Furniture Loans

With a furniture loan, you can furnish your house, update old furniture or get that swanky vintage piece. Depending on the lender, you may also be able to apply even if you have bad credit. There are several types of furniture loans, including standard personal loans and buy now pay later options.

What is a furniture loan and what can I use it for?

If your furniture needs an update or if you’re looking at a blank slate, there are loans you can take to furnish your house. These loans work as any other loan – you borrow up to a certain amount and repay it within the given loan term. Some loans such as interest-free finance don’t charge interest if you repay the loan within the term. Loan terms will defer based on the loan you apply for, but for an unsecured loan you can go up to 7 years.

You can use a furniture loan for:

• New furniture. You could be moving to a new place or wish to jazz up your current home. You can use a furniture loan to cover the cost of couches, armchairs, beds, wardrobes, bookshelves and others.
• White goods. These are large electrical goods such as refrigerators, washing machines, TVs, dishwashers and dryers. A furniture loan will typically cover these too.
• Upgrades. This can include upgrades, such as on your air conditioning unit.
• Transportation. Depending on the loan, you may also be able to cover the cost of transporting the new furniture or appliances.

What kind of furniture loans are available?

There are a number of options available, including:

• Unsecured personal loan. With an unsecured loan, you can borrow up to $50,000 without using an asset as security. The interest rate for these loans is higher than for secured loans. You can use the loan for just about anything, including the cost of transporting and moving furniture.
• Secured personal loan. If you have equity in your property, you could use it to secure a furniture loan too. Interest rates are generally lower than for unsecured loans. As with unsecured loans, you can use the funds to purchase anything you wish. How much you can borrow will depend on your equity.
• Peer-to-peer loans. With a peer-to-peer loan, you’ll be borrowing money from individual investors through a third party. These loans often offer interest rates personalised to your credit score. If your credit score isn’t perfect, you may still be able to borrow but with higher interest. If you have good credit, your rates are likely to be low and the loan will cost you less.
• Buy now pay later. With buy now pay later, you can buy furniture or appliances without interest and pay it off in instalments. Some of the providers include Afterpay, Zip Money and Latitude. While you won’t be charged interest, you could be charged interest and fees if you don’t make your repayments on time.
• Short-term loans. Short-term loans are also called payday loans. It is a quick and easy form of finance, but it is expensive. The loans come with high fees and charges and generally the loan terms are also short. You should ideally avoid payday loans except in case of an emergency.

Compare interest free furniture loan options

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Updated regularly

Product AUFPL-IFF	Interest rate (p.a.)	Min. loan amount	Max. loan amount	Establishment Fee	Credit Check Required?
Zip Pay	0%	$350	$1,000	$0 establishment fee. $9.95 monthly fee applies.	Yes	More Info	loading Fetching your data...
Afterpay	0%	$35	$1,500	$0 establishment fee	No	More Info	loading Fetching your data...
Fupay	0%	$20	$500	$0 5%	No	More Info	loading Fetching your data...
Paypal Pay in 4	0%	$30	$2,000	$0 (This service is interest and fee-free)	Yes	More Info	loading Fetching your data...
Klarna	0%	$35	$1,000	$0 establishment fee	Yes	More Info	loading Fetching your data...
Spot. Buy Now, Pay Later	0%	$1	$1,000	$0 (A single $10 charge for transactions you nominate to be paid over 8 instalments.)	Yes	More Info	loading Fetching your data...
Laybuy	0%	$120	$1,200	$0 (There is no upfront fee)	Yes	More Info	loading Fetching your data...

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How do I know which furniture loan is right for me?

When you’re comparing loans, there are a number of factors you need to consider. These include the following:

• Does the loan allow me to buy what I need? If you’re looking to make multiple purchases, you need to check if you can use the loan funds to cover what you need. If there are any restrictions on how you can use the funds, you’ll need to consider those too.
• Can I borrow how much I need? If you’re looking into major upgrades which will set you back a fair bit, you need to make sure the loan covers all the costs. If it looks like you won’t be able to borrow as much as you need, you should reconsider. Check the lender’s minimum and maximum borrowing limits.
• Is the loan secured or unsecured? Depending on whether you want to offer security, you can filter for secured and unsecured loans.
• What’s the interest rate of the loan? The interest rate is an important factor in determining the cost of the loan. A low interest rate means your loan will cost less, but it’s not the only cost you need to consider. Keep in mind that while a loan may have low interest, it could have high fees as well.
• What are the fees and the comparison rate? The comparison rate is the total cost of the loan, inclusive of fees and interest. Fees include monthly and establishment fees. It does not include other fees which may come with exiting the loan early or making extra repayments. If those are features you’re interested in, make sure to take into account how much it will cost.
• Do they offer the terms you need? If you need a loan term of 7 years, be sure to check if the lender offers this.
• Do they have multiple repayment options? Does the lender offer you repayment flexibility? Are you able to choose between weekly, fortnightly and monthly repayments? Do you want to be able to make extra repayments without penalty? If you want specific features with your loan, look for a loan that offers it.
• Am I eligible for the loan? This may sound obvious, but you need to check the lender’s eligibility criteria, including income and credit score. You should only apply if you tick all the boxes and meet their minimum requirements.

