Should You Finance Your Furniture?


A fresh coat of paint; new curtains; houseplants and decor. If you’re moving house, the term “new” certainly pops up a lot – furniture being no exception. From the bedroom to the living room, and all the spaces in between, you certainly have a lot of square footage to fill. And, if you’re starting out from scratch, filling up your space can get quite expensive.

In fact, as of 2020, the average expenditure per consumer unit on furniture amounted to around $500. With inflation and increasing costs of goods, that number is only expected to rise. But don’t get too discouraged. 

If you’re short on cash and need a new bedroom set, there are options available, with one of them being furniture financing. We hadn’t heard of that either, so don’t worry if this idea has you feeling left in the dark. The House Hacks Tips team dived into the ins and outs of furniture financing and lays it all out in this post to help you determine if it’s the right move for you.  

What is Furniture Financing?

The concept of furniture financing is just like any other type of financing – you simply take out a loan to pay for your furniture. Many furniture stores even provide buyers with good credit with the option to split the cost of the furniture they’re buying into monthly payments. 

These payments are typically spread out over a set amount of time (anywhere from three months to three years) and are presented interest-free in the beginning of your term as a special offer.

When Furniture Financing May Be a Good Fit…

So long as your credit and financial health are in good standing, financing furniture can be a good option, especially if you’re able to take advantage of spreading out a larger lump sum into smaller, interest-free monthly payments.  

Additionally, financing furniture (or any loan) can help you build your credit, because timely payments prove to lenders that you are a responsible borrower that can repay loans. This makes future-you more likely to be able to access larger loans once you build up your financial history.

If you’re certain you can afford the monthly payments, and can even pay off your loan before the no-interest offer is up, financing your furniture could be a good option. However, keep in mind that if you’re unable to meet your monthly payments, you can negatively impact your credit score and end up in further debt. 

Whatsmore, a missed payment can flag up in future credit checks and hinder any chances of being approved for future loans. 

Which leads us to our next point…

… and When to Reconsider

Before taking out any loan – including a new furniture loan – it’s worth considering the risks it can pose to your credit score. First and foremost, having multiple loans and credit accounts with a high balance can negatively affect your credit score, so if you already owe a decent amount to your credit cards or any other loans, tacking on a furniture finance agreement can significantly drop your score. 

And your score won’t be the only one taking a hit. With any new loan comes new monthly payments. Before committing to a furniture financed loan, take a good look at your budget and be honest with yourself – can you really afford yet another monthly payment? If the answer is anything but “absolutely,” the risk may outweigh any potential benefits (no matter how cozy that new couch is!). 

Instead of getting the latest-and greatest furniture set, consider visiting your local thrift stores and neighborhood yard sales, which can offer new-to-you furniture at a discounted price that matches your budget. Plus, shopping at these types of establishments doesn’t take a hit on your credit, so you can focus on meeting your other financial goals while also furnishing your home.


The opinions expressed in this post are for informational purposes only. To determine the best financing for your personal circumstances and goals, we advise you to consult with a licensed advisor.

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