Financing for Fridge Freezers

In this piece, we’ll look at financing appliances, specifically refrigerators and freezers, to determine if it’s a viable choice for you.

What Does the Term “Fridge Freezer” Mean in Finance?

The size, price, and number of features of fridge freezers vary greatly. If you have a small family or eat out more than you do at home, a smaller and less expensive fridge freezer would serve. The polar opposite, on the other hand, is required by the majority of families.

If you have a family of four or more, your fridge freezer is one of the most vital appliances in your home, therefore you’ll need a durable and appropriately sized model. The problem is that these fridge freezers aren’t cheap, frequently costing more than £300-£400, which is a substantial quantity of money that the majority of the population wouldn’t have on hand in an instant.

Given the expensive cost of these devices, retailers and businesses have made them far more convenient and accessible to all households by offering more financing options when making a significant purchase.

To accomplish this, they cooperate with credit businesses who provide the finance side of the sale, allowing them to focus on selling products without financial stress or danger.

Financing was a time-consuming process that, due to the trouble, was rarely used a decade ago. However, with the recent increase of credit firms and internet purchasing, the process has been sped up, and customers can now be granted credit in an instant after completing a simple application.

What Is the Process of Financing Fridge Freezers?

Let’s go over the method from start to finish. To begin, it is critical to understand that the vast majority of businesses and establishments do not offer financing or credit. Instead, they work with credit companies, whose primary business model is to lend money to consumers to pay for products and then monitor the customer’s adherence to the credit agreement and payment schedule.

For example, if you finance a fridge freezer from Curry’s, you will purchase the item from Curry’s using credit funds from a company called Creation Consumer Finance, which you will pay back directly, as Curry’s will receive the money in full from Creation Consumer Finance.

Let’s take a look at the ordering process for an online purchase. First, look through the retailer’s website for information about financing, which is usually accessible on a FAQ page.

Begin shopping for a new refrigerator freezer once you’ve determined that finance is a service they offer! Many websites will advertise the whole price of the fridge freezer while also showing you the predicted monthly payments based on a specified time and rate of interest, which will help you decide what product you’ll be able to afford every month.

Once you’ve chosen on a fridge freezer, add it to your basket as if you were paying cash, and the finance option will display under payment methods as you proceed through the checkout process.

Following that, you will be required to provide information about yourself, your address history, your employment, and your income. This information, along with information from your credit score and report, will be utilised by the credit company to assess if you are creditworthy.

If your credit is approved, you will be given some terms and conditions, as well as a payment plan and credit agreement, which you can accept or decline if you no longer want to buy the product. If you agree the terms, the transaction will be completed, the credit company will pay the merchant for the fridge freezer, and you will now be obligated to pay the credit company your monthly instalments.

The procedure for obtaining credit for an item in-store is similar. You’ll select an item, alert a store employee, and they’ll lead you through the same application process you’d go through online.

The significance of your credit score and report has already been emphasised, and it cannot be stressed. If you have a low credit score and a credit file plagued with missed and defaulted payments, it will be difficult to receive additional credit until you clean up your credit file.

This credit report demonstrates the level of financial risk you represent to the creditor. While obtaining credit with a poor credit score is not impossible, it will be challenging. We’ll go into bad credit loans in further detail later in the essay.

If you finance it, you will be responsible for both the item’s cost and the interest rate. In exchange for granting you credit to purchase the thing, you must pay interest to the credit firm. This is shown as a percentage ranging from 0% to 100%, given as an Annual Percentage Rate (APR).

Many businesses may offer 0% APR in order to entice clients to make substantial purchases, and because finance is so widespread these days, 0% APR is rather common.

The Economic Benefits of Fridge Freezers

There are various benefits to selecting a finance option when purchasing a new refrigerator freezer, and we have outlined the most essential ones here.

Replacement in a hurry

We’ve all been there: the fridge freezer breaks at the most inconvenient time, when money is tight and you need an answer quickly. In this case, funding is a good way to find a replacement immediately.

Many online retailers provide next-day or even same-day delivery, and you can always come into a store and fill out a credit application in-store to walk away with the fridge freezer.

Furthermore, many credit companies allow you to pay off the credit agreement early, so if money is tight at the time you need the fridge freezer, but you have enough money to pay for it in a month or two, you may pay it off and only pay interest on the time you’ve had the agreement.

Costs that can be managed

High-priced things, such as a refrigerator freezer, can put a large dent in your bank account. According to The Modern Wealth Index 2017, the majority of the population has less than £1,000 in savings, thus investing a substantial quantity in a single product is out of the question for the bulk of us.

Instead, make a more manageable monthly payment to avoid going into financial problems that could have been avoided. Finance is popular these days because it is a genuinely useful resource when handled intelligently and appropriately; otherwise, the fad would have faded as quickly as it arrived.

