Pros and Cons of Different Furniture Financing Options

Every homeowner knows how expensive furniture for the living room and the bedroom can be. Even the simplest couch or the smallest mattress can cost hundreds of dollars.

For this reason, many homeowners choose to finance their furniture - meaning, they don’t buy it in cash.  Some use their credit cards, while others choose options like rent to own, layaway, or retailer financing. 

In this post, one of the best furniture stores in Owensboro, KY, is going to take a look at the pros and cons of each financing option: 

Pros and Cons of Credit Card Purchases

One of the easiest ways to get a furniture set is to charge it to your credit card. However, this might not be the wisest decision. Credit card interests are quite high so it may be better to take out a personal loan or to go with in-store financing. The advantage of purchasing on a credit card, though, is that you can take your new furniture home straight away.

Pros and Cons of Layaway

Layaway is a good option if you’re not in a rush to get the furniture. You just need to put a small down payment and pay off the balance over the agreed period. Once you have made the final payment, the furniture will be available for pickup or delivered to your home. 

The drawback is that if you fail to pay your monthly obligation, you might not get back the money you have already paid. There’s also a risk that the retailer could go out of business before you complete the deal.

Pros and Cons of Rent to Own

Buyers who don’t have a good credit nor enough cash for buying furniture outright might want to consider a rent-to-own approach. Not all furniture stores offer this option, though. 

The advantage is that you can furnish your home fast. The disadvantage is if you’re planning to use the furniture long-term because you might end up paying a lot more than the value of the furniture.

Pros and Cons of Retailer Financing

Many furniture stores offer in-house financing. Some even offer this at 0% interest for the first 12 months if you pay on time. 

If you are certain that you can make payments all the time, this may be the best of all the options you have. 

The downside only comes if you miss a payment because then you’ll lose the 0% interest offer and may have to pay high-interest rates on top of late fees. Additionally, if you miss two or more payments, it’s likely that the furniture you both would be repossessed. 

Conclusion

Buying furniture for your home can be exciting but you have to be smart about the furniture financing option you’ll choose. Make sure that you choose one that suits your needs and your financial capabilities. 

When you’re ready to get new furniture for your home and you wish to apply for furniture financing in Owensboro, KY, make sure that you choose a reputable store that you can trust. 

Owensboro Furniture is one of the most reputable furniture stores in Owensboro, KY that offers financing options to its customers. Apply for financing today and get the furniture you want for your home!