Bad Credit Financing

Consumers who have bad credit can take advantage of bad credit financing to rethink their options and get better access to the products they need – without sacrificing quality. Financing with bad credit is a new option that’s proving to be very useful to more and more people every day. Throughout this guide, you will learn:


  1. What is Bad Credit Financing?
  2. Easy Ways to Apply for Financing with Bad Credit
  3. What Can You Get with Bad Credit Financing?
  4. Popular Types of Financing for Bad Credit
  5. Bad Credit Financing FAQs

What Is Bad Credit Financing?

Bad credit financing is a type of financing available to borrowers who have a low credit score. For example, if looking for a car loan, financing options often require a credit score of at least 661 to qualify for a loan. Those with no or low credit scores often have difficulty getting approved for traditional financing.

Using bad credit financing, approved borrowers can obtain financing for furniture, tires & wheels, appliances, electronics, jewelry, and more.

Credit Information Papers on a Table

Not sure where you fall on the scale? Here’s the breakdown:


  • No credit (0) – You cannot have a credit score without a credit history. A zero-credit score indicates you haven’t applied for a loan or credit card ever (or in a LONG time).
  • Bad (300 – 579) – Credit scores in this range are below average and associated with a bad credit report history. In this range, many lenders will refuse your loan application, but credit approval varies by provider.
  • Fair (580-669) – Credit in this range is slightly too far below average and can still be problematic when it comes to financing. You may still have trouble with some lenders who prefer better credit and offer the lowest rates. Scores in this range can often be rehabilitated through good financial practices to help move toward the higher end of this range.
  • Good (670-739) – Most people in the US have credit scores that fall within this range. To some potential lenders, a good rating might imply that you can manage your credit accounts without defaulting, so you’ll likely have more options for potential lenders if your score is within this range.
  • Very Good (740-799) – If your score is in this range, you have great credit, and your financial behavior exceeds the average, and you are likely to be considered a responsible borrower. With scores in this range comes the potential to access better credit cards and lower interest rates on loans, mortgages, and credit cards.
  • Exceptional (800-850) – Scores above 800 can help qualify for some of the best loan terms and interest rates in the market.

How Bad Credit Financing works

It wasn’t long ago that to secure product financing, you would generally have to go to a bank if the store didn’t offer it directly. Unfortunately, traditional lenders (including banks) and their credit approval requirements don’t often cater to the needs of those looking for financing options with bad credit.

In recent years, more online lenders have begun offering financing loan options, with some specifically providing payment solution options to those with bad credit scores. This made getting access to the necessary products a greater possibility for people with bad credit.

Person Transferring Money On Phone

What Can You Finance with Bad Credit?

Financing can allow you to purchase many household products you need to furnish your home. A variety of major home appliances are available for financing, including refrigerators, washers and dryers – as well as a large selection of electronics, furniture, and a host of other items that might help make your house feel more like home.

A large portion of common products have become available by way of bad credit financing options and payment solutions; however, terms and conditions will vary for each. It’s wise to get clarification about where any financing you may seek can be used and all other pertinent information before signing a contract.

You might be wondering: Is a lease the same as a loan?

Leases & loans are quite different – here’s what you need to know:

  • A loan (or personal loan) is generally a lump sum of funds provided on the recipient’s behalf that is paid back over time (and, like most loans, includes interest.)
  • A lease (or rent-to-own) allows the recipient to possess the leased item for a pre-determined period of time and includes the option to purchase the item outright. It does not include interest but has leasing fees.

Bad Credit Financing for Products & Services

If you’re looking for ways to fund your next purchase, using bad credit financing can quickly help you gain access to funds. Unlike some alternative financing options, such as layaway, you can take the purchase home with you before it’s fully paid for.

You can use bad credit financing to make various purchases at thousands of locations across the United States. Alternative financing options, such as rent-to-own, don’t allow you to purchase certain things, such as tattoos, or have dental work done.

woman working on laptop in office building

Popular Products Financed with Bad Credit

Bad credit financing allows you to make purchases for yourself or your home to improve your quality of life. With immediate access to goods or services, you don’t have to wait for your next payday.

Type of Product: Furniture

Average Price**: $1,500 to $3,000

Find a Store*


Type of Product: Refrigerators

Average Price**: $1,000 to $2,500

Find a Store*


Type of Product: Washers & Dryers

Average Price**: $1,000 to $2,500

Find a Store*


Type of Product: TVs

Average Price**: $650 to $2,000

Find a Store*


Type of Product: Mattresses

Average Price**: $500 to $2,500

Find a Store*


**Retail prices based on mid-tier items. Retail prices may vary based on extras and the type of appliance you purchase.

*Payment solutions vary based on merchant and will be indicated at the beginning of the application process. Be sure to confirm that the merchant you select offers the lease, loan, or cash purchase solution you intend to apply for.

Product Options with Bad Credit Financing

You can finance a variety of different products and services with bad credit financing. By utilizing financing options, you can get the product quickly. For instance, if you need to purchase a new washing machine but don’t have enough cash to pay for the item in full.

When you’re in a tough spot, it can be challenging to borrow money without perfect credit, but it is possible with the right financing partner and options.

Fortunately, with more options on the market for bad credit financing today, it may be possible to get the furniture, bedroom set, tires & wheels, and other products without perfect credit.

Here are just a few examples of products and services that are available across our partner network of stores. It’s important to note that where you can shop with financing will vary based on the lender.

Woman Looks At Dining Set
  • Furniture
  • Tires/Wheels
  • Dental


  • Instruments
  • Electronics
  • Pet Needs
  • Home Repairs
  • Appliances

Choosing the Right Products with Your Financing

When it comes to choosing the right product for your home, it ultimately comes down to what your wants and needs are. You may choose a more expensive product if you need the latest technology built-in or wish to enhance the looks, functionality, or features of the device.

