How To Finance Appliances: 6 Best Ways To Pay for Big Purchases

Appliances are an important part of any home, and when one breaks, replacing it quickly can be expensive. Many households don’t have enough savings to cover the full cost upfront, especially when appliances can run into the hundreds or thousands of dollars. Appliance financing can help make the purchase more manageable by spreading the cost over monthly payments through options such as store financing, payment plans or personal loans, depending on your credit and financial situation.

Quick Take

• Financing can help you replace household appliances without paying the full cost upfront.

• Store financing promotions or 0% annual percentage rate (APR) credit cards can offer interest-free financing if you pay the balance in full before the promotional period ends.

• Personal loans can be an affordable option for people with good credit.

• Buy now, pay later (BNPL) options offer instant approval, allow you to split appliance purchases into equal payments and may feature 0% interest.

• Cash advance apps provide fast funding in smaller amounts — typically hundreds instead of thousands of dollars.

• Rent-to-own options are accessible for borrowers with poor credit, but often cost considerably more than buying an item outright.

The 6 Best Ways To Finance Appliances

Here’s a side-by-side look at some of the top ways you can finance household appliances.

Store Financing

• Best for: Borrowers who can pay off the balance before interest applies

• Watch out for: Deferred interest offers that apply retroactive interest if the balance is not paid in full by the end of the specified period

Store financing comes with quick approval decisions and may get you the appliance sooner. Borrowers with fair to good credit — 600 and above — can qualify for these types of offers.

Keep in mind, however, that store credit cards tend to have higher APRs than regular credit cards and may apply retroactive interest.

Here’s an example:

• Best Buy’s store card has a 27.74% to 30.74% APR and offers an 18-month, no-interest promotional rate for purchases over $599.

• If you don’t pay off the balance within the promotional period, interest will be applied to the full balance at the purchase date.

Pros and Cons of Store Financing

0% APR Credit Card

• Best for: Borrowers who can pay off the balance before the promo period ends

• Watch out for: Interest charges once the promotional period ends

A 0% APR credit card charges zero interest for a set period, such as 12 or 18 months, and then changes to a standard APR. Standard APRs are typically around 22%.

Approval for a zero-interest credit card requires a good to excellent credit score — 670 or above — and can happen within moments of applying. However, it can take seven to 10 days to get the actual card in the mail.

Pros and Cons of 0% APR Credit Cards

Personal Loans

• Best for: Larger appliance purchases

• Watch out for: Origination fees and higher rates for borrowers with fair or poor credit.

A personal loan is a popular financial product for covering large purchases. You'll receive a lump sum to cover the expense and make fixed monthly payments toward the loan.

Rates can range between 6.25% and 36%. Lenders typically require borrowers to have a score of 670 or above to qualify for more favorable rates and terms. You’ll also need a sufficient debt-to-income (DTI) ratio. This demonstrates that you can make monthly payments.

Pros and Cons of Personal Loans

BNPL Options

• Best for: Covering small-to-medium appliance costs

• Watch out for: Late fees for missed payments

BNPL is a short-term payment option that splits purchases into equal payments. Most BNPL providers require a soft credit check, but some may require a hard inquiry.

Most BNPL options are typically 0% interest, but some can charge up to 36% interest. Approval is usually instant during checkout.

Pros and Cons of BNPL

Cash Advance Apps

• Best for: Small appliance purchases

• Watch out for: Short payment timeline tied to your next paycheck

Cash advance apps typically don’t charge interest or require a credit check. Instead, providers review your banking history to determine how much you can access.

Many apps offer advances of $100 to $200, though services like MoneyLion’s Instacash® may allow up to $500. The only potential cost is optional expedited delivery within minutes for a fee*.

You may need to build up to the maximum limit over time, as most apps review your deposits and account activity. Because of these limits, cash advance apps are best for smaller, urgent purchases — such as helping you replace an appliance that costs under $1,000.

Pros and Cons of Cash Advances

Rent-to-Own

• Best for: Borrowers with poor credit who can’t qualify for traditional financing

• Watch out for: Paying much more than the appliance’s market value

Rent-to-own stores can help consumers with poor credit make smaller monthly payments on appliances. While the store may run a soft credit check, you won’t need to take out a traditional loan or line of credit. Instead, you’ll sign a rental contract.

You can usually pay off the contract early to own the appliance sooner and stop the monthly payments. However, rent-to-own purchases often cost more than the appliance’s market value. The main advantages are flexibility and the ability to obtain an appliance even with bad credit.

Pros and Cons of Rent-to-Own

Alternative to Financing: Repair or Buy Secondhand

• Best for: Buyers who want to avoid financing and reduce expenses

• Watch out for: Limited warranties or repairs that cost more than a replacement

Before financing a new appliance, it may be worth repairing your current appliance or paying cash for a secondhand or refurbished model. Either of these options has the potential to save a significant amount of money.

Pros and Cons of Secondhand or Repairing

What Will It Cost Per Month?

To get an idea of what different types of appliance financing will cost per month and overall, here are some examples based on a $2,500 purchase.

How To Choose the Right Option

• Choose deferred-interest store financing or a 0% APR credit card if you can pay off the balance before the promotional period expires.

• Choose a personal loan if you have good credit and need a longer repayment term.

• Choose BNPL for small-to-medium appliance purchases that can be repaid within a couple of years.

• Use a cash advance app for small appliance purchases or to help cover part of a larger purchase.

• Choose a rent-to-own option if poor credit prevents you from qualifying for traditional financing.

4 Mistakes To Avoid

Before choosing how to finance an appliance, watch out for these common mistakes that can make the purchase more expensive in the long run.

1. Not comparing multiple financing options to find the best one

2. Focusing on monthly payment amounts instead of total cost

3. Not fully understanding deferred interest terms

4. Draining emergency savings to avoid financing

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Key Takeaways

• Appliance financing can make expensive replacements more manageable, but it’s important to find the best solution.

• 0% options can be the cheapest option if paid off before the promo period expires.

• Personal loans offer fixed payments and interest, but not all borrowers will qualify for the most favorable rates and terms.

• BNPL options may limit financed amounts and charge high interest.

• Cash advance apps won’t cover the total cost of an expensive appliance.

• Rent-to-own options should only be used if you can’t qualify for other options because the total cost can exceed the appliance’s value.

Appliance Financing FAQs

Here are answers to common questions about how to finance appliances and what to consider before choosing a payment option.

Can I finance appliances with bad credit?

Financing options are available with bad credit. However, rates typically will be much higher.

Is 0% store financing really free?

Yes, as long as you pay off the balance before the promotional period expires. Additionally, missing a payment may also trigger interest to be applied.

Is a personal loan better than store financing?

Not if the store offers 0% financing. But you must be able to pay off the balance before the promotional period expires to avoid retroactive interest.

Does appliance financing hurt your credit?

Applying for financing can trigger a hard inquiry, which can temporarily lower your credit score by up to five points. However, paying the required amounts on time can help build your credit history.

Can I finance multiple appliances at once?

Yes, it’s possible to finance multiple appliances at once.

Marc Guberti contributed to the reporting for this article.

Sources

• LendingTree. 2026. "Average Credit Card Interest Rate in US Today."

• Credible. 2026. "Personal Loan Interest Rates in 2026 (Weekly Updates)."