Washer and dryer financing for bad credit may be possible! But buying new appliances like a washer and dryer is expensive—washer and dryer prices are $1,000 to $2,300 per set on average.1
If you have bad credit, which can make financing more difficult, you may be wondering what your options are. CreditNinja has all the information you need for washer and dryer financing for poor credit.
Can You Pay Monthly for a New Washer and Dryer with Bad Credit?
Most appliance stores offer financing options, but the specific details, interest rates, and terms will depend on the store. If you need a washer and dryer and can’t afford to pay for it upfront, make sure you’re prepared to do plenty of research to find the best financing option. Once you do find an option that works for you, remember to read the fine print!
One recommendation we have is to save up for your purchase so you can avoid financing altogether. This would be the only way to be 100% sure that you won’t pay any interest or unnecessary fees.
What Are Some Benefits of Washer and Dryer Financing?
Financing can definitely have benefits, especially for large purchases like a washer or dryer.
Easier To Afford When You Finance Appliances
The first benefit is that you don’t need to pay for the cost upfront. This can be a huge advantage if you don’t have the money you need in your bank account to use right away. And if you need a washer and dryer right away, financing lets you do so.
Financing Appliances Can Be Better for Your Budget
When you finance a washer and dryer set instead of paying for it outright, the cost will be broken up, likely over several months. This can be much easier for a budget, especially if your budget is already tight.
You May Have Access To Special Promotions With Appliance Financing
In-house financing may come with special promotions. For example, many stores offer 0% financing for a few months when financing appliances or other big-ticket items. There are also seasonal discounts that incorporate financing.
Bundling Options That Can Help You Save
When you finance appliances that are usually bought together, like a new washer and dryer set, you may save a good amount by bundling. However, these exclusive savings may only come from in-house financing from a store.
Potential To Get Better Quality Products
Let’s say you do decide to go with wanting to purchase a new washer and dryer with the money upfront. If you don’t have a good amount to spend, then likely you’ll have to settle for lower-quality products.
And for something like a washer and dryer, longevity is extremely important. Instead, with appliance financing, you may be able to spend more because you don’t need to have all the money right away, allowing you to get the best quality products.
You May Be Able To Build Your Credit With Financing Appliances
Depending on the appliance store or lender that you work with and whether they report to the credit bureaus, on-time monthly payments with your financing option can really help you build your credit history or improve your bad credit.
However, it is extremely important to make payments on time as late payments or missed payments can really hurt your credit scores, which can take a fair credit score down to a poor credit score.
General Qualifications for Appliance Financing
Keep in mind every store and lender may be different, but there are some general qualification requirements that most stores and lenders will have:
| Requirement | Description |
| Age Requirement | Must meet a minimum age requirement set by the store or lender. |
| Proof of Identity | Provide valid identification documents, such as a driver’s license or passport. |
| Proof of Residency | Show evidence of your current address, like a utility bill or lease agreement. |
| Proof of Income and Sometimes Employment | Demonstrate a source of income and, in some cases, employment status. |
| Credit Check | Undergo a credit check to assess your credit history and score. |
| Have a Bank Account and Debit Card | Possess an active bank account and debit card or credit card for transactions and payments. |
| Minimum Purchase Requirement | Some stores or lenders may impose a minimum purchase amount. |
| Down Payment if You Have Bad Credit History | If you have poor credit, a down payment may be required as a security measure. |
Options for Bad Credit Appliance Financing
Below are some options for washer and dryer financing when you are working with bad credit.
No Credit Needed Financing With New Appliances
During your shopping and research phase, you may come across the term “no credit check” financing. This means pretty much what it sounds like—the store offers you financing for your appliance without running a credit check.
With many loans and financing options, a good rule of thumb is to avoid no credit check loans and lenders. Credible lenders generally need to run credit checks in order to confirm you’re trustworthy. If they aren’t running those checks, then it could potentially be a sign of an untrustworthy lender.
Buy Now Pay Later Appliances for Bad Credit
Getting an offer to buy now and pay later means just that—you get to take the appliance home, and there’s a set amount of time when you won’t make payments. You may get this offer from a store, but there are also a lot of apps that allow people to buy now and pay later, sometimes without a credit check, so bad credit may be okay.
Using a BNPL program can be beneficial. For example, if there’s no interest accruing during the period where you’re not making payments, then it may be worth it. That is, if you can pay off the item before interest starts to accrue.2
Make sure you’re fully aware of the terms and conditions of any offer like this when looking for washer and dryer financing for bad credit. If the interest charges kick in and you haven’t paid off the item, it could cost you a lot of money.
