When it comes to furnishing your home, the costs can quickly add up, even when shopping at budget-friendly retailers like Wayfair. Despite Wayfair‘s competitive prices and frequent sales, buying multiple big-ticket items like furniture and appliances can lead to sticker shock at checkout.
Luckily, Wayfair offers several financing options to make your dream home more attainable, even if you can‘t pay the full amount upfront. In this comprehensive guide, we‘ll take a deep dive into Wayfair‘s financing offerings, with a special focus on progressive leasing through partners like Acima and Progressive Leasing.
We‘ll cover how each financing option works, the pros and cons, and provide expert tips to help you decide which payment method is best for your needs and budget. By the end, you‘ll be equipped with the knowledge to shop Wayfair with confidence, no matter your financial situation.
Wayfair Financing Options: Breaking Down the Fine Print
Wayfair partners with several financing companies to offer customers a range of payment options, from traditional credit-based financing to lease-to-own programs. Here‘s a closer look at each option:
Affirm
Affirm is one of the most popular financing options at Wayfair, allowing customers to split their purchase into fixed monthly payments or every two weeks. Some key features of Affirm include:
- Loan terms of 3, 6, or 12 months
- 0% APR financing available for qualified customers
- Soft credit check that won‘t impact your credit score
- No hidden fees or prepayment penalties
To use Affirm at Wayfair, simply select it as your payment method at checkout and complete a short application. You‘ll get an instant decision and can choose the payment plan that fits your budget.
Citizens Pay
Citizens Pay offers a revolving line of credit similar to a traditional credit card. If approved, you‘ll have a set credit limit and will need to make minimum monthly payments. Benefits of Citizens Pay include:
- Credit limits up to $4,500
- Long-term financing up to 60 months
- Potential for special financing promotions like deferred interest
However, keep in mind that Citizens Pay does require a hard credit pull and may charge high interest rates if you carry a balance.
Genesis Credit
Genesis Credit is another revolving line of credit option offered through Wayfair. It operates similarly to Citizens Pay, but may have more lenient credit requirements. Genesis Credit offers:
- Credit limits up to $4,000
- Flexible payment schedules
- Instant approval decisions
Like Citizens Pay, be aware of the potential for high interest charges if you don‘t pay your balance in full.
Fortiva Retail Credit
Fortiva Retail Credit provides a line of credit exclusively for Wayfair purchases. Some highlights include:
- Credit limits up to $5,000
- Flexible monthly payment options
- Instant approval decisions
- No annual fees
However, Fortiva does charge deferred interest, which means if you don‘t pay your balance in full by the end of the promotional period, you‘ll be charged interest going back to the purchase date.
Progressive Leasing Options at Wayfair
In addition to traditional financing, Wayfair also offers progressive leasing options through partners Acima and Progressive Leasing. Progressive leasing allows you to lease to own your Wayfair purchase with affordable payments tailored to your paycheck schedule.
Unlike credit-based financing, progressive leasing doesn‘t require a credit check for approval. As long as you have an active checking account and meet a few other basic criteria, you can get approved instantly.
Here‘s how progressive leasing works at Wayfair:
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Shop Wayfair.com and add items to your cart. Progressive leasing is available for orders of $199 or more.
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At checkout, choose Progressive Leasing as your payment method. You‘ll fill out a short application, including information about your income.
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If approved, review and accept the payment schedule, including your initial payment and recurring monthly or bi-weekly payments over a 12-month lease term. Your payments will align with your paycheck cycle.
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Make your initial payment to complete your order. Your recurring payments will be automatically deducted from your checking account.
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At the end of your lease term, you‘ll own your items outright. You can also choose to buy out your lease early at any time.
Wayfair‘s other progressive leasing partner, Acima, works very similarly but offers an 18-month lease option in addition to the standard 12 months.
The Pros and Cons of Progressive Leasing
Progressive leasing can be an attractive option if you don‘t have the cash to pay for your Wayfair order upfront and either can‘t qualify for or prefer not to use credit-based financing. Some of the benefits include:
- No credit check required
- Flexible payment options that work with your paycheck schedule
- Fixed payments with no hidden fees
- Pathway to ownership
However, there are also some potential drawbacks to keep in mind:
- You‘ll likely pay more in the long run compared to the cash price
- Fees, including an initial $35-$75 processing fee, may apply
- Risk of repossession if you default on your lease payments
- Not all items are eligible for leasing
According to a 2019 study by the Center for Responsible Lending, the typical progressive leasing customer ends up paying twice the sticker price of the merchandise by the end of their lease term. For a $2,000 purchase, that means you could pay $4,000 or more.
However, for consumers with less-than-perfect credit or limited cash flow, progressive leasing may still be more accessible and affordable than other subprime lending options like payday loans or high-interest credit cards.
