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Rebecca Safier is a personal finance writer and certified student loan counselor specializing in consumer loans and money management. Formerly a senior writer for LendingTree, her work has been published in U.S. News & World Report, MarketWatch, NextAdvisor, and other publications. She has also contributed expert commentary to Entrepreneur, Money.com, NBC, and more. When she’s not reporting on all things personal finance, Rebecca teaches blogging and SEO strategies on her website, remotebliss.com.
Rebecca Safier is a personal finance writer and certified student loan counselor specializing in consumer loans and money management. Formerly a senior writer for LendingTree, her work has been published in U.S. News & World Report, MarketWatch, NextAdvisor, and other publications. She has also contributed expert commentary to Entrepreneur, Money.com, NBC, and more. When she’s not reporting on all things personal finance, Rebecca teaches blogging and SEO strategies on her website, remotebliss.com.
Colin Beresford is a writer and editor experienced in helping people make the best decisions with their money, whether it’s buying a car or taking on a loan. He has written for Bloomberg, The Associated Press, NerdWallet, Car and Driver magazine, among many others covering various financial topics.
Colin Beresford is a writer and editor experienced in helping people make the best decisions with their money, whether it’s buying a car or taking on a loan. He has written for Bloomberg, The Associated Press, NerdWallet, Car and Driver magazine, among many others covering various financial topics.
Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors’ opinions or evaluations.
Whether it’s a new refrigerator, furnace or any other appliance in your home, sometimes replacing an appliance can’t wait. With appliance financing, you can buy an item up front and pay for it over time. There are various financing options, so shop around and find the best choice for your financial needs before you accept one.
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Best Personal Loans for Appliance Financing
BEST FOR COMPARING MULTIPLE OFFERS
Universal Credit
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Why We Picked It
Universal Credit is an online lending platform that offers personal loans between $1,000 to $50,000 through its partners. Repayment terms range from three to seven years.
While Universal Credit makes finding a personal loan accessible even to those with damaged credit, it comes with a few tradeoffs. First, it charges high APRs, well above the most competitive rates seen on our list. Second, Universal Credit charges a 5.25% to 9.99% origination fee on all personal loans. Because this is deducted from your loan proceeds, you’ll need to factor this in when determining your loan amount to ensure you receive the necessary amount after the fact.
Pros & Cons
- Flexible qualification requirements
- Next-day funding
- No prepayment penalty
- High APRs
- All personal loans charge a 5.25% to 9.99% origination fee
Details
Overview: Universal Credit is an online lender powered by Upgrade with loans originated by partners Cross River Bank and Blue Ridge Bank. The lender offers its loans in every state except Iowa, West Virginia and Washington, D.C.
Eligibility:
- Minimum credit score: 580
- Minimum income requirement: Does not disclose
- Doesn’t allow co-signers or co-borrowers
Loan uses:
- Debt consolidation
- Large expense
- Home project
BEST FOR BAD CREDIT
Upgrade
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Why We Picked It
Upgrade was launched in 2017 and provides accessible online and mobile credit and banking services. Since that time, the platform has made more than $3 billion in credit available to over 10 million applicants and continues to expand its online and mobile services. Although maximum APRs are on the high end compared to other online lenders, Upgrade makes loans available to those with poor credit history.
Loans amounts, which range from $1,000 to $50,000. Upgrade has two- to seven-year terms available. Upgrade charges an origination fee between 1.85% and 9.99% of the loan, and borrowers will encounter a $10 fee if their payment is more than 15 days late or if the payment does not go through; there are no discounts for autopay. That said, Upgrade borrowers are not subject to a prepayment penalty, so you can reduce the overall cost of the loan if you’re able to pay it off early.
Beyond offering accessible personal loans, Upgrade streamlines the lending process with a mobile app that lets borrowers view their balance, make payments and update personal information. Upgrade’s Credit Heath tool also makes it easy to track your credit score over the life of your loan.
