Bad credit furniture financing: How to overcome it

Couple lifting chair in living room

If you’re a new homeowner with bad credit, furniture financing can be a source of anxiety. You’ll want to know how to buy furniture with poor credit and if a plan for furniture finance is manageable.

Thankfully, buying furniture even with bad credit is still a possibility. Of course, there may be one or two extra issues you have to face, but you shouldn’t let that stop you if you’re sure you can afford the monthly repayments.

Keep reading to find out all the answers to your furniture financing questions, even with bad credit. 

What options are there for financing furniture with bad credit?

If you’ve got a bad credit history, buying furniture on finance can be a little trickier. There are a few different options you can consider, each with their different pros and cons. 

To give you an idea of what options there are for spreading the cost of furniture, we’ve run through the main ones below.

In-store finance 

Consider what happens when buying a more expensive item of furniture, such as a sofa or dining table. It’s likely you’ll have the option to spread the cost using in-store finance when you go to pay. This can be a quick and convenient option if you don’t have time to shop around for finance. 

With in-store finance, you’ll usually need to say how long you need to repay the cost of the furniture. If you pick a short amount of time, your monthly repayments will be higher, but you’ll save money in interest and pay back less overall. If you pick a longer repayment term, your monthly repayments may be more manageable but you’ll repay a higher amount in total.

Some in-store finance options have an interest-free introductory offer. This allows you to spread the cost without paying interest for a fixed amount of time. This can be a good option if you’re confident you can repay the amount within the 0% window. Once the interest-free period ends, a higher APR may apply.

Personal loan

A personal loan lets you borrow a fixed amount of money to buy your furniture, and then repay it in fixed monthly instalments, plus interest.

Personal loans generally range from £500 to £35,000 with terms over 1 to 7 years. If you’re eligible for a personal loan and you have bad credit, it’s likely that you’ll be offered a higher APR on your borrowing. Because of this, it can be a good idea to shop around for the best rates that are available to you.

Guarantor loan

A guarantor loan is a loan where the lender requires you to have a guarantor. A guarantor is someone who agrees to repay the loan for you if you become unable to. Your guarantor should be someone that you trust, like a friend or family member but doesn’t have any financial links to you (such as a spouse).

Other than that, the loan works in the same way as a personal loan. You borrow a fixed amount from the lender to pay for your furniture, then repay it in fixed monthly amounts, plus interest. 

Guarantor loans are specifically designed to help people with bad credit access finance. You may find that even though the APR could still be a bit higher than you were hoping for, adding a guarantor can sometimes bring this down. 

Homeowner loan

If you’re a homeowner, a homeowner loan could also be an option for you. With a homeowner loan, the loan is secured against your property. This means that if you’re unable to repay the amount you borrow, the lender could repossess your home to recover their costs.

Homeowner loans start from £5,000 and can be spread over 1 to 30 years. This means that you could potentially spread the cost of your new furniture over a much longer period to lower the monthly repayments. Just remember that this will mean you repay more interest overall. 

With a homeowner loan, there are other factors that affect your eligibility aside from your credit score, such as the amount of equity in your home. This could mean that you may be eligible for a homeowner loan even if a personal loan isn’t an option for you. 

Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.

Credit card

Finally, you could also consider a credit card. If you have bad credit, you may find that the credit cards you are eligible for have high interest rates and that the credit limit you’re offered is fairly low. With this in mind, you may want to think about whether this is the best way to finance your furniture. 

When you borrow on a credit card and repay the amount in full, you won’t pay any interest on your borrowing. However, if you just make the minimum monthly payment, you’ll be charged interest on the remaining balance. 

Ways to get around bad credit furniture financing

Bad credit doesn’t necessarily have to determine how you design your home. While bad credit can present challenges for any kind of purchase, there can be ways around this. 

Before reading the list below, you should consider all your options for furniture buying. Charity shops often have cheap second-hand furniture and you may be able to afford to pay with cash upfront.

Of course, paying upfront isn’t for everyone. Many people prefer payment plans to spread the cost and make their furniture buying experience easier. 

Overcoming bad credit in order to pay for the furniture you love can be possible.

