4 Methods of Carpet Financing for Bad Credit

4 Methods of Carpet Financing for Bad Credit
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Brittney Mayer
By: Brittney Mayer
Posted: August 25, 2017
BadCredit.org's popular "How-To" series is for those who seek to improve, rebuild or better understand their subprime credit rating.

If the hearth is the heart of the home, then the flooring must be its skin. And, like skin, your home’s flooring will start to show its age after a while. But where a few wrinkles of experience can make a face look more distinguished, your carpet doesn’t look wiser with time — it just looks old.

Even if your flooring hasn’t reached the end of its life due to age, anything from flood damage and mold to new pets and potty-training puddles can drive the need to replace your floors. Unfortunately, that process isn’t always cheap. The least expensive carpets tend to run at least $1 a square foot — and that’s not including padding and installation.

In fact, when all is said and done, the average homeowner pays $1,584 to have new carpeting installed. Considering the majority of Americans have less than $1,000 in savings, the high cost of carpet typically means finding a way to finance your floors. With poor credit, the options for financing may not be as attractive as those of your good-credit neighbors — but your floors can be.

1. Credit Cards | 2. Personal Loans | 3. Home Equity Loans | 4. Direct Financing

1. Finance Your Flooring with a Credit Card

With literally billions of credit cards floating around the US, it’s clear that paying with plastic is a popular way to purchase for many people. And while high interest rates can make credit card charges a more expensive way to finance than other options, the ease of use and accessibility of credit cards can make them an effective way to pay for your new floors.

Credit cards can be obtained by most consumers regardless of their credit issues, with a range of issuers providing options for those struggling with their credit. To ensure you get the best deal on your flooring purchase, be sure to compare interest rates and fees of several cards before applying. Start with our top three picks below, which include the versatile Fingerhut account, good on thousands of products including flooring.

  • Checking account required
  • We may approve those currently building their credit history
  • Application response in 30 seconds
  • Know the score! Quarterly FICO score on your monthly billing statements
  • All credit types welcome to apply
  • Your First PREMIER Bank credit card activity is reported to the Consumer Reporting Agencies each month. Making your payment on time and keeping your balances low relative to the credit limit will result in positive marks on your credit report
  • Click here for official site, terms, and details.
★★★★★

4.8

Overall Rating

Application Length Interest Rate Reports Monthly Reputation Score
6 minutes See issuer website Yes 9.5/10
  • Use your line of credit to shop over 450,000 items from great brands like Samsung, KitchenAid, and DeWalt
  • Take advantage of low monthly payments if you apply and are accepted for a Fingerhut Credit Account issued by WebBank, who determines eligibility and qualifications for the terms of credit
  • Fast, easy online application process and a quick decision
  • Not an access card
  • Click here for official site, terms, and details.
 
★★★★★

4.8

Overall Rating

Application Length Interest Rate Reports Monthly Reputation Score
5 Minutes See issuer website Yes 9.0/10
  • All credit types welcome to apply
  • Monthly reporting to the three major credit bureaus
  • Initial credit limit of $500.00 (subject to available credit)
  • Fast and easy application process; results are provided online
  • Checking account required
  • Click here for official site, terms, and details.
★★★★★

4.7

Overall Rating

Application Length Interest Rate Reports Monthly Reputation Score
9 Minutes See terms Yes 8.5/10

+See More Credit Cards for Bad Credit

For poor-credit consumers looking to finance a flooring purchase with their credit card, the main issue that will likely crop up is the fact that bad-credit credit cards typically have low initial credit limits. For larger purchases, you may need to use multiple cards or find another financing method. Visit CardRates.com to see more credit cards for bad credit.

Additionally, credit cards, especially those designed for poor credit consumers, can also have a few up-front costs. In particular, you may need to pay an initial processing or program fee to open your new credit card account. Furthermore, cards that charge an annual fee will likely apply it as soon as the account opens, decreasing the amount of credit you initially have available.

2. Pay Over Time with a Personal Loan

While credit cards can be good options for smaller purchases, especially those you can repay quickly, plastic isn’t always better. The cost of re-carpeting your entire home, for instance, can range into the thousands, making credit cards less effective financing. Instead, for larger purchases and/or those you’ll need to repay over months or years, you may want to look into a personal installment loan.

Specifically designed to be repaid over time, typically through monthly payments (or installments), personal loans have built-in profit and lower risk for the lender. Accordingly, interest rates for personal loans are usually much lower than those for credit cards, even for those with bad credit. Using one of our top-rated lending networks can make it easy to compare multiple loan offers at once.

   
★★★★★

4.9

Overall Rating

Loan Amount Interest Rate Loan Term Loan Example
$1,000 to $10,000 5.99% - 35.99% 3 to 60 Months

See representative example

+See More Personal Loans for Bad Credit

The main thing to keep in mind when looking for a personal loan is that you’ll need to examine all of the loan’s terms, not just the monthly payment amount. The loan offer with the lowest monthly payment won’t always be the best deal, particularly if the length of time you have to repay the loan is longer than that of other offers. The longer you are repaying your loan, the more interest you’ll pay — and the more expensive that loan becomes.

At the same time, the shortest loan isn’t always the best loan, either. Short-term personal loans — those lasting only days or weeks — will typically have much higher APRs than other personal loans. These loans may also require a lump-sum repayment (rather than regular installments), which can make them unaffordable.

