Getting a good laptop should not cost a fortune, or force you to make advance elaborate financial planning. But if your desire is to own a high-end laptop, you will have to prepare to pay a lot more. It is for this very reason that sellers offer financing for more expensive laptop models.
Financing will allow you to own a top-notch laptop without the need to gather all the money at once. Still, as you finance a laptop, there are some things to keep in mind and here is a look at some of them.
Benefits of Laptop Financing
When buying a laptop through financing, you will not need to come up with a lump-sum amount of money in order to get your dream laptop. You can pay just a couple of dollars a week to own a high-end laptop. You can make payments for these laptops in a number of ways, as clevershoplist.com explains in its reviews on laptop retailers offering laptop financing.
One of the main benefits of laptop financing is that you will not have to resort to getting a bank loan or the services of credit card services. These types of financing require that you pay high-interest rates.
On the other hand, when you get the laptop through financing, you will typically get zero-interest rates and a flexible payment structure in addition to other benefits. For instance, you can get an offer for product upgrades together with the financing plan.
Downsides of Laptop Financing
Even though laptop financing can come at zero or low-interest rates, these rates can get pretty high in case you miss a payment.
The zero interest rate on the financing does not help your credit score either. When you finance your laptop using a retailer, you will basically get a credit card in your name with an amount equal to the price of the laptop.
In other words, the retailer will have used the maximum amount of credit on the card, and this means your credit utilization is at 100 percent. Since this value is used to determine your credit rating, you will end up having a lower credit score.
Thirty percent of your credit score is determined using your credit utilization ratio, and using retailer financing can make your credit rating drop for about a year.
Additionally, since the retailer cannot issue you with credit without doing a credit inquiry, you will end up with a lower credit score as a result of the credit check. The situation can worsen when you get too many inquiries into your credit history are made by the retailers, which can happen when the first retailer you approach fails to give you financing after the credit check and you have to try another laptop financing service.
Conclusion
A good laptop that meets all your usage needs can be an incredible investment. Acquiring it, however, could prove to be a little too expensive; and that is where laptop financing might help. Through laptop financing services, you can own a dream laptop while paying a small portion of its price at a time.