At a Glance

Remodeling a home is about more than taking down the walls and redoing the kitchen. A complete home makeover will involve replacing all the old furniture so that you can build a new look in your home. Unfortunately, the price of furniture is not cheap, and you may not be able to afford this renovation out of pocket. Furniture financing can help homeowners redecorate their home by providing funds with repayment plans that work for your schedule.

In this article, you’ll learn:

With furniture costs potentially reaching thousands of dollars, few people can pay this cost with the funds they have on hand. Any form of furniture financing allows you access to funds for purchasing by borrowing the money.

As with other forms of borrowing, furniture financing involves borrowing a sum of money, and repaying that money over time, with any interest or fees, in the form of monthly payments. The interest rate you pay will depend on your credit score, credit history, income history, and more. There are several different ways to get a furniture loan, ranging from personal loans to in-store financing options.

Using personal loans for furniture financing

One of the more popular options for getting a home furniture loan is to turn towards a personal loan lender. Personal loans are typically unsecured and can provide a borrower with up to $100,000, on average, with interest rates falling between 6%-36% depending on credit worthiness.

When you apply for a personal loan, you apply for a certain sum of money that has no restrictions for use. For example, you may apply for $15,000 when you only have a current furniture expense of $8,000. The remaining $7,000 can then be used on future furniture purchases or whatever you please.

Personal loans are the go-to alternative to in-store financing, as most in-store options apply a sky-high interest rate if you are unable to pay off the loan by a specific time.

Discover home improvement loans to get money to finance your furniture.

Find and compare the best loan options.

Advertiser Disclosure

Use the filters below to refine your search

Sorry, we didn’t find any options that meet your requirements. Please try modifying your preferences.

What credit score do you need for furniture financing?

You can likely find financing whether you have a good or poor credit score, but having a score of at least 660 or above will give you access to better loan options, repayment terms, and interest rates. That’s because having a higher credit score indicates to lenders that you’re a responsible borrower and are more likely to repay the loan.

Some lenders, especially online lenders and credit unions may provide loan options to borrowers with lower credit scores, but your options are more limited and you’ll likely have higher interest rates and less-than-ideal repayment terms.

If necessary, you may want to wait until you’ve improved your score before applying for financing.

Pros and cons of furniture loans

Pros Cons
  • Quick access to funds.
  • High interest rates for poorly-qualified borrowers.
  • Can purchase furniture right away.
  • May pay more for the furniture over time (depending on interest rate).
  • 0% introductory APR options available.
  • Can negatively impact your credit score.
  • Potentially lower credit requirements.
  • Fees.
  • Funds can be used for purchasing furniture and other items for the home.
  • No collateral required.

Furniture financing options

Loans for furniture purchases are not the only way to finance your new furniture. For whatever reason or another, taking out money from a personal loan may not be your ideal choice. In this situation, consider some of the following common alternatives:

1. Credit cards

For those with a credit card spending limit that is high enough, putting the furniture purchase on the card can be a strategic choice. With most cards offering benefits and rewards, the purchase can provide a cardholder with an excellent. With that said, interest rates on credit cards tend to be higher than those on personal loans, so this option is best for those who are certain they can repay the balance quickly.

2. In-store financing

As mentioned above, in-store financing can be an excellent choice if you are certain, you can repay the loan before the interest hits. For most stores, the period before this occurs will likely be between two to three years, but it can vary store by store.

3. Payday alternative loans

Payday alternative loans are short-term, high-interest loans that are only good for those who have 100% certainty that they can pay back the loan by the time their next paycheck hits. In this situation, a person who has the funds for the purchase, but those funds are currently in escrow, may seek out a payday alterative loan so that they can make the purchase immediately and pay it back when their funds are released shortly.

4. Buy now, pay later

Nowadays, buy now pay later plans have become increasingly popular. This is a form of an installment loan that essentially splits your cost into several equal payments. Most sellers break the payments down into four chunks, meaning if you have an $800 furniture purchase, you might pay $200 then, followed by another $200 every month for three months.

Related: A Survey of BNPL Shoppers

5. Borrowing from friends and family

If you are close with your friends and family, then asking for donations can be an excellent choice. Alternatively, ask to borrow the funds with the promise of repaying them. It’s important that you do repay your friends and family, as your relationships are far more important than physical goods.

6. Personal savings and cash

Choosing to save money for months in advance when you are aware of a potential home renovation in the future is the best way to finance your purchases. Furniture loan companies, even the best, will offer a personal loan for furniture that includes interest. This means that you will inevitably pay more than the sticker price of the furniture. By using your own money for the purchase instead, you can guarantee that you’re only paying what the furniture is worth.

Furniture loans for bad credit

Furniture loans for bad credit come in many forms, ranging from secured personal loans to payday loans, but be aware that these alternatives come with far higher interest rates. If you have poor credit, be sure to compare your loan and other financing options to find the best one with the lowest rate. You can also talk to the furniture store about financing options or payment plans you may qualify for.

However, if you have a poor credit score, it’s best to wait to finance the purchase until you have the cash on hand. Or, if financing is your best option, take steps to improve your credit score before applying.


When looking to apply for a furniture loan, there are several strategies you can use to find the best deal. These include, but are not limited to, the following ideas:

  • Evaluate your current financial position to determine what you can afford.
  • Don’t jump on the first offer you receive.
  • Compare rates from different lenders to find the optimal financing arrangement.

Furniture loans for bad credit come in many forms, ranging from secured personal loans to payday loans, but be aware that these alternatives come with far higher interest rates. If you have a poor credit score, it’s best to wait to finance the purchase until you have the cash on hand.

Financing a furniture purchase will only hurt your credit if you are unable to repay the loan on time and in full. This can damage both your credit score and history for years to come.

The number of months you can finance furniture depends on the type of financing you use. Personal loans, as an example, often have tenors ranging from two to seven years, whereas in-store financing typically gives you two to three years before interest starts accruing.

Payment history makes up about 35% of your credit score, so as long as you make your payments on time each month, your furniture loan can help improve your score. Incidentally, furniture loans could also help you from a credit diversification standpoint.