Air Conditioning Financing: Bad Credit Options Listed

Kait Scirri headshot Kait Scirri
Verified & Updated Sep 3, 2019

Short Answer

You can finance an air conditioner unit through a store credit card, an HVAC manufacturer, a rent-to-own contract, or a personal loan — even if you have bad credit. All four options allow you to secure an air conditioner or central air system for your home or office right away and make payments over several weeks or months. For the list of companies that offer AC unit financing, see below.

AC Unit Financing Options

Air conditioner window units and portable air conditioners are available at most major retail, home improvement, and appliance stores. They typically range in price from about $130 to $500 for window units and from $200 to $600 for portable units. To finance a large purchase like an AC unit, you might need to consider using a store credit card, applying for a rent-to-own program, or taking out a personal loan. We’ve compiled the list of places that offer air conditioner financing by loan type, including details for those with bad credit.

Store Credit Cards

Many national retail and home improvement stores offer their own store credit cards that can be used to purchase big-ticket items like air conditioners. Store credit cards often have special interest-free promotions if you pay off the card within a specified time period (typically six months). But, keep in mind, store credit cards usually come with high interest rates. And, if you don’t pay off your purchase amount within the interest-free time period, back interest is often collected from the date of purchase.

During our research, we could not find a national brand store credit card that does not require a credit check, so if you’re still working on building your credit or generally want to avoid a credit inquiry, you might want to look into some of the other financing options included in this article.

Best Buy

  • Type of financing: My Best Buy Credit Card
  • Credit limit: Varies based on your credit check; customer service representatives were unable to share a credit range, but customers on credit forums report starting limits of $1,000 to $3,000, and credit limit upgrades up to about $10,000
  • Type of credit inquiry: “Soft” credit check
  • Interest rate: Varies; purchases over $199 may qualify for six months of interest-free financing
  • Payment requirements: Minimum monthly payments; late fees and interest may occur
  • Source: Best Buy customer service representatives; My Best Buy Credit Card Terms and Conditions
  • How to apply: Apply for a My Best Buy Credit Card online or in person at a Best Buy store

The Home Depot

  • Type of financing: The Home Depot Consumer Credit Card
  • Credit limit: Varies based on your credit check; limits start around $500
  • Type of credit inquiry: “Hard” credit check
  • Interest rate: Varies; six months of interest-free financing available on purchases over $299 (must pay off account balance within six months)
  • Payment requirements: Minimum monthly payments; late fees and interest may occur
  • Source: Home Depot customer service representatives; The Home Depot website
  • For more information, see our article on Home Depot and Lowe’s credit cards.
  • How to apply: Apply for a Home Depot Consumer Credit Card online, in person at a Home Depot Store, or over the phone by calling (800) HOMEDEPOT

Lowe’s

  • Type of financing: Lowe’s Advantage Card
  • Credit limit: Varies based on your credit check; starting limits begin around $300. Credit limits for established accounts in good standing may reach limits over $20,000 with credit limit increases.
  • Type of credit inquiry: Hard credit check
  • Interest rate: Varies; six months of interest-free financing available on purchases over $299 (must pay off account balance within six months)
  • Payment requirements: Minimum monthly payments; late fees and interest may occur
  • Source: Lowe’s customer service representatives; Lowe’s website
  • For more information, see our article detailing how to use the “shopping cart trick” to get approved for a Lowe’s credit card.
  • How to apply: Apply for a Lowe’s Advantage Card online, in person at a Lowe’s store, or over the phone by calling (800) 445-6937.

Target

  • Type of financing: Target REDcard Credit Card
  • Credit limit: Starting limits usually range from $200 to $1,000; varies based on your credit check
  • Type of credit inquiry: Hard credit check
  • Interest rate: Varies; active military can receive a lower interest rate
  • Payment requirements: Minimum monthly payments; late fees and interest may occur
  • Source: Target REDcard customer service representatives
  • How to apply: Apply for a Target REDcard Credit Card online or in person at a Target store

Walmart

HVAC Manufacturer Financing

The following HVAC manufacturers partner with banks and lending companies to offer financing options for customers who purchase central air units and HVAC systems from authorized dealers. In addition to small air conditioners like window units, these companies provide central air at prices which generally range from around $1,500 to $5,000.

