Furniture financing is a convenient way to furnish your home without breaking the bank. Whether you need a new sofa, a dining table, or a bedroom set, you can find a financing option that suits your budget and credit situation. But how do you know what kind of credit score you need to finance furniture? And what are the best financing options for your credit score?
In this article, we will answer these questions and more. By the end of this article, you will better understand how to finance furniture with the best terms and rates for your credit score.
What Kind of Credit Score Do You Need to Finance Furniture?
The answer to this question depends on the furniture financing you choose but most likely having a score of at least 660 or above opens up superior loan choices, more favorable repayment terms, and lower interest rates for you to explore. However, even with a low credit score, you may still be able to finance furniture. But, your options may be more limited and expensive.
A lot of people have been wondering how to improve their credit score and get better APR. If you’re one of them, you’re in luck! We have all the tips and tricks you need, and they’re only a click away.
Here is a general overview of the credit score ranges and the furniture financing options available for each range:
Excellent credit (800-850): If you have excellent credit, you have access to the best furniture financing options. You can easily qualify for personal loans, credit cards, home equity loans, and home equity lines of credit with low-interest rates and long repayment periods. You can also take advantage of special financing offers from furniture stores, such as 0% APR for a certain period.
Very good credit (740-799): If you have very good credit, you can also enjoy most of the furniture financing options available for excellent credit. You may have slightly higher interest rates and shorter repayment periods. However, you can still get competitive terms and rates for personal loans, credit cards, home equity loans, and home equity lines of credit. You can also benefit from special financing from furniture stores, such as 0% APR for a certain period.
Good credit (670-739): If you have good credit, you can still qualify for most furniture financing options, but you may have to pay higher interest rates and fees. You can get personal loans, credit cards, home equity loans, and home equity lines of credit. However, you may have lower credit limits and shorter repayment periods. You can also apply for special financing offers from furniture stores. However, you may have to pay a higher APR after the promotional period ends.
Fair credit (580-669): If you have proper credit, your furniture financing options may be more restricted and costly. You may have difficulty getting personal loans, home equity loans, and home equity lines of credit, or you may have to pay very high-interest rates and fees. You can get credit cards, but you may have to pay annual fees, high APRs, and low credit limits. You can also try to get special financing offers from furniture stores. However, you may have to pay a down payment, a higher APR, or a shorter repayment period.
Calculate your monthly payments and how much your loan will really cost you using our APR calculator .
Poor credit (300-579): If you have poor credit, your furniture financing options may be limited and expensive. You may not be able to get personal loans, home equity loans, home equity lines of credit, or credit cards, or you may have to pay exorbitant interest rates and fees. You may resort to alternative financing options, such as payday loans, rent-to-own, or lease-to-own, which can have very high costs and risks. You may also be able to get special financing offers from furniture stores. However, you may have to pay a large down payment, a very high APR, or a short repayment period.
Must read if you choose Credit Card as your Financing Option – Pros and Cons of Using Credit Cards to Finance Furniture
As you can see, your credit score plays a big role in determining your furniture financing options. Therefore, it is important to check your credit score before you apply for furniture financing and to improve your credit score if possible. You can check your credit score for free from various sources, such as credit bureaus, credit card issuers, or online platforms. You can improve your credit score by paying your bills on time, keeping your credit utilization low, disputing any errors on your credit report, and avoiding new credit inquiries.
If your credit score is bad and your are looking for a furniture financing option then this article will help you out – Bad Credit Furniture Financing Options- Secure And Affordable
What is the Easiest Furniture Credit Card to Get Approved for?
A furniture credit card is a credit card that is designed for furniture purchases. It may offer special financing plans, rewards, discounts, or other benefits for buying furniture from specific stores or brands. A furniture credit card can be a good option for financing furniture if you have a good credit score and can pay off the balance in full before the interest kicks in. However, a furniture credit card can also be a bad option if you have a low credit score, carry a balance, or miss a payment, resulting in high-interest rates, fees, and penalties.
Suppose you are looking for the easiest furniture credit card to get approved for. In that case, you may want to consider the following factors:
Credit score: The higher your credit score, the easier it is to get approved for a furniture credit card. However, some furniture credit cards may have lower credit score requirements than others. For example, the Ashley Advantage™ Credit Card requires a fair to good credit score above 600. In contrast, the IKEA Visa Credit Card requires a good to excellent credit score, above 670.
Store or brand: Some furniture credit cards may be easier to get approved for if you are a loyal customer of the store or the brand that offers them. For example, the Wayfair Credit Card may be easier to get approved for if you have a history of shopping at Wayfair. In comparison, the Pottery Barn Credit Card may be easier to get approved for if you have a history of shopping at Pottery Barn.
Application process: Some furniture credit cards may have a simpler and faster application process than others. For example, the Ashley Advantage™ Online Financing may be easier to get approved for than the Ashley Advantage™ Credit Card, as it offers instant approval online. At the same time, the credit card may require a longer approval process. Similarly, the IKEA Projekt Card may be easier to get approved for than the IKEA Visa Credit Card, as it offers a quick and easy in-store application. At the same time, the Visa card may require a more extensive online application.
Based on these factors, some of the easiest furniture credit cards to get approved for are:
- Ashley Advantage™ Online Financing: This online financing option offered by Ashley Furniture can provide instant approval for furniture purchases. It requires a minimum credit score 550, and it offers fixed monthly payments with interest rates ranging from 10.99% to 29.99% APR, depending on your creditworthiness.
- IKEA Projekt Card: This financing option offered by IKEA can be used for large purchases of $5,000 or more. It requires a fair to good credit score, above 580, and offers 0% APR for 6, 12, or 24 months, depending on the purchase amount. You can apply for this card in-store with a quick and easy application.
- Wayfair Credit Card: This credit card offered by Wayfair can be used for furniture purchases at Wayfair and its affiliated brands. It requires a fair to good credit score, above 580, and offers 0% APR for 6 or 12 months or 5% back in rewards, depending on the purchase amount. You can apply for this card online with a simple application.
These are some examples of the easiest furniture credit cards to get approved for, but they are not the only ones. Before applying, you should always research and compare the terms and rates of different furniture credit cards and ensure you can afford the monthly payments. You should also use your furniture credit card responsibly and avoid overspending, carrying a balance, or missing a fee, as this can damage your credit score and cost you more money in the long run.
Furniture financing got you confused? Don’t stress, check out our guide, packed with tips and tricks to get you there without breaking the bank.
Conclusion
Furniture financing is a way of buying and paying for furniture. There are different ways of financing furniture, such as personal loans, credit cards, home equity loans, home equity lines of credit, and in-store financing. Each option has its pros and cons and may require different credit scores to qualify.
Your credit score plays a big role in determining your furniture financing options. The higher your credit score, the lower the interest rate and the better the terms you will get. However, even with a low credit score, you may still be able to finance furniture. However, your options may be more limited and expensive.
Before you apply for furniture financing , you should know about furniture financing pros and cons , you should also check your credit score, improve your credit score if possible, and compare the terms and rates of different options. You should also use your furniture financing option responsibly and avoid overspending, carrying a balance, or missing a payment, as this can damage your credit score and cost you more money in the long run.
We hope this article has helped you understand what credit score you need for furniture financing and how to finance furniture with the best terms and rates for your credit score.
If you want to learn more about furniture financing, visit our blog to read our informative and engaging articles. We share tips, tools, case studies, and best practices on how to use furniture financing wisely.
One of the question I often encounter is Should You Use a Credit Card to Buy Furniture? Read this to get answer, if you also have the same question in your mind.