Bad Credit Furniture Financing
Many people turn to bad credit furniture financing to furnish a new home or apartment. Once an individual's credit score has plummeted, he has had a financial history of delinquencies, or he has had a recent bankruptcy or foreclosure, finding a credit card or a short term bank loan is next to impossible. Is this to imply that people with unfortunate financial histories should not have chairs to sit on or beds to sleep in? Hardly! Now there are furniture and appliance stores that specialize in offering short term loans to customers, regardless of credit. This allows the client to have furniture or electronics in the home, while still paying toward the purchase price of the appliances. There are specialized finance options for veterans or retired people as well.
Veterans have risked their lives for the freedom of commerce that allows the furniture and appliance stores to do business. With this in mind, there are bad credit furniture financing options that cater to the specific needs and capabilities of military personnel and veterans. Rather than settle for substandard, out of date or damaged appliances and electronics, short term installment loans can bridge the gap between insufficient income or damaged credit and owning new furnishings. Many appliance stores offer finance options to any military or government employee. These loans are available regardless of whether or not the individual is retired or active and regardless of what his or her rate or rank is. This is especially helpful for retired military individuals who may be injured or elderly. Disability can often make budgeting difficult. If an elderly military person needs furniture in order to be physically comfortable, then this type of loan allows them to enjoy the home and find comfort, without having to come up with a huge down payment or the full cost of the electronics, computer, appliance or furnishings. To ease the burden of repayment, many financers will extend zero down payment plans, as well as offers of no repayment.
Another advantage to purchasing home furnishings, appliances or electronics through stores that offer bad credit furniture financing is the expediency of the delivery. Many stores that require the patron to pay full price or a large percentage of it have fewer customers. Therefore, their floors are full of pieces that are for show only. This requires the buyer to wait weeks, if not months, for furniture to arrive from the manufacturer. Because those establishments that offer financing often make it possible for more customers to own furniture, these types of stores are full of items that the buyer can drive away with or have in his or her home within days. This makes moving into a new home or apartment much less nerve wracking. The homeowner can quickly enjoy his home without sitting on boxes, waiting for the "comfort" to arrive from the factory.
Despite some of the obvious advantages of bad credit furniture financing, it does have its negative side. If the buyers have terrible credit, it may not matter to them whom the store chooses to finance their purchase through. However, the creditors chosen by rent-to-own establishments are considered last resort lenders by financial institutions. If the buyer has only a slightly damaged financial report, then it is a good idea for them to think twice about letting this type of creditor appear on their future financial reports. Because these stores make a considerable amount of their profits from the interest, cash is seldom effective in negotiations. In a typical retail store, a buyer can often leverage their cash to obtain a lower sale price, free installation or delivery. In the case of the rent-to-own stores, cash is not as important as the potential interest from the payments.
Like all installment loans, bad credit furniture financing does not anticipate the bumps in the road ahead. If the buyer loses her job or becomes injured and misses work, the loan payments are not going to go away. Had she saved and purchased the items with cash, her purchases are safe despite the storms that may appear. In this way, loans will never be as sure as buying something with cash. There is risk when accruing debt, and that can never be avoided. In addition, the plans that offer no interest for the first few months often figure those months of interest into the remaining payments. Store installment loans have notoriously high interest rates, so these few months of interest may pack a bigger punch than the buyer is prepared for. Also, because so much of the store's profit comes from interest payments, there are often penalties charged for paying off bad credit furniture financing earlier than the agreed upon date. Furthermore, there are often hidden fees, like application charges, costs for finding a lender, etc.
After weighing the pros and cons of bad credit furniture financing, what if the individual wants an alternative to an installment loan from a retail store? Cash will always be a shopper's best friend. However, realistically there are not many people who can furnish an entire home or office with the cash in their back pocket. In these cases, home equity loans or credit cards may still offer considerably less interest and fewer hidden fees than retailer financed loans. If a person's financial history is too marred to qualify for any other kind of loan, bad credit furniture financing is still a viable option for obtaining the home or office of her dreams. "Yea, they spake against God; they said, Can God furnish a table in the wilderness?" (Psalm 78:19)