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The Ultimate Guide to Furniture Financing: Options to Furnish Your Home

Home > The Ultimate Guide to Furniture Financing: Options to Furnish Your Home

The Ultimate Guide to Furniture Financing: Options to Furnish Your Home

Furnishing your home can be an exciting but expensive endeavor. The good news is that furniture financing options make it possible to get the pieces you want without paying the full cost upfront. This comprehensive guide will explore the various furniture financing methods available, from store credit cards to buy now, pay later services, to help you find the best way to afford new furniture for your home.

Why Consider Furniture Financing?

furniture financing

There are several reasons why furniture financing can be an attractive option:

  • Spread out the cost of large furniture purchases over time
  • Get the furniture you need now without depleting your savings
  • Take advantage of promotional 0% APR offers
  • Build credit by making on-time payments
  • Furnish your entire home at once rather than piece by piece

While paying cash is ideal if you can afford it, furniture financing allows you to create the home of your dreams on a budget that works for you. Just be sure to understand the terms and only finance what you can realistically afford to pay back.

Common Furniture Financing Options

When it comes to financing furniture, you have several options to choose from:

1. Store Credit Cards

Many major furniture retailers offer their own store credit cards with special financing offers. These typically come with high interest rates if not paid in full, but can provide 0% APR for 6-24 months on qualifying purchases.

For example, the Ashley Advantage Credit Card offers:

  • 6 months special financing on purchases of $249+
  • 12 months special financing on purchases of $499+
  • 24 months special financing on purchases of $999+

Store cards are best if you plan to make multiple purchases from that retailer and can pay off the balance before the promotional period ends.

2. General Credit Cards

Your existing credit cards can be used to finance furniture purchases as well. Look for cards offering 0% APR introductory periods on new purchases. This allows you to pay off furniture over 12-21 months without accruing interest.

3. Personal Loans

Taking out a personal loan from a bank or online lender is another furniture financing option. Personal loans typically offer lower interest rates than credit cards for those with good credit. You’ll receive a lump sum to purchase furniture and repay in fixed monthly installments.

4. Buy Now, Pay Later Services

Services like Affirm, Afterpay, and Klarna partner with furniture retailers to offer point-of-sale financing. These usually split your purchase into 4 interest-free payments over 6 weeks. Some also offer longer-term financing options.

5. Rent-to-Own

Rent-to-own stores allow you to take furniture home immediately and make weekly or monthly payments, with the option to purchase outright. While convenient, this tends to be the most expensive financing method long-term.

Comparing Furniture Financing Options

Here’s a comparison of key factors to consider for each financing method:

Financing Type Typical APR Loan Term Credit Check Required
Store Credit Card 25-30% (if not paid in full) 6-24 months Yes
General Credit Card 15-25% Revolving No (existing card)
Personal Loan 6-36% 1-7 years Yes
Buy Now, Pay Later 0% (if paid on time) 6 weeks – 36 months Soft pull
Rent-to-Own 50-100%+ effective APR 12-24 months No

Tips for Smart Furniture Financing

Follow these tips to make the most of furniture financing options:

  • Shop around for the best rates and terms – Compare offers from multiple lenders and retailers
  • Take advantage of 0% APR promotions – But have a plan to pay off the balance before interest kicks in
  • Only finance what you can afford – Don’t overextend yourself with large monthly payments
  • Read the fine print carefully – Understand all fees, interest rates, and payment terms
  • Make payments on time – Late payments can result in high fees and interest charges
  • Consider your overall budget – Factor in other expenses and financial goals

Furniture Financing for Bad Credit

If you have poor credit, you may have fewer financing options available. However, there are still ways to finance furniture purchases:

  • Rent-to-own stores – Usually don’t require a credit check
  • Store credit cards – Some have lower credit score requirements
  • Secured credit cards – Require a deposit but are easier to qualify for
  • Co-signer – Having someone with good credit co-sign can help you qualify
  • Buy now, pay later – Often use soft credit pulls and consider factors beyond credit score

Keep in mind that financing options for bad credit typically come with higher interest rates and fees. Focus on improving your credit score to qualify for better terms in the future.

Popular Furniture Retailers with Financing Options

Many major furniture stores offer their own financing programs. Here are some popular options:

Ashley Furniture

Ashley Furniture offers the Ashley Advantage Credit Card with special financing promotions. They also partner with Affirm to provide buy now, pay later options.

Bob’s Discount Furniture

Bob’s Furniture financing includes a store credit card, lease-to-own program, and Affirm buy now, pay later services.

Wayfair

Wayfair offers a store credit card with 0% APR financing for 6, 12, or 24 months on qualifying purchases. They also partner with Affirm for alternative financing.

Rooms To Go

The Rooms To Go Credit Card provides special financing offers. They also offer a “120 Day Option” with no interest if paid in full within 120 days.

IKEA

IKEA offers the IKEA Projekt Card with 0% APR financing for 6, 12, or 24 months on kitchen, bath, and bedroom projects.

Alternatives to Furniture Financing

If you prefer to avoid financing, consider these alternatives:

  • Saving up for purchases over time
  • Finding affordable second-hand furniture
  • Buying used or gently-used pieces
  • Borrowing from friends and family
  • Renting furniture temporarily

These options allow you to get what you need without incurring debt, though they may require more planning and patience.

Understanding Your Furniture Financing Contract

Before signing any financing agreement for your furniture:

  • Know the interest rate
  • Understand payment terms
  • Familiarize yourself with fees and penalties
  • Determine what happens if you miss a payment
  • Confirm details like APR, loan amount, monthly payments, etc.

Making an informed decision is crucial to avoid any surprises down the road. Don’t hesitate to ask questions or seek clarification from your lender if needed.

The Bottom Line: Finding Your Perfect Match

Whether you’re furnishing a new home, redecorating existing spaces, or just upgrading your furniture game, there’s a financing solution out there for everyone. It’s all about finding the right fit for your budget and financial situation. Consider what makes sense for you – whether that means leveraging low-interest store cards, signing up with buy now, pay later services, or exploring personal loans.

Remember, no matter which path you choose, always read the fine print, stick to your payment plan, and stay on top of interest rates. Happy furniture hunting!