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Wednesday, February 18, 2009
It is hard to see everyone's situation, but in general computer financing for people with bad credit is yet another brick in a wall of doom. Regular credit usually isn't possible for one in this position for a reason.
Bad credit ratings protect you as much as they protect businesses that might lend to you. If they decide due to your credit rating to turn you down, then they have actually done you a favour by not letting you dig yourself a bigger pit of debt. Going beyond their recommendations and getting a bad credit loan might not be the answer, it might only get you in trouble. It is often a better idea to save the money up and buy for cash.
After you have looked at your overall financial situation, if you still are looking for computer financing for people with bad credit you need to pay attention to what sort of deal you are signing up for. Unscrupulous individuals and businesses are always ready to prey on the weak.
Bad credit means high interest rate. If the loan is a revolving debt like a credit card, then with a high interest rate such as 30%, your monthly payments will barely cover the interest. This is a recipe for disaster. Even if you have bad credit, computer financing should not leave you impoverished for years.
A big down payment will shorten the loan or lower your monthly payments, so you should always put as much down as you can up front. Zero down is a fancy way of saying, "be our slave" as you pay for your poor credit rating. with that large down-payment your monthly payments can be lower, or your loan length can be shorter, or both.
Another important fact to remember is that the longer this loan runs the more you will pay for interest. It is bad enough to pay for a whole year on a computer. Imagine paying for three years! By that time you will have paid more than three times the value of the machine and it will be hopelessly outdated and ancient.
The best decision might be to get a personal loan from a friend or relative, or save money for a couple months to make an outright purchase. Either way, I hope you weigh the pros and cons before getting computer financing for people with bad credit.
Bad credit ratings protect you as much as they protect businesses that might lend to you. If they decide due to your credit rating to turn you down, then they have actually done you a favour by not letting you dig yourself a bigger pit of debt. Going beyond their recommendations and getting a bad credit loan might not be the answer, it might only get you in trouble. It is often a better idea to save the money up and buy for cash.
After you have looked at your overall financial situation, if you still are looking for computer financing for people with bad credit you need to pay attention to what sort of deal you are signing up for. Unscrupulous individuals and businesses are always ready to prey on the weak.
Bad credit means high interest rate. If the loan is a revolving debt like a credit card, then with a high interest rate such as 30%, your monthly payments will barely cover the interest. This is a recipe for disaster. Even if you have bad credit, computer financing should not leave you impoverished for years.
A big down payment will shorten the loan or lower your monthly payments, so you should always put as much down as you can up front. Zero down is a fancy way of saying, "be our slave" as you pay for your poor credit rating. with that large down-payment your monthly payments can be lower, or your loan length can be shorter, or both.
Another important fact to remember is that the longer this loan runs the more you will pay for interest. It is bad enough to pay for a whole year on a computer. Imagine paying for three years! By that time you will have paid more than three times the value of the machine and it will be hopelessly outdated and ancient.
The best decision might be to get a personal loan from a friend or relative, or save money for a couple months to make an outright purchase. Either way, I hope you weigh the pros and cons before getting computer financing for people with bad credit.
About the Author:
Computer financing can be hard to get in these difficult times. That is why consumers turn to Computer financing for people with bad credit.
posted by Credit Counseling at
6:40 AM
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