Specialty Loans Vary From Appliances To Emergency Cash But All Carry Risks

Are you having trouble furnishing your home or apartment? Do not feel like buying used? Your not alone, thousands, in fact millions of Americans have less than stellar credit and cannot provide the up front purchase cost for new furniture and appliances. That does not mean all is hopeless. You may be eligible for a Closed-end credit loan. These loans provide a fixed amount of money to finance a specific purchase over a set period of time. The good news is that many of these loans are appliance loans for people with bad or poor credit. These are sometimes also called lease-to-own programs.

Under a lease to own option, you are in effect renting the furniture or appliance, with the option to buy it out right at a later date in time. Sears has a lease to own program for example, where appliances, electronics, furniture, mattresses are available to consumers provided that the item costs a minimum of $280 in order to qualify for the program. The sears program has no credit check, offering customers with poor credit an option when it comes to decking out their home or apartment. There are however qualifications that must be met which include making at least $1000 per month, being at least 18 years of age, and having a valid social security number or taxpayer ID number. The sears program is via a partnership with WhyNotLeaseIt, a lease to own company based out of New Hampshire. You do not need to live in New Hampshire however to qualify for this sears program.

There are many companies that offer this service. Luther Sales, an online retailer offers this service as well and it applies to more than just appliances and furniture. You can obtain a variety of goods on credit directly from http://luthersales.com. Many people have made use of this for Christmas shopping for example, one family I know personally used Luther Sales to purchase an X-box for their son for Christmas. They specialize in bad credit appliances financing, with flexible repayment plans to suit a wide variety of budgets. Their hassle free payroll deduction makes it easy to make timely payments, so you never have to worry about missing a payment.

You can find these types of loans by searching for “appliance loans” or “lease to own furniture” in Google. There are a few tips I would advise you on following. First of all make sure that you can afford the payments, as the merchant does have the right to repossess anything that you skip payments on, and you could be subjected to a return fee as well as a repossession fee. You want to take expert care of your furniture and appliances, at least until they are fully paid off, you do not want to be on the hook for additional funds if the furniture does get repossessed and does not get returned in the condition the retailer expects. You will also want to find out about any end of lease balances, service plans, and the total number and amount of payments. Fine print is often boring but the fine print often discloses any potential nasty surprises that could be in store for you should anything go awry.

If your credit is poor but not terrible you might qualify for a store credit card. Store credit cards usually have better interest rates and terms, unless you qualify for a store lease to own option that offers same as cash if you purchase the item within 12 months, like Conn’s offers. You should avoid rent to own stores such as Aarons, as these places charge a very high interest rate. If you are trying to rebuild your credit in the process of obtaining your furniture, then by all means make more than the minimum payment, but do not pay the loan off to quickly, as creditors want to see payment histories over time, and reliable monthly payments.