Bobs discount furniture

[Anonymous]

Does anyone have an idea on the minimum credit score required for bobs discount furniture. I’m closing on my first home Friday and need to purchase some furniture right away.

[bizarrocreditworld]

Furniture store cards typically don't require a high score. The Credit Pulls Database suggests that a score in the 620s will work. The only thing is that the APR if you don't pay the balance during the financing period is 28.99%, which can be quite a lot if you make a reasonable sized purchase.

You'll almost certainly be better off if you can get a bank card with 0% APR for 12-14 months such as Discover, but if that's not possible, then make sure you pay off the amount you're spending in the 6-12 month financing period.

[SouthJamaica]

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@bizarrocreditworld wrote:

Furniture store cards typically don't require a high score. The Credit Pulls Database suggests that a score in the 620s will work. The only thing is that the APR if you don't pay the balance during the financing period is 28.99%, which can be quite a lot if you make a reasonable sized purchase.

You'll almost certainly be better off if you can get a bank card with 0% APR for 12-14 months such as Discover, but if that's not possible, then make sure you pay off the amount you're spending in the 6-12 month financing period.

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Bear in mind that that type of finance bears a negative connotation in FICO scoring. I have no idea why but using 'consumer finance' is looked at unfavorably, regardless of how great the terms are.

[HeavenOhio]

If it's a "consumer finance" installment loan, FICO will be unhappy. FICO will be fine if it's a credit card.

But a credit card has its own set of disadvantages. Store cards ding the non-FICO scores that insurance companies use. But more importantly, once the initial purchases are paid off, it can be tough to find a way to use the card and keep it open without spending money that you wouldn't have spent otherwise. A furniture store wouldn't be like Macy's or Kohl's, where you'd likely be buying something anyway whether you had a card or not.

I like the idea of a 0% intro offer on a major card. But a store card wouldn't be the worst thing in the world if it gets you a deal. You could think of it like an installment loan, and let it close once you're through with it.

[Anonymous]

Bob's financing is through Wells Fargo Financial.  I had one of these accounts in 2013; I'm not sure if anything has changed since then.  The account was coded as a credit card (revolving credit) not a CFA.

[NRB525]

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@Anonymous wrote:

Bob's financing is through Wells Fargo Financial.  I had one of these accounts in 2013; I'm not sure if anything has changed since then.  The account was coded as a credit card (revolving credit) not a CFA.

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Do you recall whether the interest rate was structured as deferred interest? Typically we hear of furniture financing using deferred interest rather than interest free. At the end of the deferral period, if the last ten cents was not already paid, the entire term of interest at near 30% on the entire purchase comes due.