How to Apply for Furniture Financing
La-Z-Boy Southeast | July 31, 2017
Furniture financing allows you to style your entire room today and pay later. This is a great option for those looking to furnish their home and still work within their budget.
At La-Z-Boy Home Furnishings & Décor, more than 33% of our customers finance their furniture purchases. Why buy one piece at a time when you can purchase the whole room?
In this article, we’ll take a look at your furniture financing options and the best ways to apply.
Ask About Interest-Free Financing
Today, many furniture companies offer interest-free financing during a promotional period. This promotional period can be anywhere from 6 to 72 months depending on your credit score.
Interest-free financing means you’ll be charged 0% interest on your purchase during the promotional period. However, if a balance remains after the promotional period, you’ll be charged the regular APR interest rate on the remaining balance.
The regular APR interest rate on most credit cards is around 27.99% (rate may vary). This means you could pay a hefty fee on your remaining balance after the promotional period.
Thankfully, the Credit CARD Act requires you must be given the opportunity to pay off the balance before the promotional period expires. And most people are able to pay off their furniture without having to pay any interest.
How to Take Advantage of Interest-Free Financing
When you qualify for interest-free financing, you’ll receive a credit card you need to make payments on. These tips will help you pay off your furniture on-time and avoid a big fee after the promotional period ends.
- Know your monthly payment: Take the amount you spent on your furniture and divide it by your number of interest-free months. For example, you buy $2,500 worth of furniture and have 36 months to pay it off before interest kicks in. $2,500 divided by 36 = $69.45. This is how much you’ll need to pay each month.
- Set up automatic payments: Schedule automatic payments for this amount each month so you don’t pay late or have a balance that can be hit with a high interest rate after your promotional period ends.
- Don’t charge anything else: Use this card solely for your furniture payments. Otherwise, you may not know which portion of your payment is going toward the interest-free furniture purchase.
Following these tips will keep you interest-free and living life comfortably with your new furniture.
At La-Z-Boy Home Furnishings & Décor, you can apply for financing at any of our locations in NC, SC, and GA.
Or you can apply online at your convenience. Once you complete your application, you’ll receive a response instantly.
If you aren’t approved for financing, most furniture stores are able to find an option that works for you.
When to Apply for Interest-Free Financing
Once you find the furniture of your dreams, you can apply for interest-free financing online or in-store. Some stores even have a kiosk where you can input your information.
It’s important to note you should wait until you’ve closed on your home before you fill out any financing applications. If you’re in the process of buying a home, any financing application you submit could cause your home loan to be denied.
We understand you’re excited to furnish your new home, but it’s best to wait until after closing.
Another reason to wait until after the home closing is because your credit score will probably look the best it ever has.
Having a good credit score will give you better and more financing options for your furniture.
3 Tips to Raise Your Credit Score
Increasing and maintaining a high credit score is a goal everyone should have. It helps you get approved for the loan you need. And you’ll also receive a lower interest rate on that loan.
Here are some quick tips to increase your credit score:
- Pay off your existing balance: A high credit card balance will cost you interest and it’ll lower your credit score. Paying off your existing debt (or a chunk of it) is the fastest way to bring your score up.
- Ask for a higher credit limit: Raising your credit limit will improve your credit score too. You can do this by simply asking your credit card company. According to CreditCards.com, 89% of people were able to raise their credit limit just by asking for an increase.
- Correct errors on your credit report: Check your credit report and see if there are any errors. These errors are common and correcting them can quickly raise your credit score.
These are only a few ways to quickly increase your credit score. You can keep your credit score healthy by paying your bills on time and maintaining a low balance.
Check Out These Additional Resources
Furniture financing is a popular way to furnish your home. And interest-free is the best way to finance anything.
Make sure you pay off your furniture before the interest-free promotional period ends. So you’ll avoid paying high APR interest rates on your remaining balance.
You may like to take a look at these online resources before you make your big purchase:
- 8 Best Furniture Stores with Free Design Services
- La-Z-Boy vs Ashley Furniture: 7 Differences You Should Know
- 7 Best Selling La-Z-Boy Sofas From This Year
We’d be happy to answer the rest of your financing questions at any of our locations in NC, SC, and GA.