Finding no credit check furniture loans can frustrate and challenge anyone with bad credit. In fact, getting financing for anything will discourage even the most patient person with poor credit or no credit history. Luckily, people looking for no credit check furniture loans can choose from a few different alternatives for bad credit furniture financing.
Understand why a furniture store or salesperson looks for credit history or good credit when they finance a furniture sale. Any business that finances a purchase takes a big risk when they transfer a good or service without receiving full payment. When a furniture store makes a contract with a customer, they want assurance that the customer will have the ability to pay off the contract.
If, for instance, you take a shipment of furniture on a line of credit and stop making payments, that furniture must be picked up by the company, at their own cost, and then resold. Since customers prefer buying new furniture to used furniture, the company takes a huge loss when the customer breaks the contract. So furniture stores weed out potential contract breakers the only way they can: by looking at your credit history before offering you financing.
Buy you can get around the credit requirements for a furniture loan, and you can secure furniture without a credit check.
No Credit Check Furniture Loans
Having a friend who’s willing to cosign a financial contract on your behalf eliminates the need for a good credit history on your part. You and the cosigner can agree to anything that suits both of you, but remember that if you default on your furniture payments, the cosigner will be held financially responsible for your contract. Having a cosigner easily circumvents your bad credit history, but it can also easily ruin a good friendship history.
Layaway still works, even though it’s one of the oldest financial tricks available. Some retailers ceased offering layaway plans, but many furniture retailers still offer layaway plans.
When you put an item of furniture on layaway, you make a small deposit and receive a variable amount of time (usually 90 days) to pay off the full price. Layaway enables you to lock in a good price without paying interest charges or facing a credit check. But when you use a layaway plan, you don’t take possession of the furniture until you pay the full balance.
Rent To Own
Rent to own furniture stores are found in towns across the USA. Rent to own furniture customers make weekly or biweekly installment payments on furniture, and they get to take possession of the furniture immediately.
Aarons and Rent A Center exemplify the rent to own business model. Rent to own financing plans are common, but have disadvantages that accompany their advantages.
One advantage to buying furniture via a rent to own financing arrangement is that you take immediate possession of the furniture. Another advantage is that you can return the furniture at any time. If your credit is really bad, then rent to own financing is a good option. And if you only need the furniture for a limited time, this can be a perfect solution.
But rent to own furniture, being available with no credit check, is notorious for the exorbitant amounts of interest charged. With interest included, you can easily pay double or triple what the furniture is actually worth. Shopping around for the best deals and asking lots of questions makes the process of buying rent to own furniture easier.
Social Lending Networks
Another alternative is a website called Prosper.com. They offer online credit to people with poor, but not awful, credit histories. Prosper.com specializes in people with little credit history, rather than on people who have a history of late and missed payments. Prosper acts as a credit marketplace which connects lenders and borrowers.
Their founding principle is that “people from close communities act more responsibly towards each other.” Getting any kind of loan via Prosper.com requires that you post your credit situation and employment. Your post should also include your requested loan amount and preferred interest rate.
Then individuals with money to lend can review your request and decide whether or not to loan you the funds.
This kind of social financing creates better interest rates for the borrower and fewer defaults for the lender. The social responsibility lending concept is proving to be popular, accessible, and effective. You can join social groups on Prosper based on financial need. To take advantage of Prosper’s marketplace, it’s best to have a credit score of at least 520. Prosper runs an initial credit check, but individual lenders do not run credit checks.
And of course, any loan you secure via Prosper.com can be used toward buying furniture.
Personal Finance How-To Video
Having no credit history or a few black marks on your credit history doesn’t mean you won’t be able to buy furniture. You just have to be willing to do the work to find no credit check furniture contracts. This video provides tips for getting out of debt when your income is low. It can seem like a no-win situation to be getting out of spiraling debt when you aren’t at the top of the financial totem pole. Methods exist for stretching your budget, so watch this video and see if any of these ideas can help.
If not, then keep searching. The answer is out there. Not every situation is the same. Everyone has their own list of material and personal assets. Everyone has their own list of financial burdens and personal holdups. Whatever your baggage is, the ability to solve those problems are within you. If you’ve messed up in the past, remember that human traits are dynamic. Just because you screwed up in the past, doesn’t mean you’re going to make the same mistakes again. Once you decide the problems you face are at least partly of your own making, that empowers you to make the changes needed to become the success you’ve always wanted to be.
As for home furnishings, remember that any bad credit furniture financing that you set up to purchase furniture can positively or negatively affect your future credit opportunities. Make your payments, fulfill your contract, and the next time you need financing for furniture (or a car, or a home, or whatever), you may not have to rely on one of these methods.