Furniture loans – how to apply online

furniture loan, new furniture, moving

Applying for a furniture loan usually involves three steps: filling out a loan application, sending on your documents, and finding out about approval. If approved, you can get your loan funds and get your furniture. 

Looking to furnish your home but need some extra funds to cover the costs? A furniture loan can help you get the fast cash you need! You can apply for a furniture loan online, in person, or over the phone. And in most cases, you could find out about approval quickly. Keep reading to find out about the different furniture loans out there, how to apply for them online, and some alternatives to pay for those new furnishings.

The Standard Furniture Financing Options

Revenue in the furniture market amounts to $729.20bn in 2023, and the furniture industry is expected to continue growing.1 For consumers, this may mean more choices and things to buy, but doing so out-of-pocket may not be possible. And that is where financing comes in. Below are the most commonly used loan options used to cover furniture purchases. Keep in mind; you will have to have fair credit, at a minimum, to qualify for these loans:

Financing From Furniture Stores or Manufacturers

While shopping online or going into furniture stores, you are bound to come across in-store financing options.

These financing offers can be from the store/retailer or a manufacturer (usually for appliances). Financing offers can be seasonal or for promotional periods, based on specific types of furniture pieces and rooms (i.e., dining room furniture, bedroom furnishings, etc.), for minimum purchase amounts, during inventory clearance, and more. 

You may find deals like deferred interest offers, zero-interest financing, or deferred monthly payments. The unique thing about these offers is that you may not find them from loans outside of these retailers—explicitly catering to customers purchasing furniture and appliances.

A Personal Loan for Financing Furniture

You can use a personal loan for a furniture purchase when you don’t have the option of paying cash upfront. You can find these loans at a bank, credit union, or a private lender. For traditional personal loans from a bank, you will need to have good credit history and a proven source of income.

Credit Cards for a Furniture Purchase

Credit cards are another option to consider when looking to finance furniture. Most credit cards also allow you to withdraw cash from them, which can come in handy for a furniture purchase. If you don’t have a credit card to use, you will need good credit to apply for another one. There are also furniture stores that provide their own credit cards for in-store financing options. A perk that can come with credit cards is being rewarded for purchases. Factors to consider are your debt-to-income ratio and credit limit. It’s also important to understand credit card APRs and interest rates before getting one.  

Loan Options for Furniture Financing With Low Credit 

If you have poor credit, the financing options listed above may not be available for your furniture purchase. The good news is that bad credit loans are available. Here are a few options you may want to consider:

Secured Personal Loans to Finance Furniture

Secured personal loans use an asset as collateral for funding. This asset can vary. When borrowing from a furniture store, the furniture you buy will often be the asset involved in the loan. With the addition of an asset to use as collateral, the lender can minimize the risks of subprime lending.

Unsecured Personal Loan Options Made for Low Credit

There are personal loans catering to bad-credit borrowers. These loans work just like standard personal loan options, except terms can differ. Interest rates for low credit loans are higher when compared to standard personal loans (loans for good credit). Depending on your situation, low credit personal loan options, even with the higher interest rates, may be worthwhile to make your purchase.

Installment Loans for Low Credit

Installment loans can be several kinds of loans. These loans come with a fixed rate which will mean equal monthly payments (where you pay interest and the principal loan amount) until you pay back the loan in full. Some examples of these loans with equal monthly payments are personal loan options, home equity loans, mortgages, and sometimes even payday loans (if there are multiple payments).

Although many furniture stores will require good credit for in-store financing, some stores work with bad credit borrowers. A simple Google search can help you find these specialized retailers in your area or those who operate entirely online.

Bad credit loans can make it possible to get the financing you need, even with poor credit history. And with on-time payments and loan payoff, you can improve your credit standing. Consider these loans while also keeping in mind that bad credit loans are best for emergencies rather than purchases you can save for over time! And so, although an option, bad credit loans may not be the best place to start if your furnishings aren’t essential.

How to Apply for a Furniture Loan Online?

Let’s say that you find a loan you want to use for financing your home furnishings. Before looking for an online furniture loan, it will be helpful to think about how much money you need and how long you want your loan to be. After considering those factors, you can start applying! Here is what you can expect with the loan application process online:

Loan Application Process StepsDescription
1. Filling Out a Loan Application and Submitting Basic InformationThe first step involves completing a standard loan application. It typically requests information about the loan amount needed, your credit score range, a rough estimate of your annual income, and monthly expenses. After submitting the application, the lender will inform you about pre-approval.
2. Submit Requested DocumentsOnce pre-approved, you will need to submit additional documents to verify your income, residency, and identity. Commonly requested documents include bank statements, a copy of your government-issued ID, and permission to run a credit check.
3. Find Out Approval and Receive FundsAfter submitting the required documents, you will receive a decision on your loan application. If approved, you can decide whether to proceed with the loan. If you choose to move forward, you will sign the loan agreement, and the approved funds can be transferred directly to your bank account in some cases.

