Buying good quality furniture helps turn your home into a place you enjoy staying and not just a roof over your head. While buying good furniture is not a cheap affair, the value it gives makes it a high priority for many people. In fact, spending money on furniture is the third most expensive thing a person will do once they have bought a house and a car.
Not everyone is in a position to spring cash upfront for furniture though. Consequently, as you shop around for what you like, you need to factor in your circumstances to identify the most suitable means of financing for furniture. Here are some options to raise money for buying furniture you can consider.
1. Deferred Payment
A deferred payment plan, also known as layaway, is a time-tested method of financing for furniture. The idea here is for you to ‘reserve’ the furniture you want as you pay for it over time. With this furniture financing option, you will be asked to place a deposit upfront. The store can issue a set amount on the deposit you can put down while others can give you the option to pick the amount you’ll deposit.
After you pay the deposit, the store holds the furniture as you make periodic payments. These could be weekly, bi-monthly, or monthly. Once you finish paying off the total cost, you can then take the furniture home. One aspect of layaway that appeals to buyers as a customer financing option is because it doesn’t charge any interest. The only other charge you make will be additional layaway fees the store will levy.
2. Credit Cards
Using credit cards as financing for furniture can be convenient as it doesn’t create a new bill for you to track. Another convenience with credit cards is that you can buy your desired items even without having any cash in your account. The bank will pay for the furniture on your behalf and then you will pay them back with interest. As with all finance options that come with interest attached, the longer you take to make the payment, the more you will ultimately pay in total interest.
Credit cards can be a useful avenue in financing for furniture if you can take advantage of a 0% financing option. Sign up for a new card that comes with a 0% financing promotion, and that doesn’t have a deferred interest clause. That way, even if the promotional period ends before you’ve finished paying for the furniture, you won’t face extra interest fees.
3. Lease Purchase
If you want to buy furniture but what it costs is more than what you can cover with your credit card alone then lease to own programs can help you bring the furniture you desire home. With a lease to own program, you agree to take the furniture with you without paying for it in full. You will be required to make regular payments as per your agreement and should you stop making them then the seller reserves the right to come and repossess them.
Lease purchase programs also give you the right to return the furniture, which in effect cancels the agreement. You will not pay a penalty if you do decide to return it. The monthly payments are typically low, and in many cases, the seller will not run a credit check on you. Once you finish paying for the furniture in full, you become its outright owner.
For anyone looking to rebuild their credit, a lease purchase program is an effective way to improve your score. As you make each payment on time, it will be reported to a credit bureau, and this goes towards fixing your credit score.
Buy Your Furniture Without Limitation
Furniture is a significant purchase that comes third to a house and a vehicle. There several approaches to financing for furniture depending on your specific circumstance. Pick the means that best suits your financial health to ensure your credit and bank account remain in good bank shape once you’ve bought the furniture.