How does the Ikea financial services loan work?
Image source: Getty Images  Ikea has upgraded its financing options to include the Ikea financial services loan. This deferred payment option can be used for lower amounts and over a flexible period of time. Lets take a look. Plot your path towards financial freedom with our Heros Journey tool! MyWalletHero is here to help you learn about taking control of your money, whether thats paying off debt, working towards a short-term money goal, or investing for your future. This tool can help you understand the next steps on your journey  simply choose a goal that best describes your current interests to get started. If you are a fan of the Swedish retail giant, then you will be pleased to hear that Ikea has introduced an interest-free credit option to its finance products. The Ikea financial services loan is available on purchases from 99 to 15,000. Repayments can be spread over periods of between three months and four years. The deferred payment scheme is interest free. This means that you can pay off your purchase during your selected time frame without incurring any interest charges. You can apply for the Ikea financial services loan in store, online or by downloading the Ikea finance app. How much you borrow will determine the duration of the loan:  99 to 299  3 months  300 to 599  3 or 6 months  600 to 1,199  3, 6 or 10 months  1,200 to 2,999  6, 10 or 24 months  3,000 to 4,999  10, 24 or 36 months  5,000 and above  24, 36 or 48 months  The maximum amount you can borrow is 15,000. It is worth noting that this is a loan, not a buy now, pay later scheme. So Ikea asks that you prove your employment status and provide a valid ID and proof of address for the last two years. You will also have to undergo a credit check in order to secure the loan. The new option from Ikea is more flexible than its previous offerings. The company has offered a range of options for spreading the cost of purchases, including a loan with interest and interest-free credit in-store. But the minimum repayment for those options was 12 months and customers needed to spend at least 300. The new Ikea financial services loan is available on lower amounts and over more flexible time periods. Working much more like PayPal credit or Klarna, it gives customers the option to borrow a small amount and repay it in a few months. If you are purchasing a bigger ticket item, you can borrow more and spread the cost over a longer time period. The big advantage is that the loan is interest free. So, as long as you keep up with your repayments and clear your purchases in the set time period, you wont have to pay any interest. 4 iron-clad rules for saving money on everything Our Editor Sam Robson has been on a personal cost-cutting mission for years  and its time to share his wisdom. Check out his choicest saving tips and tricks in this free report, Sams 4 Iron-Clad Rules For Saving Money On Everything. Just enter your email below for instant access to your free copy. Click here! The loan is subject to availability. In fact, when researching this article, I was met with a message saying: Unfortunately, we are not taking applications at this time. So there is no guarantee that the loan will be available when you need it or that you will receive that amount that you want. It is also worth bearing in mind that you will be subject to a full credit check when you submit your application. This will show on your credit report. And if your application is rejected, you risk damaging your credit score. Finally, as with any sort of store credit, you can only use it for purchases with the specified retailer. If you do need to borrow money for big-ticket items like furniture, then a 0% purchases card acts the same way but can be used at multiple retailers. You can also check whether you would be eligible for a 0% purchases card before applying by using things like a credit card eligibility checker. This could minimise the risk of your application being rejected and therefore protect your credit score. Get a free initial review lasting up to 1 hour, plus 50 off any follow-up advice. MyWalletHero has sourced you a 50 discount off the cost of advice when you find an independent or whole-of-market financial adviser through Unbiased.co.uk*. All advisers are FCA-regulated, qualified and give fully unbiased advice. To find yourself an adviser fast and for free  use the Unbiased matching tool. Find an adviser now! *This is an offer from one of our affiliate partners. For more information on why and how we work with partners, click here. Yes No  About the author Kate Anderson Kate is a freelance writer specialising in personal finance. She made her start as an analyst at Nielsen, closely following financial news developments and working on the front line of best buys. Having written for MyWalletHero... Read More