Credit Repair

Financing with Bad Credit – How to Buy Furniture?

Most people in the United States of America have very limited monthly income. Education expenses, medical expenses, grocery bill, income tax, utility bills – after making payment for all these things, they often do not have enough cash to buy things like furniture, let alone buying a home or car. Just like you obtain loans to buy cars and homes, you can also get a loan to finance your furniture. Financing with bad credit though can be a bit difficult, but not impossible. If you are having a poor FICO score, buying what you need can turn out to be a big challenge. But, don’t panic. If you approach the problem with a step-by-step plan, you can still find ways to finance your furniture. Following is a brief rundown on how to go about it.

Get Prepared to Make a Substantial Down Payment

The problem with this option is that it will delay your purchase. But, if you keep a little patience, you will be able to get credit more easily. The idea is to start saving money for a few months so that you can make a substantial down payment. Despite having bad credit, if you tell a lender that you are ready to make a large sum of down payment, the lender is likely to approve you a loan. This type of financial discipline shows that you are serious about buying furniture.

Contact a Small, Local Furniture Store

When it comes to buying furniture, people often tend to visit a large chain. You obviously have more options there, but these days, you can find a wide range of furniture products even at a small, local furniture store. Large chains often do not entertain people with bad credit, but small stores, especially the local ones often specialize in handling such customers. This way, when it is about financing with bad credit to buy furniture, these local stores can be a great solution. They have relationships with several finance companies and they will do everything possible to make sure your credit application gets approved.

Expect Higher Rate Loans

You have to be very practical in your approach. Since your credit score is not at par, you are very much likely to be offered a higher interest rate. Bad credit makes you a high-risk borrower. The only reason lenders charge a higher rate is just to cover that extra risk. Besides that, since your options are also very limited, you cannot do much about it. Therefore, it will be wiser to start some tight so that you could save more money to cover the extra expenses.

You May be Asked to Sign a Wage Assignment

In order to cover that extra risk caused by your bad credit, lenders may also ask you to sign a wage assignment. When you sign this agreement, your lender gets the right to garnishee your wages in case you fail to make the payment in time. This works like security against the money you borrow.

Overall, is a step-by-step process. If you know where to look out for and if you are willing to make a few compromises, you can still qualify for some decent financing programs to buy furniture even if your credit is not at par.

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Posted in Credit Repair, Debt And Credit | 1 Comment »

One Response to “Financing with Bad Credit – How to Buy Furniture?”

  1. Joseph says:

    It is very clearly described in the article how to purchase the furniture after having a poor FICO score. In the present age, the luxury things become an essential part of the life. You should have own car, you should have own home and you should have good furniture and so on. It is a prestige issue for young generation today. It is very difficult for a person to manage such type of expanses if he/ she have a single earning so, after reading the contents of this article, you will learn how to manage such types of issues. If you want to purchase the furniture for your home, the simple solution is to contact a small and local furniture store. You will find a large variety of furniture in such type of stores and if your financial limit is going out of the budget, these stores can contact with some financial companies. Large furniture stores do not consider such type of customers having bad credit. You should do some strict budgeting so that you can save more money to face the additional expenses. It is my advice to every one to follow above mentioned tips for enjoying the life.

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