25 Tips for Buying Furniture on a Budget_780x440

25 Tips for Buying Furniture on a Budget

Furniture shopping, whether you’re giving a room a much-needed update or moving into a new space, can be fun. It gives you the chance to daydream, make inspo boards, hunt for great pieces, and personalize your space.

But it can also be an expensive endeavor. However, that doesn’t mean you’re destined to purchase pieces that scream “first apartment furniture.” Just because you’re buying furniture for cheap doesn’t mean it has to look it.

Here are smart hack that will have you feathering your nest for less and even, in some cases, for free.

25 Tips on How to Get Cheap Furniture

Scoring great furnishings on a tight budget takes some planning, and also knowing where to buy affordable furniture. Here are 25 ideas for creating a great space without spending a lot.

💡 Quick Tip: Tired of paying pointless bank fees? When you open a bank account online you often avoid excess charges.

1. Taking Stock of What You Already Have

Before going out to buy new stuff, you may want to do a walk-through of your space and make a list of what you already have. You can label each item “keep,” “donate/sell” or “toss,” so you know exactly what you need.

2. Taking Stock of Mom’s Basement Too

Do you have family members who may be harboring some perfectly good but no-longer-needed furniture? Consider scoping out their basements, attics, and garages for some free treasures.

3. Making a Wishlist

It’s okay to dream a little. In fact, a good way to start furnishing a new home is to go to your favorite furniture store’s site and fill your cart without considering price. You can then cull down your list to essentials, and start looking for those pieces (or something similar) for a cheaper price tag.

4. Renting Furniture

If your furniture budget is super tight, you may want to consider renting furniture from a company like CORT or Feather, rather than buying everything you need. Renting can also be a good option if you’re only going to be in your current home for a short time.

5. Timing Your Purchases Right

Knowing when to make big purchases can help you get some steep furniture discounts. Furniture stores tend to get new inventory at the end of winter and end of summer. To make room for newer items, they will often run good sales in February and August.

When it comes to furnishing your porch or patio, the right time to buy furniture is typically the end of summer and fall, when retailers are trying to clear out any leftover inventory.

6. Checking Out Freecycle

Cheap is great, but free can be even better. Consider going to a reuse/recycle site like Freecycle to see what people in your area may be looking to get rid of. You may want to keep in mind that good items often go fast.

7. Curbing Impulse Buys

It’s easy to fall madly in love with a cool sectional sofa and give in to impulse buying that can leave you with major debt. Before you pull the trigger on a pricey new piece of furniture, you may want to press pause. By giving yourself a week or so to really consider the purchase, you may realize you don’t actually need it. Or you may be able to scout out a cheaper but equally good option.

Recommended: How to Combat Impulsive Spending

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8. Mixing High and Low

Here’s another way to buy furniture cheap: You can often get a high-end look by splurging on one or two classic investment pieces and then going with cheaper, trendier accent pieces and accessories.

9. Putting the Word Out on Social Media

You may want to use social media to let people in your network know that you are on the hunt for furniture. You can even specify what you’re looking for (dining table, a chaise for the yard) and what you’re willing to offer (or barter) in return. You may be surprised at the response you get.

10. Selling Stuff You Don’t Need

To bolster your furniture budget, you may want to sell pieces that no longer work for your space. If you have a lot to get rid of, you might host a yard or garage sale. For just a few items, you can list them on a resale site like Craigslist, OfferUp, or Facebook Marketplace and see how much you can score.

11. Doing a Furniture Image Search

If you see a piece you love but it doesn’t fit your budget, you can download a photo of the item and then go to Google Images. If you click on the “Search By Image” button (the camera icon) and upload the photo, you can search for similar items. You might find the item’s twin at a better price.

💡 Quick Tip: When you overdraft your checking account, you’ll likely pay a non-sufficient fund fee of, say, $35. Look into linking a savings account to your checking account as a backup to avoid that, or shop around for a bank that doesn’t charge you for overdrafting.

12. Searching Craigslist

Craigslist may be an oldie, but it’s still a goodie when it comes to finding affordable furniture. You can head to the site (which hasn’t changed much over the years), click the furniture tab, and search the possibilities.

13. Thinking Beyond Furniture Stores

Mass market retailers like Target, Walmart, and Home Depot actually have large furniture departments. You may be able to find stylish pieces at good prices, along with free delivery.

14. Searching Amazon Warehouse

How else to buy furniture cheap: Check out Amazon Warehouse , a corner of Amazon’s main site that is dedicated to selling used, pre-owned, and open-box products (often things that were returned unused or close to it). You can click on the furniture tab and either search for your needs or just see what’s available.

15. Hitting the Yard Sales

You can spend a Saturday or Sunday morning driving around town looking for treasures. Or you can check out yard sales listings online, then map out a route that hits the yards or stoops with the most potential.

16. Asking About the Floor Model

If there’s a piece in a store you absolutely love but it’s a bit out of budget, you can always ask the manager if they will sell you the floor model for a discount.

