Bad Credit Buying Furniture

Unfortunately, many millennials struggle with debt, whether from student loans, credit cards, or mortgages, they often have a hard time making ends meet. It can leave them in quite a bind when something like the need for new furniture arises. 

All of this debt can leave them with late or missed payments, which, in turn, leads to bad credit. How can they get new furniture when their rating is suffering?

One thing that may attract those with poor credit is financing through the furniture store. Often these stores offer zero-interest during certain times of the year for sofas on finance. It is one way to get the furniture you need. 

However, please do not jump right into it without doing your homework.

Zero Interest May Not Be in Your Best Interest

Before you decide to take advantage of zero interest payments at the furniture store, be sure that you have read the fine print. Zero-interest is usually just for the first year or the first 18 months. After that, you will begin paying interest. 

If you can pay off the bill during the zero-interest time frame, it is a good idea. However, if you cannot, make sure you understand how much your payments will be once interest gets added on.

Pass on the Second Chance Deals Offered

If your credit is already too bad and you cannot obtain financing through the furniture store, they may offer you a second chance deal. However, you should note that these deals work out well for the store, but not you. 

The payments are high, the interest is high, and the cost of the furniture is high. You will end up spending a lot more money this way.

Renting to Own Never Benefits the Consumer

Some stores will let you rent what you need, but don't do it. These places cater to those with bad credit, and they offer low weekly payments. However, if you figure out the final cost by the time you make all of those weekly payments, you could have bought double the amount of furniture.

See About Getting a Loan

If you can get a loan to buy your furniture, it may be in your best interest.

Speak to your bank. If you can get a personal loan, you will likely end up paying less interest and have lower payments.

Ask a family member for a loan. Your parents or a sibling may be able to loan you the money to furnish your flat. Be sure to pay the money back as agreed.

Boost Your Credit

Check your credit report to see where you stand, then work on giving it a boost. Make payments on time and pay a bit extra when you can. Cut down on expenses and put that money toward paying down debt. 

The better your credit, the better your odds of being offered favourable financing options. It may be your best option. Rather than taking on more debt, reduce the debt that you already have.