We were unable to confirm exact credit limit ranges for these lenders; your approval amount will vary depending on your creditworthiness, the financing option you choose, and the cost of your HVAC unit. You will typically apply online or through the dealer, and the lender will make an effort to match your loan amount or credit limit to the cost of your project.

As with any type of financing, it is important to consider the APR, potential fees (such as late and returned payment fees), and repayment policies of each lender when considering your options.

Note that since your credit limit will most likely be close to your project cost, this form of financing will report high credit utilization to your credit report and may negatively impact your credit score until the purchase is paid off.

Amana

  • Type of financing: Loan
  • Financing partner: GreenSky
  • Credit check required? Yes
  • Interest and fees: Vary by the bank; GreenSky is a loan servicer rather than a direct lender and works with several banks (including Regions and SunTrust)  to provide financing options
  • Payment requirements: Minimum monthly payment; GreenSky accepts payments online, by phone, or by check
  • Source: GreenSky customer service, Amana Consumer Financing, GreenSky Consumer FAQs
  • How to apply: Online at GreenSkyCredit.com

Bryant

  • Type of financing: Bryant Credit Card
  • Financing partner: Wells Fargo
  • Credit check required? Yes
  • Interest and fees:
    • APR around 30%; your local dealer may offer deferred interest
    • Minimum interest charge of $1
    • Late payment fees up to $38
    • Returned payment fees up to $38
    • No annual fee
  • Payment requirements: Fixed monthly payments, paid online or by mail
  • Source: Customer service, Bryant HVAC Financing
  • How to apply: Contact a local Bryant dealer or apply online at the Wells Fargo’s Bryant Credit Card application

Carrier

Coleman

Goodman

  • Type of financing: Loan
  • Financing partner: GreenSky
  • Credit check required? Yes
  • Interest and fees: Vary by the bank; GreenSky is not a direct lender but will service your loan. Your loan agreement and terms depend on which bank funds your loan (such as Regions Bank or SunTrust Bank).
  • Payment requirements: Minimum monthly payment; payable by check, by phone, or online
  • Source: GreenSky customer service, Goodman Consumer Financing
  • How to apply: Online at GreenSkyCredit.com

Lennox

  • Type of financing: Installment loan
  • Financing partner: Service Finance Company, LLC
  • Credit check required? Yes
  • Interest and fees:
    • APR varies depending on your creditworthiness
    • Late fees and returned payment fees vary by state
    • No down payment requirement
  • Payment requirements: Minimum monthly payments paid online, by mail, or by phone
  • Source: Customer service, Lennox HVAC Financing
  • How to apply: Find a local Lennox dealer or apply online at SVCFin.com

Rheem

Trane

  • Type of financing: Home Projects Credit Card
  • Financing partner: Wells Fargo
  • Credit check required? Yes
  • Interest and fees:
    • APR around 30%
    • Minimum interest charge of $1
    • Late payment fees up to $38
    • Returned payment fees up to $38
    • No annual fee
  • Payment requirements: Minimum monthly payment online or by mail
  • Source: Customer service, Trane Financing, Wells Fargo Home Projects Credit Card Agreement
  • How to apply: Contact a local Trane dealer

YORK

Rent-to-Own

Rent-to-own, sometimes also called lease-to-own, is a popular option for those with little or bad credit. Some retailers require a credit check, but good credit is not typically required. With rent-to-own, you get to take the air conditioner home right away or have it shipped to you. You will make weekly or monthly payments until the contract amount is paid off. Once your balance is paid in full, you will own the AC unit.

Many stores that offer rent-to-own have special promotions like “90 days same as cash,” which allows you to pay off your air conditioner within 90 days and pay only the sale price plus tax. If you aren’t able to pay it off within 90 days, you will be subject to interest charges.