Since it is likely to still be a considerable amount of money even if the price is reduced, remember this when paying: If you buy it on credit, make sure to use the card that will give you the most rewards.

17. Combing Flea Markets

It can take a little time and effort, but you can often find great, affordable treasures at flea markets. Sometimes a little DIY is all it takes to transform something past its prime into the perfect thing for your place.

18. Browsing Antique Stores

In the winter months, you can often get the flea market experience by combing through antique stores or, even better, antique malls that have multiple booths housed indoors.

19. Checking Online Resale Marketplaces

Sites like OfferUp and Facebook Marketplace (where you may have listed items to sell) can also be a great resource for finding what you need. You can even do a search for a specific item you saw in store to see if anyone is offloading that same piece.

20. Thrifting Furniture

Large thrift store chains like Goodwill and Salvation Army typically get lots of donated items every day and can be a great place to find your next book shelf or coffee table. Local thrift shops can be worth checking out too.

21. Checking Out Salvage Stores

One of the most widely known salvage stores, Habitat ReStore , has locations throughout the country and often sells new and used furnishings, as well as appliances, for far less than retail. Bonus: They are helping to divert those goods from the waste stream.

22. Going Cheap on Art and Accessories

Once you’ve made your big item purchases, it’s time to think small (and cheap) with accent pillows, throws, artwork, and other decorative accessories. These items don’t need to cost a lot to add serious personal style to a space. You may fall for a $150 throw pillow but, odds are, you could find a super cute one for a fraction of the cost.

23. Stopping by Estate Sales

You can often find beautiful, high-quality pieces of furniture, as well as artwork, at estate sales for a fraction of what you’d pay at a store. You can find estate sale listings in your area on Craigslist as well as Estatesale.com and Estatesales.net .

24. Haggling Over the Price

No matter where you are shopping for furniture, it can be worth trying to haggle the price down a bit. You can ask a seller if the listed price is as low as they can go, if they will offer a discount for buying multiple items, or if there is any wiggle room on the delivery fee.

25. Checking In With Neighbors

You can use Nextdoor , the neighborhood online hub, to let neighbors know what you are looking for and also scroll through the site’s “For Sale and Free” listings to see what your neighbors are selling or giving away.

💡 Quick Tip: If you’re creating a budget, try the 50/30/20 budget rule. Allocate 50% of your after-tax income to the “needs” of life, like living expenses and debt. Spend 30% on wants, and then save the remaining 20% towards saving for your long-term goals.

What Contributes to High or Low Furniture Prices?

Here are some factors that contribute to whether a piece of furniture has a high or low price:

•   Production: Mass-produced pieces are likely to be less expensive than a piece that is made in smaller batches or handcrafted by an artisan.

•   Supply and demand: An item that is popular is likely to be pricier than something that has fallen out of favor.

•   Materials: A solid wood piece, for example, is probably going to cost more than a similar item made of particleboard.

•   Supply chain: If a manufacturer is using, say, a material that is scarce due to supply chain issues, they may have to pay more to obtain it. Those additional charges could be passed along to the consumer.

•   Source: Depending on trade conditions, labor, shipping, and other factors, there could be a price discrepancy based on whether the item was manufactured in the U.S. or elsewhere.

What to Look Out for in Secondhand Furniture

Secondhand furniture can be a great resource when you are buying furniture on a budget. Btw, you can even shop for used furniture online at sites like AptDeco and Kaiyo.

Here, some buying furniture tips when you’re hunting for preloved treasures:

•   Just say no to used mattresses. They can be a repository of stains, smells, dust mites, bedbugs, and more.

•   Inspect for structural damage. Cracks, duct tape, and evidence of past repairs can spell trouble.

•   Avoid upholstered furniture with an odor. Whether mildew, smoke, or pet smells, these smells can be very hard to eliminate.

•   Be wary of painted pieces that might have lead paint; they would have been made before 1978 when laws were passed banning lead paint. Crackly, “alligator skin” painted surfaces can indicate lead paint. Also, if you rub your hand over the surface and get a chalky residue, it might be lead.

•   Check for signs of mold, which may look like a patch of dirt that won’t rub away. That’s another health issue you don’t want to deal with.

Now, after you’ve read those warnings, also remember that you could get a real deal by buying secondhand. Go ahead and use your imagination. Often, with the addition of a coat of paint and new hardware or a slipcover, you can grab a bargain. Many inexpensive, tired pieces can become treasures when spruced up. Look online for how-to ideas.

The Takeaway

Furnishing a new place can be daunting, especially if you’re shopping on a budget.

But by thinking beyond traditional furniture stores and turning to alternatives like flea markets, resale and salvage shops, estate sales, and online marketplaces, you can often score chic and cheap pieces that won’t fall apart in a year or two.

You can also stretch your furniture budget by mixing higher-end investment pieces with cheaper accent decor and sprucing up secondhand finds.

