Loans For White Goods

What is a Loan for White Goods?

If you need financial assistance, loans for white goods (also known as household appliance loans) can help you cover unexpected costs when a household appliance is broken. If you need the loan urgently, you can get it quickly and repay the loan within a month or up to 36 months as per your preference. But keep in mind that the interest rate will be higher for a larger loan amount and longer repayment period.

Can I get a White Goods loan?

Before you apply for a loan, it’s a good idea to check if you’re eligible. Each lender may be different but to be eligible for a white goods loan with Sunny, you must be:

• 18 years old or above
• A UK resident
• Receive a regular income
• Able to provide evidence of your address for the past three years
• Not bankrupt or otherwise insolvent
• Able to supply details of a bank account and debit card
• Able to provide a working email address and mobile phone number

Meeting these requirements doesn’t guarantee that you will be accepted for a white goods loan as your credit score and ability to make repayments are also considered. But it can identify if you’re more likely to obtain a loan or not.

What To Do Before Applying For A Loan?

For many, having to find the funds to get their appliance fixed or buy a new one can be stressful. Before you apply for a loan, run through these checks to ensure you don’t need to borrow money to fund a repair or new purchase.

Finding The Issue

When it comes to checking if you can fix it yourself, the first step is to refer to the instruction manual. The problem might be listed with a clear solution to follow. You can also find instructions online or search for video tutorials. If you’re not sure that you have the skills required to complete the fix successfully, though, don’t try. You could cause more damage!

There are some simple checks you can carry out to diagnose the problem and make sure it isn’t something small that could easily be repaired. Here are some of the most common issues for a range of appliances:

Average Cost To Repair A Home Appliance

According to this guide from Checkatrade, these are the average charges for fixing common issues that occur with home appliances.

Average Washing Machine Repairs

Data sourced from Checkatrade

 Average Dishwasher Repairs

Data sourced from Checkatrade

 Average Fridge Repairs

Data sourced from Checkatrade

Funding The Cost Of Repairing or Replacing A Household Appliance

There are several ways to pay to get your white goods fixed or replaced. We’ve pulled together a round-up of the most used options.

1. Dip into your savings

We know this isn’t an option for everyone, but if you have any savings put aside, it’s best to use these before you consider applying to borrow money to cover the cost of a new appliance or repairs.

2. Borrow from friends or family – or use their appliances

A trusted friend or family member may be able to loan you the money you need to cover the cost of repairing or replacing that appliance or, depending on the appliance, allow you to use theirs while you save up or wait until payday to buy a new one.

Applying for White Goods Loan

At Sunny, we can help when it comes to covering the cost of a home appliance that has stopped working. Our brokers partner offers access to loans ranging from £100 to £2,500 and can be paid back over 3 – 36 months depending on the amount you borrow. This allows  you to spread the cost of your borrowing over a period that suits you. If you’ve considered your options and feel that this is the best way forward, you can find out more about our loans here.

0% Interest Credit Card

One of these allows you to cover the cost and then pay back what you’ve borrowed during the interest-free period. It’s important you budget and pay back what you’ve borrowed within this timeframe, to ensure you aren’t hit with interest charges later.

Financing Option

Many electrical appliance retailers offer finance deals with 0% interest over some time. This kind of credit is known as a hire purchase agreement, arranged with a finance provider the store you’re buying your new home appliance from has partnered with. You get to take your new appliance home the same day, but pay for it in instalments over a while – usually up to five years – with no interest charged. However, these deals are typically only offered to those with a very good credit history, so if you think you may need to use a finance deal to buy a new appliance, check yours and take steps to improve it now before you need to apply for credit.

You may also come across finance deals from retailers who specialise in loans where you can pay a small amount each week for your new appliance, spreading the cost over several months or even years. While this is an attractive prospect when you need a new appliance urgently and don’t have the cash upfront to pay for it, these types of deals, more often than not, will come with interest payable. You may also find that the choice available is quite limited, and you may end up settling for an appliance that doesn’t do everything you need to access weekly payment options.

If you’re able to, it’s usually much more cost-effective to purchase your new appliance outright than to borrow money to cover the cost. If you do decide to borrow money to pay for a new appliance, though, then here are a couple of things to consider as you choose your new appliance and lender:

• How much can you afford to borrow? When you borrow money, you must be able to keep up with your repayments for the duration of the loan. Work backwards by calculating how much you can afford to repay each month, including interest. This will help to guide you towards a loan amount – and a budget for your new appliance – that you know you can afford.
• How much will it cost to replace your appliance like for like? If your old appliance has a lot of features that you can’t live without, then your replacement must be up to the task. Compare prices between different brands of appliances and different retailers to find the best deal for an appliance that suits your needs.
• What to do if there’s a discrepancy between the appliance you need and the amount you can afford to borrow: the first thing to do is to look for areas to compromise and spend less on your appliance. Does it have to be the brand you’ve chosen? When it comes down to it, do you need all those premium features? If there’s no compromise to be had on the appliance, then look for ways to top up your budget.

Want to know more about short-term loans? Take a look at our guide pages to learn more about different types of loans and what we offer here at Sunny.