Pros & Cons
- Low minimum credit score requirement
- Borrowers can use loans to cover business expenses
- Offers direct lender payoff for debt consolidation loans
- High APR range
- Charges fees for origination, late payment and insufficient funds
Details
Overview: Upgrade was launched in 2017 and provides accessible online and mobile credit and banking services. Since that time, the platform has made more than $3 billion in credit available to over 10 million applicants and continues to expand its online and mobile services.
Upgrade charges an origination fee between 1.85% and 9.99% of the loan, and borrowers will encounter a $10 fee if their payment is more than 15 days late or if the payment does not go through; there are no discounts for autopay. That said, Upgrade borrowers are not subject to a prepayment penalty, so you can reduce the overall cost of the loan if you’re able to pay it off early.
Beyond offering accessible personal loans, Upgrade streamlines the lending process with a mobile app that lets borrowers view their balance, make payments and update personal information. Upgrade’s Credit Heath tool also makes it easy to track your credit score over the life of your loan.
Eligibility:
- Minimum credit score: 580
- No minimum income requirement
- Allows co-applicants
Loan uses:
- Debt consolidation
- Home projects
- Large expenses
- Business expenses
BEST FOR FAIR CREDIT
Upstart
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Why We Picked It
Upstart has made a mark on the personal loan space because of its artificial intelligence- and machine learning-based approach to borrower qualification. In fact, Upstart estimates that it has been able to approve 27% more borrowers than possible under a traditional lending model. With competitive APRs, Upstart is not a top lender for borrowers who can qualify for more competitive rates. Even so, the platform’s minimum 300 credit score makes it an accessible option to those with fair credit.
Upstart also offers a pretty flexible range of loan options, with amounts ranging from $1,000 to $50,000 so you don’t have to borrow (or pay interest on) more than you really need. And, while Upstart’s loan cap is lower than some lenders—this is likely to be enough for many prospective borrowers.
Even though Upstarts three-, five-, seven-year loan terms are more restrictive than other lenders, it’s likely to be an acceptable tradeoff for applicants who might not be approved in a more traditional lending environment. Plus, it’s available in every state except West Virginia and Iowa, so it’s as widely available as many other top lenders.
Pros & Cons
- Accessible to borrowers with fair credit
- Offers prequalification with a soft credit check
- Ability to choose a custom payment date
- Charges an origination fee up to 8% of the loan amount
- No secured or co-signer option
- Loans only available for three-, five-, seven-year terms
Details
Overview: Upstart has made a mark on the personal loan space because of its artificial intelligence- and machine learning-based approach to borrower qualification. In fact, Upstart estimates that it has been able to approve 27% more borrowers than possible under a traditional lending model.
Even though Upstart’s three-, five-, seven-year loan terms are more restrictive than other lenders, it’s likely to be an acceptable tradeoff for applicants who might not be approved in a more traditional lending environment. Plus, it’s available in every state except West Virginia and Iowa, so it’s as widely available as many other top lenders.
Eligibility:
- Minimum credit score: 300
- Minimum income requirement: $12,000
- Doesn’t allow co-signers or co-borrowers
Loan uses:
- Debt consolidation
- Medical expenses
- Educational expenses
BEST FOR A RANGE OF PAYMENT OPTIONS
Avant
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Why We Picked It
Founded in 2012 and based in Chicago, Avant is a consumer lending platform that offers secured and unsecured personal loans through a third-party bank (WebBank). Unsecured loans are available in Washington, D.C. and every state but Hawaii, Iowa, New York, Vermont, West Virginia and Maine. The platform specializes in middle-income borrowers with fair to good credit and only requires a minimum score of 580 to qualify.
Maximum loan amounts are low compared to other lenders, but the low minimum amount and flexible repayment terms (two to five years) make it an accessible option for borrowers. However, as with many loans for subprime borrowers, Avant personal loans come with a price. In addition to charging an administrative fee of up to 4.75% of the loan amount, Avant’s APR range (9.95% to 35.99%) is on the high end for applicants with a good to excellent credit score—and there is no autopay discount. Still, the platform earns top marks for borrowers with less than stellar credit who need quick access to funds.