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FAQ

How do you buy furniture on a budget?

You can buy furniture on a budget by shopping at estate sales, thrift shops, and antique malls, as well as hunting at your usual retailers for floor models and other sale items. Lastly, see what you might be able to score for free via a neighborhood online community or Freecycle.

Is it cheaper to buy furniture in store or online?

As with many products and services, online may have better deals on furniture than retail stores. Because online retailers don’t need to have a network of brick-and-mortar locations with staff, they may enjoy savings that they can pass along to customers.

Why is furniture getting so expensive?

Furniture may be expensive for a variety of reasons, from supply chain issues and material scarcity to inflation to the cost of labor, especially on handmade pieces.


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SoFi Bank reserves the right to grant a grace period to account holders following a change in Direct Deposit activity or Qualifying Deposits activity before adjusting rates. If SoFi Bank grants you a grace period, the dates for such grace period will be reflected on the APY Details page of your account. If SoFi Bank determines that you did not have Direct Deposit activity or $5,000 in Qualifying Deposits during the current 30-day Evaluation Period and, if applicable, the grace period, then you will begin earning the rates earned by account holders without either Direct Deposit or Qualifying Deposits until you have Direct Deposit activity or $5,000 in Qualifying Deposits in a subsequent 30-Day Evaluation Period. For the avoidance of doubt, an account holder with both Direct Deposit activity and Qualifying Deposits will earn the rates earned by account holders with Direct Deposit.

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Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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What Are the Effects of Carrying a Balance on Credit Cards?

There’s no doubt that most Americans love their plastic.

When used responsibly, credit cards can be one way to build credit.

However, many people run into issues when it comes to paying off their credit card balance each month. Some 46% of credit card holders carry some sort of debt from month to month, according to a 2023 Bankrate survey. And as of December 2022, the typical American owed around $7,279 in credit card debt.

Although carrying the balance isn’t necessarily an issue, not paying it off every month may cause interest to accrue. That in turn could make a balance more challenging to pay off.

But by understanding the effects of carrying a balance, you can start to figure out a strategy to paying off your credit card debt.

The Effects of Carrying a Credit Card Balance

Carrying a balance on a credit card comes with some potential financial consequences. Let’s take a look at them.

Impact on Credit Score

Can your credit score take a hit when you fail to pay off a credit card balance? Possibly. Nearly one-third (30%) of your FICO score is based on how much you owe to creditors, which is often referred to as a credit utilization ratio. This ratio is the amount of revolving credit you’re currently using divided by the total amount of revolving credit available to you.

You may notice that when you carry a balance on a credit card, your credit score could dip by a few points. Often, the drop is temporary and your score may start to go up again once you pay off the balance.

Accrued Interest

If you’re carrying a credit card balance, you may also want to be mindful of accrued interest. This is the amount of interest that builds up in between payments. Most credit cards charge compounding interest, and the majority of credit cards compound interest daily. Therefore, if anything is owed after the payment due date, the balance can easily start climbing.

The amount that accrues will depend on the balance and the interest rate. You can use a credit card interest calculator to get an estimate of how much interest has added to your balance.

If the balance is paid off in full, interest won’t accrue (not until the next charge is made, at least).

Strategies to Help Reduce Credit Card Debt

Depending on how much you owe, paying off credit card debt can seem like an uphill battle. But fortunately, with planning, commitment, and tools, it can be achieved. Here are a few strategies you may want to consider.

Budget to Repay Credit Card Debt

When you’re looking to pay down credit card debt, rethinking or creating a budget can be a natural starting point. You can record this information in a spreadsheet or a spending tracker app, whichever is easier for you.

You may also want to incorporate a debt repayment strategy into your budget to accelerate the process. If you’re someone who is motivated by seeing fast results, you may want to consider the snowball method of repayment. This strategy prioritizes paying off credit cards with the smallest balances first. Once you pay down the smallest balance, you move on to the second smallest balance.

The avalanche approach, on the other hand, calls for prioritizing paying down credit card balances with the highest interest rates. Once you pay off the balance with the highest interest rate, you move on to the next highest interest rate, continuing until all debt is repaid (while making at least minimum payments on all other balances, of course).

Both debt repayment strategies have advantages and disadvantages. It’s a good idea to consider which method you’ll be most able to stick with, or use them as inspiration to create a plan that will work for you.

Open a Balance Transfer Credit Card

Another option to consider is to open a balance transfer credit card. The idea is to open a new credit card with an introductory interest rate that is significantly lower than your current credit card interest rate. This can allow you to pay off your credit card balance at a lower rate as long as you pay it off in the introductory time frame.

You can potentially pay off your balance within a shorter time while saving money on interest. It’s important to note that the low-interest rate on balance transfer credit cards is usually only offered for an introductory period, usually between six and 18 months. Once that period expires, the rates typically increase.

If you plan to repay the balance before the introductory period ends, a balance transfer credit card might be worth pursuing. Make sure to account for a balance transfer fee, which is usually 3% to 5%.

