If you are inspired by Sleep Awareness Week (opens in new tab) to reevaluate where you rest your head, a new mattress may well be on your mind. For such an important purchase, it’s perfectly understandable if you’d want to try out a range first with a trip to a physical store. Equally, however, some of the lowest bed prices around are regularly offered by the best mattress online (opens in new tab) companies, so you should always check there as well. No matter which route you decide to take, your brand new mattress will need to be paid for, but what if you don’t have the funds that you need to hand? Thankfully, a solution can usually be found, and finding out all about how to buy a mattress on finance is what you need to do.
Almost all year round, mattress retailers strive to make it as simple as possible for people to buy what they want, as the regular offer of discounts and trial periods proves. The best Purple mattress deals (opens in new tab) are a great example and have the potential to save you hundreds of dollars on its leading beds. Mattress finance is simply one more way in which retailers try to help out by letting you pay in instalments the price of what is usually a significant purchase. Given this, read on to learn more about the various types of mattress finance that are generally available, and the reasons why each may, or may not, be suitable for you.
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What is point-of-sale finance?
Mattress finance falls under the overarching banner of what is known as point of sale financing. Almost every time we make a big-ticket purchase online, and often in-store too, besides the usual payment methods of cash or a credit card, you can expect to be offered various other ways in which to pay too. Companies such as Afterpay, Affirm and Klarna all offer 0% or low interest point-of-sale financing options designed to give you more time to pay.
And such “buy now, pay later” options are undoubtedly useful if you’re comfortable that you’ll be able to make the necessary payments when you should. But as with any type of loan, there are certain conditions that you need to consider before signing up.
Pros of mattress finance
Usually available if you’re new to credit
Rather than checking your credit score, point-of-sale companies tend to have their own criteria by which they assess your eligibility for credit. This means you can often get mattress finance even if you have bad credit. So a typical assessment might involve reviewing your checking account for the types of transactions you make and to see if your situation makes you a suitable candidate for mattress finance. And if you do have bad credit, perhaps also consider approaching the best credit repair services (opens in new tab) to try and give it a boost - that way you'll have more credit options at your disposal and should get access to better credit terms.
As point-of-sale loans can be agreed quickly, and sometimes with no credit check, mattress finance is the easiest way to pay if you don’t have a credit card or want the option to fix your monthly payments. That said, also consider that the convenience afforded by point-of-sale finance can also represent a considerable temptation too, and could get someone who’s prone to buying on impulse into financial trouble that they hadn’t bargained for.
Cons of mattress finance
Can be expensive
While 0% mattress finance deals can usually be easily found, there are many others where rates might reach 30%, so take care over what you’re signing up to. And as with most finance options, working out exactly what you can afford is key. Will you definitely be able to make that payment for however many months, or even years, that the mattress finance deal ties you in for? And are there any fees if you do fall behind? - there usually will be and they can be pretty hefty too.
Credit score impact
As already mentioned, some mattress financing options effectively have no credit check, but that of course means there are some that do. For this reason, before you apply, always find out if the company will conduct a hard credit inquiry, because if they do, your credit score could be impacted.
Also check whether any mattress finance you take out will be reported to the credit bureaus and show up on your credit report - if it does, and you miss payments, your credit score is open to harm in this way too.
It’s important to always find out about the returns policy on a purchase you’re making using mattress finance or any other kind of point-of-finance loan. If you’re not careful, you might find yourself having to carry on paying back some of your loan if you don’t receive a full refund or there’s shipping costs to pay. There might also be a penalty if you want to pay a loan off early, because you’ve sent the item back.
How to buy a mattress on finance
If you’re comfortable that mattress finance is for you, then there’s nothing to stop you making your mattress choice, whether it be from the best Casper mattress deals (opens in new tab), the best Saatva mattress discounts (opens in new tab), or from anywhere else. The mattress financing options that are available from any given mattress company tend to appear near to the purchase price in your online shopping cart (or at the checkout if you’re in-store).
Once you’ve chosen the relevant mattress finance deal, you’ll usually be taken to the website of the lender behind the mattress financing option or perhaps direct to an application. Here you’ll be asked for some relatively straightforward personal details - name, date of birth, the final four digits of your Social Security number, or perhaps simply your contact details. Sometimes in a matter of seconds, a decision will be made and if approval is forthcoming, it’s simply a case of signing in the relevant places and completing the checkout.
Alternative mattress finance options
While mattress finance using point-of-sale financing might be great for some shoppers, there are also alternative ways of paying that might prove better suited to others.
0% credit cards
If you have time to prepare for your purchase in advance, 0% credit cards can offer all the payment flexibility that you get with point-of-sale finance, but usually more besides as well.
For example, many of the best credit cards (opens in new tab) that offer interest-free purchases have welcome bonuses if you sign up and can then meet certain spending requirements. Where a credit card might also prove advantageous is if the mattress finance deal you’re offered requires complete repayment over a relatively short period - as the longest 0% APR cards can offer up to 20 months grace before interest kicks in, they may prove the better option. You might also find that taking out a new credit card is listed as a payment option when you reach the checkout, with some mattress retailers in America offering their own credit card for online and store purchases - the Mattress Firm credit card is one such example.
The potential drawback with credit cards is that you’ll usually need a good credit rating to get a decent one. Card lenders will also perform a hard pull credit check, which mattress finance providers might not. And remember that you’ll need to clear the balance before the interest free period ends before high APRs start to come into play.
If the mattress you have in mind is on the more expensive side, it might be worth considering one of the best personal loans online (opens in new tab) ahead of a point-of-sale finance option. If your credit rating is favorable, and you can secure the lowest rates and best terms, a personal loan might allow you to spread the payments over an even longer time. That said, you’ll likely need to get your loan application ready a good few days in advance and a hard credit check will also be on the cards.
If the mattress company that you’re buying from accepts PayPal as a payment option, there’s a decent chance that you can use PayPal Credit there too.
In essence, PayPal Credit is a credit line built into your account with PayPal, that works in a similar way to a credit card. Some mattress companies enable you to sign up to PayPal Credit at the checkout, allowing you to take advantage of interest-free periods on purchases. Remember, however, that a successful application is subject to credit approval, and to check the terms against the various other mattress finance options that are at your disposal.
Lease to own
Another mattress finance option that you’re likely to see is lease to own. Here, the company that arranges the lease will actually own the mattress until you pay off what you owe. Typically you’ll agree to pay the full price of the item (plus fees) within a certain timeframe, perhaps of somewhere between 90 days and 12 months. If you want to avoid paying the most expensive financing costs, then you’ll need to pay the lease off in the agreed time, and preferably even earlier.
The advantage of lease to own is that approval is determined by your income rather than on your credit score. However, the obvious disadvantages tend to be that the mattress won’t be yours until you’ve repaid the lease in full - this means that if fail to meet your payments - either by choice or because you can't afford to - you’ll need to return the mattress. The costs associated with lease to own will almost always be comparatively high too, particularly if you need to pay the lease over a longer term.