Furniture can be the central focus of any home. Whether you are moving into a new house or need to update your furniture to something that is more modern and comfortable. You can use a personal loan to make this important purchase without having to break the bank. These are a few handy tips to keep in mind when taking out a loan to furnish your home.
Finding a personal loan that suits you
Taking out a personal loan can be a convenient and affordable way for people who want to purchase furniture, but do not have the finances to do so. Not only does it come with flexible repayment plans, but with the various options available to you, it will be possible to find a loan that comes with an affordable interest rate. But not all loans are created equal and some could end up costing you more if you are not careful.
How much can you borrow?
Lenders vary in terms of the minimum and maximum amount that you can borrow with some personal loans having a minimum amount of $5,000 to a maximum of $50,000. Your credit score can affect the amount that you can borrow. However, before you take out a personal loan to cover your furniture expenses it is advisable that you apply for something that is within your financial reach. This means choosing a loan that will be affordable when it comes to repayments. Speaking to a financial advisor can also help you avoid biting off more than you can chew.
Fees and charges
When it comes to knowing the affordability of a loan, checking its fees and charges can be the answer. It might not be the glamorous part of getting your furniture, but it could be your saving grace. Comparing the various loans that are offered by lenders along with the fees and charges can help you know whether a loan will be affordable or not. Always keep in mind to read the fine print before agreeing to a loan.
Interest free periods and promotional deals
Finding a loan that comes with a 0% interest rate can sound like a good deal, especially when it comes to purchasing all the furniture you have in mind. However, you need to be careful when it comes to interest free loans and promotional deals as these tend to end up costing you more when the promotional period ends. If you know that you will be able to meet more than the minimum repayments on time, then you could use such deals to your advantage.
You could save in the process
Comparing your loan options can help you save hundreds of dollars in return, but also maximising deals and sales can help too. Some handy ways in which you can save are:
- Shop for used furniture
- Sign up for sale alerts to get in on the best deals when they come around
- Wait for end of month sales
- Purchase furniture at wholesale prices from the manufacturer