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Frequent Contributor
nathan
Posts: 411
Registered: ‎04-18-2007
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BEST WAY TO FURNISH MY NEW HOME

I really need some advice. I just closed on my new home and I am wondering what is the best way to finance some furniture without damaging my scores. i am hoping to pif when i get my $8000k next year after filing my taxes. I do have a mystery cc with 15k that has not reported for over a year now, and the last bal was $65 on exp, and zero bal on eq, and tu. Should i gamble and charge it on this cc hoping that it doesn't report or will a large purchase raise eye brows? I am also considering furniture stores that offer 0% financing, but i hate the fact that it will report as a new account. My gut tells me that it would be better to take a hit on high utl if the cc starts reporting again than a hit on new inq and new account. The interest rate on this cc is currently at 11%, but will be reduced to 9% variable this dec. what you guys and gals think?

Established Contributor
Tons_of_Debt
Posts: 610
Registered: ‎08-01-2008
0

Re: BEST WAY TO FURNISH MY NEW HOME

I'd wait til the new rules take effect to make sure they don't RJ you.
08/01/2008 - 472 EQ; 523 TU; 454 EX
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08/08/2009 - 648 EQ
01/27/2010 - 671 EQ
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Super Contributor
DI
Posts: 5,744
Registered: ‎01-28-2008
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Re: BEST WAY TO FURNISH MY NEW HOME

Get the furniture from a mom and pop furniture store that doesn't report to the CRA's.  You may pay more in interest since they usually don't check credit.  They would just take the furniture back if you don't pay. 
Established Member
M4c
Posts: 35
Registered: ‎09-24-2009
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Re: BEST WAY TO FURNISH MY NEW HOME

Congrats on the home purchase!  I would wait 3 months til you file, have the money in the bank and THEN make the purchase.  Most furniture stores offer 6-10% off for cash IF you ask... but you gotta ask.
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"...muffins are just bald cupcakes." -- Jim Gaffigan

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Valued Contributor
Jazzzy
Posts: 2,679
Registered: ‎07-29-2009
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Re: BEST WAY TO FURNISH MY NEW HOME


M4c wrote:
Congrats on the home purchase!  I would wait 3 months til you file, have the money in the bank and THEN make the purchase.  Most furniture stores offer 6-10% off for cash IF you ask... but you gotta ask.

 

+1

 

If you wait and plan, you will get more of an idea of traffic pattern in your new home and your likes and dislikes. Where does the sun come in? This makes a difference in where you will place the TV, for example. Where will you sit and have your morning coffee?

 

Too many people run out and furnish a new home without living in it first. They may end up with a brand, spanking new and expensive living room set that they never will use, for example. Or a new dining room set that goes unused, instead of sturdy family room furniture, where they end up spending 80% of their time.

 

Get a feel for your new home first, and wait for the feeling of satisfaction by paying cash when the time comes. Watch for sales after you get your cash. Watch for good used furniture. (Don't laugh...people sell practically new stuff because they want a different color.)

 

Another aspect is that you don't want to spend the whole $8k on furniture. Wait and make sure all the appliances work, the roof doesn't leak, the hot water heater works, the furnace works, etc. Do you have an emergency fund, or should your $8k go towards that?

 

All of the above is just food for thought....plus the benefit of decades of experience in what CAN happen.

Super Contributor
DI
Posts: 5,744
Registered: ‎01-28-2008
0

Re: BEST WAY TO FURNISH MY NEW HOME


M4c wrote:
Congrats on the home purchase!  I would wait 3 months til you file, have the money in the bank and THEN make the purchase.  Most furniture stores offer 6-10% off for cash IF you ask... but you gotta ask.

With a new house I don't think anybody would wait 3 months to furnish it.  We live in a "I want it now" society.   

Valued Contributor
daisyduke
Posts: 1,320
Registered: ‎04-18-2009
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Re: BEST WAY TO FURNISH MY NEW HOME

Congrats on your new home! How about opening an LOC. Rates are pretty low.that way you don't have to furnish most of your home from a furniture store that offers financing...

 

 


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Moderator Emeritus
beamMEup
Posts: 4,470
Registered: ‎12-31-2008
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Re: BEST WAY TO FURNISH MY NEW HOME

Plus most furniture stores offering financing are in the "Consumer Finance Company" category - that's always a ding.  And it stays with you as long as the account reports on your CR's.  Payday advances just happen to be in the same "Consumer Finance Company" - always stay away.

 

"Best way to furnish my new home?"  Cash.  When you have it.  When you find the right piece.  Some quality pieces.  Some neighborhood sales finds.  Cash.  Cash.  Cash.  You will love the feeling in your new home.

 

I'll just offer this alternative viewpoint as one to consider - I would never use credit for furniture.  Homes, yes.  Cars, sometimes.  Education, sure.  Furniture, nadda chance.  I've lived on some pretty tight budgets but our home has always looked classy - and felt good.  I've even been asked to teach little mini-classes on home design.  Go figure!?!?!?!

 

Take what you've got with you and evolve the furnishings in your home - you'll be ready to spend that cash wisely when it comes in.

 

Congrats on your new home!  Hope you totally enjoy setting up house - in every way!

Just puttin' syrup on something, don't make it pancakes.
Super Contributor
DI
Posts: 5,744
Registered: ‎01-28-2008
0

Re: BEST WAY TO FURNISH MY NEW HOME

To add what beamMeup said...

 

 Finance company accounts are generally considered to be higher risk lenders who target higher risk customers. As such, consumers who have finance company accounts on their credit reports could suffer lower scores.

Frequent Contributor
nathan
Posts: 411
Registered: ‎04-18-2007
0

Re: BEST WAY TO FURNISH MY NEW HOME

Thanks for all the advice. I plan to use 4k for furniture and save the other 4k for emergency fund. Is it better for me to file my tax admendment now or just wait and claim the 8k next january when I file? If I file next year , can the 8k still be directly deposited or will i still have to wait about 16 weeks for a check from Uncle Sam. I have looked at the irs web site , but could not find any information on that.

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