Furniture Financing Help

Discuss anything related to interest rates & fees, like balance transfer offers, low rate cards, annual fees, etc.
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RachelB
 
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Furniture Financing Help

Postby RachelB » Thu Aug 01, 2013 5:10 pm

I'm currently searching to buy new furniture for an apartment I'll be moving into within a week or two.

My TU is 620, I'm in Florida and I believe that's what they pull. It will jump about 20 ish points in the next week or so when Comcast deletes the collections for a piece of equipment that I returned and had to dispute.

With all that said - I called my bank that my car is with, they beat the rate the dealership gave me. I also have a CC with them. They seem to think they'll beat the rate the stores offer me.

So my decision is, check out the 0% offers that RTG and Havertys offers from time to time,RTG currently has one this weekend. Wait and find something then apply for credit at either RTG, Ashley, Haverty or deal with the rate at my bank.

I really only want to deal with 1 credit pull and would like to have it ordered this weekend if possible.

Would I even be eligible for credit at a furniture store? I've never bought a whole set, in college it was piece by piece and I'm ready for a "big girl set" of furniture.

Some insight would be very helpful!
Thanks


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djrez4
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Postby djrez4 » Thu Aug 01, 2013 9:24 pm

Insight granted:

If you can't afford to pay cash, you can wait for new furniture. A "big girl" wouldn't finance something beyond her means. She would recognize that a full set of furniture is outside of the budget right now and would either make do with what she has or pick up something cheap from the local consignment store or thrift shop.

Credit is a convenience. It's not a tool to expand your budget beyond your means.
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Midori
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Postby Midori » Fri Aug 02, 2013 7:07 am

The mattress goes on the floor. The card table goes in the dining room. The sofa is a camp chair. I remember those days... and the feeling of accomplishment as we were able to go through and replace each piece with "real" furniture... and then the feeling of accomplishment of being able to go through and replace each piece with "good" furniture. I'm guessing you're in the "real" stage right now, and looking to fast-forward to "good".

Keep the college furniture for now, unless you've gotten rid of it in the move. If you've gotten rid of it, get something cheap and functional. Focus on, say, paying off your car, and then put the money that you'd spend each month on your car towards your furniture budget.If I had student loan debt, that would be a factor as well. Consider how many major pieces of debt you feel comfortable juggling at one point in time, and do you have enough cushion for emergencies. Could you still pay your routine bills if a paycheck or two had to be diverted to cover some sudden crisis?

Stay away from RTG. I have friends who filled their house with RTG. It didn't wear well. I have a soft spot for Ashley's. I never found Havertys to be particularly competitive pricewise.

Userofcards
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Postby Userofcards » Fri Aug 02, 2013 7:34 am

"Good furniture" (Stickley, etc) is very expensive and "real" furniture (Pottery Barn) isn't cheap either. I wonder if an issuer would give a big enough credit line to someone with a 620 score and collections on the account to even cover the cost of a dining set, a sofa, mattress, bed frame, et cetera. We are talking thousands and thousands of dollars, at a minimum.

I'm also skeptical about using financing to pay for furniture. If the card uses "deferred interest" and the consumer can't pay the total bill off by the time the promo period ends, then huge interest charges will accrue. Even using a 0% APR intro offer from CITI simplicity, etc, could lead to trouble if the balance isn't paid by the intro offer's end.

The crate and barrel credit card has a 26.99% APR. The Pottery Barn card has a 22.8% APR. I don't know about other cards. But if you buy say, $5,000, worth of furniture and have trouble making payments, things are going to get brutal very quickly.

My advice to anyone looking to finance furniture: Unless you know you can pay the bill within a two months or so, head straight to IKEA, garage sales, craigslist, Target or elsewhere. Get cheap (new or used) furniture. Its not ideal, but it can look good and be functional. And if you will have saved enough to pay in full in just a few months, its best to wait anyhow. Furniture stores are always offering huge "sales" as a come on to buy their goods. Those sales are really the permanent prices: you can wait a few months after you have saved up and get the "sale" price.

Midori
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Postby Midori » Fri Aug 02, 2013 9:27 am

Oh-- if there's one thing you buy new, make sure it's your mattress. Never, ever, ever buy a used mattress. There's too much potential for bedbugs and other ick to contaminate your home.

Also, never take out a loan on a mattress. My brother took one of those deals... and it was a predatory lender. Massive headaches all around that still continue to this day, even though my parents paid it off for him with a wire transfer long before the deadline.

takeshi
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Postby takeshi » Sat Aug 03, 2013 8:56 am

RachelB wrote:So my decision is, check out the 0% offers that RTG and Havertys offers from time to time,RTG currently has one this weekend. Wait and find something then apply for credit at either RTG, Ashley, Haverty or deal with the rate at my bank.

It's really impossible for us to tell you. You need to look at the terms for each and see if they suit you. As stated above, 0% doesn't mean much if you're not completely sure that you can fully pay the balance off before the offer expires. The accrued interest is an easy spiral to fall into given that the future is unpredictable.

RachelB wrote:Would I even be eligible for credit at a furniture store?

Depends on who they use for credit and what the specific criteria are. Lenders aren't all identical even for furniture.

RachelB wrote:I've never bought a whole set, in college it was piece by piece and I'm ready for a "big girl set" of furniture.

As stated above, part of being a "big girl" is not overextending yourself. As adults, my wife and I purchase furniture piece by piece as we can afford it.

Drauka
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Postby Drauka » Sun Aug 11, 2013 2:02 pm

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.



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