Credit Repair Houston Credit expert Vanessa Perry explains financing in this episode of Ask Impeccable below.
How does purchasing Appliances & Furniture help your credit?
Financing appliances and furniture simply do not help increase your credit score. They may add to your credit history, but it does not benefit your overall score. Often ads and salespeople will say that it will increase your score by financing or that you have no payments for 36 months no interest. These are sales incentives, that will not only not help you, but could hurt you in the future.
Cash or Credit?
It is best to use cash when buying appliances because it will not include the additional cost of interest. Credit on appliances and furniture can have outrageous rate up to 20% in some cases. Credit is not “free money”. When you finance appliances and furniture it reports on your credit as an installment loan. The credit is exactly that, a loan. The loan does require to be paid back with interest.
When Should I️ Finance?
It is best to finance unexpected costs that you are able to pay now or in the near future rather than finance something you do not have the money to pay. Some financing options are better than others depending on your qualifications as well. You can get unsecured lines of credit rather than installment loans depending on your score and the company financing policies.
Credit Repair Houston
If you do not qualify for financing for appliances and furniture it would be wise to reach out to a credit restoration company such as Impeccable Credit Services. Credit restoration is a great option to not only get your credit high enough to be able to finance appliances and furniture, but also to have just in case of an emergency. Credit repair is not a quick fix, but with Impeccable Credit Services it is a permanent fix not only for your credit, but for your lifestyle.