Both the computer and the financial industry are very competitive, thus it is not difficult to find great deals that can save you a lot of money. Sometimes you lack the cash to purchase a new system or upgrade your current one. That’s why Personal Loans are the perfect solution to this kind of problem. Learn why personal loans are the best source of finance.
There was a time when computers where a luxurious item. Only those with a high income could afford getting one. Nowadays, the computer industry has evolved and new products arrive every day driving older ones obsolete. This has greatly reduced the prices but also created the need of upgrading or buying new equipment regularly.
Financing Your Purchase
Thus, the need for finance becomes more marked especially for those with a limited income. Using your credit card is always an option but not the cheapest one and sometimes not available for everyone. If you are buying a new computer, your credit card limit may not let you purchase it through that means. Sometimes your credit card limit would allow it but other expenses may have exhausted your credit.
Using a personal loan to finance the purchase is a much better solution for several reasons. For starters, the interest rate charged for personal loans is significantly lower than that charged by credit card companies. Credit Card holders are used to paying a two digit interest rate that can get as high as 25% while those who request a personal loan may have to pay, in the worst scenario, an interest rate of 10%.
The amount of money you can obtain through a personal loan is significantly higher than your credit card limit (Often, the difference being 5 to 1 in terms of loan amount). If your credit card limit is $1500, chances are you can easily get approved for an unsecured personal loan of $7500. Most pre-approved loan packages that come along with credit cards and an overdraft agreement for your bank account feature that amount ratio.
Another important advantage is that you can repay the loan in many loan installments even lower than the minimum payments on a credit card balance. Moreover, since the loan installments usually come with fixed amounts you can be sure that when the last payment is due, you will have cancelled all your debt and you will have become debt free. Paying credit card minimums, on the other hand, often implies paying only interests while your debt’s principal stays unaffected.
What If I Have Bad Credit?
If your credit is less than perfect you needn’t worry. Most stores that offer personal loans specifically designed for buying their equipment and other non-traditional lenders feature personal loans for people with bad credit, no credit at all and sometimes you can even get approved if you have recently gone through a bankruptcy process. What you need to do is request loan quotes from different lenders and compare rates and fees. Make sure to do this, especially if you have bad credit because the interest rate charged to those with bad credit tends to be higher so it will not hurt you to get the best deal possible.