It can be difficult to buy furniture with a bad credit history.
Everybody needs furniture, but when you have bad credit, it can be a challenge to buy what you need. Furniture is a big-ticket item, so most people can't afford to pay the entire cost up front. Instead, they finance the balance. If you have bad credit, it's difficult to find a finance company that will extend credit. There are some steps that will help you find a way to finance furniture even if your credit history has some problems.
Instructions
1. Save enough money to put down a substantial down payment. Even though this will delay your purchase, it will help you to get credit more easily. When you have bad credit, being able to put down a large amount of money shows that you are serious about the purchase and allows you to borrow a small amount. That means a smaller risk for potential lenders.
2. Deal with a small, local furniture store rather than a large chain. Many smaller stores specialize in dealing with customers who have bad credit. They often have several options available through several finance companies. If you are turned down by the first company, a smaller store may be willing to run your application through the other lenders to finalize the sale. A larger store, which has higher volume, may not want to take the time and may prefer to deal with only one or two finance companies.
3. Be prepared to pay a higher interest rate. Finance companies who extend loans to people with bad credit expect to be compensated for their risk. If you are turned down by the first company, expect that subsequent companies will charge increasingly higher interest rates.
4. Be prepared to sign a wage assignment. Many lenders who finance furniture purchases for people with bad credit expect you to sign a wage assignment. This will allow them to garnishee your wages if you default on the loan. You will have to agree to this stipulation to secure the loan.
Tags: have credit, credit expect, credit history, down first, down first company
