Buying new furniture is exciting, but the upfront cost can be a hurdle. American Furniture Warehouse (AFW) offers several financing options to help you furnish your home without breaking the bank. This guide breaks down each option, including store credit cards, lease-to-own, and third-party financing, with actionable tips to choose the best plan for your budget.
1. AFW Store Credit Card: The Synchrony Home Credit Card
American Furniture Warehouse partners with Synchrony Bank to offer the Synchrony Home Credit Card. This card can be used at AFW and other home-related retailers. Key features include:
- Promotional financing: Look for deferred interest offers like “No interest if paid in full within 6, 12, or 24 months.”
- Regular APR: Typically ranges from 26.99% to 29.99% after the promotional period.
- How to apply: You can apply online or in-store. Approval depends on your credit score.
Actionable tip: Always read the fine print. With deferred interest, if you don’t pay the full balance by the end of the promotional period, you’ll be charged interest from the original purchase date. Set up automatic payments to avoid missing the deadline.
2. Lease-to-Own Options: Progressive Leasing and Acima
If you have less-than-perfect credit, lease-to-own programs like Progressive Leasing and Acima can help you get furniture immediately with weekly or monthly payments. Here’s how they work:
- No credit required: Approval is based on income and other factors.
- Ownership after 12 months: You make payments for 12 months, then own the item. Early purchase options are available.
- Costs: These programs have higher total costs due to lease fees. For example, a $500 sofa might cost $700–$800 over 12 months.
Actionable tip: Use lease-to-own only if you need furniture immediately and can’t qualify for other financing. Compare the total cost to the cash price. If you can pay off early, do so to save on fees.
3. Third-Party Financing: Affirm and PayPal Credit
AFW also accepts third-party financing through Affirm and PayPal Credit. These options are popular for their flexibility:
- Affirm: Offers fixed monthly payments with transparent interest rates (0%–30% APR) based on your credit. You choose your payment term (3, 6, or 12 months). No hidden fees.
- PayPal Credit: Provides a credit line with “No interest if paid in full in 6 months” on purchases of $99 or more. After that, the APR is around 25%.
Actionable tip: Use Affirm if you want a clear payoff schedule. PayPal Credit is great for short-term financing—just ensure you can pay within 6 months to avoid interest.
4. How to Choose the Best Financing Option for You
Selecting the right financing depends on your credit score, budget, and how quickly you can pay off the balance. Follow these steps:
- Check your credit score: If it’s above 650, the Synchrony Home Card with a 0% promo offer may be best. If below 650, consider Affirm or lease-to-own.
- Calculate the total cost: Use online calculators to compare interest and fees. For example, a $1,000 sofa financed over 12 months with Affirm at 10% APR costs about $1,055, while lease-to-own might cost $1,200.
- Read the terms: Look for deferred interest clauses, late payment penalties, and early payoff options. Avoid plans that charge interest retroactively.
- Set a payoff plan: If you choose a 0% APR promo, divide the total by the number of months and set up automatic payments to avoid missing the deadline.
- Mistake 1: Only looking at the monthly payment. A low monthly payment might mean a longer term with more interest. Always check the total cost.
- Mistake 2: Missing a payment on a deferred interest plan. One late payment can trigger retroactive interest, increasing your balance by hundreds of dollars.
- Mistake 3: Applying for multiple credit cards. Each application can lower your credit score. Decide on one option and apply only if you’re confident of approval.
5. Common Mistakes to Avoid When Financing Furniture
Many shoppers fall into traps that cost them extra money. Here are three mistakes to avoid:
Frequently Asked Questions
Q: Do I need a down payment for AFW financing?
A: It depends on the option. Store credit cards require no down payment if you’re approved. Lease-to-own may require a first payment upfront.
Q: Can I use AFW financing for clearance items?
A: Yes, most financing options apply to clearance items, but check the terms. Some promotions exclude clearance.
Q: What happens if I return financed furniture?
A: Returns are subject to AFW’s return policy. If you financed through a third party, the refund goes back to the lender, and your loan is adjusted. Contact AFW for details.
Conclusion
American Furniture Warehouse offers a variety of financing options to suit different credit profiles and budgets. Whether you choose the Synchrony Home Card for its promotional offers, Affirm for transparent payments, or lease-to-own for flexibility, always read the fine print and plan your payments. By following the tips in this guide, you can furnish your home affordably and avoid common financing pitfalls.