5 Tips To Buy Furniture On Finance

Furniture on Finance

Often we come across furniture, either on social media or while walking across a shop, and we instantly want it. The idea starts from a single piece of decor to revamping your entire house. However, we soon realize that refurbishing our house would cost a few pounds. Thus, that initial desire never materializes and we continue on with our lives. Well, what if we told you that it’s possible for you to achieve your desires within a tight budget?

. Personal Savings

> The Process

The ideal way of purchasing any furniture is by using the money you have at your disposal. Granted, this may seem like an obvious choice, but some people immediately go for loans. Although viable, they come with a certain risk. Whatever happens in your future, the one thing that’s certain is the repayment of your loan. Hence, using personal finances is perfect.

> The Advantage

Under the circumstance that your current funds are inadequate, it’s prudent to save. Once you’ve selected the furniture you want to buy, start making a concrete plan. Decide how much you have to save each month to have enough savings for your purchase. This frees you from any obligation to others and will give you a sense of freedom.

> The Disadvantage

This method, though independent, may take too much time. Especially if you’re thinking of buying a piece of decor. This may extend to 5 to 10 years. Additionally, the uncertainty of expenditures may make this a less reliable method.

. In-Store Financing

> The Process

To those unaware, in-store financing refers to when retail stores themselves offer loan options to their customers. Different stores offer varying interest rates on their deals on different furniture. The quantity and regularity of your purchase can also play a factor in the rates you receive. In fact, some stores may offer 0% APR (Annual Percentage Rate) to their customers.

> The Advantage

The most enticing aspect of this type of funding is the numerous options that are available to you. This provides you with the opportunity to evaluate the best option for you and select that.

> The Disadvantage

However, there are some drawbacks too. Firstly, the question often asked is,“ Which is the best financial method to purchase furniture?”. Answer: Yes, it perhaps may be the most important factor in your chances of getting a loan. Consequently, it may be extremely difficult for you to secure in-store financing with a bad score.

Secondly, if you’re unable to pay off your on time, the subsequent rates charged may be incredibly high. As a result, it’s possible that the accumulated amount that you now have to clear is astronomical.

. Personal Loans

> The Process

A personal loan is a source of funding where you get the desired amount from the lender upfront. Moreover, sometimes it’s possible to secure this loan in a matter of days. Once received, the borrower pays back the lender in instalments over the life of the loan.

> The Advantage

The most attractive feature of such loans is the predetermined nature of interest rates and payments. This gives you a clear picture of how much money you need to set aside each month to pay the instalments. Additionally, your credit score and history aren’t as severely scrutinized as in other cases. Lastly, the rise in peer-to-peer and online lenders means there’s a plethora of options for you to select from. This provides ample time to select the perfect option for you.

> The Disadvantage

Having said all that, there are certain downsides to this source of funding too. Granted, your credit score isn’t harshly inspected, but it’s still checked. A poor credit score may prevent you from securing the loan you want. Or, if your credit score is substandard, the interest offered may be high.

. Credit Cards

This method needs little explanation. Using credit cards to buy furniture is also a viable option. Since credit cards are frequently used, there’s no mystery surrounding their usage. Find your credit limit and make furniture purchases under that with ease. In some cases, your card provider may charge 0% APR for such purchases. Moreover, you need to make the minimum payment each month at least. This will ease the financial strain on you.

We recommend caution to those who opt for this method. The membership fee of the cards and credit are important factors before making such purchases. It’s possible these elements may increase the amount you have to pay in total.

. Borrow From Friends/Family

This too needs little explanation. If you have a rich friend or family member, the easiest method may be to just ask them for some quid. Your relationship will allow you to have more manoeuvrability. This will allow you to decide on instalments and interest rates beforehand.

However, it may be awkward to ask your friends or family for money. Worst case scenario, your relationship suffers because of financial circumstances. We recommend care when opting for this method.

The Wrap Up

We know what you’re thinking right now, “Which is the best financial method to purchase furniture?”. Well, the answer will vary from person to person. Your circumstance and the nature of your purchase will determine the ideal method. However, House of Bling promises our complete cooperation in your endeavour.