What causes people to have bad credit ratings? A couple of reasons come to mind. As people’s daily lives become hopelessly entangled in the tempting world of plastic money or credit card as it is otherwise known, many are ruthlessly sent into the abyss of debts and their credit ratings ruined. For some, the requirements of daily living are such that they are driven into seeking various loans just to meet these requirements. There are a lot of options in the market today. However, these loans carry with it interests and some are quite exorbitant at that. If one is not careful enough he’d eventually find himself engulfed and drowning in debts because the interests alone have accumulated to such a degree that repayment is not at all possible within the given period. Credit rating thus, spirals down.
A second reason is due to the increasing instances of identity theft, mainly brought about by the technological advancement. Identity theft allows unscrupulous individuals to obtain loans using other people’s identities through the marvels of information technology. Decent people would unknowingly rake up debts and have bad credit ratings because loans and purchases are made under their name without their knowledge.
And once an individual’s credit score nose dives, financial delinquencies ensues and next thing he knows he is filing for bankruptcy. By this time, finding a credit card or short term loan is out of the question.
So if you are an individual who is in this kind of predicament and are in need of new furniture or furnishings like a bed, tables or chairs, because the ones you had were unceremoniously hauled off by creditors, must you endure having to sleep on the floor or eat on top of boxes ‘til you have enough money to purchase or regain your good credit rating? Not anymore. Nowadays there are several options available to people to have new appliances or furnishings even if their credit rating is bad. This is called bad credit furniture financing. Bad credit furniture financing allows individuals to have new furniture, appliances, and electronics via the purchase of the appliances through unsecured loans.
As always these types of loans have their advantages and disadvantages. One of the advantages of this type of loan is that most of it could be made on line. Several financing companies’ process furniture loans via the internet and just by completing the required data online, the loans is processed expediently. Much paperwork is therefore eliminated. It is accessible. As is usual with shops offering this type of loans you have several options. Some offer lay-away plans, some offer no interest for the first few months while some offer rent-to-own plans.
The disadvantages of course come in the form of higher interest rates. Stores and financers which accept this type of financing usually make their profit from exceedingly high interest rates. So the risk of accruing debt remains. Penalties, hidden charges, application fees, cost of finding financers are a staple.
As with all loans, an individual should take the time to research thoroughly several of the financing institutions offering this type of loans. Interest rates vary, repayment schemes vary and care should be made that all the details of the repayment scheme are clearly stated.