Whether you just moved in or are redecorating your home, you may need (or want) to select new furniture. While finding those perfect pieces can be fun, it may be a little more difficult to swallow the cost.
If you need help realizing your vision for your dream home, you have furniture financing options, including personal loans and no-interest furniture loans. We’ll cover how each works so you can stretch out on your new chaise lounge knowing you made the right choice.
Compare personal loan rates for furniture financing
Advertiser DisclosureOverview
Lightstream is one of three Credible partner lenders to offer loan amounts up to $100,000, which makes it ideal for financing large expenses like home improvements or weddings. Funds are available as soon as the same day you apply, and you'll have up to 12 years to repay certain types of loans, including home improvement loans, RV loans, and boat loans. There are no origination fees, and rates are low — Lightstream's lowest APR beats SoFi's advertised lowest APR by 1 percentage point. But you'll need good credit to qualify.
Unlike most lenders, Lightstream does not let you prequalify on its site. Nor does it provide a contact phone number next to its customer service hours on its website.
Repayment terms
2 - 12 years, depending on loan purpose
Eligibility
Available in all states except RI and VT
Time to get funds
As soon as the next business day
Loan uses
Credit card refinancing, debt consolidation, home improvement, and other purposes
Overview
Upstart has one of the lowest available APRs of Credible partner lenders and of all non-partners we reviewed, making it a good choice for well-qualified applicants. However, it's also is one of few lenders that doesn't have a minimum credit score requirement (if you apply on the lender's website), which makes it an option if you have bad credit or no credit history. Upstart may charge an origination fee as high as 12%, but good-credit borrowers may not be charged one at all.
Trustpilot gives Upstart 4.9 stars, which is the highest of all lenders we reviewed.
Time to get funds
As soon as 1 to 3 business days
Loan uses
Pay off credit cards, consolidate debt, relocate, make a large purchase, and other purposes
Overview
Discover Personal Loans offers low APRs, repayment terms up to seven years, no origination fees, nationwide availability, and doesn't require your Social Security number to prequalify on its site. You'll need to have an annual income of at least $40,000, and a FICO score 660 or higher, to be eligible. If your credit score is fair or poor, you'll need to go elsewhere, as Discover doesn't allow cosigners.
Funds are available as soon as the next business day after loan approval.
Eligibility
Available in all 50 states
Time to get funds
Funds can be sent as soon as the next business day after acceptance
Loan uses
Auto repair, credit card refinancing, debt consolidation, home remodel or repair, major purchase, medical expenses, taxes, vacation, and wedding
Overview
Upgrade has a suite of features that make it a very attractive lender: competitive interest rates, discounts for direct pay and autopay, as soon as same-day funding, up to seven-year repayment terms, and nationwide availability. Plus, loans are available to fair-credit borrowers, and you don't need to input your Social Security number to prequalify on the website. Upgrade even offers secured personal loans, which is not common among lenders.
However, Upgrade does charge an origination fee of 1.85% to 9.99%. You must have a FICO score of at least 600 and a minimum income of $25,000 annually to qualify.
Loan amount
$1,000 to $50,000 ($3,005 minimum in GA; $6,600 minimum in MA)
Loan uses
Credit card refinancing, debt consolidation, home improvement, major purchase, other
Overview
LendingClub is a solid lender for good credit borrowers and some fair credit borrowers that apply directly on its website. It's easy to prequalify with LendingClub, especially if you're uncomfortable providing your Social Security number, as the company doesn't require it at the prequalification stage. (You will need to provide it if you move forward with a full application.)
While prequalification is not a guarantee that you'll be approved for a loan, LendingClub does a better job than most other Credible partner lenders at approving applicants that have successfully prequalified. In other words, you're less likely to have your application declined once you apply (if you've already prequalified). LendingClub may charge an origination fee between 3% and 8%.
Eligibility
Available in all 50 states
Loan uses
Debt consolidation, paying off credit cards
Overview
SoFi stands out for offering no-fee personal loans with competitive rates, high loan amounts, long loan terms, discounts for autopay and direct pay, and funding as soon as the same day. Plus, SoFi prioritizes convenience for existing and potential customers with features like live chat and an easy prequalification process that doesn't require your Social Security number.
The main catch is that you need to qualify for a loan with SoFi, which can be hard to do if you don't have good credit. You also won't be able to apply with a cosigner, since SoFi doesn't accept cosigners; nor does it offer secured personal loans.
