Financing a mattress or bedroom furniture set is easier than ever today, and you don’t need to go in store to do it either. You can complete an application online and get your results instantly, without ever going into the store.
There are a couple options you can choose from when looking to finance a new bed, below we will discuss what options exist, the benefits, drawbacks, and common companies used today.
Here’s a quick breakdown of how the furniture & mattress industry financing landscape looks like:
90 Day – 18 Month Payment Plans:
The most common choice used in the industry today includes a 90 day cash payoff option. This option does not require the applicant to have any credit, just an active income of $1000 or more and an active checking account. Down payments for this type can range typically from as little as $40 down to $60 down.
Traditional checking accounts work best and are what most financing companies look for, but companies like Acima are now accepting Chime bank accounts. Traditionally, 90 day payoff plans don’t help build credit, but Acima has changed that by now offering reporting to the Experian credit agency. This is a game changer!
12-36 Month Payment Plans:
For buyers spending a large amount and are looking to pay off their purchases over longer periods of time, they are going to need to have established good credit. Usually, a score of 700 or better is what they are looking for. This will get you interest free plans ranging from 6 months – 36 month. Minimum down payments usually range from $0 down to $50 down.
Popular companies in that category include Synchrony, Tower Loan, Klarna, and a few others. Be sure to take a look at the fine print, as there may be penalties for late fees and even low interest rates, depending on which company you choose.
Which financing option is best for you?
Choose whichever plan suits your financial needs best. We don’t recommend paying the interest if you go over the 90 day cash payoff, so avoid that if you can. Typical interest rates can be anywhere from 1.5-2.5x the purchase price, meaning you might pay more than double the actual cost for your mattress if you go over the 90 day period.
If you have good credit and are thinking about picking this option, keep in mind an application will run a credit check and leave a hard inquiry on your credit profile. Are you about to make a big purchase, like a house or a car? If so, this may not be the best option for you.
Whatever you decide, it’s important to budget & plan for the unexpected, just in case you’re unable to pay in the time you originally thought you would be able to.
If you have any questions about financing give Joe the finance guy a call, he’s an expert at getting people approved & making sure there are no unexpected bumps along the way.
Author Box:
Whitney Mike Segura, co-owner of Mattress Doctor Lafayette, is an expert mattress salesman and very experienced in getting people approved for financing, visit his website where you can learn more about financing a mattress in Lafayette Louisiana. He is very passionate about helping under qualified people get approved and find a bed within their budget, which they can afford to pay off before interest fees kick in. Whitney Mike and his company are extremely passionate about helping customers save money, get more value out of their dollar, and gain increased quality of life through a good night’s sleep.