Alternatives that Can Help Lower Furniture Costs 

Although a loan can help you get money quickly, there may be other options that can help you save on interest when you purchase furniture. Here are a few strategies that can help you save money:

Save Money Over Time for An Expensive Purchase 

If your furniture purchase isn’t essential, consider saving for it over time. Even if you cannot pay for the total cost through cash, any amount saved up will lower the cost of financing the rest. There are all kinds of strategies that can help save money on a daily, weekly or monthly basis. Learn more about savings techniques and strategies and put them into practice! 

Buy Furniture That is Used to Get the Best Deal 

Nice furniture doesn’t have to be brand new. There are tons of thrift stores and furniture stores that sell gently used furniture pieces in-store and online. Yard sales and estate sales can also mean a great deal if you have the time to look. Platforms like Facebook Marketplace and Craigslist are other options to find good deals on used furniture items.

Get Creative and DIY 

Sometimes buying essential pieces and then customizing them can help you get the furnished look you want without financing options. If you have a workspace, you can borrow and know your way around woodworking, upholstery, etc.; creating something by hand can help you save a ton of money. Find free blueprints and tons of DIY guides online.

Skip the Name Brand Furniture Store

Name-brand stores can be appealing. However, if saving money is the goal, avoid these furniture stores. The markup may not even reflect the quality of the furniture you are buying. Instead, turning to retailers that cater to affordability is the better way to save on costs.

Consider Additional Sources of Income 

Finding ways to make extra income can be another way to get the money you need without financing furniture. A part-time job, ride sharing, food delivery, pet sitting, and dog walking are a few examples of side gigs that can work around a full-time job. That extra income can help you get your new furniture without paying interest.

Purchase Furniture During a Promotional Period

Shopping strategically can be another way to reduce the cost of the furniture that you are looking to buy. Certain times of the year, such as Black Friday, Cyber Monday, and seasonal clearance, can mean a great deal on furniture.

Let Friends and Family Know About the Things You Need 

When looking to furnish your place, instead of heading to a furniture store, let your friends and family know about the items you need. In some cases, you may be able to score a used item for free when friends or family are getting rid of their old furniture. However,if you don’t let them know about what you need, you may lose out on an excellent deal.

FAQS With Furniture Financing 

Here are some answers to frequently asked questions about furniture financing:

How can I finance furniture if I have poor credit scores?

Even with poor credit, there are furniture financing options available. Some stores offer in-store financing, while others might partner with lenders who specialize in loans for those with bad credit. Additionally, rent-to-own stores or layaway plans can be alternatives to finance furniture with bad credit.

What is in-store financing, and how does it differ from a personal loan?

In-store financing is when the furniture store provides financing options directly to the customer, often with promotional offers. A personal loan, on the other hand, is borrowed from a bank, credit union, or online lender and can be used for various purposes, including furniture purchases

How does my credit history impact the interest rates and terms I receive for furniture financing? 

Your credit history plays a significant role in determining the interest rates and terms you’re offered. Those with higher credit bureau scores might receive lower interest rates and better terms, while those with poor credit might face higher rates.

Are there required minimum monthly payments for furniture loans? 

Yes, most financing options, whether through in-store financing or personal loans, have minimum monthly payments required. The exact amount depends on the loan’s terms, interest rates, and the initial total promo purchase.

What happens if I fail to make the monthly payments on my loan during the promotional period?

Missing monthly payments can lead to penalties, higher interest rates, and a negative impact on your credit score. If it’s an in-store financing option with a 0/1–2 promotional period, failing to pay off the balance by the end of the promo period might result in retroactive interest charges.

Is a payday loan a good option for furniture financing if I have poor credit?

While payday loans can be accessible and an option for furniture financing for those with poor credit, they often come with extremely high interest rates and short repayment periods. They are not recommended by most personal finance writers due to their potential to lead to a cycle of debt.

How does the credit limit on a store credit card impact my furniture purchase?

The credit limit  You may find deals like on a store credit card determines the maximum amount you can spend. If the furniture’s cost exceeds this limit, you might need to make a minimum purchase required upfront or explore other financing options.

What’s the difference between an unsecured loan and in-store financing for furniture purchases?

An unsecured loan doesn’t require any collateral and is based on the borrower’s creditworthiness. In contrast, in-store financing is directly tied to the furniture purchase, and the terms might be influenced by promotions or the store’s credit card agreement terms.

How can I improve my chances of credit approval for furniture financing options?

Ensuring timely payments on existing debts, reducing outstanding balances, and regularly checking and rectifying errors in your credit report can enhance your chances of credit approval.

Key Takeaways With CreditNinja

And so, as you can see, there are tons of options to pay cash to look into to buy furniture, rather than financing it through loans or credit cards. Paying for your new furniture upfront will mean not having to worry about monthly payments with interest. 

In some cases, getting furniture for your home may be a necessity, and depending on your personal financial situation, personal loans may be the right option for you. To learn more about financing, large purchases, and finances in general, check out CreditNinja’s Dojo, where you can learn something new from a personal finance writer.


  1. Furniture – Worldwide | Statista Market Forecast

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