Pros & Cons
- Secured and unsecured loan options available
- Low credit score requirement (580)
- Loan terms available up to 60 months
- Charges an upfront administrative fee
- High starting APR for prime borrowers
- Co-signers and co-applicants not allowed
Details
Overview: Founded in 2012 and based in Chicago, Avant is a consumer lending platform that offers secured and unsecured personal loans through a third-party bank (WebBank). Unsecured loans are available in Washington, D.C. and every state but Hawaii, Iowa, New York, Vermont, West Virginia and Maine. The platform specializes in middle-income borrowers with fair to good credit and only requires a minimum score of 580 to qualify.
Eligibility:
- Minimum credit score: 580
- Minimum income: $20,000
- Doesn’t allow co-signers or co-borrowers
Loan uses:
- Debt consolidation
- Large expenses
- Home projects
BEST FOR FAST FUNDING & BELOW-AVERAGE CREDIT
LendingPoint
APR range
7.99% to 35.99%
with autopay
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7.99% to 35.99%
with autopay
Why We Picked It
LendingPoint is an online lender based in Atlanta that offers personal loans to prospective borrowers in 48 states and Washington D.C.; it does not offer loans in Nevada and West Virginia. Prospective borrowers in eligible states can apply online and benefit from quick funding.
LendingPoint personal loans range from $2,000 to $36,500; Georgia loans have a minimum loan amount of $3,500. Repayment terms range from 24 to 72 months—or two to six years.
There are two main disadvantages to LendingPoint: high maximum APRs and origination fees. While you can typically avoid high APRs by maintaining a high credit score, LendingPoint origination fees (up to 10%) depend on the state you live in.
Pros & Cons
- Quick funding
- Low credit score requirements
- No prepayment penalty
- Origination fee up to 10%
- Co-signers or joint loans not permitted
- Not available in Nevada and West Virginia
Details
Overview: LendingPoint is an online lender based in Atlanta that offers personal loans to prospective borrowers in 48 states and Washington D.C.; it does not offer loans in Nevada and West Virginia. Prospective borrowers in eligible states can apply online and benefit from quick funding.
There are two main disadvantages to LendingPoint: high maximum APRs and origination fees. While you can typically avoid high APRs by maintaining a good credit score, LendingPoint origination fees (up to 10%) depend on the state you live in.
Eligibility:
- Minimum credit score: 600
- Must live in a state other than Nevada or West Virginia
- Doesn’t allow co-signers or co-applicants
Loan uses:
- Debt consolidation
- Home project
- Medical expenses
BEST FOR NO INTEREST IF REPAID WITHIN 30 DAYS
Discover
Why We Picked It
Discover is an online bank that also offers customers credit cards, retirement solutions and personal loans in all 50 states. As a lending platform, Discover stands out because of its online application and mobile banking tools, well-reviewed customer support team and quick funding.
In general, loans are available from $2,500 to $40,000 and may be issued for between three and seven years. So, while borrowers may get a larger loan from another lender, the repayment terms are fairly flexible. Discover charges a late payment fee and does not offer an autopay discount; however, it does not charge any origination fees or prepayment penalties, making it competitive with other top personal loan providers.
Pros & Cons
- Option to pay off creditors directly
- No origination fees or prepayment penalties
- Directly pays creditors
- Charges late fees
- Low maximum loan amount
Details
Overview: Discover is an online bank that also offers customers credit cards, retirement solutions and personal loans in all 50 states. Discover charges a late payment fee and does not offer an autopay discount; however, it does not charge any origination fees or prepayment penalties, making it competitive with other top personal loan providers.
Eligibility:
- Minimum credit score: 660
- Minimum household income: $25,000
- Doesn’t allow co-signers or co-borrowers
Loan uses:
- Medical bills
- Business expenses
- Home renovation
BEST FOR LOANS UNDER $1,000
PenFed
Why We Picked It
Although PenFed was originally created to serve U.S. military members and veterans, in addition to federal employees and retirees, it has expanded its membership to non-military members. PenFed has several federal partners, including the American Society of Military Comptrollers, Coast Guard Auxiliary Association, Navy League of the United States and United States Army Warrant Officers Association.
