Add news
Нами Накагава — Kimi Wa Kirameki/Ты - Сияние! (feat. Ichigo Tanuki)
March 2010
April 2010
May 2010June 2010July 2010
August 2010
September 2010October 2010
November 2010
December 2010
January 2011
February 2011March 2011April 2011May 2011June 2011July 2011August 2011September 2011October 2011November 2011December 2011January 2012February 2012March 2012April 2012May 2012June 2012July 2012August 2012September 2012October 2012November 2012December 2012January 2013February 2013March 2013April 2013May 2013June 2013July 2013August 2013September 2013October 2013November 2013December 2013January 2014February 2014March 2014April 2014May 2014June 2014July 2014August 2014September 2014October 2014November 2014December 2014January 2015February 2015March 2015April 2015May 2015June 2015July 2015August 2015September 2015October 2015November 2015December 2015January 2016February 2016March 2016April 2016May 2016June 2016July 2016August 2016September 2016October 2016November 2016December 2016January 2017February 2017March 2017April 2017May 2017June 2017July 2017August 2017September 2017October 2017November 2017December 2017January 2018February 2018March 2018April 2018May 2018June 2018July 2018August 2018September 2018October 2018November 2018December 2018January 2019February 2019March 2019April 2019May 2019June 2019July 2019August 2019September 2019October 2019November 2019December 2019January 2020February 2020March 2020April 2020May 2020June 2020July 2020August 2020September 2020October 2020November 2020December 2020January 2021February 2021March 2021April 2021May 2021June 2021
News Every Day |

Ikea launches its own ‘buy now pay later scheme’ – but is it worth it?

IKEA is offering a new financing option closer in style to popular buy now, pay later schemes.

The new payment option lets shoppers spread the cost of buying new furniture without paying interest.

Shoppers at Ikea can use a new finance option[/caption]

Ikea has simplified its financing options and the new loan can be used for lower amounts and repaid over a shorter period of time.

The Swedish furniture giant now offers one option for in-store and online: an interest-free loan on purchases starting from £99.

Money can be paid back between three months and four years, and the exact period will depend on how much you borrow.

Shoppers can apply online, either via the Ikea website or by downloading the Ikea Finance app, and a decision is instant unless more checks are needed.

How to get debt help for free

THERE are lots of groups who can help you with your problem debts.

  • Citizens Advice – 0808 800 9060
  • StepChange – 0800 138 1111
  • National Debtline – 0808 808 4000
  • Debt Advice Foundation – 0800 043 4050

You can also find information about Debt Management Plans (DMP) and Individual Voluntary Arrangements (IVA) on the Money Advice Service website and on the Government’s site.

Speak to one of these organisations – don’t be tempted to use a claims management firm that will claim it can write-off lots of your debts in return for a large up-front fee.

Ikea previously offered a range of options for spreading the cost of purchases, including a loan with interest and interest-free credit in stores.

The minimum period for paying the money back was 12 months and you had to spend at least £300.

The shake up brings it closer to buy now, pay later schemes, which let shoppers spread repayments for smaller purchases over shorter periods and usually with zero interest.

The new option is a loan and includes credit checks, whereas buy now, pay later providers don’t do this.

The loan can also still be used to spread payments on larger amounts up to £15,000, and over a longer period if needed.

Most buy now, pay later providers let you spread the cost over months rather than years, and for purchases worth £100s rather than £1,000s.

Ikea said the new finance option will “make applying for financial support more accessible and convenient for all customers”.

Compare your borrowing options

There may be better options for borrowing and experts advise that shoppers check before they buy so they get the best deal.

Rachel Springall, a finance expert at Moneyfacts, said: “Consumers with little to no disposable income and are unable to pay for goods upfront may turn to the convenience of a finance option, but it’s important they consider other forms of borrowing too.”

Credit cards may offer zero interest and more flexible repayment options, she said, and there are also loans from other providers which could work out better.

Ms Springall said: “A credit card may be attractive choice, as not only can consumers adjust their monthly repayments, but they could get a 0% purchase card for up to 21 months interest-free with Lloyds Bank.

“Or they could move their borrowing on an existing credit card to a 0% balance transfer card to spread the cost for up to 29 months with a fee of 2.69% with MBNA Limited.

“Those consumers who want to consolidate debts and need a set repayment plan may wish to consider an unsecured personal loan where rates can be as low as 2.8%.”

But she warned that borrowing money via an overdraft was unlikely to be a better option, as rates can be high.

She said: “One form of borrowing to avoid is using an overdraft, unless they have an ability to pay the debt off soon, it can be rather expensive as some overdrafts charge nearly 40% APR.”

How does Ikea’s new financing option work?

You can take out a loan for purchases between £99 and £15,000 and the repayments can be spread over time – between 3, 10, 24, 36, 48 months.

Your options will depend on how much you borrow.

You won’t pay any interest and you can apply for the loan when shopping in store or online and when buying any Ikea products, except food.

The loan can include the cost of delivery and kitchen installation too.

To be eligible, you need to be over 18, have valid photo ID (a full driving licence or passport).

How much can I borrow?

IKEA'S loan can cover purchases between £99 and £15,000 with repayments over three months to four years, if you're eligible.

  • Between £99​ – £299 – 3 months
  • Between £300 – £599 – 3 or 6 months
  • Between £600​ – £1,199 -3, 6 or 10 months
  • Between £1,200 – £2,999​ -6, 10 or 24 months
  • Between £3,000​ – £4,999 -10, 24 or 36 months
  • From £5,000​ and above -24, 36 or 48 months

You’ll need to provide your home address for the past two years and employment status.

You can apply online or with the IKEA Finance app and you’ll need to take advantage of the loan within 90 days of applying.

A decision is instant, unless your application needs more checks and then you’ll be contacted within three working days.

There’s a “soft” credit search to establish your eligibility before a full application, and this won’t affect your credit score.

But a full credit check is done after submitting your application and this will be flagged when you get to this point during the process.

There’s a £12 fee for a missed payment and anyone struggling to keep up with repayments should contact Ikano Bank, where their customer service can help .

What finance did Ikea offer before?

Previously, Ikea offered interest-free credit of 12, 24 or 36 months on purchases of over £600, or over £250 in some stores for a limited time as a special offer. This was only available in stores.

It also offered loans with repayments spread across 12, 24, 36, 48 or 60 months, starting from £300, but this came with an interest rate of 7.9%. Again, this was only in stores.

Ikea also offered the option to pay with Paypal credit for online shopping. This offered interest-free credit over four months on purchases of more than £99.

Anyone who has used these old financing options and is still paying it off will continue to repay the money a normal and the terms of the borrowing have not changed. 

The Government will trial a no-interest loan scheme to help low-income households pay off any unexpected debts.

Ikea will buy back your old furniture in a new recycling scheme – here’s how it works.

Read also

Anthony Joshua warned Oleksandr Usyk could ‘derail his career’ and Tyson Fury hopes by promoter Eddie Hearn

We Have To Be Realistic – Tottenham Chairman Daniel Levy Addresses Calls To Spend

Monthly Stimulus Checks for Kids? Joe Biden Has a Plan.

News, articles, comments, with a minute-by-minute update, now on — latest news 24/7. You can add your news instantly now — here
News Every Day

'Dietitian' Abbey Sharp attacks Freelee & her What I eat in a day (unbelievable) #103