Furniture loans for bad credit: 4 options

If you need new furniture but don’t have the best credit, it can be difficult to find financing.

The good news is that furniture loans for bad credit do exist. Whether you’d like to replace a sofa in your living room or fill your entire place with new furniture, bad credit doesn’t have to hold you back.

Paying cash for new furniture is always preferable if your goal is to stay out of debt, but not everyone can afford to do so. Here are four options to consider for furniture financing.

• Best for special deals: Retailer financing
• Best for installment payments: Buy-now, pay-later apps
• Best for getting good rates: Using a co-signer
• Best for flexibility: Personal loans
• What to watch out for with furniture loans for bad credit

Best for special deals: Retailer financing

Why retailer financing stands out: If you buy your furniture from an online or brick-and-mortar furniture store or other type of retailer, it may offer special financing deals, including options like layaway or rent-to-own. It may be better to avoid the layaway and rental options in favor of the often more borrower-friendly store financing option due to high late fees and other potential costs.

Retailer financing options, rates and terms may vary from store to store, so it’s a good idea to shop around.

Here are a few things to know about retailer financing.

• Bad credit options — Some furniture stores have financing programs specifically for people with no credit or bad credit. These are often promoted on the retailer’s website in the financing section, but it doesn’t hurt to contact the retailer if you don’t see them.
• Payment — You may come across a variety of payment options, like store credit cards, installment plans and lease-to-own plans.
• Credit checks — Furniture stores might also offer no-credit-check financing options. But be careful before you go this route because you may have to accept a higher interest rate.

Best for installment payments: Buy-now, pay-later apps

Why buy-now, pay-later apps stand out: Buy-now, pay-later apps like Affirm and Klarna allow you to split the cost of your furniture over time. You can make monthly payments and might even get to choose how long you want to pay off your purchase. Some of these services qualify you by looking at your loan-repayment history, and for some, that doesn’t necessarily include a hard credit check.

Here are a few other things to keep in mind if you’re planning to use a buy-now, pay-later app to finance furniture.

• How to pay — Some furniture stores partner directly with buy-now, pay-later apps, so when you check out, you can select them as a payment option.
• Prequalifying — You may be able to prequalify using a buy-now, pay-later app. This may allow you to learn if you’re eligible for financing without affecting your credit. Though note that prequalification doesn’t guarantee approval and final approval may trigger a hard credit check.
• Interest — Not all buy-now, pay-later apps charge interest. There’s a chance you can buy your furniture without worrying about higher interest rates that may be offered to borrowers who don’t have great credit.

Read our full review of the 5 best buy-now, pay-later apps to learn more.

Best for getting good rates: Using a co-signer

Why using a co-signer stands out: If you have a friend or family member with good credit, you can ask them to co-sign a furniture loan. They may be able to help you qualify for financing that you may not be able to otherwise.

If you’re thinking about using a co-signer to help you get a loan to pay for furniture, here are few more things to keep in mind.

• Co-signer responsibility — The co-signer must promise to repay your loan if you default. If this occurs, there could be some strain on your relationship.
• Limited options — Some personal loan lenders allow co-signers while others don’t. You’ll have to do your research if you decide to go this route.
• Read closely — Make sure you and your co-signer read the fine print — some states may allow the creditor to initiate a collection action on the co-signer without approaching the primary borrower.

Learn the pros and cons of co-signing a loan.

Best for flexibility: Personal loans

Why personal loans stand out: A personal loan may be a good option if you need to pay for furniture and other expenses like a home improvement project or new roof at the same time. These loans are generally flexible and can be used for a variety of expenses.

Here are a few things to know before using a personal to pay for furniture.

• Interest rates — You may have to settle for higher interest rates, since lenders typically save the best rates for borrowers with good credit. This might make your furniture a lot more expensive.
• Fees — In addition to interest, you may have to pay origination fees and late fees when applicable.
• Credit requirements — Some personal lenders have stricter credit requirements, meaning you may not be approved for their loans. It pays to shop around before applying for a loan.

What to watch out for with furniture loans for bad credit

If you decide to finance your furniture, you might be able to spread out the cost over time. But be sure to do the math and figure out the total cost of financing with interest and fees. Also, read the fine print before you commit to a store credit card, special financing, or lease-to-own option at a furniture store or other retailer.

Don’t forget that while you can sometimes prequalify to check your rates, completing the application typically requires a hard credit check, which can have a negative effect on your credit scores.

How we picked these furniture financing options

When exploring the types of best furniture loans for bad credit, we looked at several factors, including the ability to split payments, whether there is a soft or hard credit check, and whether those with past credit issues are allowed to apply.