The demands for living space and furnishings increase with the attitude to modern lifestyle. If a move to a new apartment is imminent or if the previous furniture is too old and worn, ideas and creations for new furniture stand out. Knowing that quality and taste are well known, many people lack the liquid funds necessary to purchase them. Due to the high demand, there are several ways to take out a loan to buy furniture.
Bank loan or furniture dealer financing:
Banks offer their customers with a regular income, linked to their checking account, an overdraft facility (overdraft facility), with which, however, the average interest rate is 11.76% (Stiftung Warentest status 2012). It can take a long time before this is usually balanced again and can become very expensive in the end. Banks very often also offer their customers a special loan for buying furniture. Small loans, for example up to USD 5000, are approved by house banks without major complications if there is a regular income and the individual is not over-indebted.
However, not only banks, but also the furniture stores themselves offer financing, very often with small installments and low interest rates. Not infrequently also as “zero percent financing”, which seems very lucrative for the customer. However, it is important to pay attention to whether the “bargain” really pays off, as the missing interest is usually turned over to the purchase price. A comparison of the desired furniture in terms of offer, price and financing at several furniture retailers can be very informative. Without a doubt, there are actually furniture retailers who are really worth financing.
Alternative loan offers on the Internet:
If the house bank refuses a loan for a furniture purchase, if it is too expensive or financing from the respective furniture store is out of the question, online loans from direct banks on the Internet are very suitable. With a fixed amount of money available, it is much easier to shop and also negotiate in the furniture store. The offers with regard to interest rates and terms are very often cheaper than at your own bank or local bank branch.
The prerequisites here are regular income, the appropriate creditworthiness and a positive Credit bureau rating. These are checked when the application is submitted. Another alternative is offered on the Internet by personal loans through reputable and reliable credit exchanges. Here is mediated between private lenders and private loan seekers via the corresponding online platforms. The chance to get a loan for buying furniture with favorable terms is also very realistic here.
Value, useful life and financing term:
If you buy quality and pieces of furniture that are very likely to last a long time and retain their value, it may be worthwhile to take out a loan to buy the furniture. The longer the financing period, the lower the monthly installments to be repaid. However, you should note that the repayment period does not take too long. Quality, value, costs, useful life and repayment time should be in an appropriate relationship. It must also be considered individually to what extent the planned loan for furniture purchase, other planning, living conditions and financing or the overall creditworthiness and liquidity.