Aaron’s

  • Requirements:
    • Must be at least 18 years old
    • Provide proof of a residence in the U.S.
    • Provide proof of income
    • A valid photo I.D.
    • Three personal references
  • Credit check required? Yes, a soft credit check will be performed
  • Interest and fees: No interest but fees vary by item
  • Payment requirements: Monthly payments; some Aaron’s locations offer 90 or 120 days same as cash
  • Source: Aaron’s customer service representatives; Aaron’s website
  • For more information, see our article where we compare Aaron’s and Rent-A-Center.
  • How to apply: Apply for Aaron’s rent-to-own online or in person at an Aaron’s store

Buddy’s Home Furnishings

  • Requirements:
    • Must be at least 18 years old
    • Provide proof of a residence
    • Provide proof of income
    • Four personal references
  • Credit check required? No
  • Interest and fees: No interest if paid off within the six-month period, otherwise additional fees may apply; fees vary by product
  • Payment requirements: Weekly, biweekly, or monthly; Buddy’s Home Furnishings stores offer six months same as cash
  • Source: Buddy’s Home Furnishings customer service representatives; Buddy’s Home Furnishings website
  • How to apply: Apply for Buddy’s Home Furnishings rent-to-own online or in person at a Buddy’s Home Furnishings store

ColorTyme

  • Requirements:
    • Must be at least 18 years old
    • Provide proof of a residence
    • Provide proof of income
    • Two personal references
  • Credit check required? No
  • Interest and fees: No interest but late fees and collection fees may apply
  • Payment requirements: Weekly, biweekly, or monthly; some ColorTyme locations offer six months same as cash
  • Source: ColorTyme customer service representatives; ColorTyme website
  • How to apply: Apply for ColorTyme rent-to-own online or in person at a ColorTyme store

FlexShopper

  • Requirements:
    • Must be at least 18 years old (19 in Alabama and Nebraska and 21 in Mississippi)
    • Must have a steady source of income
    • Must be a U.S. resident
    • Must have an active bank account that has been open for at least 90 days
  • Credit check required? Yes; credit checks are performed by Factor Trust and/or Clarity Services and are not reported to any of the three major credit reporting bureaus
  • Interest and fees: No interest but leasing fees vary
  • Payment requirements: Weekly, biweekly, or monthly; FlexShopper offers 90 days same as cash
  • Source: FlexShopper customer service representatives; FlexShopper FAQs; FlexShopper: How It Works
  • How to apply: Apply for FlexShopper lease-to-own online

Rent-A-Center

  • Requirements:
    • Must be at least 18 years old
    • Provide proof of a residence
    • Provide proof of income
    • A valid photo I.D.
    • Two personal references
  • Credit check required? No
  • Interest and fees: Varies by item
  • Payment requirements: Weekly, biweekly, semi-monthly, or monthly; some Rent-A-Center stores offer six months same as cash
  • Source: Rent-A-Center customer service representatives; Rent-A-Center FAQs
  • For more information, see our article on stores similar to Rent-A-Center.
  • How to apply: Rent-A-Center does not have air conditioners online; however, some store locations have them in stock for rent-to-own. Contact your nearest Rent-A-Center to check availability before shopping and applying in person.

Personal Loans

With a personal loan, you can purchase an air conditioner from anywhere you choose. Be aware that most banks will not issue personal loans to anyone with bad credit and, often, places that do will charge high interest rates and fees. Like store credit cards, a personal loan may not be the best option for you if you’re working on building your credit, as taking out a loan can damage your credit score if you default on the loan.

For the list of places that offer personal loans to those with bad credit, see our articles:

In Summary

You can finance an air conditioner unit through a store credit card, a rent-to-own contract, or a personal loan — even if you have bad credit. National big-box stores like Best Buy and Walmart offer store credit cards that you can use to buy an AC unit. HVAC manufacturers like Carrier and Lennox also partner with lenders and credit card issuers like Wells Fargo and Synchrony to offer financing options. Rent-to-own programs at ColorTyme and Rent-A-Center are available without a credit check. And, personal loans cater to those looking for a same-day loan or even loans for veterans. With one of these three options, you can finance an AC unit and take it home or have it delivered right away.

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