Enhance Your Credit Score

We previously indicated that if your credit score and file aren’t fantastic, you should endeavour to enhance them so that you may have access to better and more credit packages and opportunities. But how are you going to go about doing it? First and foremost, you must pay off any outstanding or delinquent debt; however, if you have already done so, it is time to focus on your credit score.

You improve your credit score by demonstrating to businesses and anyone else who utilises your credit file to make a financial decision about you that you’re good with debt and finances. You can only do this by taking out credit and scrupulously sticking to the terms of the agreement.

You will demonstrate that you are less of a financial risk as a result, and your credit score will climb as a result.

The Financial Consequences of Fridge Freezers

There are significant benefits to acquiring a fridge freezer on credit, but there are also some drawbacks. Here are some things to look out for:

Defaulted Payments

You should be confident that you can afford the monthly payments on any item you buy, as late payments can get you into a lot of difficulty. Missed payments, for starters, can affect your credit file and score, and if you do not bring the agreement up to date, legal action may be launched against you.

The total payment has increased

If you choose a financing option that includes an APR in the credit agreement, you will end up paying more than the recommended retail price for the items you purchase. With low APRs, this isn’t much of an issue, but if you find yourself paying much above the odds for everything you buy, it’s a horrible use of your money.
accumulating debt

It can be tempting to utilise money to buy non-essential luxury items. Although this isn’t a huge problem every now and then, if you’re not careful, you could end up taking out too many credit agreements and struggling to meet their demands.

Furthermore, if you have a large amount of outstanding credit in multiple sites, you may find it difficult to secure further credit for things that are required in an emergency.

Who Offers Fridge Freezer Financing?

Fridge freezers are pricey appliances, especially those with extra features like ice machines, water filters, and the latest ‘Smart Fridges.’

Retailers and manufacturers recognise that not everyone has the financial resources to purchase these appliances outright, thus the only way to ensure their sales and repeat purchases is to provide the consumer a more accessible option in the form of financing and credit. Because this option is so popular, firms and merchants must provide financing to avoid being left in the dust by competition.

Can I Get Financing for a Fridge Freezer if I Have Bad Credit?

Consumers with poor credit face numerous challenges, ranging from mortgages and car loans to acquiring credit for appliances. Some credit companies have discovered an issue with negative credit: once a person’s credit score has been hurt, it is difficult to repair it without the capacity to seek credit elsewhere.

Keeping this in mind, a number of companies specialise in negative credit lending. The applications are more extensive today, and you’ll almost definitely have to pay a higher interest rate on purchases, but following through on the agreements will help your credit score.

A good credit score is required to receive credit for a fridge freezer or any other item, therefore it’s a good idea to keep your credit score up by not missing payments or breaking agreements.

Considerations to Make Before Purchasing a Fridge Freezer on Credit

Before purchasing a fridge freezer or anything else, make certain that it is a necessary investment. Many people purchase items on credit in the excitement of the moment, only to come to regret it later after having to pay for it every month for years. You should also be certain that you are not purchasing an item that you cannot afford, as late payments might harm your credit history.

You should also ensure that you are getting the right product for you. If you believe your family will grow in the next year or two, purchase a fridge freezer built for that scenario to avoid having another problem later on.

Financing things is truly valuable and necessary when handled wisely. If your current fridge freezer is in fine working order and you’re just seeking for a change, it’s usually not the greatest way to spend your credit. If, on the other hand, your fridge freezer is malfunctioning or has broken beyond repair, you can always rely on finance.

The most important thing is to continue to buy within your means to avoid future problems and to avoid misusing the credit option; the repercussions might be life-changing!


Which is the best financing brand for refrigerators and freezers?

Many merchants and businesses will offer a wide range of finance fridge freezers, and it is recommended to focus on the best fridge freezer for your demands rather than a brand name. Sometimes you’ll pay a premium for a popular brand when the quality of a lower-priced model is the same.

How often do I have to make payments on my loan refrigerator freezer?

Your credit agreement company will ask you to pay for your appliances within the time frame agreed upon. The majority of the time, this will be done on a monthly basis, however select companies will offer finance that can be paid on a weekly basis.

What is a CCJ, exactly?

A County Court Judgement (CCJ) is a court order to pay money owed to a debtor. When a creditor attempts to contact a customer who has stopped paying monthly payments during the period of the arrangement, this is usually the last resort. A CCJ is a bad mark on your credit record that will remain there for six years whether or not it is paid.

What can I do if I’m having problems with my creditor?

If you believe your financial firm has broken or illegally amended the terms of your agreement, you can file a free complaint with the Financial Ombudsman Service and have an independent adjudicator rule on the matter. All UK financing firms are regulated by the Financial Ombudsman Service, thus they will have authority on the matter.

What happens if my refrigerator freezer breaks down throughout the course of my credit agreement?

Because fridge freezers are built to last for years, they typically come with extended warranties that extend beyond the terms of your credit agreement. Check with the store when you buy the gadget to see if there is an extended warranty option that can be added to the purchase.