3. Use Your Home as Collateral with a Home Equity Loan

In some cases, replacing your dated or damaged flooring is simply a single part of the renovation whole, with the to-do list extending far beyond installing a few rolls of carpet. When the home improvement job calls for more costs than one credit card or personal loan can handle, you may need to enlist the help of your home’s equity to obtain a home equity line of credit.

Essentially, your home’s equity is the value it has beyond the balance of your mortgage. In other words, if you own your home and owe less on your mortgage than your home is worth (as determined by an appraisal), you can use the equity as collateral for a loan. Most lenders who provide conventional mortgages and refinance loans will also offer home equity loans, including many of our top-rated mortgage loan providers.

  • Options for: home purchase, refinance, home equity, and reverse mortgage
  • Lenders compete for your business
  • Receive up to 5 offers in minutes, and pick the best offer for you
  • Founded in 1996, LendingTree has facilitated 55 million+ loan requests and $250 billion+ in closed loan transactions
  • Click here for official site, terms, and details.
★★★★★

4.9

Overall Rating

Interest Rate In Business Since Application Length Reputation Score
Varies by Applicant 1996 7 Minutes 9.0/10
  • Options for: home purchase, refinance, cash-out, and debt consolidation
  • The nation's largest online lender
  • Allows applicants to buy a home with a minimal down payment (as little as 3.5% down)
  • In some cases, down payment can be a gift from a relative or nonprofit organization
  • Get pre-approved for free – before you shop for your new home – and get more bargaining power
  • Avoid paying Private Mortgage Insurance with PMI Advantage program
  • Click here for application, terms, and details.
★★★★★

4.7

Overall Rating

Interest Rate In Business Since Application Length Reputation Score
Varies by Applicant 2000 6 Minutes 9.0/10
  • Easy to OwnSM programs give options for those with lower income, limited credit history, and low down payment needs.
  • Provides the potential for minimal out-of-pocket expenses with seller contributions.
  • Offers loans that don't require monthly mortgage insurance.
  • Requires less cash upfront for your down payment and closing costs.
  • Click here for application, terms, and details.
★★★★★

4.5

Overall Rating

Interest Rate In Business Since Application Length Reputation Score
Varies 1852 6 Minutes 8.0/10

+See More Home Loans for Bad Credit

While your individual creditworthiness will play an important role, the size of the home equity loan you can obtain will depend heavily on the actual equity you have in your home. To determine that amount, the first step is to have your property professionally appraised. Once you know the value of your home, you simply subtract the balance of your mortgage from the appraised value to calculate your equity.

For example, Hannah the Hypothetical Homeowner currently owes $150,000 on her home mortgage. If her home is appraised for $225,000, then her home equity would be: $225,000 – $150,000 = $75,000. This means Hannah could qualify to take out a home equity loan of up to $75,000 (depending on her creditworthiness).

4. Obtain Financing Directly From a Flooring Provider

While the high cost of carpet may come as a shock to consumers, the amount of money it takes to floor an entire home is little surprise to the companies that actually provide the flooring. And it just so happens that many of those retail providers are happy to help their customers find a way to afford those new floors — even if it means financing the project themselves.

Ranging from branded credit cards to third-party credit lines, the financing options offered by flooring companies and home improvement vendors will vary in quality as much as the flooring types they offer. That’s why it’s important to give direct financing as much scrutiny as you would any other credit product, including analyzing APRs, repayment structure, and the length of the loan.

Empire Today Logo Established as a small, family-owned business in 1959, Empire Today has more than 50 years of experience selling home flooring and blinds. Empire Today offers a branded credit card with two main financing options. The first option provides 12 months of interest-free financing, so long as you pay your entire promotional balance within the 12-month period. The second option charges 9.99% APR for 48 months, which is repaid via 48 fixed monthly payments.

Carpet One LogoCarpet One Floor & Home has over 1,000 stores worldwide specializing in flooring of all kinds, including carpet, hardwood, vinyl, and tile. Financing through Carpet One will involve a branded credit card backed by Synchrony Bank. While the company periodically offers special pricing promotions that can include low-interest offers, non-promotional purchases will be charged 29.99% interest if not repaid by the end of your billing cycle.

Lowe's Logo From small-town hardware store to a FORTUNE 50 phenomenon, Lowe’s has locations in all 50 states and sells everything from flooring to fuses (and beyond). Lowe’s financing includes both consumer and business store-branded credit cards, with multiple financing options for each product. The consumer-focused Lowe’s Advantage Card offers the choice of a consistent discount, six months of no interest, or low-APR project financing.

Home Depot Logo Founded by a pair of avid DIYers in 1979, The Home Depot not only sells flooring, but just about everything else you’d need for home improvement (including the kitchen sink). Home Depot’s financing options are store-branded credit cards, available for consumers and businesses. For consumers, choices include the Consumer Credit Card with a six-month interest-free period, and the Project Loan Card offering a low APR and 84 months to repay.

While these are some of the more popular flooring providers, your local store may also offer financing options. Of course, no matter where you obtain your flooring funding, it’s important to remember that any form of credit is also a form of debt, and must be repaid to prevent serious credit damage.

Ditch Those Old Carpets with the Right Financing

The same way that wrinkles can give away the age of even the loveliest of faces, flooring in poor condition can make even the nicest home look worn. No matter how miserable the carpeting has become, however, the high price of new floors can be hard to get past, especially if you are suffering from poor credit.

Indeed, with costs easily ranging into the thousands, the only way for many people to re-carpet their castles in through financing. On the plus side, options for carpet financing are plentiful, ranging from credit cards to loans, and offered by everyone from popular issuers to local retailers. With a little homework and the right financing, you can be walking on your new investment in no time.