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 loan options out there, how to apply for them online, and some alternatives to pay for those new furnishings.
The Standard Furniture Loan Options
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 payment.
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 up front. 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. 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 Bad Credit
If you have bad credit, the financing options listed above may not be available for your furniture purchase. The good news is that bad credit loan options 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 Loans Made for Bad Credit
There are personal loan options catering to bad-credit borrowers. These loans work just like standard personal loans, except terms can differ. Interest rates for bad credit loans are higher when compared to standard personal loans (loans for good credit). Depending on your situation, bad credit loans, even with the higher interest rates, may be worthwhile to make your purchase.
Installment Loans for Bad Credit
Installment loans can be classified as personal loans, but there are a few unique aspects. These loans come with a fixed rate which will mean the same monthly payment (where you pay interest and the principal loan amount) until you pay back the loan in full.
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 overtime! 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:
1) Filling Out a Loan Application and Submitting Some Basic Information
The first step will involve filling out a standard loan application which will ask about the amount you need, your credit score range, a rough estimate for your annual income, and monthly expenses. Once submitted, the lender will let you know about pre-approval.
2) Submit Requested Documents
Once pre-approved, you can submit additional documents to verify your income, residency, and identity. Documents like bank statements, a copy of your government-issued ID, and permission to run your credit will usually suffice.
3) Find Out Approval
Finally, you can decide whether you want to move forward with your loan once approved. If you choose to move forward, sign the loan agreement, and get the funds you need to pay for the furniture you need. You can have the funds transferred straight to a 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.
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.