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Question By
zugerys

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I want lo apply in a furniture store but I am afraid be decline and my score goes down
What can I do?

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Reality check!

it has been my experience that Furniture stores Do Not tend to do inquiries or report to the credit bureaus.  99% of them do in-house financing and carry the loans themselves, never using a credit report.  

A friend that worked in accounting for a furniture retailer explained it to me this way.  They don't have to pay for credit checks or monthly costs of reporting because they don't care what you credit is like,  They are willing to take the chance because its to there advantage either way. 

They pay $100 for a couch wholesale.  They put a $599 price tag on it.  Then put it on sale for $299.  WOW half price. Offer financing for 24 months at 19% interest. Thats about $113 in interest. So the couch actually costs you about $400 (still 4 times what they paid). Your payment is about $25/mo.  So if you only make the first 4 payments before defaulting they have recovered their cost.  Most people that do default do so around a year into it.  By doing in house financing they get to keep all the money.  if you were to default, they get to add all kinds of interest and charges. then after 6 months of no payments they will sell it off to a collection agency for about half the balance or about $200.  

So even if you don't pay more than 4 payments, they will have sold that $100 couch for $300.

If you made every payment you paid about $400. 

If 12 payments were made: Thats $300 + selling the contract for $200, for even more profit.  

So,  I wouldn't worry about what your credit looks like.  

The best method for buying furniture i have found. 

 1) save up the cash to pay for it. Be prepared to negotiate. You can usually get any piece furniture for about 25% off the ticketed price if your willing to pay cash. 

2) Buy from a local, never a big chain.  They can order in anything that the chains can get and they are Hungry, They need every sale to exist, the chains don't.       Locally you can negotiate directly with the owner of the company, not a clerk that can't make decisions. 

3) Get them to throw in free delivery. but be prepared to tip the guys generously.  

This can actually work well for you in the long run. They will remember you the next time you walk in to buy furniture.  

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