Let’s be honest—furniture is expensive, and not everyone has the cash to pay upfront. Whether you’re moving into your first unfurnished apartment or replacing worn-out pieces, furniture is an everyday must-have, yet it’s one that can present financial challenges.
The good news is that financing options can make furniture more accessible if you can’t cover the sticker price. But from traditional loans to alternatives, like lease-to-own, the sheer number of financing options can feel overwhelming.
That’s why we’re here to break down the best furniture financing options for your budget, goals, and lifestyle. Consider this comprehensive guide the first step to choosing the right furniture financing option for you.
Furniture financing makes it possible to purchase the pieces you want without paying the full price upfront. It provides a flexible payment alternative, allowing you to make smart investments in your home, apartment, office, and more.
The best furniture financing options include:
Let’s go through each option, explaining how they work, their pros and cons, and their total costs over time.
Not sure how to finance your new furniture? You’re in the right place. Exploring these options will help you make a confident and informed choice so that you can find the best fit based on budget, credit, and goals.
Credit cards are a flexible way to pay back a purchase over time. Unlike a debit card, which withdraws money from your account immediately, credit cards allow you to charge for purchases throughout your billing cycle and pay them off at the end. This is the standard way to use a credit card for furniture financing—for instance, charge the furniture to your card, wait until you get paid at the end of the month, and pay off the balance.
Additionally, many credit card companies now offer their own version of buy now, pay later (BNPL) services. This flexible option allows you to split up a purchase into smaller installment payments, which is especially convenient for large purchases like furniture. You’ll keep track of monthly payments, just like your balance, until you complete the purchase.
These credit card programs can help you save money in the long run if the APR, or interest rate, of BNPL is lower than what you’d typically pay on your card balance. However, interest rates can be quite high, accruing long-term costs that you didn’t account for. Some credit card companies can also charge fixed fees for using BNPL, which may not make this option worth it if you’re on a tight budget.
One pro of credit card financing is that it often features a longer repayment period than third-party BNPL options. But a potential con is that these financing perks may only be available if you’ve built up a good credit score.
All in all, credit card financing is convenient and flexible, but it can involve unforeseen fees and high interest rates.
A personal loan is also a form of credit in which you borrow a fixed amount of money from a bank, credit union, or other lender. The interest rate, monthly payments, and loan length are established by the lender, who also has to approve the amount you’re asking for.
If you’re approved, personal loans can come with a lot of potential benefits:
However, there are also a lot of potential pitfalls. First of all, it can be difficult to secure a loan without meeting a minimum credit score, which you may not qualify for. There can also be frustrating delays in the approval process, forcing you to wait to make an important purchase.
As you repay the loan, you’ll also have to budget for interest, which can become costly. So can added fees—some lenders charge an application fee, an underwriting fee, or a prepayment fee. Plus, borrowing requirements are strict when it comes to personal loans, and making late payments can damage your credit score.
If you need a sizable loan, financing with personal loans can be a convenient way to buy furniture and other expensive items. However, personal loans can also be risky, inaccessible, and costly.
Instead of using third-party lenders, in-store financing is offered directly by a furniture retailer. It’s often provided through store credit cards, which can feature promotional discounts, rewards programs, cash back, and financing on large purchases.
Store credit cards are a great way to build credit, especially if you have a low credit score and don’t qualify for a traditional credit card. If you have lots of upcoming furniture purchases on the horizon, store credit cards can allow you to earn points and reap future rewards like cash back, special discounts, free shipping, and other perks.
That said, in-store financing comes with its fair share of drawbacks:
Store credit cards also have a narrow reach, as you can typically only use them with a single retailer. To maximize your savings, you’d want to buy all your furniture from that one brand. If you’d rather not be locked in, it’s worth finding another financing option.
BNPL is exactly what it sounds like–purchase furniture now and pay it off over time. These short-term loans require fixed payments over a certain period, usually a few weeks or months, after first putting down a portion of the total purchase amount.
One of the biggest pros of BNPL is that these loans typically don’t charge interest. This means you only pay for exactly what you’re purchasing. You can integrate the installment payments directly into your budget without being hit with surprise charges.
BNPL is also:
However, BNPL can become a slippery slope. For instance, if you don’t stay on top of your finances, it can lead to overspending, creating the illusion of money you don’t have. And if you set up automatic repayments, you may unwittingly overdraft your bank account.
Since BNPL works well for short-term purchases, it also has short payback windows, which can be difficult to manage, depending on your budget. If you accidentally make a late payment, you may be hit with a hefty late fee and face a penalty to your credit score.
It can also be difficult to make returns or exchanges with BNPL loans, which is a significant drawback when purchasing furniture you want to love for years to come.
Lease-to-own is a flexible alternative to traditional financing that provides an accessible path to owning furniture. Different from renting or temporary use, lease-to-own allows you to fully own your purchases after staying on track with lease payments.
With lease-to-own financing, you make recurring payments that eventually culminate in ownership. Like BNPL, you make your first payment at checkout, and then choose to automatically or manually charge the remaining installments. However, unlike BNPL, there isn’t any long-term obligation—if you decide you don’t like your new sofa, you can simply return it without needing to complete your lease payments. Oftentimes, there is also the option to purchase early if you decide to complete all your remaining payments at once.
Lease-to-own is a lesser-known but practical solution for someone who may not meet typical credit requirements, as there are no or low credit minimums. It provides fast approval, flexible repayment schedules, and transparent terms, making it a convenient option for any financial background.
Lease-to-own can be used for one-off purchases, such as a new dining table, or major life transitions, like furnishing a new apartment from scratch—all without using credit and while building a path to ownership over time.
When it comes to furniture financing, there isn’t a one-size-fits-all solution. The best furniture financing option for you is one that aligns with your budget, credit situation, long-term plans, and lifestyle.
If you’re a brand loyalist, in-store financing may be the way to go. For short-term repayments, BNPL loans are a convenient tool. For a flexible and empowering path to ownership, lease-to-own is the best financing option around.
Thanks to providers like Katapult, it’s easy to purchase furniture on your terms, without putting a strain on your finances. Our lease-to-own options are designed to make furniture shopping more accessible, so you can make smart investments in your home’s future.
Sources:
CNBC. Credit cards offer ‘buy now, pay later’ options — but is it better than carrying a balance? https://www.cnbc.com/select/credit-cards-offering-buy-now-pay-later-options/.
Investopedia. Personal Loan: What It Is, How it Works, and How to Get One. https://www.investopedia.com/personal-loan-5076027.
Business Insider. Store credit card pros and cons: Everything you need to know. https://www.businessinsider.com/personal-finance/credit-cards/store-credit-cards-drawbacks.
Investopedia. Buy Now, Pay Later (BNPL): What It Is, How It Works, Pros and Cons. https://www.investopedia.com/buy-now-pay-later-5182291.
NPR. The pros and cons of clicking that option to 'pay in 4 easy installments'. https://www.npr.org/2025/03/13/nx-s1-5246104/pros-cons-buy-now-pay-later-loans.