The rising reliance of customers on furniture financing is unsurprising. given how difficult it is to purchase furniture on bad credit. Even if you do not have a single black mark against your credit score, it is still a struggle to afford the increasingly expensive furniture for your home/premises/office. In this scenario, no credit check furniture financing seems like an appealing option. But is it a good option? Read on to know more about furniture financing, its different types, and whether you should rely on it or not.
Background of no credit check furniture installment plan
This is a relatively new phenomenon. Earlier, only banks or financial institutions were lending out money to individuals for investing in their homes and furnishings. However, with the rise of e-commerce platforms online, we are also witnessing a rise in online furniture stores and retailers that are willing to offer furniture on a “Buy Now Pay Later” basis.
This is clearly in line with other ‘Buy Now Pay Later payment options being offered by e-commerce platforms on all other kinds of products. Applying the same concept to furniture purchases, furniture retailers have introduced no credit check furniture installment plans, to make furniture more affordable for their online clients.
What is no credit check furniture financing?
This is essentially an easy payment option that is extended to customers by furniture retailers. Under this option, a buyer can purchase furniture and pay in equal monthly or weekly installments. This financing of furniture is being offered by retailers without basing their loan approval process on the credit history of the buyer, which is why these are called – no credit check furniture installment plans or options.
When does no credit check furniture installment plans are needed?
Buying furniture is a major investment. No many people have that kind of money lying around. Many save for years before having anything resembling a fully-furnished home. Hence, it makes sense why many prefer furniture financing.
People who are straddled with bad credit for some reason or the other, especially, find no credit check furniture a pretty good option. It allows them to purchase furniture on loan, despite having a not-so-good credit history. However, even if you do not have bad credit, you can still use no credit check furniture financing to purchase a piece of furniture that you are finding difficult to save for. It can be a great way to make something substantial like furniture, affordable and easy to pay for customers.
What is the process of getting no credit check furniture?
Many furniture retailers are offering easy credit approval to customers, allowing them to purchase furniture for their personal and professional use. The process is pretty simple.
- Customers can apply for credit by following a straightforward process laid out by the furniture retailer.
- Decisions regarding the approval or rejection of the application are often taken instantaneously, just within minutes of submission of the approval.
- Unlike the traditional financing alternatives, there are no lengthy approval processes that buyers have to follow. Neither do they have to wait for many days before getting approval?
- None of these options are too harsh on extending credit to customers with a low credit score. However, there are a number of furniture retailers that are offering financing options, specifically tailored for customers that have a poor or no credit history.
Benefits of no credit check furniture installment plans:
The following are some of the advantages of getting no credit check furniture:
- Credit approval under this option does not conduct a stringent credit check, instead, a soft check is conducted. Hence, the credit history of the buyer remains unaffected.
- If the application for a loan is approved, the customer is often provided with the money as soon as the next business day.
- Generally, the financing options include credit cards of the e-commerce store you are buying from or other kinds of specific payment options being offered by the furniture retailer.
- This option usually is offered at zero-interest. This means that on the installments, buyers do not have to pay any additional interest, other than the split cost of the purchase.
- Customers with no or poor credit history can use no credit check furniture financing as an opportunity to enhance their creditworthiness by paying their installments on time.
Things to remember about no credit check furniture financing
Even though no credit check furniture installment plans are good for short-term payback, it may get tricky if you are unable to pay your installments on time or within the stipulated period. So for instance, if you have purchased no credit check furniture via a store-specific credit card, say on a 6-month installment plan, then you are supposed to pay the cost of the product in full during those 6 months. Also, for those six months, you won’t be charged any additional interest, unless you pay your installments on time.
However, if you fail to pay back during the financing period, then you may have to pay deferred or retroactive interest, in addition to a hiked APR of 20 to 25%. This can make repayment incredibly costly for you. Therefore, you should choose no credit check furniture financing only if you are certain that you would be able to pay off the cost of the purchase within the financing period by timely paying installments.