How to use a credit card to buy furniture
Quick insights
- You can use a credit card to buy furniture, but you may want to consider the interest rate and repayment terms of your card.
- Using a credit card to buy furniture may earn rewards points and provide purchase protections.
- Some furniture stores may provide promotional deals and discounts for using a store credit card to buy furniture.
L-shaped. Leather. Electric recliner. Built-in cupholders. There are so many variations when it comes to purchasing a couch. You might be overwhelmed by the choices available.
Another choice you may have to make when purchasing a couch, or any other piece of furniture, is how to pay for it. If using a credit card is an option, read on. In this article, we’ll discuss how you may use a credit card to buy furniture.
Buying furniture with a credit card
Furniture may be one of the larger purchases you put on a credit card. When making a large purchase, you’ll likely want a plan to pay it off. If you cannot pay off the purchase in one billing cycle, you’ll want to consider the interest rate and repayment terms of your credit card before using your card.
Even if you have money saved to buy furniture outright, you may choose to put it on a credit card anyway. Buying furniture with a credit card may provide benefits, including:
- Rewards: Many credit cards offer rewards on most purchases. If you’re spending thousands on new furniture, you may be able to earn rewards points.
- Purchase protections: Purchase protections are cardmember benefits that may protect your purchase against theft, damage or loss. Read your card’s terms and conditions to determine if your furniture purchase may be covered by this cardmember benefit and how this protection works.
What to consider before buying furniture with a credit card
When buying furniture with a credit card, you may need to consider a few things, like:
- If you have enough available credit to cover the cost
- How quickly you can pay off the purchase
- How it may affect your credit score
When putting a large purchase on your credit card, your credit score may be affected. If you’re putting thousands of dollars of expenses on your credit card, this could raise your credit utilization ratio. The less available credit you have, the higher your ratio.
Typically, you’ll want to keep your credit utilization below 30 percent. You may want to consider if adding a furniture purchase to your card will use up a significant portion of your available credit.
Store credit cards explained
You may also have the option to put your furniture on a store credit card. These cards are designed to be used for purchases at the store or its affiliated retail partners.
By using a store card, you could get exclusive discounts or rewards on your purchase. The store may also offer an introductory promotion, such as 0% APR for a set period. This could give you months to pay off your furniture interest-free.
However, store cards typically have higher interest rates than traditional consumer cards and you’ll still have to spend at the store itself to earn the bonus rewards. Consider these factors when deciding whether to use a traditional or store card.
Options for financing furniture
You may have other options to finance your furniture purchase, including:
- Personal loans
- Layaway plans
- Rent-to-own agreements
It's important to read and understand the terms and conditions of any financing agreement. You may find that fees or interest that you’re charged add too much to the cost of your furniture.
Another option may be a payment plan through your credit card. These plans may have an APR that is lower than the card’s standard APR. For example, some Chase credit cards have Chase Pay Over Time™, which gives eligible cardmembers financing options and repayment terms for large purchases through their Chase credit card.
Bear in mind that these plans apply to eligible purchases and are subject to minimum amounts. Also, certain credit cards are subject to an annual fee.
Maximizing the benefits of credit card financing for furniture
Even if you have cash on hand, you may choose to put furniture on a credit card. Some reasons could include:
- Rewards: With several credit cards offering rewards on most purchases, buying furniture with your card might help you boost your rewards quickly. The Chase Ultimate Freedom® card earns 1.5 points on most purchases. If you’re spending thousands of dollars on furniture, you can earn Chase Ultimate Rewards® points on those purchases.
- Credit history: Putting furniture on a credit card may help you build up your credit. When you make a large purchase on your credit card and can pay it off, you are helping to demonstrate your creditworthiness.
- Intro offers: Some credit cards offer no-interest for a set period for new cardmembers. You may be able to use a card with a 0% APR promotional offer, meaning you could pay no interest on your purchase if you can pay it off before the promotional period ends.
In summary
You can use a credit card to buy furniture, but you may want a plan to pay it off as soon as possible so you don’t incur interest charges. Using a credit card to buy furniture may provide you with rewards points as well as purchase protections.
Some furniture stores may provide offers and discounts for using a store credit card to buy furniture. You may be able to use a traditional credit card with a 0% APR introductory offer, meaning you could pay off your card with zero interest if you can pay off your furniture before the promotional period ends.