What should I avoid with a furniture loan?

• Applying for the first loan you see. You won’t know if you’re getting the best deal if you apply for the first loan you find. Compare your options first and make a shortlist based on cost, terms, convenience and eligibility. Go for the loan that offers you the best deal.
• High fees and charges. Try to avoid loans that come with thumping interest rates or fees. This will only make your repayments higher and make it harder for you to repay the loan. You may be able to afford it, but you can also find a better loan.
• Borrowing more than you can afford. Check the cost of the loan and make sure you can afford it. You should be comfortably able to include your repayments in your budget. You should also avoid borrowing more than you need.
• Splurging. You may be tempted to buy more than you need or go for furniture well outside your budget. Figure out what you can afford and stick to your budget. Avoid spending more than what you planned for. Remember you pay interest for every dollar you borrow.
• Multiple applications. Every loan application shows up on your credit report. Several applications within a short period can have a negative impact on your credit score. This can make it harder for you to get a loan in the future. Select a single loan and lender that you’re eligible for and that suits your needs. If you’ve already applied for legal finance, give it a few more days or contact the lender before applying elsewhere.
• Long-term repercussions and legal issues. Once you sign a loan agreement, you are bound to its conditions. You will have to pay the loan and all the fees and payments. Keep in mind that for unsecured loans, the lender can initiate legal proceedings against you if you don’t repay the loan. It can also report the debt to a credit reporting body like Equifax and use the services of a debt collector. With secured loans, your loan security can be repossessed by the lender if you fail to make your repayments.

How can I apply for a furniture loan?

🤔 Work out what type of loan you need, how much you need to borrow and what you can afford. You can use a personal loan calculator to help you.

🔎 Start comparing lenders. You can use the comparison table on this page. Don't forget to compare interest and comparison rates and find a loan you’re eligible for.

✅ Select a lender. If you’re using the comparison table, you can click “Go to site” to be directed to the lender’s page, or “More Info” if you want to read up on the lender.

🖨️ Organise and prepare the required documentation. This can make the application process easier.

📱 Apply. Most lenders have their applications online.

Why compare personal loans with Finder?

Addicted to details. We know taking out a personal loan is something you'll be hooked up with for a while. That's why we put hours into research for this guide (and still do at least once a month)

Rates obsessed. Lenders come in all shapes and sizes, that's why we don't just track the big banks, but all the digi folk too. Pretty much everyone but your parents to be honest.

Cash for whatever you need. Lending rates verified from 180+ products day and night. Whether you're buying a car, rennovating your home or heck just ready to let loose with the spending - we got you.

Frequently asked questions

• Can I get a furniture loan if I have bad credit?

  Yes, you can, but it will depend on the lender. You can read more about bad credit personal loans here.

• Can I get a furniture loan to pay for a solar power unit?

  There are loans that specifically cater to green home updates. They may also offer lower rates as an incentive. These loans may be more suitable for your needs. Read more about it here.

• Are there any fees or charges I need to watch out for?

  This will depend on the loan you apply for. Generally, standard personal loans have establishment and monthly ongoing fees. There may also be joining costs associated with interest-free finance. Payday loans meanwhile come with hefty establishment fees. Depending on which loan you choose, you may have upfront payments.

Written by

Rebecca Pike

Senior writer

Rebecca Pike is Finder's senior writer for money. She joined Finder after almost four years writing for business publications in the mortgage and finance industry, including three years as editor of Mortgage Professional Australia. She regularly appears as a money expert on programs like Sunrise and Today, as well as across radio and newspapers. She also holds ASIC-recognised certifications in Tier 1 Generic Knowledge and Tier 2 General Advice Deposit Products. See full bio

Rebecca's expertise

Rebecca has written 201 Finder guides across topics including:

• Home loans
• Cost of living
• Budgeting