Best Furniture Financing For Good & Bad Credit

What is Furniture financing?

Furniture shopping can be much more enjoyable when you get to leave the store with an affordable monthly payment rather than a big dent in your account balance. One of the most popular options for furniture financing is a personal loan. Personal loans provide a lump sum of money that can be repaid over an agreed upon term with interest. Most personal loans are easy to manage and understand. Terms and financing details can vary depending on the type of financing and the lender but the overall idea of most furniture financing  is similar. If you are considering furniture financing and want to know what you qualify for you should visit PrimeRates. It can be beneficial to begin the furniture shopping stage as a pre-approved buyer that knows what they can afford.  PrimeRates can connect you with reliable lenders that offer furniture financing up to $100,000 with terms up to 12 years and interest rates starting at 4.99%.

How does Furniture financing work?

Understanding how furniture financing works is important for borrowers. Most lenders require you to start by submitting an application. The next step is to finalize your loan approval. Once your loan is approved, you should receive the funds as a lump sum. If you are using a credit card or line of credit, you should be approved up to a certain amount. You will only be charged interest on the amount you actually use. If you use a personal loan you will most likely repay the loan monthly with interest. If your loan does not have an early payoff penalty you can pay the loan off early and save money on interest. Paying as little as 10% extra each month can save you hundreds of dollars in interest. If you are using an unsecured and fixed personal loan, the monthly payment and interest rate should not change during the loan term. For example, if you borrow $10,000 at 4.99% with a 5 year term your monthly payment should be about $189. 

Furniture Financing Options

When it comes to purchasing furniture, there are a variety of financing and payment options available. So which financing option is best? Which financing option do you qualify for? Which furniture financing option has the lowest monthly payment? If you are trying to pick the best financing option, you should compare the options below. 

Personal Loans

Personal loans can be used for financing new, pre-owned, and refurbished furniture. In addition, all credit types can qualify for personal loans. Personal loans offer long repayment terms, competitive interest rates, and high loan amounts, making them an attractive option. If you are looking for an easy furniture financing option with a low monthly payment you should seriously consider using a personal loan. You can secure a personal loan through a bank, credit union, or online lender. In most cases, online lenders are easier to qualify for and offer faster application and funding processes. However, if you value face-to-face interaction you may want to use a bank or credit union. PrimeRates partners with lenders that specialize in furniture financing. Individuals can visit PrimeRates online and compare offers quickly without affecting credit score. 

Credit Cards

It may be tempting to pull out an existing credit card to swipe and drive home with all the furniture you wanted. If you can pay the balance off within 30 days a credit card may not be a bad way to finance furniture. In addition, you may be able to earn an abundance of reward points by using your credit card for a large purchase. However, if you need more time to pay off the furniture loan you should consider other options. Credit cards offer convenience but that convenience can come along with a price. Most credit cards have much higher interest rates than personal loans or in-store financing. Another challenge with credit cards can be the spending limit. Furniture can be expensive and credit cards may not provide enough funds. If you use most of your available credit card limit you may also risk hurting your credit score. If you can afford a high monthly payment you may be able to qualify for a credit card with a promotional 0% period. Most likely, you’ll need substantial income and an excellent credit score to qualify for a high credit card loan amount with a promotional period.

Paying Cash

Paying cash is one of the cheapest ways to purchase furniture. However, for many of us  it may not be an option. Even if you do have the cash on hand, it may be wise to save it for an emergency. In some cases, you may have more bargaining power if you are paying cash versus using a credit card. Retailers can be charged fees for accepting credit cards. The fees are typically based on the dollar amount of the purchase. If a retailer is paying 2% of every credit card transaction amount that can add up quickly. In addition, paying cash allows you to purchase any kind of furniture from just about anywhere.

Secured Loans

While unsecured loans are less risky for the borrower, in some cases you may want or need to use a secured loan. Secured loans require collateral meaning they are more risky for the borrower but less risky for the lender. If you have credit challenges you may have better luck qualifying for a secured loan. Some borrowers prefer personal loans because of their low interest rates. If you are confident about repaying your loan you may not mind providing collateral in exchange for a lower interest rate. However, life can change quickly making unsecured personal loans a more popular choice for furniture financing. PrimeRates lending partners offer secured and unsecured personal loans. 

In-Store Financing 

Some retailers may offer in-store financing. In-store financing can benefit the customer and the business. We recommend checking with your preferred furniture store to see if they offer in-store financing. Some retailers may even offer promotional 0% interest periods with their in-store financing option. However, in most cases the promotional period is only between 6 to 24 months. If you can pay the loan off before the promotional period expires you should take advantage of the 0% offer. It’s important to pay close attention to the terms of the in-store financing. In some cases, there may be extra fees or high late payment fees. In addition, if you do not pay the loan off within the promotional period you may be charged a very high interest rate. 

What are the requirements to qualify for Furniture financing?

Qualifying for furniture financing may be easier than you think. PrimeRates partners with lenders that can help all credit types. Whether you are confident that you qualify or not, you can apply through PrimeRates without affecting your credit score. To increase your chance of approval you can add a co-signer to your application. Ideally, the co-signer should have good credit and consistent income. Some of the minimum requirements for furniture financing offered through PrimeRates includes. . .

• Credit score of 620 or higher
• Consistent income
• Reasonable debt-to-income ratio

How to find the best deals for furniture financing?

One of the easiest ways to find the best furniture financing deals is by using PrimeRates. PrimeRates offers a completely free, safe, and time-saving platform that can help you find the best furniture financing deals. PrimeRates can connect you to lenders based on your credit score and borrowing needs.In addition, individuals can submit an application through Primerates and receive loan offers without affecting their credit score. PrimeRates makes comparing furniture financing offers easy while saving you tons of time. Once you narrow down the furniture you want to purchase you can check to see if in-store financing is offered. If in-store financing is not offered or you have a better offer through Primerates you can finalize your loan and receive the funds to purchase the furniture. 

How to apply for Furniture financing

Whether you choose to use in-store financing or a personal loan you’ll want to start by submitting an application. If you want to get pre-qualified for a personal loan you can apply through PrimeRates. Your credit score will not be affected by submitting an application. Submitting an application through PrimeRates is painless and  allows you to receive multiple personalized personal loan offers within minutes. In addition, most PrimeRates lending partners do not have spending restrictions. This means the funds can be used for just about anything.Here are 3 easy steps to apply for furniture financing loans through PrimeRates. . .

#1. Submit easy online application

#2. Select the best furniture financing loan offer

#3. Receive funds quickly

Conclusion

In conclusion, all credit types can qualify for furniture financing. If you are looking for the best furniture financing offer you should avoid applying with multiple lenders and potentially impacting your credit score. A smarter way to find the best furniture financing offer is to apply through PrimeRates. Within minutes you can compare the best furniture financing offers you qualify for. 

Discover the best furniture financing today. . . apply online!