Progressive Leasing Customer Experiences
To get a better sense of how progressive leasing at Wayfair works in practice, we combed through customer reviews and spoke with shoppers who have used this payment method. Here are some of their experiences:
"I had an unexpected move and needed to furnish my new place ASAP. My credit wasn‘t great, so I was thrilled to find out I could still get what I needed through progressive leasing at Wayfair. The payments were manageable with my bi-weekly paychecks." – Sarah, 32
"The application process was super easy, and I had my new couch within a week. I like that there‘s no penalty for paying off the lease early. I ended up doing that after a few months when I got a bonus at work." – Jamie, 25
"The monthly payments were higher than I expected, but still doable. Just be aware that you‘re paying a premium for the convenience of leasing. In hindsight, I probably would have gone with Affirm or saved up to buy in cash." – Damien, 40
Progressive Leasing at Other Retailers
Wayfair isn‘t the only major retailer to offer progressive leasing. Competitors like Walmart, Best Buy, and Big Lots also partner with companies like Acima and Progressive Leasing to provide lease-to-own options for consumers.
Here‘s a quick comparison of the progressive leasing terms at other popular retailers:
| Retailer | Progressive Leasing Partners | Lease Terms | Minimum Purchase | Early Buyout |
|---|---|---|---|---|
| Walmart | Affirm, Acima | 3-12 months | $144 | Yes |
| Best Buy | Progressive Leasing | 12 months | $199 | Yes |
| Big Lots | Progressive Leasing | 12 months | $149 | Yes |
As you can see, the lease terms and minimum purchase requirements are similar across retailers. However, it‘s always a good idea to carefully review the specific agreement before committing, as the fees and other details may vary.
The Growing Popularity of Progressive Leasing
Progressive leasing has exploded in popularity in recent years as a financing alternative for consumers with less-than-perfect credit. According to a report by the Competitive Enterprise Institute, the use of progressive leasing and other rent-to-own services grew by 62% between 2019 and 2020.
This growth is largely driven by younger consumers, with millennials and Gen Zers making up the largest share of progressive leasing users. A survey by fintech company Katapult found that 47% of millennials have used a lease-to-own service, compared to just 21% of baby boomers.
The appeal of progressive leasing for these demographics is clear: it offers a way to get the items they need or want now, without the barriers of traditional credit. As the cost of living continues to rise and many young people struggle to save, progressive leasing can provide a sense of financial flexibility and control.
For retailers like Wayfair, offering progressive leasing can also be a smart business move. By providing an accessible financing option, they can expand their customer base and drive sales among consumers who may have otherwise been unable to afford their purchases.
Is Progressive Leasing Right for You?
Now that you understand the ins and outs of progressive leasing at Wayfair and other retailers, you may be wondering if it‘s the right choice for your next purchase. Ultimately, the answer depends on your individual financial situation and priorities.
If you‘re considering progressive leasing, here are some questions to ask yourself:
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Can I afford the monthly payment?
Make sure to review the payment schedule carefully and ensure you can comfortably fit the recurring expense into your budget. Keep in mind that you‘ll be making these payments for 12 months or more. -
Is the total cost of leasing significantly higher than buying outright?
In most cases, you‘ll end up paying significantly more than the sticker price by the end of your lease term. Crunch the numbers to see the difference and decide if the premium is worth the flexibility leasing provides. -
Do I have other financing options?
If you have good credit, you may qualify for 0% APR financing through Affirm or a credit card that could save you money compared to leasing. Be sure to explore all your options before committing. -
What happens if I miss a payment?
Defaulting on your lease can have serious consequences, including repossession of the leased items and potential damage to your credit. Make sure you have a plan to stay on top of payments and communicate with the leasing company if you foresee any issues.
If progressive leasing still seems like the best fit after considering these factors, be sure to carefully review the agreement and ask the retailer any questions you have before signing. By going in with eyes wide open, you can make the most of this financing option while avoiding potential pitfalls.
The Bottom Line
Wayfair‘s comprehensive financing offerings, including progressive leasing through partners like Acima and Progressive Leasing, make it possible to create your dream home on a budget. Whether you‘re furnishing a new apartment or upgrading your existing space, there‘s a payment option to fit your needs.
However, it‘s crucial to carefully consider the pros and cons of each financing choice. Progressive leasing can be a good fit if you have limited cash or credit, but it comes with the potential for higher costs and risks down the line.
Before committing to any financing plan, be sure to review the fine print, crunch the numbers, and honestly assess your ability to keep up with payments. By doing your due diligence and staying on top of your budget, you can enjoy the convenience and flexibility of Wayfair financing while avoiding financial stress.
With this knowledge in hand, you‘re ready to start shopping for your perfect home furnishings. Whether you pay upfront, use traditional financing, or opt for progressive leasing, Wayfair has the selection and prices to help you create a space you love.