As with any other credit card application, your credit history will determine if you qualify and what rate you’ll receive. If your credit isn’t ideal, this might not be an option.

Make Extra Payments

If you don’t want to open a new credit card, you can make extra payments to reduce interest costs. Again, credit card interest is typically calculated on the account’s daily average balance. Therefore, by making one or more extra payments throughout the month, you can lower the total interest accrued by the time your bill is due.

Even if you can only put a few extra dollars toward each payment, it can help minimize the interest cost.

Use a Personal Loan

If you have high-interest credit card debt, a debt consolidation loan could be an option worth considering. Consolidating your debt into a single loan may help streamline finances and include other benefits, but it isn’t a magic cure-all. A loan will not erase your debt. However, it might help you get to a fixed monthly payment and reduced interest rates.

It’s important to compare rates and understand how a new loan could pay off in the long run. If your monthly payment is lower because the loan term is longer, for example, it might not be a good strategy, because it means you may be making more interest payments and therefore paying more over the life of the loan.

The Takeaway

Having a balance on a credit card doesn’t pose an issue, but not paying it off every month can have an impact on your finances. Interest can accrue, which in turn could make a balance more challenging to pay off. And depending on your credit utilization ratio, your credit score could temporarily hit if you carry debt from one month to the next.

If you’re looking to reduce a credit card balance, there are strategies that can help. Examples include creating a budget, making extra payments, or opening a balance transfer credit card. If you have high-interest credit card debt, a debt consolidation loan could help streamline finances into a fixed monthly payment.

If you are thinking about taking out a loan to consolidate your debt, a SoFi personal loan may be a good option for your unique financial situation. SoFi personal loans offer competitive, fixed rates and a variety of terms. Checking your rate won’t affect your credit score, and it takes just one minute.

See if a personal loan from SoFi is right for you.


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Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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Solar Panel Financing in 4 Ways

Installing solar panels in your home allows you to do your part for the planet while also reducing your monthly utility bills. However, the cost to purchase panels and have them installed can be a deterrent. Even if you know you’ll save money over the long term, it may be hard to come up with the funds to pay for the project up front.

Fortunately, there are tax incentives as well as financing options that make paying for a solar system a lot more manageable. Solar financing involves using instruments, like loans and leases, to pay for a solar system in installments over time rather than in one lump sum at the time of purchase. Each financing option has different features, advantages, and drawbacks.

Read on to learn more, including how much solar panels cost today, how much they can help you save, plus solar financing options that can help you cover the initial bill.

The Cost of Solar Panels

The cost of solar panels varies by location, the type of solar panels, and the system’s size, but an average-sized residential system currently runs around $16,000. The actual cost of solar panels can run as high as $35,000. However, federal and local tax incentives and rebates can take more than half of the cost off.

There are also different financing options available that allow you to pay for a solar system in installments rather than in one lump sum up front. The monthly amount owed on a solar loan is typically less than an average utility bill.

Recommended: Strategies to Lower Your Energy Bill When Working From Home

Potential Benefits of Solar Panels

One of the benefits of solar panels is the potential to reduce or completely eliminate your energy bills. Depending on how much sunlight there is where you live, how many panels you install, and your energy use, you could potentially receive enough power through solar panels to completely meet your needs.

Even if your solar panels don’t eliminate your electric bills, it can lead to significant savings. Generally, the initial expense of the purchase of a solar system can be recouped in an average of six to 10 years. After recouping installation costs, the amount you’ll save over the life of your panels will continue to add up.

Another benefit of solar panels is the potential to increase the resale value of your home. Research has shown that, on average, homes with solar panels sell for 4% more than those without them.

For some people, one of the biggest benefits of installing solar panels, however, is knowing that they’re using renewable energy and helping to reduce greenhouse gasses. This could especially be important for those living in a state where the majority of the energy generated is through non-renewable power sources.

Recommended: Does Paying Utilities Build Credit?

Potential Drawbacks of Solar Panels

While solar panels have the potential to save homeowners money and do a lot of good for the planet, they come with a high price tag. Solar power financing can help make solar energy possible for more people, but not everyone qualifies.

Another drawback to solar energy is that it is sunlight dependent. If there is a long stretch of overcast weather, or if you live in an area that doesn’t get a lot of sun, you might not be able to generate enough solar energy to take care of your energy needs. However, solar batteries (which store excess energy) can help mitigate this issue.

Solar panels and the wiring they require can also use up a significant amount of space. Depending on how many panels you need for your home, it can be difficult to find adequate space with sufficient sun exposure to install a solar system.

Also keep in mind that uninstalling a solar system and moving it can be difficult and costly. As a result, a solar system is not something you can generally take from house to house. It’s best to consider it as an investment in your home.