Fees
Option to pay an origination fee (up to 6%) in exchange for a lower rate
Time to get funds
Typically within a few days, given approval and bank account verification, but sometimes within the same day
Loan uses
Solely for personal, family, or household uses
Overview
Best Egg is a solid lender for a wide range of borrowers and, notably, scored second for personal loan satisfaction in J.D. Power's Consumer Lending Study. It offers competitive rates, reasonable loan terms and amounts, and personal loans for fair credit. You'll need a FICO score of at least 600 to qualify, but the lower your score, the higher your APR may be. The APR includes the interest rate and origination fees, which range from 0.99% to 8.99% with Best Egg.
Note that if you successfully prequalify with Best Egg, you may be more likely to be approved for the loan relative to other lenders you prequalify with. Based on Credible data, borrowers who chose to apply for a loan with Best Egg were more than twice as likely to be approved (relative to most other Credible partners).
Fees
Origination fee, late fee, unsuccessful payment fee, check processing fee
Eligibility
Available in all states except DC, IA, VT, and WV
Time to get funds
As soon as 1 to 3 business days after successful verification
Loan uses
Credit card refinancing, debt consolidation, home improvement, and other purposes
Overview
Avant personal loans are a good choice for borrowers with bad credit looking for small- to moderate-sized personal loans. Loans are available up to $35,000 and you could get the money as soon as the next business day after approval. Plus, Avant is more likely than some lenders to approve the applications of borrowers who've prequalified with Avant. However, the lender charges an origination fee up to 9.99%, and its top-range interest rates are among the highest of the lenders we reviewed.
Fees
Origination fee, late fee, dishonored payment fee
Eligibility
Available in all states except HI, IA, MA, ME, NY, VT, and WV
Time to get funds
As soon as the next business day (if approved by 4:30 p.m. CT on a weekday)
Loan uses
Debt consolidation, emergency expense, life event, home improvement, and other purposes
Repayment terms
1 to 5 years (2 to 5 years through Credible)
Overview
It’s worth considering a personal loan through Splash if you have good credit (ideally, a FICO score above 700). The platform offers loans from a wide range of lenders, and next-day funding is available. Plus, Splash has a live chat feature so you can get real-time answers without having to wait on hold or for an email. Loans are available up to $100,000 if you apply via Splash’s website.
Rates are competitive, but borrowers with excellent credit may find lower APRs elsewhere. If you need a repayment term longer than five years, you’ll need to look elsewhere as well.
Loan amount
$5,000 - $100,000 (up to $35,000 on Credible)
Eligibility
Available in all states except VT. OH and NM net disbursed amount must be greater than $5,000. MA must be greater than $6,000
Time to get funds
Same day available, typically 1-3 days
Loan uses
Debt consolidation, home improvement, medical expenses, major purchases
Overview
Universal Credit is one of a handful of lenders that offers personal loans for bad credit. If your FICO credit score is at least 560, you may be eligible for a Universal Credit personal loan. It offers loan amounts up to $50,000, repayment terms up to seven years, and discounts for direct pay and autopay. Funds are available as soon as the next business day after loan approval.
Note that rates and fees can be relatively high — you may pay an origination fee from 5.25% to 9.99%, and APRs start at 11.69%. If you get a loan with a high interest rate, consider refinancing your personal loan at a lower rate once you've improved your credit score.
Eligibility
A U.S. citizen or permanent resident; not available in DC, IA, SC, WV
Time to get funds
As soon as 1 business day after acceptance
Loan uses
Debt consolidation, pay off credit cards, home improvements, unexpected expenses, home and auto repairs, weddings, and other major purchases
Overview
Happy Money has been in operation since 2009 (formerly known as Payoff). It's an option for fair-credit borrowers (plus those with better credit), and notably has a relatively low top-end APR. In other words, you could qualify for a lower rate with Happy Money with fair credit, relative to other lenders that offer fair-credit loans. The company does charge an origination fee on some loans, up to 5%, but that's not as high as some other lenders' origination fees.
You should be prepared to wait a few days to get your money, as funding can take three to five days once approved. And loans aren't available in Massachusetts or Nevada. Happy Money has an A+ rating with the BBB and is ideal for debt consolidation and credit card consolidation loans.
Eligibility
Available in all states except MA, MS, NV, and OH
Time to get funds
As soon as 2 - 5 business days after verification
Loan uses
Debt consolidation and credit card consolidation only
Overview
BHG Money stands out for offering the largest loan amounts — up to $200,000 — of any Credible partner lenders. Simply put, if you need an unsecured personal loan over $100,000, there are very few places to look, but BHG is one. You'll have up to 10 years to repay the loan, but you'll need an annual income of at least $100,000 to qualify and a FICO score that's 660 or higher. However, if you have a cosigner that meets these requirements, BHG will consider your application.
