Using your credit card is probably the easiest and fastest way to go home with your new furniture. However, you should understand that interest rates can be a bit high and difficult to pay off.

Retailer financing – A lot of furniture retailers today offer their own financing programs to help make it easier for their customers to make major furniture purchases. To attract customers, they usually offer a 0% interest rate for the first 1 to 2 years. However, if you fail to pay, interest rates can skyrocket to 20% or 30%.

Rent-to-own – This gives customers an opportunity to test drive the furniture for a particular amount of time and decide whether or not to finalize the purchase. It is also a good option for those who only need furniture temporarily.

Layaway – In this setup, customers pay a percentage of the furniture cost upfront and pay off the rest over time. However, they cannot take the furniture home until it is fully paid for. This is a good option for those with bad credit or those who are not eligible for financing. Be aware that there is a risk of losing the money that you have already paid if you fail to meet your obligations at any point.

Source: Best place to finance furniture