Saving Money by Installing Solar Panels

More than 2.5 million homeowners in America currently have solar panels. One reason is the savings it can offer over time. Once installed on your roof, solar panels typically last for at least 25 years. If your solar system eliminates your electric bill and you normally spend about $150 a month on electricity, that would bring in a potential savings of $65,000 over the life of the system.

Keep in mind, however, that solar panels don’t always eliminate your electricity bill. And, as with any home improvement project, it’s important to consider the upfront costs, how long you plan to live in your home, and if you can find financing options that work with your budget.

Four Options for Solar Panel Financing

While converting to solar can pay for itself over time, it requires a sizable upfront investment. Here are some options that can help make it easier to foot the bill.

1. Tax Credits and Rebates

A smart solar power financing strategy starts with taking advantage of all available tax credits and rebates. The federal government currently offers a 30% tax credit for solar panels installed through 2032.

Unlike a deduction, a tax credit is an amount of money that you can subtract, dollar for dollar, from the income taxes you owe. So, if you pay $30,000 to install a new solar system, you’ll qualify for a roughly $9,000 tax credit, which equates to $9,000 more in your pocket.

In addition, many states offer rebates that further reduce the cost. To help people learn more about state and local incentive programs, North Carolina State University’s N.C. Clean Energy Technology Center offers a nationwide directory of programs .

2. Solar Panel Leases

A unique option for solar panel financing is a solar lease or power purchase agreement (PPA). With both a lease or a PPA, a company installs the solar system on your roof, and you pay that company for your energy each month, which is typically 10% to 30% lower than your usual electric bill. The company owns the panels and remains responsible for any required maintenance.

Since you don’t own the solar system, however, you can’t take advantage of any tax rebates or other incentives that come with purchasing solar panels outright. Also, solar lease and PPA contracts can extend 25 to 30 years. If you want to move before the contract is up, you would need to find a buyer who wants to take over your contract or could end up paying a hefty cancellation fee.

3. Secured Solar Panel Loans

Since you are adding to and improving your home, you might consider using a home equity loan or home equity line of credit (HELOC) to finance solar panels. This type of financing is secured by the equity you have in your home. Because the debt is secured (which lowers the risk to the lender), you may qualify for a relatively low interest rate. However, if you are unable to repay the loan or credit line, the lender can take your home to recoup its losses. Also, you need to have equity in your home to qualify for a home equity loan or HELOC.

4. Unsecured Solar Panel Loans

An unsecured solar panel loan is an unsecured personal loan that you can use to purchase solar panels. You don’t have to have any equity in your home, or use your home as collateral, to qualify for an unsecured solar panel loan To get approved, the lender considers your income and your credit rating (among other financial factors that vary from lender to lender).

With an unsecured personal loan, you receive a lump sum up front, which you can use for virtually any type of expense, including solar panels. These loans typically have fixed rates so your monthly repayments stay the same over the term of the loan, which is often five to seven years. Because this type of solar panel financing is unsecured, rates can be higher than you might get with a home equity loan or HELOC.

The Tax Benefits of Solar Panels

Installing solar panels can help reduce your federal income tax due in the year the installation is complete. There is a 30% tax credit currently in place for systems installed in 2022-2032. The tax credit expires starting in 2035 unless Congress renews it.

To qualify for the solar panel tax credit, your solar panels must be installed at your primary or secondary U.S. residence between Jan. 1, 2022, and Dec. 31, 2034. You also must own the solar panel system, i.e. you purchased it with cash or solar panel financing but you are neither leasing nor are in a PPA arrangement.

In addition, the system must be new or being used for the first time, and the credit can only be claimed on the original installation of the solar equipment. There is no maximum amount that can be claimed.

The following expenses can be included:

•  Solar PV panels or PV cells (including those used to power an attic fan, but not the fan itself)

•  Contractor costs, including installation, permitting fees, and inspection fees.

•  Balance-of-system equipment, including wiring, inverters, and mounting equipment

•  Energy storage devices that have a capacity rating of 3 kilowatt-hours (kWh) or greater

•  Sale tax on eligible expenses

In addition to the federal tax credit, there are also state-level solar incentives, which vary widely. Generally, getting a state tax break or rebate won’t limit your ability to get solar credits from the IRS.

Your local utility may also offer clear energy incentives, which can help you save money on solar panels. However, this may impact your federal income tax credit.

The Takeaway

There’s no question that solar panels are environmentally friendly. Over time they can also be economically friendly, saving you money on your electricity bill. Doing some research about residential solar panels and general home improvement financing are good steps to take to see if it’s the right choice for your home.

If you are interested in getting a loan to finance a solar system, a SoFi unsecured personal loan could be a good option. SoFi personal loans offer competitive, fixed rates and a variety of terms. Checking your rate won’t affect your credit score, and it takes just one minute.

Consider a SoFi personal loan for solar panel financing.


SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.


​​Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.

Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.