Loan amounts start at $20,000, so look elsewhere for small loans. And BHG charges a modest origination fee between 2% and 4%, depending on your financial profile. Loan funds are available within three to 14 days of loan approval. Note that you can't prequalify with BHG.
Fees
Origination fees, late fees
Eligibility
Available in all states except Maryland and Illinois
Loan uses
Debt consolidation, baby (adoption), engagement ring financing, moving (relocation), business, home improvement, special occasion, cosmetic procedures, major purchase, taxes, credit card refinancing, medical expenses, vacation, wedding, other
Fees
Origination Fee, $15 Late Fee, $25 NSF Fee
Eligibility
Available in all states except CO, CT, ME, NV, NH, TN, VT, WV, WY, and all U.S. Territories
Time to get funds
Funds typically deposited into your account in 1 business day13
Loan uses
Debt consolidation, credit card refinancing
Overview
OneMain Financial has multiple options for bad-credit personal loans. There is no minimum credit score required (if you apply directly with OneMain), which means you could get a loan with bad credit (FICO below 580). Plus, cosigners are allowed — a cosigner is someone (ideally, with good credit) who promises to repay the loan if you can't, which can make it easier to qualify or lower your rate. And, secured personal loans are available. You secure a loan with collateral, which may also help you qualify or lower your rate.
Rates are higher than competitors and OneMain charges origination fees as either a flat fee up to $500, or a percentage from 1% to 10% (depending on your state of residence). Note that even if you prequalify for a personal loan with OneMain, getting approved isn't a given.
Fees
Origination fee, unsuccessful payment fee, late fee
Eligibility
Must have photo I.D. issued by U.S. federal, state or local government
Time to get funds
As soon as 1 to 2 days after acceptance
Loan use
All except business, and education
Personal loans vs. no-interest furniture loans
While it’s often best to save for new furniture and pay cash, furnishing a new home can be costly, and you may not want to sit on the floor and eat dinner while you wait to build up your savings. The nationwide average cost to furnish a home is about $16,000, according to HomeAdvisor. If you need to pay over time, you might think of using a credit card. But considering that the average credit card interest rate was 21.59% as of February 2024, according to the Federal Reserve, you may be able to do better with a personal loan, store financing, or both.
Personal loans
Personal loans are available from banks, credit unions, or online lenders, and provide a lump sum of money for purchasing furniture, which is then repaid over time in fixed monthly installments with interest. You may be able to borrow anywhere from a few hundred dollars to over $100,000, and some lenders offer 10 years or more for repayment. Higher available loan amounts and longer repayment terms can make a personal loan a more flexible option than a no-interest furniture loan.
The average interest rate on a 24-month personal loan was 12.49% as of February 2024, according to the Federal Reserve. Personal loans are also quick to obtain, with many online lenders offering next-day or even same-day funding. The application process is generally straightforward and can typically be completed online. But bear in mind, you’ll need excellent credit to have a chance at the lowest rates lenders advertise. You’ll also need to show proof of income.
Tip: Prequalify with multiple personal loan lenders to see rate and term estimates before applying. When you prequalify, the lender runs a soft credit check, which won’t hurt your score. Note that when you formally apply for a loan, the lender will run a hard credit inquiry, which will temporarily ding your score.
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No-interest furniture loans and other store financing options
Many furniture stores offer online and in-store financing options that provide an interest-free period. Some, like Rent-a-Center, offer rent-to-own options that allow you to own the furniture after six months of no-interest payments. Others, like Ashley and Wayfair, offer 0% interest with a store card on certain purchases or with point-of-sale financing through companies like Affirm. The catch with these options is that you’ll typically pay a very high annual percentage rate (APR) if you’re unable to repay the balance within the interest-free period.
For example, Wayfair’s credit card offers no interest for 24 months on purchases of $2,999 or more. After 24 months, though, you’ll pay the regular APR on the remaining balance, which could be over 30%. Point-of-sale financing programs typically come with shorter interest-free periods. For example, with Affirm, you can pay for your furniture in four payments every two weeks (for a total of eight weeks, or about two months). You can also choose a loan from Affirm that will incur interest over a longer term, which is the same as a personal loan.
Pros and cons of personal loans for furniture
A furniture loan is a financial commitment you agree to for years — thoroughly consider whether the furniture you have your eye on is worth it.
Pros
- Longer terms: With a personal loan, you can typically choose a longer term than you would get with store financing options. Many lenders offer 5- and 7-year terms, and some may offer terms up to 10 years. Your payments will remain fixed for the duration of the term.
- Low, fixed interest rates: The average interest rate on a personal loan is 11.48%, which can save you a huge amount of cash when compared to putting your furniture purchase on a credit card.
