Instantfinance24.com Reveals Buying Furniture on Bad Credit or No Credit
Are you wondering if you can purchase a king size mattress on finance with a bad or no credit at all? Here’s what you need to know.
A credit score is a rating given to an individual that indicates whether they can repay an existing or future debt. It plays a significant role when applying for rent, owning property, getting loans, paying utilities, and signing up for credit cards. Most lenders/banks are likely to use this score to determine your suitability, interest rate, and allowable credit limit.
Creditworthiness differs from one creditor to another when assessing an applicant for rent, credit cards, and loans. Some of the factors that impact your credit score include credit usage and history, payment history, and credit mix. To cut the noise, let’s look at the difference between bad credit and no credit when purchasing furniture.
Meaning of bad credit
In simple terms, a bad credit score signals that you owe more money than you are willing or able to pay back. A bad credit report is mostly due to delayed payments, bankruptcies, and collection accounts.
Bad credit is seen as worse than having no credit at all. Lenders often find a bad credit score to be a red flag. But you can always improve a bad credit score by paying off your debt.
In numbers, a rating of 300 to 600 is poor whereas anything above 700 is considered good. According to FICO, the average score in the US in 2021 was 716.
It goes without saying that with higher scores, creditors feel more confident working with you. Nonetheless, having a bad credit history doesn’t mean that all is lost; some lenders provide you with the option of purchasing items on lease or rent-to-own terms. As such, you can easily own furniture on finance, bad credit included.
Meaning of no credit
As opposed to bad credit, no credit means that you don’t have any prior credit history. As such, you can be said to be credit invisible. Most people find this position better than having bad credit since one can work towards building a good credit score faster than repairing a bad one.
If you fall under this category and wish to buy a king size mattress on finance, you will have better luck opening a credit account or becoming an authorized user on someone else’s card in order to build you credit. You can also look for rent-to-own or other financing options that allow for no credit purchases.
Buying on finance vs. buy now pay later
Buying on finance means that you are borrowing money that goes directly to covering the cost of furniture. Most finance plans require credit checks and so they do not always favor people with bad credit or no credit.
On the other hand, a buy now pay later or rent to own plan allows you to get furniture on finance, bad credit and no credit included. You get to own a brand-new king-size bed and pay for it in installments without the burden of a loan.
Source: https://instantfinance24.com/product-category/computers-tablets/laptops/gaming-laptops/