Everything You Need To Know About Laptop Financing!
Are you interested in getting financing for a new laptop or desktop computer? If you answered yes to this question, read on as I have some important to help you have an enjoyable experience shopping and financing your new computer.
Don’t Get Ripped Off!
The number one problem I see with people seeking this type of financing is they end up doing deals with businesses that rip them off through higher interest rates, unreasonable fees, and laptops and computers that are overpriced and antiquated.
Understanding Interest Rates
Most credit cards have interest rates (APR) around 22.9% and most personal loans / lines of credit have interest rates around 12%. Depending on your credit rating, the interest rates you will encounter may lower or even higher than what is listed here.
What exactly does the interest rate mean? When you take out money, you are charged interest every month based on how much you owe and how high the interest rate is. The longer you take to pay off what you owe, the more you end up paying. Interest rates are how many lenders make their money. This doesn’t mean interest rates are “bad” by any stretch (as the lenders do need to make money), but it’s important to know about how interest rates affect you.
When you get any loan, it’s in your best interest to pay it off as soon as possible. While it may be tempting to only make the minimum payments, it can save you hundreds or even thousands of dollars by paying more than that amount.
Watch out for businesses who offer loans with extremely high interest rates. Payday loans are an example of one of the types of loans you can get with insanely high rates. For example, one website that we found that offers quick cash has interest rates around 180% for their loans. (Remember, the average credit card is 22.9%). Always know the interest rates of the loan you’re signing up for and avoid companies that offer loans with interest rates way above the average at all costs.
Fees have a big impact on how much you pay at the time of the loan. Typically, most companies do not have fees when you borrow money from them. (Remember, most lenders make money from interest rates, fees are not needed). Companies that do have fees typically are the ones who use phrases like: “easy cash”, “no credit check”, or “for people with bad credit”. If you see a phrase like that in a company’s ad, a little red flag should pop up in your mind. Companies like that are probably going to rip you off.
What kinds of fees might you see?
- Paperwork or Origination fee – This is a fee tacked onto your loan just for doing business with them. This may be a flat fee or it might be based on how much you are going to borrow. For example, one website charges a fee of $15 per $50 you borrow from them.
- Late fee – If you’re late on your payment to a lender, you’re usually charged some sort of late fee. This can vary from $25 to over $50. Also be aware, many lenders will raise your interest rates if you are late on your payments.
Be aware of any and all fees associated with any financing deal you find. Do not sign onto any loan or offer that has unreasonable fees. Paper or origination fees are not reasonable.
Understanding the Computers and Laptops you can Finance
While the previous information can apply to any credit card or loan you can get, this information is specifically about lenders who offer laptops or computers to people with bad credit. I’ve looked at many of the companies out there that offer financing specifically for computers and laptops and discovered that they all rip you off!
How Do Computer Finance Companies Rip You Off?
- Old Hardware – Do not believe the claims that you are getting a “lightning fast” computer without research! Know exactly what you will be getting and what electronic stores are carrying right now. Go to your local Best Buy, OfficeMax, Staples, etc. and talk to someone knowledgeable about computers. Find out what the typical computer has for RAM, hard drive space, and processor. Know what the current operating system is (Windows 7 for example). If you’re not sure that the computers you are looking at financing is good or not, ask a techie/nerd you trust to help you.
- Overpriced – Some companies offer new computers and laptops, but simply charge too much! I’ve seen computers that were marked up hundreds more than what you pay FULL PRICE for at the local store. Even if the financing offer is attractive, don’t get suckered into paying more than you should for a new computer.
How Should You Get Computer Financing?
We are not endorsed by any company and we do not offer financing ourselves so you will need to do some shopping for a new computer. Our recommended computer financing option is through Amazon.com and their credit card. Amazon has a Rewards Credit Card for people with average to excellent credit. With their rewards card you can earn 4% back on purchases you make on their website. Daily purchases with the card can earn up to 2%. The reason why I recommend Amazon with their credit card for computer and laptop financing is they not only offer competitive interest rates with that credit card, but they also offer the best selection and prices for computer online. Whether you’re thinking about getting an Apple or Windows computer, they have exactly what you need right there.
Recommended Places to Buy and Finance a Laptop
I hope this helps you in your search for computer financing! Knowing is half the battle! Now you should be able to shop for your new computer and at least have some knowledge under your belt to help combat against disreputable companies.