Which appliance financing option is best for you?

Article provided by Curacao

Because of the high costs of essential household appliances such as refrigerators and washers & dryers, many retailers have recognized the need for more affordable and customer-friendly ways to finance appliance purchases. As a result, they have conceived several buy now, pay later appliance financing options that allow buyers to pay for household appliances through monthly payments rather than by paying all at once. Though the concept behind these financing options is the same, there are specific details about each one that can make them more or less ideal for certain types of buyers. Here are the financing options you may want to consider:

Personal loans

You can take out personal loans to pay for your appliance by paying interest over time. Peer-to-peer lending and other forms of online lending are popular forms of this financing option. Personal loans don’t take collateral, and some lenders may give out more reasonable rates and be more forgiving towards low credit scores. However, there is always a risk of falling prey to a scam or predatory lending practices if you’re not careful.

Rent-to-own financing

Rent-to-own financing involves making weekly and monthly payments for an appliance according to a leasing agreement. After a certain amount of payments, you will own the item. This option does not require a credit check, so it can be a good option for those with low credit scores. There are still some downsides, including the fact that interest rates will be higher and you will eventually end up paying more than if you paid for the appliance all at once.

In-house financing

Retailers such as Curacao allow buyers to use store credit cards to purchase appliances, which are paid off in increments just like normal credit cards. It is much easier to qualify for a store credit card than a regular credit card, which makes in-house financing another ideal option for buyers with lower credit scores. Furthermore, using a store credit card and paying off your purchases is a great way to improve your credit score, and in-house financing can be used as a stepping-stone to qualify for the purchases you want.

Curacao has helped countless customers start and improve their credit through their store credit cards. Curacao also has an interest beat guarantee, which states that they’ll beat most major competitors’ store card interest rates by 0.25% if you find any lower rates. If you’re looking for a way to afford your appliances and improve your credit score, sign up for Curacao Credit today!