So you’re interested in a little bit of redecorating but you won’t be able to pay for anything until your next paycheck. That might have stopped people in the past but nowadays there are options you should know about. One of those options is buying furniture on credit, also known as buying with financing.
When you buy furniture on credit, you don’t need to have all the money to pay for your furniture up front. Instead, you receive the item at the time of purchase but pay little or none of the purchase price. Instead, the retailer or catalogue from which you purchase the furniture charges you interest or a financing charge. This is a flat amount or percentage of the balance added on the monthly payment that you make on the balance of the purchase price. This is often helpful for large purchases such as furniture, because it allows you to break up the cost over a longer period of time.
Buying furniture on credit often requires good credit, as many retailers will not approve financing for people with low credit scores. However, store credit can be easier to obtain than major credit cards. “Buy now, pay later” catalogs also offer credit to customers looking to purchase furniture. Here are some of the better-known catalogue groups in the UK offering buy now, pay later services.
Shop Direct Catalogues
- K & Co
JD Williams Catalogues
- JD Williams
- Fashion World
- Simply Be
- Premier Man
All of these catalogues offer furniture in addition to electronics, fashion items and other home accessories. Many have a minimum purchase amount to qualify for their buy now, pay later service, but the amounts are usually much lower than the cost of major furniture items. K&Co, for example, has a minimum purchase amount of £50 for financed purchases. Littlewoods, another popular catalogue, also has a minimum of £50.
These catalogues, which are available online, allow customers to purchase items on credit. Generally, the buyer gets 28 days to pay the full amount of the purchase price before the store begins charging interest on the purchase. Long-term repayment plans may have interest rates over 30%, so make sure to check the terms of your plan before purchasing. Buy now, pay later repayment plans may require you to make payments monthly or even weekly. Buying your furniture using a buy now, pay later option can help you build up your credit score if you make your payments on time.
Many of these catalogues offer special offer codes to first-time customers. If you’re planning to buy furniture from a buy now, pay later catalog, do some research first to find out if there’s a discount you can use to obtain a discount or avoid making payments for 12 months after your purchase. Some buy now, pay later catalogues also offer special discounts and financing options around the holidays, so if you can delay your major furniture purchase until the end of the year, you may find a better deal. Visiting each individual catalogue site and looking around for seasonal deals is possibly the best way to go.