Loan Options for Bad Credit Appliance Financing
Other financing options for a washer and dryer can be bad credit loans or no credit check loans. Bad credit loans are designed to help borrowers with poor credit histories get access to funding. No credit check loans are loan options that don’t have a credit check part of their inquiry process, which means bad credit can be okay.
Many stores may already have lending partners that they work with. However, you don’t have to work with these lending partners if you don’t want to. Instead, you may be able to find lenders and loan options on your own. You can find both bad credit loans and no credit check loans with financial institutions such as banks, credit unions, and private lenders. Here are some loans that can work for bad credit borrowers:
Personal Loans for Home Appliances
Personal loan options are some of the most flexible loans out there. There are secured personal loans that require collateral, which can sometimes be more flexible with bad credit. But, unsecured personal loan options can also be available without good credit when you work with the right lenders. Online lenders with personal loan options may have the most options to choose from.
Credit Cards as a Payment Option
Although most credit cards have credit checks and may require decent credit, you may still be able to borrow from one of these options with the right lender. For example, if you have a bank that you have a long-term relationship with, they may offer you credit based on your income vs. your credit score.
Or if you had access to a credit card option before you had credit challenges, then you may still be able to use that credit card for a washer and dryer. However, credit card debt can quickly get out of hand with interest, so it’s important to consider that before using it as a payment option.
Title Loans for Home Appliances
Title loans are a type of secured funding that uses a borrower’s vehicle as collateral. With these loans, borrowers can have poor credit or no credit because the lender has the security of a vehicle.
Title loan amounts are usually based on the value of the borrower’s vehicle. Although these secured loans can be flexible, they can come with higher interest rates, and there is the risk of losing your vehicle if you cannot repay the loan.
Payday Loans
Payday loans are short-term financing options that make a few hundred dollars available. And so, although they may not be able to cover the full cost of a washer and dryer, it can supplement any funds you already have.
Although payday loans are extremely fast and don’t require good credit, they can come with some significant drawbacks. Like title loans, payday loans can come with extremely high-interest rates and can lead to a cycle of debt due to their short due dates.
Home Equity Loans
Home equity loans are types of secured loans that allow homeowners to borrow the funds from the equity of their home. Many people use these loans to purchase appliances, including a washer and dryer. In fact, a study found that across 49% of homeowners, home improvements were the primary reason they took out one of these loans.3
Rent to Own for New Appliances
“Rent-to-own” programs allow consumers to rent a product for a certain period, with the option to purchase it before the end of that period. This model is sometimes used for appliances, including washers and dryers.
The way this will work is pretty simple: you enter an agreement with the rent-to-own store to rent the washer and dryer for a specified period and make monthly payments. During the rental period, you can purchase the washer and dryer, and your payments will be factored into the purchase price.
The Application Process for Appliance Financing
Here is the typical application process with most financing options, including bad and no credit check financing:
- Inquire for financing — The first step is to fill out an application or inquiry form for whatever financing option you decide to go with. Most places will ask about your personal and financial information. You may be asked about a credit check at this point.
- Send in the required documentation — The next step is to send in your documents or information (your lender will let you know what you need). Or they may already have this process done in the application itself.
- Find Out About Approval — Once you submit everything, you will find out about approval and the terms of repayment.
FAQS on Bad Credit Appliance Financing
These may or may not impact your credit. Some rent-to-own stores report payments to the major credit bureaus, which can help you build credit with on-time payments. However, missing payments can negatively impact your credit.
Missing a payment can have several consequences, including late fees, increased interest rates, and negative marks on your credit report if the lender reports to credit bureaus.
This largely depends on the lender or store. Some institutions might allow you to refinance or change the terms of your agreement if you face financial hardship or if your credit score improves. However, not all lenders offer this flexibility.
Here are some actionable tips to improve your credit:
– Review your credit report
– Pay bills on time
– Reduce credit card balances
– Don’t close old accounts
– Limit new credit inquiries
– Consider credit-building products
– Seek credit counseling
Here are the common credit score ranges:
– Excellent (800 to 850)
– Very Good (740 to 799)
– Good (670 to 739).
– Fair (580 to 669)
– Poor (300 to 579)
CreditNinja’s Final Thoughts
At CreditNinja, we believe that everyone deserves a chance to secure essential household appliances, even when facing credit hurdles. We’re here to guide you through the process of securing a washer and dryer that fits your home and budget. Remember, with the right strategy and a bit of diligence, you can find a financing solution that makes sense. Stay empowered and happy laundering!
References:
- How Much Does a Washer and Dryer Cost? [2023 Prices] | HomeGuide
- How Does Buy Now, Pay Later Work? | Motley Fool
- Why Homeowners Are Considering Tapping Home Equity | LendingTree
