Bankruptcy can seriously impede your ability to secure financing in the future, especially if you recently filed for bankruptcy. However, some lenders look more favorably on customers who have problem credit, even those with bankruptcies. Even if you cannot secure credit after your bankruptcy, you can still purchase furniture on credit without undergoing a credit check. But you must be prepared to pay a hefty interest rate and considerable fees. The process can be a bit challenging -- though wholly doable.
Things You'll Need
- Credit report
- Income documents (pay stubs)
Pull a recent copy of your credit report. You will want to know where your credit stands overall prior to financing anything after a bankruptcy. You can get a free credit report at Annual Credit Report, a federally-mandated website for U.S. citizens. Circle any negative aspects of your report, such as judgments, tax liens and delinquent accounts not included in the bankruptcy.
Review the terms of your bankruptcy. The most common forms of bankruptcy are Chapter 7 and Chapter 13. In Chapter 13, a bankruptcy judge places you on a repayment plan. If you are still in repayment, you will likely be unable to secure any financing.
Start researching lenders who cater to customers who have some credit problems. Small local banks and credit unions can be ruled out entirely. These institutions cater almost exclusively to borrowers with excellent credit. Instead, look at finance companies (like Wells Fargo Financial or CitiFinancial).
Research furniture dealers who sell furniture on credit without checking credit reports. These companies are notorious for charging high interest rates and fees and usually demand payments in-person and in cash. Examples of these companies include Rent-A-Center and Aaron's.
Apply for financing at a finance company or purchase furniture through a credit-on-demand company. Make sure to weigh any options prior to accepting an offer. With a poor credit report, you'll be lucky to get any financing offers, but do not feel pressured to accept excessively high rates or fees.