Loans for beds

How can I finance a new bed?

There are several different loan options available to help you afford a new bed.

• Personal loan. A personal loan is when you borrow money from a specialist lender, and pay back the sum over an agreed period of time, in monthly instalments. Meaning you can pay for your new bed upfront using the money you receive from your loan provider, and then pay back your loan in small amounts over a fixed period.
• Credit card. If you purchase your new bed with a credit card, you can spread the amount over an extended period of time, with a certain amount needed to be repaid every month. You may wish to consider a card offering a 0% interest free period. If you have bad/no credit history, you should consider a credit builder credit card This card is specifically designed for people with bad or no credit rating, and whilst the terms are less favourable, you will get all the perks of a credit card.
• In-store finance. Many bed companies offer in-store finance, which allows you to spread the cost of your new bed over a series of weeks or months. You can choose a payment plan for your new bed that suits you, with some companies offering a 0% interest period.

Key features of personal loans at a quick glance

• Loan terms. The terms can include the loan duration as well as interest rates and repayment plans.
• Loan amounts. The amount of money that you are allowed to borrow.
• Get a personalised quote. This will give you an indication about the terms in which a provider will lend you money, and will have no bearing on your credit rating.
• Price matching. Some providers offer a price guarantee to match or beat offers from other providers.
• Monthly repayments. You will be able to repay your loan in monthly instalments.
• Repayment holidays. This is an agreed period with your lender, perhaps either one or two months, where you will not have to make repayments. However, interest will still build up.
• Quick decisions. Providers will usually make a fast decision about whether they will lend you money or not.
• Access to funds. You are able to get access to all the funds upfront.
• Fees. You may incur extra costs, such as interest or late payment fees.
• Perks. With some loans, there may be special benefits such as a 0% interest period.
• Overpayments. If you wish to pay off your loan sooner than agreed, making overpayments is the way to do it. With most companies, overpayments will not incur a penalty so long as you remain within the overpayment limit. It is important to check the small print of your loan before you make an overpayment.
• Early repayment. For many loans, you will incur a penalty and additional costs if you repay your loan in full earlier than expected.

How should I compare different loans for beds?

To effectively compare loans, you will need to focus on the important features of each loan and how they differ from one another. We have listed some characteristics for you to consider below:

• Loan amount. The amount that you can borrow will differ between lenders, so make sure you have a value in mind when choosing your loan.
• Interest rate. There are some loans available that are interest-free, which will save you some money. If the loans you are considering are not interest-free, make sure you take the interest rate into consideration.
• Fees. You may be required to pay upfront or ongoing costs that will add to the cost of your loan.
• Eligibility criteria. Whilst you may be eligible for some loans, you may not meet the criteria for others.
• APR. The Annual Percentage Rate is designed to provide consumers with an annual summary cost for the loan, including any setup fees and interest. Different loans will have different APRs, but it is important to remember that they are only representative, and your costs may be more expensive.
• Loan terms. The length of the loan period may differ between providers, as well as the terms and conditions of taking out the loan.
• Overall cost. As well as the loan amount, you should also take into consideration any setup costs and any interest.
• Early repayment. Although you may find yourself in a position to pay off your loan early, some loans and finance agreements charge extra costs if you repay your loan too early.

Am I eligible for a personal loan for a bed?

You should only apply for a personal loan to finance your new bed if you are absolutely certain that you can meet the repayment terms; otherwise you will face additional costs and it may impact your credit rating.

To apply for a personal loan, you will need to meet the following criteria:

• You are over the age of 18.
• You will be no older than 70 when the loan term finishes.
• You have been a UK resident for over 3 years.
• You have a regular income above £12,000.
• If you are self-employed, you have been so for over 2 years.
• You must have a good credit rating, with no history of bankruptcy or County Court Judgements.
• You hold a UK bank or building society account that is able to pay direct debits.

How can I apply for a loan?

If you have decided that a provider’s loan is right for you, simply fill in the application form for the loan via their website. You will need proof of the following:

• Your ID
• Your address details for the past 3 years.
• Your current income and employment details in the form of payslips and bank statements.

The bottom line

Don’t dread bedtime because you can’t afford to replace your broken bed. There are several options available for you to choose from in order to finance that new bed. A personal loan is one of these, and means you can spread your costs into small monthly instalments over a fixed period.

Frequently asked questions

• Are there any negatives about in-store finance?

  As with any loan, there are some drawbacks with in-store finance schemes. You may be required to pay a deposit, and interest rates can be quite high.

• Are there any requirements I will have to meet in order to get in-store finance?

  Yes, you will have to meet requirements as set out by the provider. These can include being in regular, permanent employment and working a minimum of 16 hours a week, being over the age of 18 and having been a permanent UK resident for a minimum of 3 years.

• Will I need to pick the bed I want before I get a loan?

  Yes, if you’re choosing a personal loan, it’s important to know the exact amount of money you will need to borrow so you don’t ask for more than you need.

• Will I still be able to get a personal loan for my new bed if I have no credit history?

  You may find it more difficult to be accepted for a personal loan or credit card if you have no credit rating as providers will have no information to gauge if you are a secure investment. You may wish to consider a credit builder credit card as they are designed for people with a bad credit history – or none at all.