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Appliance Financing FAQ

Good Nesting
3 min read

Home appliances are more expensive than ever. Keep reading to see how financing can help you buy what you need without paying cash upfront.

Are you wondering if appliance financing is your best option for buying that new refrigerator or stove? Here are some frequently asked questions and answers on the topic to help you make an informed buying decision.

1. What is appliance financing?

Sometimes called an appliance loan, appliance financing lets you borrow the cash you need to buy a costly item, such as a fridge or washer and dryer, and pay it off over time.

2. What are some examples of appliance financing?

  • Financing a new fridge after yours breaks – If you lack the cash to buy a new one, you’ll need fast financing to get a new refrigerator that day to cool your food before it spoils.
  • Buying a washer and dryer with financing – If you’re tired of wasting gas visiting the laundromat that’s always overcrowded or closed when you need it most, you could use financing to buy a new washer and dryer for your home to save cash and time in the long run.
  • Financing new kitchen appliances – If you’re moving into a new home or remodeling your kitchen and need a stove, microwave, and other items, you could finance those purchases to avoid dipping into your savings.

3. What are the different types of appliance financing?

The most popular types of financing for appliances are:

  • Personal loans – Unsecured loans where lenders analyze your income and credit history to calculate your APR. Quick approvals and same-day funding are benefits of this option, but possible high interest rates and fees could make it a costly route to take.
  • In-house financing – Some retailers have credit cards you can apply for to use for in-store purchases. This method lets you enjoy quick approval and sometimes zero interest if you pay off the appliance by a specific date. Pay close attention to the fine print, as the APR may increase after a promotional period.
  • Credit card – The ideal credit card for appliance financing has 0% APR for an introductory period of 12-21 months. Pay off the appliance before the introductory period ends, and you can avoid interest. You’ll need good credit to secure a card with this perk.
  • Rent-to-own store – This option lets you take the appliance home and lease it with budget-friendly weekly or monthly payments. If you no longer need the appliance, you can stop payments and return it. Continue payments for 12-24 months, and you could own it, although at a much higher cost than by making a cash purchase. The benefit of rent-to-own stores is that they let you get the appliance instantly without worrying about a credit check or down payment.

4. How does appliance financing affect your credit?

Your credit score may take a slight dip at first by opening a new line of credit. Make timely payments on that appliance purchase, though, and you can build your score.

If you’re looking for lenders that offer personal loans for appliances, find ones that offer prequalification. It lets you see what type of loan you qualify for without dinging your credit. This allows you to shop around until you find the right fit. When you find the right lender and formally apply for the loan, they will run a hard credit inquiry that will drop your score.

5. What’s the best type of appliance financing for bad credit?

In-house financing or rent-to-own stores are probably your top picks.

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