Do you want to buy brand new home furniture but you don’t have a good credit score? Here is the comprehensive guide on bad credit furniture financing. If you have a great credit score, you can easily take a loan from your local bank, credit union, or even a credit card to buy your ideal furniture. However, if you have a bad score, the entire process can be relatively difficult. Thankfully there are solutions.
This article will explain a few ways you can buy furniture with a bad credit score. We will explain all options you have for bad credit furniture financing. Those options available to you include furniture financing for bad credit as well as furniture stores that finance people with bad credit, about which you find all details below.
How Furniture Financing Works
You have many options available to you when you are considering buying a piece of furniture. You can go to your neighborhood furniture store and pay in cash. Alternatively, you can go to one of your local stores and apply for financing. Most of the national brands such as Wayfair and Ashley Furniture have their own credit cards that you can use to buy. These cards are usually issued by partnering banks such as Comenity. Therefore, if you have a good credit score, you can use the card to buy your furniture.
Bad Credit Furniture Financing
If you have a bad credit score, you will have a difficult time accessing credit to buy your desired piece of furniture. Still, you have a number of options available to you. Some of these options are:
Use Furniture Financing Companies
Before deciding on the company to pick for your furniture financing, make sure to check the available options. Do not let your credit score limit your from accessing furniture for your home. Here are some furniture financing companies you can consider.
- Zibby. With Zibby, you can purchase an item and pay for it over time. The company leases items to its customers within a lease period ranging from 12, 18 and 24 months.
- Synchrony Home. The company provides credit cards that are accepted in over 10,000 retailers. The financing period ranges from 6 to 60 months and it does attract annual fees.
- American First Finance. The company offers 24 month lease payment plan and gives up to $5,000.
- Wells Fargo Furniture Financing. The company does not charge annual fees and has convenient monthly payments while new customers get an APR of 28.99% for purchases.
Use Furniture Stores that Finance People with Bad Credit
When you do not have adequate finances to furnish your house and you have poor credit scores, you can still buy furniture with bad credit. You can consider buying furniture and paying later using these furniture financing companies for people with bad credit.
- Snap Financing. To qualify, you must be above 18 years, employed and posses a checking account. You can get financing without a credit report. They offer up to $3,000 loan.
- FlexShopper. The company uses lease-to-own plan and does not require any down payment. You must be above 18 years and have a bank account active for not less than 90 days.
- Elgin Furniture. The company provides financing option that suits ones budget. You need to make monthly payments and uses rent-to-own program.
- Ashley Furniture. The company is available in 123 countries and provides furniture to its customers even if they have poor credit scores. They have their credit cards which they give to their customers to purchase. When you apply for a loan, they approve and deliver furniture immediately.
- Progressive Leasing. It is among the largest financing companies in the world. It offers loans for up to twelve months without a credit report. You can apply for financing online.
- Jack’s Warehouse. It offers financing without a credit check. Also, you can qualify to get a loan without an interest for the first 90 days. To qualify, you need to provide proof of income for at least six months and have a checking account.
- Okinus Lease Purchase Financing. The company does not require credit check and you can get financing of up to $5,000. You will need to fill in an application and get approved before you can shop.
General Tips for Buying Furniture if you Have a Bad Credit Score
If you have a bad credit score, you should consider the following tips when buying home furniture.
- Consider buying second hand furniture. When you do your search well, you can easily find high quality used furniture.
- Consider comparing prices. By comparing prices from different stores, you will likely find good quality furniture at affordable prices.
- Don’t use predatory lenders. These are companies that offer you credit at so high interest rates. Using these companies for furniture financing is absolutely not worth it.
- Buy in bits. We get it. You want to buy high quality furniture for your home. If you cannot afford buying them all at once, we recommend that you spread the buying process.
- Don’t go for brand names. Luxury furniture brands like Perigold and Salt & Pepper can be tempting. However, if you do your search well, you can easily find furniture pieces that are much better and at a lower price.
Use your Local Credit Union
A credit union is a member-owned financial institution that offers services to improve the lifestyle of its members. It offers similar services to banks but it has better rates because it is not driven by profits. If you are a member of a credit union, you should consider talking to the credit officer and see whether they will lend you.
Use a bank with a co-signer
Most banks will avoid doing business with you if you have a bad credit score. However, if you have a co-signer who has a good credit score, most banks will always love to do business with you. This is because, if you fail to pay, they will just take the funds from your co-signer. Therefore, if buying the furniture is so urgent to you, we recommend that you use a co-signer.
Take a Secured Loan
If the furniture is so important to you, you can take a secured loan from your local bank. A secured loan is one that has collateral. If you fail to pay back the loan, the bank will take the collateral, auction it, and raise the funds. Most banks will be comfortable with such a deal.
Use Peer to Peer Lending platforms
There are a number of peer to peer lending platforms like Lending Club, Upstart, and Prosper. These platforms usually don’t only give out loans to people with high credit scores. A company like Upstart also looks beyond your credit score. It looks at your education level, your college debt, and where you work. While this does not guarantee that they will lend money to you, you could give these Peer to Peer Loans For Bad Credit also a try.
We get it. You want your home to look great. However, as you will realize, buying quality pieces of furniture can be a difficult and expensive thing. Bad credit furniture financing is usually a more expensive thing to do because of the limited options that are available. By using the tips explained in this article, you will be at a great place to save money and make rational decisions.
What is a Credit Score?
- Whenever you take a loan from a bank, credit union, or a credit card, the lender usually submits your details to a credit bureau. In the United States, the most popular credit bureaus are Experian, Transunion, Equifax. These bureaus then submit these details to credit scoring companies.
- The most popular scoring company is FICO. This company will generate your score based on your borrowing and paying history. If you have a high credit score, lenders will have some certainty that you will pay back the money. As a result, they will make the terms a bit better. If you have a weak score, lenders will have a difficult time lending you money because your track record is not all that good.
- Take a look at our article explaining you how to instantly improve your credit score for more information on credit scores and the best ways to improve your score.
Crispus is a finance professional with more than a decade experience in the industry. Over the years, Crispus has written in-depth articles on leading platforms like CCN, Marketwatch, and Seeking Alpha. He also runs a Forex education and managed account company called WestEndFx.