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:
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.
Not sure where you fall on the scale? Here’s the breakdown:
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.
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.
Leases & loans are quite different – here’s what you need to know:
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.
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: TVs
Average Price**: $650 to $2,000
Type of Product: Mattresses
Average Price**: $500 to $2,500
**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.
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.
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.
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.
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.
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.
Payday Loan Pros:
Payday Loan Cons:
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:
Unsecured Loan Pros:
Secured Loan Cons:
Unsecured Loan Cons:
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:
Cash Advance Cons:
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:
Student Loan Cons:
Applying in-person or online, you can get a bank agreement with your bank if you qualify.
Bank Agreement Pros:
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:
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.
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.