Should I buy a mattress in financing during the July 4 sales?

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Replacing your mattress at least once every eight years can promote better sleep and help prevent aches and pains. But buying the best mattress is a big investment, and people who don’t have the funds available to pay upfront look to mattress financing as a way to spread the cost over several months.

About the Expert

Rachael Wait is a finance expert. His financial advice has appeared in The Spectator, Money Supermarket and other leading publications.

While this approach may work for some people, it won’t be right for everyone. It is therefore important to understand the pros and cons of paying this way before embarking on a new hybrid or memory foam mattress. This is important at all times, but even more so now that we are heading into a cost of living crisis.

To help you navigate these waters, here we take a look at the different types of mattress financing available during the 4th of July mattress sales and what you need to consider before making a decision.

The most common types of mattress financing

When comparing financing options, it’s important to pay close attention to the interest rate, fees, and length of the plan. Some of the more popular mattress financing options are outlined below…

Retail financing

Whether you buy your mattress from a physical store or online, many retailers will offer their own financing offers. The type of deal available can vary between 0% financing, installment plans, and lease-to-own payment plans, but all aim to help you break down the cost of your mattress purchase into smaller parts. manageable.

Some plans will require you to make regular loan repayments over a relatively short period of time, while others will allow you to continue making payments until you’ve paid off the mattress in full. However, this often means paying more interest.

A couple lie down on a mattress to test whether or not it's good for their sleep

(Image credit: Getty)

Buy now, pay later

Many mattress-in-a-box companies also have direct partnerships with buy-now-pay-later companies such as Afterpay, Affirm, and Klarna. Again, these offer 0% or low interest financing options designed to give you more time to pay. You will usually be able to make equal monthly payments over several months.

These applications also give you the choice of where to make your purchase, so you will not be limited to a particular retailer or product.

Credit card 0% APR

Compared to some financing options that need to be paid off in a relatively short period of time, a 0% APR credit card can give you more time to pay off your interest-free debt. The most competitive shopping credit cards offer 0% for an introductory period of up to 20 months.

Some mattress retailers offer their own credit card for online and in-store purchases. An example of this is the Mattress Firm credit card. But you’ll need to check how this compares to other offers on the market and note that you’ll generally need a good credit score to get one. Also keep in mind that you will have to pay off your balance before the end of the 0% period and that interest does not come into play.

Personal loan

Personal loans do not require you to post collateral to qualify, which is why they are also known as unsecured loans. They can be a good option if you’re buying a particularly expensive mattress because you can borrow a larger sum (usually between $1,000 and $100,000) and pay it off in fixed monthly installments over a period of one to seven years. Again, you’ll need a good credit score to qualify for the best rates.

The disadvantages of buying a mattress on financing

Although 0% mattress finance offers are readily available, they are generally reserved for those with good credit. Anyone outside of this category could pay a higher interest rate. This, in turn, could cause you to spend more than if you had paid for the mattress in full at the time of purchase.

For this reason, it is essential that you read the fine print carefully and understand exactly what you are getting into. Check the interest rate and fees you’ll pay and determine if you’ll be able to pay your monthly repayments for the duration of the agreement. Failure to repay your loan could have a detrimental effect on your credit score, potentially limiting your chances of obtaining credit again in the future.

A young family of four lie together on a king size mattress

(Image credit: Getty)

Many companies will also do a credit check when you apply for mattress financing, which means your credit score will drop a few points. It’s important to keep this in mind if you’re considering financing a big ticket item like a car or house in the coming months.

Finally, financing a mattress can also affect your ability to return it after any mattress trial offered to you by the retailer. You may be required to pay accrued interest or you may face a prepayment penalty.

The advantages of buying a mattress on financing

The biggest advantage of buying a mattress with financing is that it can be a more manageable solution if you don’t have the funds to pay up front.

Retailer financing may also be more suitable for those with bad credit or a limited credit history. This is because retailers often have their own criteria for assessing your credit eligibility and may be more flexible.

For example, a typical assessment might involve reviewing your checking account to monitor the types of transactions you make. Point-of-sale loans are also convenient and are often closed quickly.

Should you buy a mattress on credit?

If you can’t afford a mattress all at once, mattress financing can be a convenient way to help spread the cost. But it’s important that you’ve carefully weighed all your options first to make sure it’s the right choice for you, and that you’ve checked the fine print of your plan to make sure your payments are affordable and won’t hurt you. will cost nothing. additional long term.

Above all, never feel pressured into signing an agreement on the spot – if you’re unsure of anything, it’s best to leave, go home and reevaluate.

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