Compare the Best Appliance Financing Options for Every Credit Score
- Appliance financing lets you spread the cost of new appliances over many monthly payments — for a price.
- Options to finance home appliances include: personal loans, credit cards, retailer plans and buy-now-pay-later programs.
- Your credit score affects approval, interest rates and available terms, but there are options for good, fair and poor credit.
Waking up to a warm fridge can throw off your entire day — and your budget. Appliance financing can help you replace major appliances or buy new ones by spreading payments over time.
With options like personal loans, 0% intro APR credit cards, retailer financing and buy-now-pay-later programs, you can probably find a payment plan that works well for you and your credit score.
Compare the best ways to finance appliances
If you’re looking to buy appliances without paying everything upfront, here are some of your main financing options, each with different interest rates, repayment terms and credit requirements.
| What it is | Typical APR | Loan amount | Repayment terms | Credit required | Pros | Cons | |
|---|---|---|---|---|---|---|---|
| Personal loan | A lump-sum loan from a bank, credit union or online lender for appliances or other purchases | 5.99% to 35.99% | $600 to $200,000 | 12 to 84 months | Poor to excellent | Fixed interest rates and predictable monthly paymentsFast funding, sometimes the same day | Interest rates can be high with fair or poor creditMay pay an origination fee |
| 0% intro APR credit card | A credit card offering a zero-interest period on new purchases, balance transfers or both | 0% during the promotional period; 12.00% to 28.99% after | Up to your approved credit limit | Six- to 24-month promo period | Good to excellent | Interest-free if paid in full during the promo periodFlexible useMay also earn rewards or sign-up bonuses | High APR after the promo periodPossible annual feeMissed payments may end the 0% promo |
| Retailer financing | Financing directly through a store like Home Depot, Lowe’s or Best Buy.Options can include store credit cards, payment plans, installment loans or lease-to-own. | Varies by retailer and option | Typically, the appliance cost | Varies by financing type | Minimal to excellent | Fast approvalMay have an interest-free promo periodMay receive a discount on appliance cost | High interest rates after promosMay pay deferred interest if balance is not paid within the promo window.Some options result in paying above the retail price |
| Buy now, pay later | Short-term payment plans and installment loans available at some retailers and appliance brands, but serviced by financing companies | 0% to 36% | The appliance cost | Four payments or three to 36 months for installment loans | Minimal to excellent | Immediate approvalNo fees or interest on short-term payment plansFlexible payment options | Short repayment periodsAPRs can be high on installment loansLimited to participating retailers |
| Home equity loan or HELOC | An installment loan or line of credit secured by your home’s equity | 6% to 11% | Up to available equity | Five to 30 years for home equity loans; 10 to 20 years for HELOCs | Good to excellent | Low interest ratesHELOCs offer flexible use | Risk of losing your home if you defaultClosing costs and longer processing time |
How to choose the right appliance financing option
Choosing the best appliance loan comes down to cost, repayment terms and your credit score. Consider these factors if you’re looking to finance home appliances:
- Interest rate and total cost to borrow: To know the total cost of the appliance loan, review the APRs, fees and total repayment. Compare different financing options and multiple lenders because even a slightly lower rate can mean hundreds of dollars in savings. Use a loan calculator to estimate monthly payments and long-term costs.
- Repayment flexibility: A payment plan only works if it fits your budget. Look for a long enough repayment term, predictable monthly payments and no prepayment penalties. Choose a schedule you can confidently keep, even if money gets tight, so that you don’t face fees or damage to your credit.
- Credit requirements: Your credit score affects financing options, approval odds, interest rates and the appliance loan terms. If your credit score is on the low side, look for financing with flexible credit requirements and lenders that accept fair credit.
- Financing deals: Promotional offers can make appliance financing more affordable by reducing or eliminating interest or lowering the cost of the appliance. Look for 0% APR promos, rebates or cash-back incentives, but be sure to read the fine print and understand the terms.
- Secured vs. unsecured debt: How a loan is backed affects both cost and risk. Secured options, such as a home equity loan or HELOC, may offer lower rates, but they put your home at risk if you default on the loan. Unsecured financing — like personal loans and credit cards — doesn’t require collateral but typically has higher interest rates and stricter credit checks.
Shopping around can make appliance financing a lot cheaper. A LendingTree study found borrowers who compared six or more personal loan offers saved up to $3,138 and reduced interest costs by as much as 44%.
How to apply for appliance financing in 5 steps
- Check your credit score. Before applying for appliance financing, check your credit score. Knowing your score helps you get an idea of which appliance loan options and payment plans you’re likely to qualify for, whether you’re buying kitchen appliances or another major appliance. You should also consider getting a free credit report to make sure your history is accurate and up-to-date.
- Calculate how much you need to borrow. Determine the total cost of the appliance or appliances you want to buy. Factor in taxes, fees and delivery. This helps you choose the right appliance financing, estimate monthly payments and avoid borrowing more than necessary.
- Use LendingTree to compare multiple lenders and prequalify. Our marketplace can help you compare lenders’ rates and terms. At the same time, it’s worth checking with the bank or credit union where you already do business. You can also try to prequalify for a loan or credit card to know exactly what your options are without formally applying.
- Choose the lowest-rate offer and finalize your application. Once you have multiple quotes, review the interest rates, fees and repayment terms to choose your best option. Complete the application by providing the required documentation, such as your ID and proof of income. Once approved, you’re ready to make your appliance purchase and begin your monthly payments.
- Make on-time payments. Pay your appliance loan on time each month to avoid late fees and maintain a good credit score. Consistently following your payment plan ensures you’ll pay off your major appliances on time and keep access to future financing options in case you need it.
Alternatives to appliance financing
Financing isn’t the only way to get new appliances. These options may lower your costs and help you avoid high-interest debt:
- Pull from your savings: If you’ve built up an emergency fund, tapping into it can be the cheapest way to pay for new appliances. You avoid interest entirely and gain peace of mind. Even just paying for a part of the price with savings reduces the amount you need to finance, lowering potential debt and stress.
- Check for manufacturer rebates: Many appliance brands have rebates or limited-time cash-back incentives. These can slash your upfront cost or even make financing unnecessary. Check the manufacturer’s website and ask the retailer for more information. Combining rebates with seasonal sales or store promotions can further stretch your budget without increasing debt.
- Research local utility energy-efficiency grants: Some utilities and local governments provide grants or rebates for energy-efficient appliances. Programs vary by region but can cover part of the purchase or installation costs. Research online or call your local utility. This can make upgrading appliances more affordable without relying on traditional financing.
- Buy gently used or refurbished appliances: You can often find high-quality, lightly used appliances at resale shops, online marketplaces or manufacturer-certified refurbished programs. They cost less than new models and sometimes come with a limited warranty. If you save enough, you may be able to skip appliance financing.
Frequently asked questions
Low-cost options for appliance financing include buy now, pay later plans, credit cards with a 0% introductory APR, and retailer financing with a true interest-free period — as long as you pay off the balance before the promotion ends. A personal loan with a competitive rate can also be an affordable option.
Requirements vary. Some appliance financing options, such as lease-to-own, may not require a credit score, while home equity loans or HELOCs typically require a score of 620 or higher.
Yes. Some lenders and retailers offer appliance financing for borrowers with fair or poor credit, but rates and fees may be higher.
If you qualify for a true 0% APR promotion and pay it off on time, retailer financing can be a more affordable option. If not, a personal loan may be safer because the interest rate and monthly payments are fixed and transparent.
Terms on appliance financing depend on the financing method. Retailer financing often lasts six to 36 months, while personal loan terms commonly range from 24 to 60 months.
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