Financing Furniture to Build Credit: Pros, Cons, and Options

Introduction

Furniture financing is a convenient option for those who need new furniture but don't have the funds to pay for it upfront. It allows you to spread the cost of your purchase over time, making it more affordable. But can financing furniture also help you build credit? In this article, we will explore the pros and cons of financing furniture and discuss how it can contribute to improving your credit score.

The Pros of Financing Furniture

Financing furniture offers several benefits that make it an attractive option for many people:

• Accessibility: Furniture financing makes it possible for individuals with limited funds to purchase quality furniture without having to save up for a long time.
• Convenience: With financing options, you can bring home the furniture you need right away and pay for it over time, rather than waiting until you have enough money saved.
• Flexible Payment Plans: Many furniture financing options offer flexible payment plans, allowing you to choose a plan that fits your budget and financial situation.

The Cons of Financing Furniture

While furniture financing can be advantageous, it is important to consider the potential drawbacks:

• Interest Rates: Financing furniture often involves paying interest, which can increase the overall cost of your purchase.
• Debt Obligation: By financing furniture, you are taking on a debt obligation that requires regular monthly payments. It's important to ensure that you can afford these payments before committing to a financing plan.
• Impact on Credit Score: Missed or late payments on your furniture financing can negatively impact your credit score, so it's crucial to make payments on time.

How Financing Furniture Can Build Credit

While furniture financing can have both pros and cons, it also presents an opportunity to build credit. Here's how:

• Establishing Credit History: If you have little or no credit history, financing furniture can be a way to establish a positive credit history. Making regular payments on time demonstrates your ability to manage credit responsibly.
• Improving Credit Mix: A good credit mix, which includes different types of credit such as installment loans and revolving credit, can positively impact your credit score. Furniture financing can contribute to diversifying your credit mix.
• Payment History: Making timely payments on your furniture financing can help build a positive payment history, which is a crucial factor in determining your credit score.

Options for Financing Furniture to Build Credit

Now that you understand the potential benefits of financing furniture to build credit, let's explore some popular options:

Ashley Advantage® Credit Card

The Ashley Advantage® Credit Card offers online financing and lease-to-own options for furniture purchases. It provides a convenient way to finance your furniture while also offering the opportunity to build credit. The card can be used to make purchases on Ashley.com and at participating Ashley and Ashley Outlet locations in the United States.

Snap Finance

Snap Finance offers flexible lease-to-own financing for furniture. With Snap Finance, you can get the furniture you need now and pay for it over time. This option is especially beneficial for individuals with imperfect credit, as Snap Finance focuses on financing that fits your life rather than your credit score.

American First Finance

American First Finance provides furniture financing options for individuals with bad credit. They offer financing that considers your life circumstances rather than solely relying on your credit score. Applying for furniture financing with American First Finance can help you get the furniture you need while also working towards improving your credit.

Conclusion

Financing furniture can be a viable option for those who need new furniture but don't have the upfront funds. It offers accessibility and convenience, allowing you to bring home the furniture you need right away. While there are pros and cons to consider, furniture financing also presents an opportunity to build credit. By making timely payments and managing your debt responsibly, you can improve your credit score while enjoying your new furniture.