How to Finance Computers
Owning a computer can make life easy. Computers can become obsolete quickly and are often costly, making them out of reach for many consumers. There are several financing options available, however, that can make computer ownership a reality for those who are strapped for cash.
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Instructions
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Use a credit card.
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Credit cards can make buying a computer easy. If you have an existing credit card, simply make sure you have the credit available to cover the cost of your computer.
Before making the purchase, it is a good idea to verify your interest rate and ask if your credit card company is offering any promotional rates. Many times, simply asking for a decreased rate on a large purchase can allow you to save hundreds of dollars.
If you need to obtain a new credit card in order to purchase your computer, shop around for the best interest rates. Websites such as Bankrate.com allow you to compare rates at many different companies, ensuring you get a good deal.
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Consider direct financing. Many large retailers, such as Best Buy, and computer manufacturers, such as Dell, offer direct or "in-store" financing. They often offer low introductory rates or same-as-cash plans.
After promotional rates expire, however, be prepared for interest rates that are higher than most traditional credit cards. Direct financing can also be hard to obtain, as retailers generally require borrowers to pass strict credit checks.
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Consider layaway. Many traditional retailers, such as Sears, offer layaway. Layaway allows the buyer to pay an initial down payment and subsequent installment payments until the purchase is paid off. Once the account is paid in full, you can take home your computer. Because the retailer holds the merchandise until it is paid for, no interest is charged.
Layaway plans are generally short term and require minimum payment amounts each week. If the plan is terminated before payoff, the retailer may charge a restocking fee. No credit check or application is required.
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Consider easy-pay offers. Television giants QVC and HSN offer easy-pay plans. Under easy-pay plans, shoppers are sent their computers at the time of purchase. The cost is then divided into equal monthly payments over a specific term.
Normally, easy-pay offers are only available on certain items. Additionally, they generally allow for 2 to 6 months of payments, causing the monthly amount to be significant. Easy-pay offers are great money-saving options, as there are no interest charges, no credit checks or applications required, and buyers receive their merchandise up front.
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Tips & Warnings
Remember to compare prices on your computer. Sometimes, retailers offer great financing options, while charging more for the merchandise. Be careful not to fall into that trap.
Do not miss payments on layaway or easy-pay plans. Missed payments can result in merchandise being sold to someone else or collection enforcement.
