The Ultimate Guide To Financing Your New Furniture: Everything You Need To Know

It can be costly to buy new furniture. If you have decided to buy new furniture for your house, then no doubt, you have made a correct decision. But, you should also have a solid budget plan in mind before you buy the item.

In case, your budget is not sufficient to make a purchase or you do not want to spend the whole amount in one go, then one of the best ideas would be to go for financing. It is always a good idea to finance your new furniture as you can choose to make the payment in flexible installments.

If you have never opted for the financing option, then don’t worry as in this detailed guide, we will focus on clearing all your confusion related to this. We will talk about almost everything that you need to know about furniture finance or financing your new furniture. So, without any further delay, let’s begin with our detailed discussion to understand this well.

Is Financing Your New Furniture A Decent Idea?

Before we dig into the detailed discussion, let’s first understand when it is a good decision to finance furniture in the first place. One of the most important things to note in this aspect is that borrowing money for funding any big purchase whether it is a family car, dining table or to pay for home improvements always comes with a cost. It can again take the form of:

  • Fees
  • Interest payments
  • Hidden mark-ups at the time of making a purchase

Again, it is always a cheaper option to make use of your savings and so, if you are having enough money in your savings account to cover the purchase, then you can go for it without giving an extra thought.

But not everyone has enough money in their savings account to fund a big purchase. If you are in a similar condition, then, it would be a good decision to fund your new furniture purchase through financing. Read on the below-given examples to gain a much better understanding:

  • Consider you have moved into a new house, and you do not have a sofa. Now, you wish to purchase a cost-effective one, but you lack the finances to buy it right away. In such a situation, you can choose to go for the financing option. As a result of it, you would be able to contently afford the monthly repayments without any hassles.
  • Suppose you do not like your existing sofa and have your eye on a new costly one. But the new one is not affordable for you. In that case, all that you need is to take out financing for funding your purchase.

Many financial experts would let you know that option 2 is not a good idea. Borrowing money is not a way to make big purchases that you cannot afford. Rather, it is a great way in which you can bring forward valuable purchases. It again lets you spread out lumpy costs.

On the other hand, option 1 is regarded as more nuanced. And, you can make a robust case that this particular borrower has a practice reason for taking on the debt. It is extremely important to have usable furniture.

He or she would be able to easily afford the payments over the full length. All that you need is to keep all of these in mind before you settle on a final decision that whether to opt for the financing option or not. Also, to further help you in your decision, you should ask yourself some of the most important questions which are mentioned as follows:

  • Do I require this item?
  • Could I purchase it with cash or delay the overall purchase so that you can effectively save up?
  • Am I sure that, I can make the repayments comfortably?

Answering all of these questions will help you to understand whether financing your furniture is a good option to choose for your requirements or not.

Now that, you know that financing your new furniture is a good decision, so, let’s understand the best ways in which you can opt for this alternative. Read the following section to clarify your understanding.

How Do You Finance Furniture For Your New House?

As you are already buying a new house, it is already a tricky time for you, when seen financially. In such a situation, if you do not have a clear idea about how to finance your furniture for your new house, then it can even be more stressful for you. In case, you are going through this tough time, then you do not have to be concerned anymore as in this section, we will discuss this in detail.

In this aspect, the first and the most important thing is to think about what furniture you require.  Once you are clear on this, you can easily make a budget plan and identify different financing options that are available to you.

What Are The Various Available Options?

There is a wide diversity of ways in which you can finance furniture. In this section, we will focus on discussing some of the important options that you can choose for your requirements. Let’s have a close look at this in the following section:

Personal Loan

A personal loan is the most sought option that you can get to pay for furniture. As a part of this, you borrow an agreed amount, make use of that amount to make the purchase you want and finally, make fixed monthly repayments until the overall amount is paid off. Many of the companies are involved in providing personal loans. All that you need is to choose a reputed provider who is dedicated to offering you the best assistance.

In-Store Finance Alternatives

Many of the large retailers again focus on providing their store credit agreements. It means that you can take home that piece of furniture the same day you need it, but you will have to pay for it later on within the agreed period. In some cases, you will have to pay some interest rates.

But you will also find the availability of interest-free alternatives in the market. It can be very competitive if you can access a 0% deal. There are again some of the cons that you should necessarily have a clear idea about in this aspect:

  • You will have to pay a deposit in many of the cases which are specifically around 10 to 20% of the overall amount.
  • It is not accessible to everyone as with other forms of credit. Also, one of the important things to note in this aspect is that each of the stores will possess its own set of criteria.
  • You again would not have the flexibility of payment in this case unlike with a credit card. Also, you will have a repayment schedule that you must necessarily meet.

0% Credit Card

If you want to avoid paying any interest on the amount you are borrowing, then you would be able to achieve this thing if you have access to a 0% credit card. You can use this particular card to buy furniture. And by staying within that limit, you can successfully avoid paying interest. Moreover, you should try to pay off the balance swiftly. It is specifically because most credit cards tend to move to a much-elevated rate after a short while.

Again, similar to other forms of borrowing, in this case, you also require a good credit rating if you want to get access to the best deals or a large credit amount. But, one of the important things to bear in mind is that this particular option is worth considering if you are disciplined enough to swiftly pay off the overall amount.

If you fail to do this, then the rate of interest will increase at a rapid pace. Another important benefit of purchasing furniture using a credit card is that it tends to offer you extra protection if things do not go in the right direction.


The final option, although, it is not strictly related to the financing is to rent whatever you require instead of buying. In the market, you will come across a range of companies who will lease your furniture.

But it is only useful, in case you know that you will require the furniture for a fixed period. It can be an amazing way in which you can furnish a house if you are clear that you will be renting for a year. If you end up keeping the rented furniture for a longer period, then you will not only have to pay a lot of money, but also you will have to be prepared for what exactly happens if the furniture, you have rented gets damaged.

In A Nutshell

We are sure, that after reading this detailed guide, you have got a very good idea about new furniture finance. From this guide, you have not only to know about the different available options, and which ones might be most preferable for you. Have any further doubts? If yes, then feel free to ask a professional furniture financing service provider who will focus on offering you the best deals. 

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