Waking up to a leaky water heater or a fridge on the fritz isn’t the best way to start your day. After all, a standard water heater is likely to set you back several hundred dollars, while a new refrigerator could be several thousand. Luckily, there are plenty of appliance financing options that could help you bear the brunt of this large, unexpected expense.
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If you need new home appliances but can’t afford to buy them outright, you may be considering financing your purchase. Appliance financing involves borrowing money in the form of a loan or line of credit and repaying it over time. Depending on the type of financing you choose, you might be required to make a down payment.
The specific terms and conditions of appliance financing will depend on the method you choose and your creditworthiness. The lowest rates and best terms are typically reserved for borrowers with excellent credit. Appliance financing usually comes with interest, unless the lender is running a promotion or you qualify for 0% APR financing.
Whether you’re considering upgrading your kitchen or need an emergency replacement for your old washing machine, you have options for financing your appliance purchase. The best choice for you will depend on your financial situation.
Personal loans are a form of unsecured debt that are commonly offered by banks, credit unions and online lenders. You can use personal loans for virtually anything, including home improvement projects like buying new appliances.
Funds are issued in a lump sum and repaid in monthly installments over a set loan term. Personal loans come with fixed interest rates, so your loan payments will be the same each month. You may even be able to get a quick loan for same-day funding. Be sure to use a personal loan calculator to estimate the total cost of borrowing so you can be sure that you’re making the right financial decision.
Fixed interest rates
Could be easier to budget since payments are the same each month
Tend to have lower interest rates than credit cards, as long as you have excellent credit
Although some lenders specialize in bad credit loans , interest rates can be high for borrowers with poor credit
Can only borrow one lump sum rather than on a rolling basis (like a credit card)