Appliance Finance – Am I Eligible?

What credit score is needed for appliance financing?

Most retailers that offer finance options look for a credit score of 550 and above. However, monthly instalments of equal payments can be agreed upon when the application is submitted. Most retailers use third-party finance providers such as Paypal credit, NewDay Ltd or Creation Consumer Finance. You can check your credit score and receive tips on how to improve with the likes of Experian.

What if I fail a credit check?

Once the finance application is submitted your details will be sent to the third party to review the proposed payment plan. They will contact you on behalf of the retailer with confirmation within a couple of working days or sooner. This will be a request to activate the full credit check which may affect your credit score if you wish to proceed. If your credit score is average or higher then the likelihood of your credit agreement being approved is drastically increased.

Am I tied into the finance agreement once I sign up?

Once confirmation is finalised you are tied into the contract agreement. You will generally need to complete an initial first payment and then follow with equal monthly payments. It is important to read all the details provided to understand if there is a promotional period within your payment plan and what the interest rate is (if applicable).

Is there a credit limit with retailers?

Credit limits may vary from the representative example you have been presented with. Based on consumer feedback if you are approved you are probably looking at a credit limit of £1500 – £2000. Some consumers are offered the option to increase their limit similar to how credit card providers work. They monitor your compliance to make the first payment, monthly repayments and so forth. This is usually for UK residents only but each retailer will have its own terms.

Which retailers offer finance on appliances?

The likes of Currys, AO, Appliances Direct and John Lewis all offer competitive finance options ranging from buy now pay later, monthly payments, instalments and 24-month plans.

Modern-day providers such as Klarna and Paypal Credit are very popular in the UK so, if you already have an account with either and the retailer is offering them as a payment option, you will be able to checkout much quicker than filling a form out. They work by paying the merchant in full and you pay them later via your own credit agreement.

Can you finance a refrigerator?

Yes, you can finance a refrigerator and many other qualifying products to spread the cost. Just make sure you choose the right finance option for you.

Can you pay later for electronics?

Most retailers mentioned in the article offer pay later options on electronics. You can take advantage of AO’s buy now pay later plan with NewDay, or Appliances Direct Paypal Credit pay later option. You can make the most of these payment options on everything from laptops, and smartphones to headphones, kitchen appliances and cameras.

What other sites let you buy now pay later?

Other retailers offering buy now pay later with the likes of Klarna are:

• Casio
• Dyson
• Giffgaff
• Samsung
• 3 Mobile
• Wish

What if I can’t afford monthly repayments?

All finance providers are regulated by the financial conduct authority which has support lines. It’s highly recommended that if you are currently in financial difficulty then it’s best the settle your finances before signing up for anything new. If you encounter unexpected difficulties during your plans, lenders have support lines available so it’s best to talk sooner rather than later. Generally, they are very helpful and can offer extended periods in order to make payments.

Can I use Paypal credit?

You can use Paypal Credit through any retailer offering it via their website. There is a minimum credit amount of £99 on purchases with a 0% interest rate for 4 months. This is applicable to multiple purchases over £99 and not just a single transaction which is very useful for those larger purchases.

Is there a minimum spend?

The likes of Klarna do not have a predefined minimum spend. Instead, it uses an automated approval system which indicates how much you can spend. The likes of AO finance is £200 minimum spend, Currys is the same as Paypal Credit at £99 and John Lewis Financial Services is £750.

Is it for UK residents only?

Payment plans by John Lewis and AO are for UK residents, fundamentally. Paypal Credit and Klarna are international companies and therefore can be used in many countries. It is, however, subjective to the retailers so it’s best to contact customer support if you are outside of the UK before committing to purchase.

Is there an interest rate to pay?

Providers generally have a promotional period where 0% interest is offered up to a specific amount or for a period of time. After this period the credit agreement based on the representative example will be applied. An example of the rates generally varies from 19.9% – 24.9% APR variable for online purchases.

Can I return goods purchased through finance?

Most retailers allow 14 – 30 day returns policies even when you finance the purchase. With the likes of Klarna, you will need to inform them of anything that has been returned so your settlement can be adjusted accordingly. The same applies to Paypal Credit. You will also need to follow the retailer’s returns procedure.