Fridge Freezers With Bad Credit – Can I Get One With No Credit Check?
It's essential to have a solid credit score, but you don't have to be a hero. There are plenty of ways to buy the highest-quality appliances on the market at some of the lowest rates.
What is an Appliance Loan?
Appliance financing is a way to buy appliances on credit. It's different from a standard loan in that you won't have to pay for the appliance upfront, and you'll only be responsible for the balance if you don't make payments. You can get a 30-year loan with no interest if you have good credit. You can get an appliance loan with lower interest rates and easier requirements if you have bad credit or no credit.
There are two main ways to get a fridge or freezer loan. The first is to go through an online sites that offer catalogue shopping that have white goods (which can be especially helpful if you don't have a bank account). The second is to apply directly in store to your appliance store of choice. On top of this, there are also several payment options: deferred interest, saving for later, and no interest at all.
Appliances for Bad Credit
If you have bad credit, you can use the Appliance Loan in Store program of the manufacturer's website (example: GE Appliances) to buy a fridge freezer or any other appliance.
This is a great way to buy appliances. You get cashback on your purchase, and that money is deposited into your bank account by the same day.
Another great thing about appliance loans is multiple payment options depending on your lifestyle. Most credit lenders will even allow you to set up automatic payments for monthly instalments. Appliance loans often qualify for the lowest interest rates and are easier to get
Such credit is usually enabled through a dealership. The advantage of availing the loan at dealerships is that most of them operate with minimum documentation and money down components making it easier for the borrower to get approval. The approval procedure for an appliance loan is usually simple and goes without much hassle.
Lower interest rate. The typical rate on an appliance loan is about 1% higher than the interest rate on a regular credit card, but you don't have to pay that much interest upfront; instead, you spread it out over the life of the loan. This means you pay less overall, even though you're making payments for longer than with a typical loan.
No pre-payment penalties. Some people make payments on their credit cards every month and wind up paying more than they had to in interest. With an appliance loan, not only does there not need to be any pre-payment penalty for paying off the loan early (although there might be other charges), but if you do pay off your balance early, you'll save money because of reduced interest rates.
Other benefits of appliance loans
There are three main benefits of doing an appliance loan rather than paying cash for the item:
You can get a better interest rate. Some lenders will let you pay over time, which is much easier to manage than making a large lump sum payment each month.
You can spread out your payments more easily. If you have a good credit score and no debt, it's possible to afford to pay back an appliance loan over time. With one lump sum payment each month, you might be forced to choose between buying something else or paying off your debt.
You can get better payment options if you need them. The credit offering appliance loans will consider whether you have other debts that could affect your ability to repay the loan on time (such as student loans or medical bills).
Fees and Interest Rates
The key to getting the best deal is comparing your options to what you're paying now. There are several different types of credit available for fridge freezer loans:
Application fees. Some companies charge an application fee that may not be refundable if you don't get approved.
Annual interest rates. The lower the rate, the higher the interest rate will be over the loan term and the longer it will take to pay off your appliance.
Monthly payment amounts. You may be able to choose between two or more monthly payment amounts (and sometimes even multiple loan terms), so you can spread out how much you pay each month over your appliance loan term if you need money for other things in between payments on your fridge freezer loan.
There are multiple payment options depending on your lifestyle.
Each credit citeria has a different set of terms and conditions. That said, here are some of the most common payment options:
PAYMENT IN FULL: This is the most common option when you have a lump sum amount to pay off your loan. The monthly payments will be for the full cost of the item, plus interest, which will be added to your balance.
PAYMENTS OVER TIME: If you don't want to make payments as fast as your loan requires, you can choose a different option that lets you pay back at your own pace. With this method, you'll make equal monthly payments until your balance is paid off.
PAYMENTS IN CASH: Cash-out loans are the most expensive form of financing, but if you have extra money and need your appliance right away or don't want to wait for months before you see any return on your investment.
Appliance loans are treated as a normal purchase on your credit file, so if you keep paying it off and stay on top of your repayments, your credit score will improve over time.
Talk with one of the store's advisors to find out more information about buying a fridge or freezer using an appliance loan offered by the store.
Bottom line: if you have bad credit or don't want another bill to pay, consider an appliance loan. You can buy an affordable fridge freezer on your time, with no stress, and the best of all worlds: with your own money!