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A Guide to Personal Loans for Single Mothers

Personal Loan Need-to-Knows for Single Mothers

Whether you’ve been a single mom since day one or are in the process of becoming a solo parent, raising a child on your own can be expensive. Housing, essentials, and extracurriculars add up. Add in unplanned days off for childcare, major expenses like dental work and medical insurance, or expenses like legal bills during a separation, and you may find yourself with your finances stretched thinner than you’d like.

One option to consider is a personal loan. This type of loan provides a lump sum of money up front you then pay back (plus interest) in monthly installments over time. You can use the funds from a personal loan for virtually any purpose, whether it’s making a large purchase, covering living expenses, or paying down other, higher-interest debt.

Read on for a closer look at personal loans for single moms, including their pros and cons, how to qualify, plus other funding options you may want to explore.

Why Might a Single Mom Need a Personal Loan?

There are many reasons why a single mother — or any parent — might consider applying for a personal loan. These include:

1.    Consolidating debt

2.    Covering the cost a move

3.    Paying tuition or extracurricular expenses for children

4.    Stopgap during times of unemployment

5.    Covering housing costs, such as rent or a mortgage

6.    Paying for a home remodeling project

7.    Buying a car

8.    Purchasing major appliances

Recommended: What Is a Personal Loan? How Do Personal Loans Work?

Are Personal Loans for Single Mothers Special?

In a word, no. The process of applying for a personal loan is the same for everyone. However, there may be particular approval hurdles to overcome as a single parent.

One is income. If you’re newly single, you may not have a steady income, which can make it more difficult to get approved for a personal loan. Another is your credit. If you’ve had to rely on credit cards to cover the cost of divorce or the transition to single parenting, your credit may not be what it used to be. The amount of debt you owe on your credit cards is one of the biggest factors affecting your credit score.

However, these obstacles aren’t insurmountable (more on that below).

Benefits and Risks of Personal Loans for a Single Mother

A personal loan can offer a single mom a valuable lifeline to meet immediate needs, such as unexpected expenses, education costs, or debt consolidation. However, taking on any type of debt generally comes with costs, as well as risks. Here’s a look at the pros and cons of getting a loan as a single mom.

Pros

Cons

Flexibility in fund usage Interest and fees add to your costs
Quick access to funds Risk of overborrowing
Fixed repayment schedule Missed or late payments can negatively impact your credit
Interest rates are typically lower than credit cards Can add to your debt burden

Pros of Personal Loans for Single Mothers

•  Flexibility Personal loans provide flexibility in how you can use the borrowed funds. Whether it’s covering medical bills, home repairs, or summer camp tuition, personal loans can be used for a wide range of purposes.

•  Quick access to funds Personal loans often come with a streamlined application process and relatively quick approval. You may be able to access the funds quickly, enabling you to address urgent financial needs promptly.

•  Fixed repayment schedule Personal loans usually come with fixed monthly payments over a specified term. This predictability can make it easier for you to budget and plan your finances effectively.

•  Potential for lower interest rates Depending on the borrower’s creditworthiness, personal loans can offer competitive interest rates compared to other types of borrowing, such as credit cards or payday loans. Single mothers with a good credit history may benefit from more affordable repayment terms.

Cons of Personal Loans for Single Mothers

•  Interest and fees On top of interest, some lenders charge fees for personal loans, which increase the overall cost of borrowing. It’s important to carefully evaluate the terms and conditions to make sure you can comfortably manage the repayments without straining your budget.

•  Risk of overborrowing As a single mom, you likely want to avoid overborrowing or taking on more debt than they can reasonably repay. Overcommitting to loan payments may lead to a cycle of financial stress and difficulty in meeting other essential expenses.

•  Impact on credit score Taking out a personal loan creates a new line of credit, and if not managed properly, it could negatively affect your credit profile. Late or missed payments can damage creditworthiness, potentially impacting future borrowing opportunities.

•  Debt burden A personal loan will add to your existing financial obligations as a single mother. Before opting for a loan, you’ll want to be certain to assess the long-term implications and consider whether the loan repayments align with your income and financial goals.

Is Getting a Personal Loan With No Income Possible?

If you’re a single mother with no job or you’ve been a stay-at-home-mother with little or no income of your own, it may be difficult, though not impossible, to qualify for a personal loan.

Lenders typically want to see proof of a regular income. However, that does not necessarily have to be job-related income. You may be able to count these other sources of income:

•  Unemployment

•  Alimony

•  Child support

•  Investment income

•  Rental income

•  Pension or annuity income

•  Freelance work

•  Gig work

If you don’t have much income to speak of, then you might consider a cosigner or co-applicant for your loan. This a person who agrees to make the loan payments if the main borrower cannot or does not. For some borrowers, family members have the financial flexibility to cosign on a loan, but it can be a good idea to have a conversation about expectations and potential hypotheticals if you were no longer able to pay back the loan.

Another option is to secure a personal loan with collateral. This is an asset of value, such as a vehicle or money in a savings account, you use to back the loan in case you default. Should you become unable to repay the loan, the lender can seize your collateral to recover their losses. This lowers risk for the lender, making steady income (or less-than-stellar credit) less critical.

