Simply put, sofa finance is when you buy a sofa on credit or use a loan to finance your sofa purchase. It refers to borrowing money from a lender to buy a couch or other furniture. Then, until the sofa is fully paid for, you will make weekly or monthly instalments to repay the loan depending on the loan you choose.
When purchasing anything with financing, credit checks are typical. The majority of lender banks and companies carry out these checks to make sure that you can afford the payments and have the resources to meet payment deadlines.
Your sofa loan will be approved once the lender is assured that its money is secure in your possession. And it is majorly dependent on how good your credit score is (along with other factors). But don’t panic if that is not an area where you excel. There are still certain businesses that give their consumers the possibility to finance a sofa even if they have bad or no credit.
Upon approval, before the disbursal of your loan amount, you will typically be required to sign an agreement sheet. It will outline all of the financial specifics. Monthly payment costs, interest rates, the length of the term, and any other pertinent information will be included in this document.
It’s not very demanding to be eligible for a sofa loan. You need to abide by the requirements of the firm offering the financing to apply. This typically entails being older than 18, having a regular source of income, being a UK resident for a considerable time, and demonstrating your ability to make repayments.
You will need to check with your lender. Some lenders allow you to pay off your loan in one go without any fees, so if you have money saved up, you can get rid of your loan in one go.
The main benefit of sofa finance is:
You can get the sofa you want without breaking or putting too much stress on your finances. It helps you manage your money better and control how you make payments. You can choose the terms that match your situation.
Some other benefits, depending on the lender are:
Many companies offer you sofa loans without interest for up to 4 years. That should be sufficient time to pay for your sofa.
No Down Payment/Deposit
Many lenders allow you to finance the purchase of sofas with no down payment or deposit. You won’t have to put money down for a down payment before you can buy a sofa. Instead, all you’ll have to worry about is making your weekly or monthly payments on time.
The rate you are offered will depend on your individual circumstances.
Representative APR Example: On an assumed loan amount of £2,600.00 over 36 months. Rate of interest 41% per annum (fixed). Representative 49.7% APR. Total amount payable £4,557.89 of which £1,957.89 is interest. 35 monthly repayments of £126.61 and a final payment of £126.54
Warning: Late repayment can cause you serious money problems. For more information, go to MONEYADVICESERVICE.ORG.UK
Credit subject to status & affordability assessment by Lenders.
LoanTube is a credit broker and not a lender.
Think carefully before securing debts against your home. Your home may be repossessed if you do not keep up repayments on any debt secured against it.