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:

What is furniture financing and how does it work?

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.

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Pros and cons of furniture loans

As with any type of borrowing, there are benefits and drawbacks to be aware of. Most prominently, here are some pros for borrowing money to make a furniture purchase:

  • Quick access to furniture right when you want it.
  • The cost of the furniture can be spread out over time.
  • Some lenders will offer 0% introductory APR options.

While the above pros can make taking out money for a furniture purchase seem like a good choice, it’s important to evaluate the following drawbacks as well:

  • You may pay more for the furniture over time based on the interest rate.
  • Your credit score or history can be negatively impacted if you are unable to make the payments.
  • If your loan is secured, you might lose the furniture itself.

As with all forms of debt, you should only take out what you’re able to repay comfortably without having to stretch your finances. Taking out more than you can handle can lead to a long cycle of debt that is challenging to recover from.

Other ways to pay for furniture

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.

Learn more: Credit Cards

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.

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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.

How to find the best furniture financing deal?

When looking to apply for a furniture loan, there are several strategies you can use to find the best deal:

  • Don’t jump on the first offer you receive.
  • Compare rates from different lenders to see what fits your budget.
  • Evaluate your current financial standpoint to see what you can afford.
  • Furniture loans for bad credit may cost you more than they’re worth, so waiting to purchase may be the best way to find a deal.

At the end of the day, the most important part of financing a furniture purchase is that you are sure you can repay the loan quickly. Use a furniture loan calculator or a similar tool to see what your total cost will be for borrowing to determine if it’s something you can afford.


Furniture loans for bad credit do exist, meaning you could potentially get approved with a poor credit score. However, to receive a fair interest rate you should aim to have a credit score at least above 640.

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.

No, most renting services for furniture do not report to the credit bureaus. If you are unable to continue paying, you will simply have to return the furniture.