Also keep in mind that if you have no income but excellent credit, you may still find a lender who is willing to offer you an unsecured personal loan.

You’ll also want to be wary, however, of lenders who advertise “No-Income Loans,” as these loans may come with sky-high interest rates, short repayment terms, and low loan amounts.

Alternatives to Personal Loans for Single Mothers

There are other alternatives to personal loans, depending on your financial circumstances and your needs. Here are some you might consider.

Home Loans for Single Mothers

If you own your home, using your home as a financial asset may be one way to borrow funds at a reasonable cost. If you have built up equity in your home, you may be able to tap that equity by getting a home equity loan or a home equity line of credit (HELOC). Just keep in mind that the loan is backed by your home. Should you have difficulty repaying the loan or credit line, you could potentially lose your home.

Government Resources for Single Parents

If your income is low, you may be eligible for one or more government assistance programs. Some options you may want to explore include:

•  Special Supplemental Nutrition Program for Women, Infants, and Children (WIC)

•  National School Lunch Program

•  Temporary Assistance for Needy Families (TANF)

•  Low Income Home Energy Assistance Program (LIHEAP)

•  The Emergency Food Assistance Program

You can find more resources at enefits.gov.

Educational Aid for Single Mothers

If you’re considering going back to school, below are some programs that can help make it more affordable (or even free):

•  Pell Grants

•  Teach Grants

•  Women’s Independence Scholarship Program (WISP)

There also may be private scholarships and grants for single parents available from the institutions you’re interested in. Speaking with the financial aid office may help you see the breadth of options available to you.

Other Financial Help For Single Mothers

Becoming a single mother, either by choice or circumstance, can feel overwhelming. But there is support out there. It can help to talk to other single parents in your community — you may be surprised by all the resources that are available. Other opportunities may include:

•   Financial aid or tuition assistance If your children are in private school or extracurricular programs, there may be financial aid available to help lower the cost. Even if there’s not a formal program, it can’t hurt to explain your situation and ask what may be available.

•   Employer-based programs Your human resources department may have certain programs, such as childcare coverage, free legal consultations, and access to financial planning and debt counseling, for eligible workers. Talk to your HR representative or look through their materials to assess what’s available.

•   Family and friends People close to you may be willing to provide support, or there may be creative ways to trade services, such as babysitting, to get more financial help. If a friend or family member offers to loan you money, it can be helpful to put an agreement in writing, including any interest you will pay and the terms of repayment, so there is no confusion that can cause a rift in your relationship.

Recommended: Options for When You Can’t Afford Your Child’s College

The Takeaway

As a single mother, there are avenues that can help you manage your finances and achieve your financial goals, including taking out a personal loan. This type of financing can provide financial relief and flexibility, but it is important to weigh the pros and cons, compare options from different lenders, and assess your ability to manage repayments responsibly.

Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. Checking your rate takes just a minute.


SoFi’s Personal Loan was named NerdWallet’s 2024 winner for Best Personal Loan overall.


Photo credit: iStock/RyanJLane

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.


Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.

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Exploring IVF Financing Options

The average cost for one in vitro fertilization (IVF) cycle in the United States is $12,400, according to the American Society for Reproductive Medicine. That alone is a hefty price tag, and many patients go through several cycles of IVF before conceiving or attempting other options. Many clinics also charge fees for add-on procedures (some of which are necessary,) which can bring the total cost of a single treatment to well over $20,000.

If you’re wondering how you’ll be able to pay for IVF, the good news is that you have a number of different funding options. These include budgeting and saving, insurance coverage, flexible spending accounts, IVF financing, loans, and grants. Read on for a closer look at ways to make the cost of IVF treatment more manageable.

Options for Financing IVF

For many would-be parents, that high cost of IVF is worth it for the chance to have children. But how can people afford to pay for treatment? Here are a few ideas for funding IVF.

1. Tapping into Your Health Insurance

A good first step is to check whether your health insurance will cover IVF. There are currently 21 states that require insurance companies to cover infertility treatment, but only 14 include IVF in the requirement.

You can contact your insurer to find out your specific benefits. Depending on where you live, coverage can run the gamut. Some plans will cover IVF but not the accompanying injections that women may also require, while other plans will cover both. Some insurers will only cover a certain number of attempts. And some plans do not cover IVF at all.

If you have the option and if the timing works out with your enrollment period, you might consider switching your insurance plan to one that covers, or partially covers, IVF.

2. Using Your Health Savings Account or Flexible Spending Account

A health savings account (HSA) allows you to put pre-tax money aside for medical expenses. Typically, you get an HSA in tandem with a qualifying high-deductible health plan. If you have funds in your HSA, you can use them to pay for IVF and related medical expenses. As long as you paid for the expenses after you opened the HSA, you can reimburse yourself for them at any time — it doesn’t have to be in the year that you incurred the costs.

