- Green Member
- Posts: 6
- Joined: Mon Feb 25, 2013 6:25 pm
- Location: Jasper, Florida
I had a similar dilemma about a little over a year ago. What I did was this:
I called around to every furniture store in the area and found out which ones had "12/18mo same as cash" deals. I then asked if they reported positive payments to the credit bureaus (not all do). I didnt give them my name or anything else, I just made calls.
I then went and got a nice haircut, went back home showered and dressed 'business casual' and went to the place I thought I would have the best luck with. happened to be a Badcock & More store, ymmv. You don't want to go in looking like a hobo or a hooker and try to act like you're working on bettering yourself.
Speak to the guy in charge, either a manager or better yet the owner! I laid everything out for the owner. I explained that my credit rating wasn't that great (around 650) because I had been paying mostly cash for everything, and hadn't really understood the whole deal with credit scores. Now that I do, I need some positives, and also happen to need furniture, so here I am. I then told him I can easily afford $150/mo and I want a loan for exactly enough so that my payments are $150 or less. Once I have a total amount, I'll pick out my furniture based on that budget.
He ran the numbers, based on my credit and made a phone call. He came back and told me I was approved for $3200, but that if I wanted my payment at $150 that I shouldn't use more than $1500 to $1700 of it.
I bought a really nice chair for me, and a cheapish sofa/loveseat set for a total of just over $1500. I just paid it off this month. The credit limit of $3200 is still available too, it basically works like a store credit card.
You have to be REAL careful to never EVER make a payment late, and finish paying it off before the 'same as cash' period ends...if you don't, all the accrued interest comes due at one time! In my case, the accrued interest was over $500 by the end. If you pay on time, the interest rate wont matter...you just have to be absolutely certain you can pay on time and in full!
If you plan on living in that area for awhile, cultivating a good relationship with a decent furniture store is a nice thing. The owner gets to know you over the years, and will sometimes throw you some deals on stuff. My parents had a relationship with Badcocks in another town, and they were always getting price reductions and 'buddy deals' on stuff.