Spending a little more on a product may result in better quality, a more extended warranty, or larger size – but probably a higher overall price too. Finding the right balance between functionality and cost can be challenging, so don’t rush your decision.

Select a product that meets both the functionality you require and your budget – and make sure the monthly payment is within the range of what you can afford (comfortably!) each month.


Credit Scores & Trends in the US

There are many misconceptions about bad credit and the credit economy. Although it’s true that many people with low credit scores can be denied loans or even credit cards, there is a whole population out there who have no access to traditional financing options because of their bad credit. However, they still have needs for products and services, which has created a growing demand for bad credit financing options.

Many consumers who have not been successful because of low credit scores can now get credit through bad credit financing options. Bad credit financing can provide borrowers with access to basic furniture like beds and tables, appliances like refrigerators and air conditioners, and electronics like phones and televisions.

Types of Bad Credit Financing

Consumers with bad credit can have a difficult time getting loans or financing from traditional lenders, which generally includes people with credit scores below 670.  As a result, many alternatives have emerged to help provide people with bad credit financing.

Alternative financing options for those with bad credit include:

Please note that this is not an endorsement of any of the payment solutions noted in this section and is intended to be strictly informational.

1. Payday Loans

A payday loan is a short-term loan used for emergencies. These loans are unsecured and do not require collateral. Credit merchants offer online and in-person payday loans.

A payday loan does not require a good credit score, but you will need to provide proof of your current income, such as a pay stub, employer information, and bank routing numbers.

Man reviews information on his computer

Payday Loan Pros:

    • Fast access to cash
    • Quick and easy approvals
    • No credit check

Payday Loan Cons:

    • Interest rates that are extremely high
    • Can lead to debt traps

2. Secured & Unsecured Loans

The term secured loan refers to a type of loan in which the borrower pledges an asset as collateral. For example, the title to a house or a car can be pledged as collateral. The lender may take possession of the collateral if you default on the loan.

Alternatively, unsecured loans are available without requiring collateral and do not require you to pledge assets. Unsecured loans tend to come with higher interest rates than secured loans. Examples of unsecured loans could include student loans, personal loans, and credit cards.

Secured Loan Pros:

    • Interest rates may be lower
    • Longer repayment periods
    • Larger loan amounts


Unsecured Loan Pros:

    • Easy application process
    • No collateral required

Secured Loan Cons:

    • Collateral is required



Unsecured Loan Cons:

    • Loan amounts are lower
    • Interest rates may be higher

3. Cash Advances

Cash advances are short-term loans typically taken in cash or credit card cash withdrawals. Cash advances are unsecured loans that do not require collateral. Typically, they last from a few weeks to a few months.

You typically have to provide proof of income, a personal check, a bank statement, and a social security number to qualify for a cash advance. In the absence of a personal check, you can provide a debit card or ACH authorization for your bank account.

Cash Advance Pros:

    • Accessible
    • Fewer requirements
    • No collateral required
    • Bad credit history might not affect your application

Cash Advance Cons:

    • Potentially unclear repayment terms
    • You may end up in a debt cycle
    • The annual percentage rate (APR) is high

4. Student Loans for Bad Credit

Students with bad credit can apply for low-interest unsecured loans for accredited programs at approved colleges and universities. Student loans may be used to cover tuition costs, books, lab fees, parking fees, and health center fees. Qualifying for a student loan with no credit score or bad credit history is possible.


Student Loan Pros:

    • No collateral required


Student Loan Cons:

    • There is no federal subsidy
    • Variable interest rates are possible
Man reviews credit information on computer

5. Bank Agreements

Applying in-person or online, you can get a bank agreement with your bank if you qualify.


Bank Agreement Pros:

    • You can access the money instantly without having to wait for personal checks

Additional Uses of Bad Credit Financing

Bad credit financing can grant you access to funds to help you deal with large expenses. Bad credit financing is flexible and offers affordable repayment schedules for your convenience. Other additional uses of bad credit personal loans include:

woman trying on ring in store




    • Refrigerators
    • HVAC units
    • Washers



    • Laptops
    • Gaming PCs


    • Engagement Rings
    • Necklaces
    • Wedding Rings



    • Dental Work
    • Cosmetic Surgery
    • Tattoos

Bad Credit Financing in Summary

Obtaining bad credit financing can be a helpful resource when poor credit and bad credit history prevent access to funding.  When used responsibly, bad credit financing can help you get the products or services you need or want sooner and allow you to pay back with affordable monthly payments.  Always be sure that you understand the terms of any contract clearly before agreeing to any terms.

Bad Credit Financing FAQs

Below you will find the most frequently asked questions about bad credit financing.

Q: What Qualifies as “Bad Credit” Financing?

A: Bad credit financing refers to lending a borrower money, or extending credit, even after it has been determined that they have a poor credit history.


Q: Can I Get Approved for Financing Even with Bad Credit?

A: Yes, it’s possible to get approved for financing, even with bad credit, given the number of lenders in today’s market. While not everyone will be approved, having a bad credit score does not automatically disqualify you.


Q: Do You Need a Co-signer for Bad Credit Financing?

A: If you’re trying to qualify for financing from a traditional lender, they may ask you to have a co-signer if your credit score is below their requirement. For many bad credit financing options, co-signers won’t be required, but requirements will vary based on the provider, so be sure to familiarize yourself with all pertinent details in advance.


Q: What Are the Best Financing Options with Bad Credit?

A: The best financing option is one that you’re able to qualify for with the most favorable repayment terms and lowest rates. Be sure that you’ll be able to commit to the loan payments on time or be subjected to late fees or late payment penalties.