furniture financing

Furniture is a major investment that you want to be able to afford. Purchasing your desired pieces with financing allows you to do just that, without having to pay the entire cost upfront. Many furniture stores will offer in-store financing on their products, which often comes with 0% interest for a certain period of time. However, there are several things you need to know about this type of financing before making the decision to finance your furniture purchase.

Depending on your creditworthiness and the terms of your financing contract, the amount you owe will increase or decrease depending on how frequently you make payments and whether you pay them on time or not. If you fail to make payments, your credit score may take a hit and you could end up owing more money than you paid for the furniture.

It is best to avoid using financing when possible, especially if you are on a tight budget. If you can’t afford to purchase a piece of furniture with cash, try shopping around and bargaining with salespeople, or even donating your old furniture to charity. There are also other payment methods that don’t require a credit check, such as rent-to-own or layaway, but these options may come with high fees or inflated prices.

The most important factor to consider when shopping for furniture with financing is whether the monthly minimum payments will fit within your monthly budget. If you are planning to pay the purchase back on time, there is no need to worry about a negative impact on your credit score.

However, if you’re concerned about the effect of your monthly payments on your credit score, there are alternatives to financing your purchase, such as paying with an existing credit card. Store credit cards are reported to the credit bureaus and are not as risky as unsecured loans, which can have a negative impact on your credit if you fail to pay your bill on time.

When it comes to financing furniture, it’s important to remember that your credit score and debt will impact your ability to qualify for other types of financing in the future. If you plan to purchase additional items with a credit card, be aware that your interest rate will likely be higher than that of a mortgage or auto loan.

Providing consumers with the opportunity to finance their purchases is good for business, and it doesn’t have to be expensive. Outsourcing your furniture store’s financing to a consumer finance company like United Consumer Financial Services is an efficient and cost-effective way to provide customers with financing at checkout.

The team at UCFS will be able to run a verification on the customer’s monthly income in real-time and provide them with an affordable payment option that suits their needs. You can then focus on attracting shoppers and growing your business.