Shopping for a mattress can be exciting, but affording one can be tricky. That's why many shoppers turn to mattress financing - setting up monthly payments so they can buy the bed of their dreams. Learn all you need to know about finding the best rates and coordinating payments here.
Research different financing options
When it comes to mattress financing, there are endless options out there. Different retailers may offer their own financing plans with different rates and terms, so it pays to shop around and compare. You may also be able to find third-party lenders that provide more competitive rates than store credit cards, making it easier to get the mattress you want without breaking your budget.
Compare interest rates and terms
One of the most important things to consider when financing a mattress is the interest rate and terms of your loan. Different lenders may have different rates, so it’s important to compare and make sure you’re getting a deal that’s worth your while. Be sure to carefully read through all the details so you understand what types of late payment fees or other rules may be associated with each offer.
Check your credit score in advance
Check your credit score and get a copy of your credit report in advance to make sure you’re getting the best rate possible when financing your mattress. Ask potential lenders about their interest rates and terms, as these can vary greatly depending on your credit score. If your credit score isn’t great, you may have to look for alternate financing options like personal loans or even a 0% APR introductory period on a credit card. According to an article by Mattress Advisor: "Financing your mattress may increase your credit utilization. This term refers to how much credit you’ve been given and how much you use. As long as you make on-time payments, mattress financing can build your credit in the long run."
Calculate the total cost of repayment
Financing a mattress comes with more than just the purchase price. You need to factor in taxes, shipping and any other additional fees that may be added, then calculate the total cost of repayment. Divide the total cost by the number of months you want to finance it over so that you know approximately how much your payment will be each month. This is important to make sure you can afford the monthly payments and that they’re manageable for your budget.
Read the loan agreement carefully before signing
Before you sign any loan agreement for a mattress, make sure you read the fine print and understand all of the terms and conditions. Pay particular attention to details such as the interest rate, repayment schedule and fees. If there are any penalties for late payments or pre-payment, be sure that you know what these are before signing the agreement. It’s important to read the entire document so that you know what will happen if you’re unable to make a payment or decide to pay off the loan early.