PenFed offers fixed-rate, low-interest loans that start $600 to $50,000. If you’re looking for a mix of low interest rates and high loan limits, PenFed may not be the choice for you; look toward LightStream for higher limits.
PenFed personal loans carry rates from 8.49% to 17.99%, based on your application and credit information. Applicants with higher credit scores can typically snag the lowest rates. What’s more, PenFed also boasts no title or deed requirements, no early payoff penalty and no origination or hidden fees. Although PenFed is located on the East Coast, borrowers will have around-the-clock access to their accounts through the PenFed mobile app.
Anyone can apply for a loan through PenFed; however, if you’re approved and choose to move forward with your loan, you’ll need to become a member of the credit union. Becoming a member is easy, and it typically only takes a few minutes. While the membership is free, you’ll need to make a deposit of at least $5 into a new PenFed savings account.
Pros & Cons
- No origination or hidden fees
- Funds could be available the next day
- Few qualification requirements
- Branches only located on the East Coast
- Must open a PenFed savings account to become a member
Details
Overview: Although PenFed was originally created to serve U.S. military members and veterans, in addition to federal employees and retirees, it has expanded its membership to non-military members. PenFed has several federal partners, including the American Society of Military Comptrollers, Coast Guard Auxiliary Association, Navy League of the United States and United States Army Warrant Officers Association.
Although PenFed is located on the East Coast, borrowers will have around-the-clock access to their accounts through the PenFed mobile app. Anyone can apply for a loan through PenFed; however, if you’re approved and choose to move forward with your loan, you’ll need to become a member of the credit union. Becoming a member is easy, and it typically only takes a few minutes. While the membership is free, you’ll need to make a deposit of at least $5 into a new PenFed savings account.
Eligibility:
- Be a PenFed member
- Minimum credit score: 650
- Can apply with a co-borrower
Loan uses:
- Debt consolidation
- Home project
- Medical expenses
Summary: Best Personal Loans for Appliance Financing
Tips for Comparing Appliance Financing Options
Whether you’re considering taking out a personal loan, using a credit card or applying for in-store financing, consider these factors as you compare your options:
- Interest rate. Your interest rate is the cost of borrowing money, which accrues at a fixed or variable rate. Most personal loans come with fixed rates that stay the same over the life of your loan. Look for the lowest interest rate offered to you.
- Fees. Look for any fees that you’ll have to pay, such as origination or administrative fees. In some cases, high fees can offset a low interest rate.
- Repayment terms. Find out the specific terms and conditions that come with your loan, such as how often you have to make payments and how long you have to repay it. Your terms directly impact your monthly payment amount and overall interest charges.
- Credit and income requirements. Depending on the type of financing you choose, you may need a certain credit score or income to get approved.
- Borrower protections. Finally, consider whether the financing option has any flexibility if you run into financial hardship. For instance, some lenders offer payment modification on personal loans if you lose your income.
What Is Appliance Financing?
Appliance financing allows you to borrow money to purchase an appliance. There are various ways to finance an appliance, including a personal loan, in-store financing and a credit card.
The rates and terms you’re offered will depend on the type of financing that you use and the lender. Borrowers with strong credit tend to qualify for the most competitive rates and terms, while those with poor credit may only qualify for high interest rates.
With most forms of appliance financing, you’ll repay the amount that you borrow along with interest and fees. That said, there are financing options that offer a 0% annual percentage rate (APR) for a set period that allows you to avoid interest charges if you repay your purchase within that time.
How Does Appliance Financing Work?
With all forms of appliance financing, you’ll purchase the appliance up front and then repay the amount you borrowed on the agreed-upon terms, often with interest charges and fees. This allows you to spread the cost of a new appliance over time.
If you opt for a personal loan, interest rates range from 8% to 36%, depending on the lender and your credit history. Repayment terms often range from one to seven years, and you’ll repay your loan monthly, with interest. Smaller personal loans—like the ones used for appliances—typically have shorter repayment terms.
Some retailers also offer in-house financing, which you may be able to apply for during checkout. If this is an option for you, be sure to understand the full loan agreement, including terms and late fees before accepting any financing.
