Financing New Furniture
Categorized: Living Room Furniture | No comments
New furniture is often considered as a gift for the whole family, especially during holiday seasons. A comfy sectional sofa, a leather recliner for Dad or a big new dining room table to gather the clan can all make for holiday memories. While it would be great to simply open up the wallet and pay for these with a big wad of cash, the reality is that most of us need to finance new furniture. There are several ways to finance furniture and let us take a look at some of the options.
First is simply using a credit card. This is secure and convenient and for those with decent credit, the preferred way to go when buying small furniture items like lamps and other accessories. However, reality dictates that many simply do not have the credit available to accommodate a major new furniture purchase like a couch or entertainment suite. Those who are homeowners may also have the option of looking into a home equity line of credit, though in today’s real estate market, this may not be the wisest choice. A local bank, savings and loan or credit union would be the source and of course, owning a home with equity is a necessity.
Financing the new furniture via in-store financing is the choice of many purchasers of large furniture items. Nearly every store, online and local, has a few financing options available, and many now tout “no money down, no interest for a year (or more)” packages that can be very attractive. Larger furniture retailers and nationally known chains often are affiliated with banks or other large solid financial lenders. Furniture stores are required to have this information on hand, either online or in retail store itself so that the buyer is crystal clear on all of the loan terms.
How an individual qualifies for financing is different from store to store, but all furniture store financing will want to see proof of income. This can be as simple as showing a pay stub or as complicated as undergoing a complete credit verification process. Interest rates can be all over the place based upon the stores’ desire to move inventory, the buyer’s overall creditworthiness and the cost of the furniture being purchased. A savvy buyer will want to be 100% certain regarding all of the fees, terms and interest rates before signing on the dotted line. On a positive note, for those who have credit that might be a little less than perfect or those who are just starting out, securing one of the in-store financing loans, making the monthly payments faithfully and on-time, can actually help establish a good or better credit ranking.
Finally, an option primarily for those with no established or poor credit histories are the monthly payment-based stores, also known as the “rent-to-own” options. While these stores certainly do help those who have some serious credit issues obtain furniture and electronics, the end cost and monthly payments are among the highest in the furniture industry. Would-be furniture buyers should take a little time to do research online and pay particular attention to monthly payment costs. In nearly every case, renting-to-own is far more expensive in the end than any other financing option.
Tagged with: credit card, finance new furniture, in-store financing, new furniture, poor credit, recliner, renting-to-own, sofa
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