- Flexible use: If you have other financing needs — like hiring a handyman or replacing an appliance — a personal loan can help with those costs in addition to helping you purchase the furniture you need. A store credit card, on the other hand, may only be useful at that specific store.
Cons
- Best rates reserved for borrowers with excellent credit: The lowest advertised rates for personal loans are generally only available to borrowers with excellent credit. If you have fair credit, you’ll likely pay more than the average rate, and if you have bad credit, you may not qualify.
- No interest-free period: Personal loans don’t come with an interest-free period, so you’ll start paying interest on the total balance right away.
- May take longer to process: While store financing options can be obtained immediately, it may take a few business days to get your personal loan, depending on the lender. That could mean you’d miss out on the great sale happening at your favorite furniture retailer.
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Pros and cons of no-interest furniture loans
No-interest loans may be your best bet if you can repay the entire amount within the interest-free period. They could be your worst option if you can’t.
Pros
- May help you avoid interest: If you apply for a store card with a promotional interest rate or utilize same-as-cash financing, you may be able to avoid paying interest for up to two years or longer.
- Easy and quick to obtain: You can typically get no-interest store financing the same day you apply, right from the furniture store counter or from your online shopping cart.
Cons
- May require a down payment: Some interest-free financing promotions may require a down payment on the furniture you’re purchasing.
- Interest rate increases after promotional period: You’ll likely pay a high APR once the promotional period is up. If the offer is a deferred-interest promotion rather than a zero-interest promotion, you’ll also pay interest dating back to the original purchase if you fail to repay within the promotional period, so be sure to check the wording of the promotion.
When to choose a personal loan
One good reason to choose a personal loan over an interest-free store offer is when you need a longer timeline for repayment, since you can typically stretch out payments over several years.
It’s also a good idea to consider a personal loan if you have other expenses you need to cover, whether that’s consolidating credit card debt or paying for a kitchen remodel. Some people may prefer to cover all their homeownership expenses with one monthly payment.
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When to choose a no-interest furniture loan
It’s generally a good idea to use the furniture store’s no-interest or deferred-interest financing offer if you can qualify and feel confident that you’ll be able to pay off the balance within the promotional period. Every store offers different terms, so compare your options carefully.
Tip: If you have a no-interest furniture loan (or other loan) on which the 0% period has expired, consider using a personal loan to pay off the balance. If your rate on a personal loan is lower than the new APR, you could save hundreds or even thousands of dollars.
Bad-credit furniture financing
If you have bad credit, there are a few ways you can obtain furniture financing:
- Look for no-credit-check options: Some furniture stores offer no-credit-check financing options on certain purchases. Keep in mind that these typically come with shorter interest-free periods.
- Prequalify with an online lender: Some online lenders use alternative underwriting data to approve more borrowers. This can make it possible to get a bad-credit personal loan. Plus, you can typically check your rate without hurting your credit.
- Apply with a cosigner: A cosigner is someone who effectively vouches for you on a loan application and agrees to repay your loan if you can’t. This makes some lenders more likely to approve your application. A cosigner is usually a good friend or relative with good credit.
- Take steps to improve your credit score: Making on-time payments, asking for higher credit card limits, and paying down debt are all strategies that can improve your credit score. Using a tool like Experian Boost can even improve your score instantly, assuming you pay your bills on time.
FAQ
Is it possible to get a no-interest furniture loan with bad credit?
Yes. Some furniture stores offer short-term, no-interest financing offers that don’t require a credit check. Lease-to-own agreements are often available to bad-credit borrowers as well, and these sometimes come with same-as-cash offers.
Can I use a personal loan to finance furniture purchases?
Yes. A personal loan can be used for almost any purpose, including buying furniture and making other large purchases.
How long is the typical promotional period for no-interest furniture loans?
The interest-free period on a store financing offer may last anywhere from two months to 60 months, depending on the store and the type of financing offer you choose. In some cases, though, a down payment may be required.
What happens if I fail to repay a no-interest furniture loan within the promotional period?
If you fail to pay off the balance within the promotional period, you’ll start paying interest. You may pay interest on the remaining balance going forward, or you may pay interest dating back to the original purchase. It depends on whether you used a zero-interest or deferred interest promotion.
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Meet the expert:
Lindsay Frankel
Lindsay Frankel has been covering personal finance for six years, with particular expertise in loans, insurance, and real estate. She’s written hundreds of articles across a range of well-known outlets, including LendingTree, Investopedia, SFGate, and more. Outside of writing, she enjoys playing music and exploring nature with her rescue dog, Lucy.
