Mattress Financing: What You Should Know
What is Mattress Financing?
Mattress financing is the process where you can make monthly payments after buying a mattress. This is no doubt a great way for those people who can’t afford it, or do not have the money to pay the whole purchase price upfront, and for those people who want more
different options to pay the amount.
Rather than using your credit card for mattress financing, you also can use the other
advantages of one of the financing offers when you will purchase a new mattress online.
There are a lot of benefits for the retailers too if they offer financing to their customers, helping them make more profit. A good quality mattress can cost pretty well over a thousand dollars, which might cause trouble for those people who can not afford it. Mattress finance, in this case, promises them to reach the product to them by offering a monthly payment option.
How does Mattress Financing work?
So if you are planning to go for a financing option, there are a few important things that you need to remember :
- Interest rate :
You need to take the interest rate factor into consideration as it is the most important factor. Since it shows exactly how much money you are going to spend on your new mattress. If your credit check shows that your credit score is less than stellar, you
might have to pay a much higher interest rate. So as you can see the payment plan that initially seemed like a great deal at 0% APR, can cause a huge trouble if you have to pay 10% APR or more than that.
- Credit check :
This is another crucial factor to check, since it can cause trouble in your credit score. You might end up losing a few points on your credit score every time a company needs to inquire with the credit bureaus.
- Payment amount :
After that, it is important to estimate the length of the loan, and how much amount you have to pay monthly. There are different financing options available on different websites. Some retailers might offer you the option to select a specific number of months that you’ll be needed to make payments. Others offer you to choose the
amount that you want to pay monthly, and you have to keep making that exact same amount until the product is fully paid off.
The disadvantages of financing mattress purchase :
Financing option might seem like a good choice while making a payment, but there are a few risks that you should be aware of.
- It can cause trouble in your credit score :
When the company does a credit check with the credit bureaus, this typically triggers your score to a few points apart from you being approved or not. On top of that, the amount of debt you have in comparison to the amount of credit you have is a key
element of your credit score. So, as you choose to take the financing option that
retailers offer, you are more likely increasing the amount of debt you already have
which can decrease your score, that also depends on how much credit you have access to.
- Your mattress can get more expensive :
Everything about the financing option seems so great and helpful, but this low monthly payment option, in spite of being attractive, it also can make your new mattress comparatively more expensive over the long run. If you have a 0% APR
offer, then you’re well and good, but if not, then you have to make interest payments every single month. The interest can add up to an already estimated sum over time, and it may be more than what you’re actually going to pay for your mattress.
- It can cause trouble with returns :
It can be really difficult to return or refund your mattress since the mattress companies themselves do not directly manage their financing options. When you make adaptable monthly payments, the money isn’t getting transferred to the manufacturer, it’s going directly to one of the financing companies that they are partnering with.
Why can financing a mattress be a good choice?
People who are suffering from a medical condition such as fibromyalgia or arthritis, are
advised to sleep on a particular type of mattress that usually their doctor recommends, then making monthly payments may be a good choice for them instead of buying an expensive mattress at one time, or using a cheaper one.
Also, If someone is planning to move into a new apartment or house, and it is also urgent to buy a lot of furniture, then paying the whole amount upfront may be difficult for them. In that case, a monthly payment scheme on their purchase may be the only option for them. It’s also important for them to check that they’re confident in their financial condition over the long period. These low payment options that retailers offer to you need you to make payments
over an extended amount of period. For that, you need to make sure that you will have a strong and stable source of income to keep paying small amounts of money every month.
Otherwise you might lose your sleep for choosing those flexible payment options that seemed so great initially at the time of purchasing your mattress.
Mattress financing can be a great path to help you make your payments monthly when you desperately need a new bed but it is out of your reach.
Before you start buying things, you need to make sure that you already know all the risks of choosing financing. This can affect your score, and make the product more expensive to buy over the long-term due to the increasing interest rate.
One more thing, even if you are fully aware of everything about mattress financing, do
check if there is still a good mattress which is affordable. If a cheaper mattress doesn’t fulfil your demands, then make sure you carefully go through all the fine print on the checkout page before buying, so that you don’t get any surprises.