5 Best Home Appliance Loans for Unexpected Repairs

Ask any homeowner, and they’ll tell you that home appliances are one of their most significant costs. More specifically, paying to repair those appliances when they break down or replacing them with brand-new ones. What is the best way to be prepared for these costs?

Household appliances often come with a hefty price tag, thanks to their fancy brand names, top-notch quality, and all those technology bells and whistles. Yes, I am looking at you with your new dryer that connects to your smartphone.

Now, when it comes to footing the bill for these shiny wonders, you've got options galore: whip out the trusty credit card, tap into your home’s equity with a home equity line of credit (HELOC).

Curious about why fixing or replacing that fridge could dent your wallet so much? Don't fret! This guide spills the beans on why these costs can skyrocket, and how to prepare yourself when that refrigerator konks out.

What Are The Best Home Appliance Loans for Repairs and Replacements?

Since appliance repairs appear suddenly and appliances rarely get cheaper with time, choosing the right financing method matters. Some options help you borrow fast with minimal requirements, while others offer lower interest but take longer or require home equity.

Below are the most effective and commonly used financing tools homeowners rely on to repair or replace household appliances—along with the real-world benefits of each.

Credit Cards

While technically not a loan, the market for credit cards is incredibly competitive, and that can be good news for you and your household appliances. 

That’s because you can shop around for a new credit card with promotional terms, such as zero or low-interest rates, for a set amount of time.

Finding a card with those features can be a beneficial way to pay for home appliance repairs and replacements, especially if they have low or no interest fees as you’re paying for the purchase.

Remember that those promotional terms often last only for a fixed amount of time. So, you’ll want to pay off the appliance purchase or repairs before that time runs out to avoid any extra costs.

Credit cards are also a popular option because they’re multi-purpose. Aside from funding your repair or replacement, you can also use them to make other purchases if you have enough available credit.

Related: What happens when you go over your credit limit

Home Equity Loans

Another popular option among homeowners is to use something called a home equity loan. These loans enable you to borrow money by tapping into the equity you have in your home.

In other words, you’re borrowing back a portion of the money that you’ve already paid through your mortgage.

These loans are a practical way to borrow a fixed amount of money to repair, upgrade, or replace your household appliances and gradually repay them over a fixed term that typically lasts several years.

They’re also an excellent option if you already know the total cost of your appliance repairs and replacements without any possibility of other costs appearing later.

Home Equity Line Of Credit (HELOC)

While a home equity loan is a way to borrow a fixed amount of money as a lump sum, you can also open a home equity line of credit (HELOC) instead.

In essence, a home equity loan gives you a lump sum at a fixed interest rate, while a HELOC provides you with a flexible line of credit that you can use over a certain period, followed by a repayment phase.

Both options allow you to tap into the equity you've accumulated in your home for various purposes, such as home improvements, debt consolidation, or other major expenses. It's important to carefully consider your financial situation and goals when choosing between a home equity loan and a HELOC, as they have different terms, repayment structures, and implications for your financial stability.

In-Store Financing

Suppose you don’t want to use a credit card or tap into your home equity. In that case, you’ll be glad to know that the people selling you home appliances also tend to offer in-house financing.

Home appliance retailers often partner with financial service providers for this very reason. Some provide in-house financing through a store credit card that offers good terms for the products you buy in their stores.

More recently, they also work with buy-now-pay-later (BNPL) providers that let you buy a replacement appliance or pay for the repairs in several installments.

Both options make it easier for you to get functioning appliances in your home without paying for it all upfront.

Why Are Household Appliances So Expensive?

If you find yourself seeking a loan for home appliance repairs and replacements, just know you’re not alone! 

Many people do the same because household appliances are known to get costlier with time. Worse yet, you’ll rarely find appliances like refrigerators and washing machines get cheaper!

Still, it helps to learn why household appliances are so expensive even to repair, let alone buy. That way, you can understand why getting a loan is necessary and why choosing the type of loan you get carefully matters.

Let's dive into some compelling facts:

1. Quality and Durability

It's not just the allure of brand names that drives these premium prices. Home appliances have earned their esteemed reputations by consistently delivering high-quality and durable products.

Homeowners aren't shelling out those extra bucks just for a passing trend; they expect these investments to stand the test of time. A majority of consumers are only willing to open their wallets if these appliances can weather several years before even hinting at a hiccup.

2. Advanced Technology

The modern household appliance is a tech marvel, packed with innovation that comes at a cost. With global environmental concerns soaring, appliances have stepped up their game by incorporating energy-saving technologies.

But these advancements don't come cheap. Consider this: each tech-savvy feature you find on your new gadget required substantial investments in research, development, and production. These intricacies pile onto the final price tag but also contribute to a greener, more efficient future.

3. Customization

Standard isn't always satisfactory. Many consumers seek a personalized touch when buying home appliances, opting to steer clear of the run-of-the-mill models that fill most homes.

However, exclusivity comes with a price, and custom-made appliances can command a significant premium. This desire for tailored appliances isn't limited to the initial purchase; it extends to repairs as well. Fixing these unique pieces requires specialized knowledge and, often, harder-to-find components, further driving up maintenance costs.

4. Distribution Costs

The journey of a home appliance from the factory to your abode is no small feat. Components crisscross the globe, often originating from diverse manufacturing hubs. From these far-flung factories, they embark on an intricate journey — passing through warehouses, distribution centers, and finally gracing the store floor. At each step of this complex expedition, additional expenses accumulate, subtly inflating the ultimate price you pay for that refrigerator, television, or washing machine.

So, there you have it, a blend of factors, each contributing its share to the intriguing tale behind the steep price tags attached to your beloved household gadgets.

How Simple Fast Loans Helps You Pay for Appliance Repairs Quickly

When your AC stops cooling or your washing machine gives out mid-load, waiting days—or weeks—for financing isn’t realistic. Simple Fast Loans is built for situations exactly like this.

Here’s why homeowners choose SFL for appliance repairs and replacements:

• Instant loan decision
• Fast payout—often same day
• No collateral required
• Clear, straightforward terms
• Flexible loan amounts for any repair or replacement
• Easy online application—no long forms or bank appointments

Whether you’re dealing with a minor repair or an unexpected full replacement, Simple Fast Loans makes it easy to get the funds you need without the stress or delays that come with traditional financing.

Final Thoughts

Home appliances are expensive to repair and replace, but necessary for a comfortable daily life at home. Those costs are typically due to brand recognition, the advanced technologies in the appliance, its quality and durability, and more.

So, it’s perfectly normal for people to borrow money to pay for them. While there are several options, an option popular for its straightforwardness is to get a personal loan from a lender like Simple Fast Loans, with no collateral, instant loan decision, and quick payouts.