Often a home furnishings needs to be replaced. Think of the kitchen that has long seen its good times. A new kitchen is being targeted. However, it is not exactly cheap. The financing is still not conclusive. Should the loan for home furnishings be taken out at a bank or at a furniture store? The best offer should decide here.
The possibilty of taking up loan
Often there is also a move where the old kitchen no longer fits, or you simply want to treat yourself to a completely new home with the new apartment. Not only is the move expensive, but also the home furnishings. The possibility of taking out a loan for the home furnishings could also be taken up with the loan for the move, if one was applied for.
A loan makes it easy for consumers to buy the furnishings. A loan can be used to create a facility that closely matches the needs and fashion tastes of the customer. Of course, the facility could also be purchased piece by piece.
If you need a new kitchen or a new bedroom, you can hardly postpone this purchase. Of course there is the possibility to buy a cheap device, which could perhaps be bought with your own savings. However, there is a risk that the furnishings will not match the taste and will later be replaced. Here the customer has to decide which project to choose.
Ultimately, the cost will decide how to proceed. The exact cost is also necessary when deciding on the loan for the home furnishings.
A number of financing options are possible as a loan for the home furnishings. The installment loan, dealer financing, the overdraft facility or loans via credit marketplaces.
Which loan is the right one ultimately depends on the financial circumstances of the customer. If you choose a bank loan, you should have a good credit rating so that you get favorable conditions. If the Credit Bureau is bad or the income is low or both, the customer can also consider other types of credit.
In order to be predestined for a loan, the income must be sufficiently high, a permanent job without a fixed-term contract and a trial period must be available and the Credit Bureau should be unencumbered. If negative entries can be found, there could be difficulties in lending.
The classic installment loan is offered by most banks. It can raise up to 50,000 USD. A small loan of over 5,000 USD is also offered. The advantage of the installment loan is found in the low interest rates. The loan will be repaid in constant installments. The amount of the installments determine the loan amount and the term.
A loan for home furnishings can also be taken out from the dealer. This can be done in the same way for a local retail store as for an online retailer. The advantage is that the customer only has one loan offer and, if it is cheap, he can finance immediately. In addition, many traders offer low interest rates, just think of the 0% financing.
The new trend of taking out a loan is the credit marketplace. Two well-known companies such as Spin Lender and Across Lender compare loan seekers with private investors. In this way, the loan for home furnishings can be taken out privately in the same way as a loan, regardless of the shop. If the Credit Bureau is bad, the interest increases.
The overdraft facility can also be used as an alternative to bank loans. The overdraft facility is provided by banks to solvent customers. If the overdraft facility has not yet been provided, the customer can ask for it. Deployment is easy and without a lot of paperwork. The overdraft facility is based on the amount of income. As a rule, up to three net monthly salaries are approved.
The customer can make the repayment flexible, but there should also be a repayment. Many customers use the overdraft facility as a second income. But that can be dangerous. If nothing stands still, the bank’s interest adds up to a considerable sum. The overdraft facility is expensive and should therefore only be used for a short time.
The credit card can also be used as a loan for home furnishings. Here the repayment was agreed before the credit card was issued. Interest rates are not exactly as high as for overdraft facilities.
The credit comparison
Before deciding on a loan, the customer should conduct a loan comparison. This can be done online and free of charge. With it, the customer sees the effective annual interest rate and the terms and conditions of the individual providers. The search can be restricted by entering the loan amount, term, repayment and income, so that realistic loan offers are available to the customer.