The Pros And Cons Of Financing Your Mattress: Everything You Need To Know

By , UniversityHerald Reporter

Photo by charlesdeluvio on Unsplash

Photo : charlesdeluvio on Unsplash

Cash might be the king of the world, but credit is all-encompassing. Today, you can purchase virtually everything using credit. The money that was previously reserved for larger purchases like automobiles and homes is now how most Americans budget their money. They can finance everything into easy monthly instalments.

However, negative outcomes could result from using too much credit. From over-inflated fees to bad ratings on your credit score to filing for bankruptcy, it's important to look at both the advantages and disadvantages before making a purchase.

A quick Google search for the possibility of financing a mattress produces conflicting results. Some websites claim it is the sole option; however, others caution that the idea of financing a mattress is generally an unwise choice. It's more in black and white.

Mattress Financing

If you're in the market for a new mattress, you might be wondering what mattress financing is and how it works. It's a simple process similar to taking out a credit card, mortgage, or car payment. This method allows you to spread out the cost of your purchase into multiple payments over several months. However, because of the many factors involved, you should be aware that you might end up paying higher interest than you intended.

First of all, you need to understand what mattress financing is. This type of financing is similar to credit card financing. Lenders, which deal with mattresses, work with retailers to approve the customer's application and ensure they make their monthly payments. For retailers, offering this type of financing helps them make a profit, as it allows them to sell more expensive mattresses and encourages them to spend more. So, before deciding to purchase a new mattress, it's important to understand how it works and how it differs from credit card lending. A Mattress also needs proper storage space.

One of the most common forms of mattress financing is a loan from a mattress company. You will make regular monthly payments for a certain amount, which will vary from one company to the next. You can choose to pay off the loan in one or several months or spread it over several months. Typically, the payment will be low - often just a couple of hundred dollars. If you do not make your monthly payments on time, it may harm your credit score.

The Different Types Of Mattress Financing

Each financing option is unique. It is important to be attentive to the specifics of the offer. There are a variety of terms of interest rates and fees, payment options, and many more. Also, apart from the finance, the mattress should be comfortable for some sleepers.

The first aspect you'll be paying close focus on is interest rates. Although a business may boast zero percent APR, this typically only applies if your credit score is outstanding. If you don't have a great credit rating, your rate could be as high as 10 percent or 20%, or more. In the end, you could be paying interest if it isn't paid off by the time you pay the amount by a specific date.

Make sure you know the duration for which you'll have to pay monthly instalments. Certain offers are made to close in a particular amount of time. Some require you to choose the monthly instalment and keep making payments until your mattress is completely paid off. Beware of this approach because the accumulation of interest could result in your mattress costing far more than you imagine.

Additionally, there are typically additional costs associated with financing. Even an APR-free mattress that you pay off within the 12 months you have set could be more expensive than if you purchased it initially.

The Drawbacks Of Financing Your Mattress

It May Cost More

A majority of financing options will cost you more than had you purchased your mattress in full at the date of the purchase. This is because of:

  •  Interest

  • Additional costs for financing

  • Late payment charges

It Could Harm Your Credit

Sometimes, getting a loan may influence the credit rating. This is especially true if you make a late payment or can't pay the monthly instalments shortly. In addition, the credit report could be hard. This means your credit score may drop by several points. Be aware of this if you are soon to finance an expensive item, such as a car or a house.

It Might Make Returns More Difficult

Certain retailers provide a trial period. If you discover that you don't want the mattress, financing could make it harder to return. Sometimes, you'll be required to pay the interest that is accrued.

Should You Finance Your Mattress?

Before you look at the advantages and disadvantages of financing your mattress, First, you should consider this: Do you need to finance your mattress?

There are a lot of top-quality mattresses that cost around $500. The cost difference between a $500 mattress and a $2,000 one is minimal for many. If you are able, it is best to locate an affordable mattress now, with cash.

Of course, there are instances that $500 might not be feasible. Sometimes, a specific requirement arises when you require a mattress higher than you can manage to afford right now.

However, it is important to look at your options before financing investment in a mattress. If you're at an offline store, it is easy to be pressured by a salesperson into buying one that isn't the best choice for you. Make sure you take the time to determine which mattress is the best fit for you.

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