If your employer offers a flexible spending account (FSA), you can also use those funds to pay for IVF. You don’t need a qualifying health plan to have and use this account. However, you can only use the funds for medical expenses incurred during the plan year. Also, if you don’t use all of the money you set aside, you generally lose it. However, you may be able to carry over a certain amount to the following year.

Bear in mind that there are annual limits on how much money you can contribute to either kind of account. For 2023, the individual cap on HSA contributions is $3,850 and the family cap is $7,750. Health flexible spending account limits are $3,050 for 2023.

3. Budgeting and Saving

If you’re planning to pay for IVF out-of-pocket and you don’t just have that kind of cash lying around, the most basic financial move is to save up, the way you would for any major expense. You may want to open a high-yield savings account dedicated to your IVF fund, then set up an automatic recurring transfer from your checking account into that account each month.

Depending on your timeline, you may need to cut back on discretionary expenses, such as meals out, streaming services, a gym membership, and non-essential purchases, at least temporarily. Any expense you cut can now get diverted into your IFV savings fund.

4. Borrowing From a Loved One

If you have a friend or relative who is financially comfortable, you might consider asking them for a loan. There may be people in your life who would be happy to support your efforts to build your family. If you go this route, however, it’s a good idea to set out the terms of the loan clearly, including whether you’ll pay interest and, if so, at what rate, and when and how you’ll repay the loan. Setting out clear terms, and honoring those terms, can help ensure that the loan doesn’t damage your relationship in any way.

5. Getting a Medical or Fertility Loan

Some fertility clinics work with lenders that specialize in IVF financing. This allows you to pay for your out-of-pocket IVF costs in installments over time. These loans can offer anywhere from $5,000 to $50,000, and interest rates can range from 0% to 24.99%. IVF lenders typically determine whether you qualify for financing, and at what rate, based on your financial qualifications and credit. With this type of loan, the money is usually paid directly to the clinic rather than you, the borrower.

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6. Applying for a Grant

A number of nonprofit organizations offer grants and scholarships to those who cannot afford to pay for IVF. These grants are usually income-based, meaning you must demonstrate a need to qualify. Organizations that offer IVF grants include the International Council on Infertility Information Dissemination, Journey to Parenthood, Gift of Parenthood, the Baby Quest Foundation, and the Starfish Infertility Foundation.

Resolve offers a list of fertility treatment scholarships and grants on their site. It’s also a good idea to ask your fertility clinic about any local or national grant or scholarship opportunities they know of.

7. Taking Out a Home Equity Line of Credit

If you own a home, you may be able to take out a home equity loan or home equity line of credit (HELOC) and use the funds to pay for IVF. The amount you can borrow and the terms depend on the amount of equity you have in your home, as well as your credit history, debt-to-income ratio, and other factors.

The advantage of this type of IVF financing is that home equity loans and credit lines often have lower interest rates than credit cards and other types of loans. The downside is that you need to have equity in order to qualify, and you must use your home as collateral for the loan (which means that if you have trouble making payments, you could potentially lose your home).

8. Borrowing From Your Retirement Account

You generally don’t want to tap your retirement nest egg before retirement, but if no other funding sources are available, your individual retirement account (IRA) or 401(k) could be an option.

You may be able to borrow up to $50,000 or half of the amount vested in your 401(k) — whichever is smaller. If you take this path, you are basically lending the money to yourself at market interest rates for up to five years. Keep in mind, though, that 401(k) plan providers will typically charge fees to process and service a loan, which adds to the cost of borrowing and repayment. Also, not all employers offer these loans.

In addition, you might qualify to withdraw money from your individual retirement account (IRA) or 401(k) to pay for IVF treatment if your plan allows what’s called a hardship withdrawal. This allows you to avoid the 10% early withdrawal penalty, but you’ll still have to pay income tax on any withdrawals you make. If you have a Roth IRA, you can withdraw your contributions (but not earnings) at any time without penalties or taxes.

9. Taking Out a Personal Loan

Compared to using high-interest credit cards or tapping your IRA, a personal loan might be a better option for many people. A personal loan can be used for almost any expense, including IVF, and typically comes with a fixed interest rate that is lower than most credit cards.

Unlike a home equity loan or credit line, personal loans are typically unsecured, which means you don’t need to put your home or any other asset at risk. Also, you do not need to have any equity in your home to qualify. Instead, a lender will look at your overall financial qualifications to determine whether or not to approve you for a loan and, if so, at what rate and terms.

The Takeaway

IVF might be one of the most meaningful investments you’ll ever make, but it’s undeniably expensive. You can look to your insurance, health savings accounts, cash savings, or a loved one for help with IVF funding. If that’s not enough, an unsecured personal loan may be a smart way to finance treatment and help make your dreams a reality.

SoF’s IVF Treatment Loans offer competitive, fixed rates and a variety of terms. Checking your rate won’t affect your credit score, and it takes just one minute.

Consider a SoFi personal loan for IVF financing.


SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.


Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.

Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.

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