Some people say that spending more on a laptop is a good idea, but if you can’t afford it, what are some other options?
You may have decided that you want to purchase a laptop and are unsure about whether or not it is worth the investment. You may not even know if you can afford a laptop in general, let alone the one you’ve always wanted.
Are you sure that getting a new laptop is a good idea for your financial situation? If so, what is the best way to finance a laptop and make monthly payments?
If you’re curious about financing a laptop, keep reading to learn more.
Direct Financing Plan
This is when you get a financing plan directly through the computer company. If you choose to go this route, you will first need to select the computer model you want.
Companies may offer in-house financing that appeals to you but think about why you need the laptop first. Will you use it for business or is it for personal use?
After you find which type is best, you will need to research different computer companies. You can determine if one of them can give you credit for their products.
The loans that they offer will coincide with one of the major lending institutions.
You can apply to more than one lender at a time and look at the different options they give you in return. Some may offer low-interest laptop financing if you pay within a certain period of time.
Is a Line of Credit a Good Idea?
A loan like this is great for purchasing a laptop when you need it, but it doesn’t make it the right choice for everyone.
These types of loans are generally open-ended, which means you have to make sure you can pay them back within a strict timeframe. They are basically like credit cards.
Look at your budget and see how much you have to spend already on your laptop. You may be able to create a laptop payment plan with what you already have. If not, you can think about how much you will be able to afford on your loan each month.
Indirect Financing Plan
With this route, you will need to have a copy of your credit report handy. There are companies that will let you do this for free, but some may charge a small fee.
Look at your report for any late payments, judgments, bankruptcies, or other bad marks. Before you can get an indirect financing plan, your credit report will need to be clean.
Check out the local lenders in your area, specifically at banks or credit unions.
Closed-end loans will be perfect for someone that is a little less fiscally responsible and is unsure about opening a new line of credit. The reason for this is that a monthly payment is mandated.
How to Apply for a Bank or Credit Union Loan
You can apply to a few banks to see if they will accept you and provide a loan.
Be sure to state the reason for needing the loan and explain that you are trying to finance a laptop.
In order to apply, you will need to provide employment and income documents. This will include a W2 form. You can get W2 online access easily and use this for your application.
Once you get your options back, you can choose the one that makes the most financial sense for you based on your current income and budget.
Pros of Financing a Laptop
A great thing about laptop financing is that you don’t have to pay for the expensive laptop you want all at once. Instead, you can pay little by little to make sure you don’t ruin your financial situation.
Another benefit is that you won’t always have to turn to a bank loan or a credit service. You can choose between the two and figure out which one is best for your credit, income, and budget.
A lot of computer companies offer perks, like low-interest rates, rewards, or payment plans, that are easy to use. You may even get a device upgrade as part of your plan, depending on the company and the laptop model you choose.
Cons of Financing a Laptop
A big con to financing a laptop is that financing can be a risk if you are unsure about your income or whether or not you can pay off the loan. Missing a payment can be expensive.
If you finance through the retailer you purchase from, they will essentially be opening a store credit card for you.
This card is going to be in the exact amount, which means you are utilizing the entire credit limit for that new card. Your overall credit utilization will end up being much higher.
Lastly, if you don’t have any credit yet or a steady income, you may not be eligible for financing plans. If you are, it could be on a much more limited basis and you may not get all of the perks offered.
Use These Tips for Financing a Laptop
If you are ready to look into financing a laptop for yourself, you should be sure that you review your income level, budget, and financial status first.
While getting a new laptop is a great idea for some people, a laptop payment plan isn’t right for every person.
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