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Does buying furniture help me improve my credit score?

Updated: Dec 5, 2023

functional and modern that how we describe our sofa bed
Modern sofa bed

When most people think about their credit score, they often associate it with credit cards, loans, and mortgages. While these financial instruments do play a significant role in shaping your creditworthiness, there are other, less conventional ways to improve your credit score, and one of them is buying furniture.

Yes, you read that right! Purchasing furniture can actually have a positive impact on your credit score, and in this blog, we'll explore how and why.


You might want to start by taking the following actions:

  1. Establish a Payment History

Your payment history is one of the most crucial factors affecting your credit score. It accounts for a significant portion of your credit score calculation.

When you finance furniture purchases through a credit option, such as a store credit card or a furniture store's financing program, you create an opportunity to establish a positive payment history.

By making regular, on-time payments, you demonstrate to credit reporting agencies that you are a responsible borrower, this can lead to an increase in your credit score over time.

2. Diversify your Credit Types

A diversified credit portfolio that includes both revolving credit (e.g., credit cards) and installment credit (e.g., furniture financing) can have a positive impact on your credit score.

Adding an installment loan like furniture financing to your credit mix can show that you can handle different types of credit responsibly. This can help improve your credit score by demonstrating your ability to manage various financial obligations effectively.

modern and beautiful round dining table
A table where you will always want to have a meal.

3. Increase your Credit Limit

When you finance furniture, you often receive a credit limit based on the total cost of the purchase. This credit limit can contribute to your overall available credit, which is another factor that affects your credit score. Having a higher available credit limit relative to your balances can positively impact your credit utilization ratio.

4.Building a Positive Credit Reference

As you make on-time payments and successfully complete your furniture financing, the lender or furniture store may report this information to the credit bureaus. This creates a positive credit reference on your credit report, showcasing your responsible payment behavior.

Having positive credit references on your credit report can enhance your creditworthiness and make it easier to qualify for better credit terms in the future. Lenders and creditors are more likely to trust borrowers with a history of responsible credit management.


In summary, buying furniture can be a strategic move to help improve your credit score.

By financing your furniture purchases responsibly, you can establish a positive payment history, diversify your credit mix, increase your available credit, and build a positive credit reference. These actions can collectively contribute to a healthier credit profile and potentially lead to better financial opportunities down the road.

However, it's essential to remember that while buying furniture can help your credit score, it should be done prudently. Avoid overextending yourself financially, and always make on-time payments.

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