How To Finance New Furniture With A Personal Loan – 2020 Guide

by Rolande Jacques

If you buy a house, you have achieved a significant milestone in your life. But your financial adventures might not be over; you might wonder how you’ll be furnishing your home. Furnishing your new house can be one of the most taxing and expensive moving parts. But even replacing your couch or expanding your bedroom in your wardrobe can cost much more than you saved. Fortunately, there are many different ways which can make a little more affordable the cost of that new bed in your bedroom and the cabinet in your office room.

The commonly used furniture loans are as following:

  • Instant Personal Loan
  • Rent-to-own
  • In-store financing
  • Lay-away
  • Credit Card

We will look into how personal loans can help you finance your new furniture!

What is a personal loan?

img source: okcoachesassn.com

A personal loan is an amortized loan, which means that the monthly payment includes the monthly interest expense as well as the monthly reduction in the outstanding loan balance. At the end of the loan, everything’s paid off. For more information on personal loans, visit sc.com/in

How to get a personal loan?

The process of getting a personal loan is pretty simple, you need to follow certain steps and also keep in mind some points while you apply for it:

1. Do your calculations

img source: wikihow.com

You need to first plan out on the amount you are willing to loan out and a detailed plan of how you will be doing the payments to avoid penalties. The lenders generally follow the procedure of due diligence before loaning out the money to make sure you have the ability to repay the debt. However, it is advised you make your own calculations!

2. Checking your credit score

Most lenders first check your credit score to determine how likely will you be able to repay your loan amount, while some online lenders have started looking for alternative credit data but they will still look into your credit score.

3. Look around for the best deal

Never settle down for the first offer in any loan! Do your research and try to find the best instant personal loan option with respect to the interest rates, tenure, and more. Compare several plans from lenders to get an idea of what you should qualify for. You can generally get instant personal loans from:

  • Banks
  • Online Lender
  • Credit Union

4. Finalizing your lender and applying

img source: zeroplusfinance.com

Once you have finalized your lender with the best offers according to your requirements, then you start with the application process. Depending on the type of lender you chose, the application system may vary. You may be able to do the whole process online for an online lender, or you may need to go to the bank or the union as per their requirements. Every lender has a different requirement regarding the information being provided, but you will typically need to give your identification proof, address, and contact information along with your income statements, employment history, and reason of loan.

5. Providing necessary documentation

Once you apply for a loan, the lender will ask you to provide relevant documentation after you submit the application. The lender will let you know the right person to submit and verify all your documents, the faster you submit the documents the quicker the loan will be processed.

6. Accepting your loan and starting with the payments

Once you and your lender come on the common grounds with the terms and conditions for the loan, you will get the loan fund within a week. Note when your payments are due and plan them accordingly.

img source: freepik.com

Instant Personal loan for financing your furniture

Personal loans are a popular option for people who don’t want to purchase furniture through in-store financing or other options, as other options may have certain drawbacks. A good credit score and a low debt-to-revenue ratio will help you get the best deal on a personal loan. An instant personal loan allows you to get your furniture immediately, without draining your savings. Also, repaying the loan will build up your credit score, provided you make your payments on time. This allows you to get a large sum right in front.

The following advantages will help you understand how an instant personal loan can help you achieve your goals to furnish your house:

  • The personal loan rates of interest are generally fixed, so this will help you easily plan your finances to pay back the loan amount on time. You can consult your advisor which is the best plan suitable for you with different options available.
  • Personal loans are unsecured loan amounts, which implies if you miss a payment you won’t lose your furniture. That does not mean you should miss your payment as it will affect your credit score.
  • The rate of interest of personal loans is usually lower than credit cards.
  • Personal loans give you enough to furnish your home, this gives you the freedom to get all the essentials for your house to settle down everything at once. So stop worrying, start living!
  • The time taken for applying for instant personal loans and getting them approved is pretty quick in comparison to other options. It also gives you the option of flexible solutions according to your need.

If you take the personal loan as your final option to finance your furniture, there are several online lenders that make it an absolute breeze to get a personal loan as long as your credit is decent. For an instant personal loan, you can apply online and, if approved, lenders can transfer the money into your bank account in as little as one business day.

You may also like

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.