Credit cards can also be an option to finance an appliance purchase. Credit cards can come with high interest rates, but some credit cards offer promotional 0% APR periods, which allow you to borrow money without paying interest—as long as you pay off your debt before the promotional period ends.
How To Get a Loan To Finance Appliances
If you’d like to take out a loan to finance an appliance for your home, these are the steps you’ll generally need to take:
- Check your credit. First, review your credit report so you know which lenders whose loan requirements you meet. If you see any mistakes on your report, contact the three major credit bureaus—Equifax, Experian and TransUnion—to get your credit history corrected.
- Shop around. Each lender offers different terms, loan amounts and interest rates, so shopping around can help you find the lender that best works for you.
- Prequalify. Some lenders allow you to pre-qualify, which lets you see your potential loan offers without impacting your credit. This can help you compare different loan options.
- Submit an application. If you find an offer that works for you, apply. You’ll need to upload verifying documentation, such as pay stubs and identification.
- Repay your loan. The lender will likely send the loan directly to you, which you can then use to purchase your appliance. At that point, you’ll need to start repaying your loan. Setting up automatic payments can help ensure you don’t miss any loan payments. Some lenders even offer autopay interest rate discounts.
Find the Best Personal Loans of 2024
What Credit Score Is Needed for Appliance Financing?
The credit score you need for appliance financing varies depending on the lender and type of financing. Most personal loan lenders look for a credit score of at least 580, although a credit score of at least 670 can help you qualify for the best personal loans.
However, there are loans for borrowers with bad credit that consider the whole picture of your finances, rather than specifying a particular credit score minimum. If you’re having trouble qualifying due to weak credit, you may also consider applying with a co-signer.
Adding a creditworthy co-signer or co-borrower to your application may help you get approved, as well as potentially access better interest rates and higher loan amounts. Keep in mind that any missed loan payments impact both your credit and your co-signer’s.
Another option is a secured personal loan, which requires you to back it with collateral. Secured loans may have more lenient credit requirements, but you do risk losing your collateral if you can’t repay the loan.
Alternative Appliance Financing Options
Borrowing a personal loan or opening a store credit card are two options for financing an appliance purchase, but they’re not the only ones. Here are some alternatives you can explore:
- Buy now, pay later (BNPL). Some retailers partner with BNPL providers like Affirm and Klarna to help you finance a purchase. If you pay off your purchase over six weeks, you may not have to pay interest at all. Keep in mind, longer repayment terms typically come with interest charges and missing payments can come with high fees.
- Credit card. While the retailer may offer its own credit card, there are other credit cards you could use to buy your appliance. Interest charges can be hefty, but good-credit consumers could qualify for a card with a 0% APR introductory period that spans 12 months or longer.
- Rent to own. You may be able to use a rent-to-own contract that involves making weekly or monthly payments to the store. You’ll eventually own your appliance, but the store can take it back if you fall behind on payments. This type of financing may not require a credit check, but watch out for high fees.
Methodology
We reviewed 29 popular lenders based on 16 data points in the categories of loan details, loan costs, eligibility and accessibility, customer experience and the application process. We chose the best lenders based on the weighting assigned to each category:
- Loan cost. 35%
- Loan details. 20%
- Eligibility and accessibility. 20%
- Customer experience. 15%
- Application process. 10%
Within each major category, we also considered several characteristics, including available loan amounts, repayment terms, APR ranges and applicable fees. We also looked at minimum credit score requirements, whether each lender accepts co-signers or joint applications and the geographic availability of the lender. Finally, we evaluated each provider’s customer support tools, borrower perks and features that simplify the borrowing process—like prequalification options and mobile apps.
Where appropriate, we awarded partial points depending on how well a lender met each criterion.
To learn more about how Forbes Advisor rates lenders, and our editorial process, check out our Loans Rating & Review Methodology.
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Forbes Advisor adheres to strict editorial integrity standards. To the best of our knowledge, all content is accurate as of the date posted, though offers contained herein may no longer be available. The opinions expressed are the author’s alone and have not been provided, approved, or otherwise endorsed by our partners.
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