With a new home comes responsibilities. While the idea to finance furniture for a new home might seem stressful, one cannot escape it.
If you are looking forward to furniture financing, then there are multiple options like home improvement or personal loans on bad credit in Ireland. However, each option is suitable for a specific purpose or requirements.
Today, there are multiple financing options, and this may get you thinking-
“Is it a good idea to finance furniture?”
But before that, let’s understand how does furniture financing work.
Is It Complicating to Finance Furniture for A New Home?
Furniture financing is similar to any other options like 24-hour loans in Ireland that you may use for any purpose for a short time. Instead of paying the loan balance in full, you can choose to spread out your repayments as a part of first-time home buyer furniture assistance. It is a contractual agreement signed between the lender and the borrower.
The borrower is responsible for paying the repayments according to the schedule- monthly or weekly to the lender. If you fall upon making regular payments, it may impact your credit score. If you take a secured loan, the lender may seize the property.
Affordable Furniture Financing options for a New Home
There is a gamut of options for buying a piece of furniture. It is just about choosing the right option according to your credit score, savings and financial obligations. Here are some affordable options to finance furniture for a new home.
1. Cash
It is one of the effortless ways to buy furniture. If you prefer this, you can avoid debt altogether. You will need to save a portion of your monthly paycheck for big-ticket purchases- like furniture. Investing in big-fat cash items requires considerate planning and finance evaluation.
But, if you are moving into a new home, planning suitable furniture becomes a necessity. To cut on or save on cash, prepare a list of furniture of prime importance. If you want to retain savings, have an eye for discounts. Many furniture stores offer smart deals. Check out your options and make the best buy.
2. Personal Loan
If you do not possess enough cash at the moment to buy a piece of furniture, you can resort to a personal loan. It is an all-purpose unsecured loan that you can use to fund an immediate or a planned requirement. You may qualify for the loan with an amazing credit score quickly.
However, it may not be free from interest and loan fees. And in case of personal loans on bad credit in Ireland, you may end up paying more money than the furniture cost itself. Applying and securing a loan with bad credit is costly.
Cashpounds grant the opportunity to customers to exercise a little flexibility on payments and provide loans at reasonable interest rates. We also provide no credit check furniture financing, where an individual can qualify for a minimal amount without a detailed credit check. If you qualify for the affordability parameter, you can get the loan transferred the same day in your account.
Sometimes, a personal loan is a feasible way to build a credit score. If you make regular repayments or close the loan early, it may boost your credit score. However, check for the early loan repayment fee from your lender. It may make the loan costlier.
3. Use Credit Cards to Finance Furniture for a New Home
Using credit cards for big-ticket purchases like interior items should be avoided. The reason for the same is – credit card debts are high-interest debts that can dent your credit profile. Thus, if you want to use a credit card to finance a piece of furniture, evaluate the card limit and previous debts.
Evaluate whether you can get enough credit on your credit card without extending the limit. If not, do extending the credit card limit affect the credit score significantly?
Check out credit cards during the promotional period offering interest-free lending. Some companies offer 0% credit cards with a big limit. And you may fetch discounts on using specific credit cards to buy furniture. Be sure to pay off the balance quickly.
You may need a good credit score to qualify for credit card borrowings or buying furniture on a credit card. If you lack a good credit score, it can be risky. Make sure to pay off the complete balance before the promotional period ends. Many financial companies increase interest rates after the offer.
You can also earn rewards on your credit cards and use these for making purchases or en-cashing discount coupons.
4. In-store Financing Options
Many stores offer multiple financing options to prospects and customers to spread their payments and improve lifestyles. They do so through the “Buy Now and Pay Later” furniture financing option. You can take the furniture today without paying a penny and pay it over an agreed period. Some may also offer interest-free deals for a promotional period or buy in new customers. However, there are some potential drawbacks of this scheme that you should be aware of:
- In many cases, the furniture company may ask you to pay 10-20% of the furniture cost upfront
- Unlike credit card financing, you won’t share flexibility in making repayments. Instead, you will need to make payments as per the agreement- weekly or monthly.
- Financing options provided by furniture companies may not align with everyone’s financial situation. Each store has its criteria to qualify individuals for a “buy now and pay later” scheme.
5. No Credit Check Loans
If you are someone seeking urgent cash assistance for furniture, you can check quotes for no credit check loans at Cashpounds. We offer individuals an option to buy now and pay later with no credit check. It is a good option for first-time home furniture buyers. People with bad credit history or credit issues can qualify easily for no credit check furniture financing.
While providing no credit check loans to finance furniture, lenders prioritize income bracket as a matter of loan affordability. Homeowners, single women, retired individuals, unemployed, tenants, married couples, etc., can avail of these loans here at favorable interest rates.
It is one of the best borrowings under 24-hours loans in Ireland. No-credit-check does not imply a complete credit check free loan. Lenders follow FCA guidelines for lending, and as per rules, a soft credit check is a must.
6. Rent
While it is one of the best options to consider if you do not prioritize buying the furniture but need it out of urgency, it can be a good way to finance furniture for a fixed period. It is not ideal if you prefer to keep furniture for a long time. In that case, you can seek any of the above options. Renting is ideal only for a short while. Moreover, keeping furniture for a long may lead to wear and tear, which may impact the overall cost of the furniture. Check and evaluate your preferences before renting furniture.
Bottom Line
There is no minimum credit score to qualify for a loan. Taking out any credit will impact your credit score until you pay it off. After paying the debt, you may encounter a jump in your credit score. These ways will help you finance furniture for a new home effortlessly.
Hudson is a graduate of banking and finance and works as a financial consultant at MyLoansBoat. He has a professional qualification to counsel people about money management. At MyLoansBoat, his key duties include shortlisting applications of borrowers and counseling them about credit score improvement, building an emergency cushion, retirement funds, and getting rid of debt. He is an ardent reader of finance books and uses the gained knowledge to help people with their finances. He also writes for the company’s blog on various topics like budgeting, investing, saving, debt management, joint finances, and the like. His aim is to dedicate his life to helping people have a debt-free life.