Some items are quite pricey!
If you have bad credit, financing large purchases becomes nearly impossible. However, there are many retail stores that offer rent-to-own and financing options even if you have poor or no credit. One of the most popular items that people finance when they have bad credit is furniture. In some cases, people may be turned down elsewhere because they have just locked themselves into a mortgage or signed a lease for their first apartment but still need furniture such as beds, couches, and dining sets. Well, it’s not absolutely necessary to have good credit when financing furniture, but financing with bad credit can often trap you in a difficult financial situation.
The Risk of Financing Furniture with Poor Credit
While many furniture stores offer financing with poor credit, this kind of financing often comes with a price. Low-income and military families commonly use this type of credit, but later on down the road, the financing may end up costing them more than the value of the furniture they finance. If you find yourself in this situation, keep in mind that the worse your credit is, the more the store can hike up the interest rate. If you fail to pay off your purchase before that interest rate kicks in, then paying the remaining balance is going to become impossible, especially if all you can afford to pay is the minimum payment.
The Smart Way to Finance Furniture
If you must finance furniture with poor credit, then the smartest way to do so is to save up a substantial down payment. There are a number of loan calculators online that can help you realize how much of a down payment you will need to finance your furniture without putting your future finances at risk. While good credit isn’t always necessary when financing furniture, borrowing smart will ensure that you don’t dig yourself into a financial hole for years to come.
Do I purchase a leather couch or fabric? When you are ready to buy a new couch, this is when your credit report is positive (if you’re not sure, take a look at www.creditreport760.com) there’s one question you ask yourself. Both have benefits and drawbacks, depending on your family. A good-quality leather couch lasts longer than a fabric couch. Experts say that a leather couch has an average life of 10 years whereas a fabric couch has life of around 5 years. Naturally, the leather couch is more expensive. But expenses apart, you have to look at the occupants of your family. Here are some things you must consider:
- Young children: If you have young children, leather is the better option as it is much easier to clean up and wipe away messes. Choose hold its shape even after some roughhousing.
- Pets: Cats destroy furniture unless you have them well-trained. So it makes sense to choose the less expensive option so that you can replace it more often.
- Weather: Leather can get cold in winter and you might need to use a throw blanket. In summer, leather couches are cool and comfortable.
- Options: Fabric couches come in so many different patterns and colors. You can choose couches depending on the décor of your room. A well-chosen fabric couch adds warmth and beauty to any room. Leather comes in just a few plain colors.
- Comfort: A leather couch becomes more comfortable with use. It holds its shape better over time and does not become lumpy like fabric couches do.