Here are a few things you can do to improve your chances of getting accepted

  • Check if you can improve your credit score – before you make a finance application, see if there are any credit score boosting quick wins you can adopt, such as registering to vote or removing any errors from your credit report. 
  • Consider all the finance options available to you – although a guarantor loan may not be what you were hoping for, it could still be worth considering. If you’re sure you can afford the monthly repayments, repaying your guarantor loan could also improve your credit score over time. In addition, you may be able to repay it early with a personal debt consolidation loan at a later date.
  • Find out if your chance of acceptance – chance of acceptance percentages can indicate how likely you are to be accepted for furniture finance, all before a hard credit check is made on your credit file. This will give you an indication of whether it’s worth you moving forward. That way, you don’t make unnecessary finance applications that could damage your credit score further. Please note that chance of acceptance is subject to final lender checks and does not guarantee approval.
  • Consider using Open Banking – a lot of lenders have now added Open Banking into their application process. Open Banking is regulated by the Financial Conduct Authority (FCA) and allows a lender to safely and securely check your income and expenditure habits via your bank account. This could allow you to quickly prove to a lender that you can afford to take out finance even if you have hit a few bumps in the road with your credit repayments in the past.

What does your credit score have to be to finance furniture?

After a furniture store runs through your credit history, they will get an idea of who they are working with as a customer. Furniture stores usually have their own criteria for accepting or declining finance applications. Some will expect a high credit score, especially if the furniture is expensive.

Others will accept lower credit scores and help you find a finance option that works for you. Most furniture financing plans will have fixed monthly repayments over the length of the finance contract. The APR they ultimately offer you comes down to your credit score. If you have bad credit, you may find that the APR they offer you is a bit higher. In turn, that will mean higher monthly repayments. 

If you’re a new homeowner, you’ll probably already be aware that your credit score is less than perfect. So, before you apply for any furniture finance, quickly check if there are any quick and easy ways you can boost your credit score.

Do they run your credit to finance furniture?

Most furniture stores will more than likely perform a credit check before allowing you to purchase furniture on finance. This is to check for bad credit. They then decide if you are eligible for finance. 

If a furniture shop finds you do have bad credit, it doesn’t mean the possibility of purchasing from them is immediately out the window. Many will have options available for those with poor credit. Most salespeople will be happy to discuss these with you. 

Should I buy furniture before closing on a property purchase?

Generally, it is best to have closed on your home before deciding to buy furniture. After all, you don’t want to buy the furniture you love and then have nowhere to put it.

This can also look good to furniture loan lenders. If they can see an approval for a mortgage, despite any bad credit, then they will know that other lenders and banks trust you to meet repayments. 

What ways can I pay back a furniture financing loan?

There are many different ways to repay a furniture financing loan. Most plans offer monthly repayments, and these will generally have a set rate of interest applied to them. Always check the terms and conditions and discuss these with the salesperson to make sure you’re getting the right finance for you. 

Some furniture shops may also offer finance with an introductory 0% period. This gives you a window where your borrowing won’t accrue any interest. If you can, try to pay off your furniture during this window so you don’t pay anything extra. Once the 0% interest period ends, a higher rate of interest will apply.

Paying back a financial furniture loan with a credit card is not always the best idea. It can be tempting, but you could end up paying much more interest than you need to. Your credit score could also become worse if you can’t meet repayments. 

So, no matter if you’re buying furniture for your living room, kitchen, bathroom, or bedroom, the repayment plan that’s right for you will likely depend on how much you need to borrow and how long you need to repay it. 

You may still have bad credit furniture financing options

If you have bad credit, furniture financing may be trickier. Thankfully, there are still options out there if your credit history is less than perfect. 

If you do think buying furniture on finance is right for you, then making sure you have a good repayment plan that you can meet easily should be a top priority.

Warning: Late repayment can cause you serious money problems. For help go to

36.8% APR Representative (fixed)

Representative example: 36.8% APR Representative based on a loan of £12,500 repayable over 48 months at an interest rate of 36.8% pa (fixed). Monthly repayment of £500.83. Total amount repayable is £24,039.67.

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