Computer Financing With Bad Credit

| January 3, 2012

For individuals who have bad credit, computer financing may seem impossible. Fortunately, there are several options available which allow even those with bad credit to buy a computer and pay for it over time. Some of these options allow the buyer to take the computer home right away, while others require a few payments to be made before the computer is picked up or delivered.

The most common method of securing bad credit computer financing is to purchase a computer from a “rent to own” retailer. The majority of these retailers do not perform credit checks, so having bad credit won’t negatively affect your chances of buying a computer. When buying from a rent to own retailer you must provide information on your employment, your current street address and contact information, and references or other contacts who the retailer can call if you aren’t reachable at home. You are responsible for making payments on a weekly, bi-weekly, or monthly basis until the computer is paid off, and interest is applied to the amount that you owe. On the plus side, as long as you are still making payments on the computer it is covered under the lease agreement you have with the retailer; any hardware problems or other malfunctions will be repaired at no cost to you, or a working computer will be substituted if the retailer is unable to fix yours.

Another option for bad credit computer financing is to utilize companies that specialize in computer financing. These companies require that a certain number of payments be made toward the computer before it is delivered, ranging from two payments to a percentage of the total amount owed. After the required number of payments have been made, the company delivers the computer to the customer and the customer continues making the remaining payments. An additional shipping and handling fee may be charged once the computer is ready to deliver. Computer maintenance and repair is typically the responsibility of the customer, though some companies may offer a warranty that covers repairs and virus removal within a certain timeframe.

Some lenders are also willing to extend loans to individuals with bad credit, allowing you to purchase a computer outright and then repay the loan. The computer purchased with the loan typically acts as collateral to secure the loan, but depending on the specific lender additional collateral may be required. These loans carry a higher interest rate than similar loans for those with good credit due to the higher risk associated with lending to those who have had credit problems in the past. Since the lender is not selling the computer but simply provides a loan to pay for it, all maintenance and other computer repairs are the responsibility of the borrower.

One final option available to those with bad credit who wish to pay for a computer over time is to utilize a retailer that offers a layaway option on its electronics. While layaway services do not allow buyers to take home the purchased item until it is paid for, layaway payments are typically low enough to be manageable and the repayment period is flexible depending on the final cost of the item being purchased.

Category: Bad Credit Loan

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