The day has finally come – you can’t put it off any more! Your laptop bit the dust and you need to buy a new one. There’s just one hitch: you have low cash flow at the moment and your credit score isn’t so hot. What can you do?
Let’s face it – in the twenty-first century some kind of computer is a necessity, and most of us rely on the ever-versatile laptop. Work, social activities, and life itself demand that we have access to friends, family, and data from anywhere. Unfortunately, laptops are expensive and, if you’re low on cash and/or have a bad credit score, you might be wondering how you can quickly replace this necessity.
Fortunately, there are options. In this article, we’ll outline how to buy a new laptop with bad credit.
What’s a Credit Score?
Yes, your credit score can affect your ability to buy a new laptop, but before we get into that let’s explore what that means. What is a credit score and why would it affect your purchasing ability? There are a lot of myths out there and we want to set them straight.
Your credit score is a three-digit number that ranges from 300 to 850. The higher number you have, the better your credit score is. The closer your score is to 850, the easier it is to get a loan.
When your credit score is low (typically below 650), then you are categorized as having poor or bad credit. Having poor or bad credit generally means you’ll have a harder time finding a loan that won’t gauge your wallet with high interest rates.
The major credit bureaus that report credit scores are: Experian, TransUnion, and Equifax. Each bureau looks at the same basic information: debt-to-income ratio, amount of revolving debt, repayment history, and more. From that information they calculate your credit score using similar formulas, therefore it is very unlikely that your score will vary from bureau to bureau. In other words, if you have a score of 300 with one credit bureau, you are unlikely to have a score of 850 with another.
How Can My Credit Score Affect My Ability to Buy a New Laptop?
Many laptop companies perform credit checks when starting a new contract. That means, if you have a poor or bad credit score, you’ll likely struggle to get a new laptop at a good rate.
The laptop providers want to protect their interests: they’re worried that you won’t be able to pay off the laptop if they sell it to you on a loan. However, have a low credit score doesn’t always mean that you’re irresponsible. A low credit score could be the result of job loss or fraud or other extenuating circumstances. No matter what the cause of your low credit score, it’s extremely annoying to be denied a laptop when you really need one.
The Dangers of Running a Credit Check to Buy a Laptop
If you have poor or bad credit, trying to buy a laptop somewhere that’ll run a credit check could actually end up hurting your score. Most sellers will perform what’s called a hard inquiry on your credit report.
Hard inquiries can negatively affect your credit score a few points, meaning that you’ll be knocked even further away from your goal credit score. So, if you have a bad credit score, it’s a good idea to try to avoid anything that would damage your score even further.
How to Get a New Laptop With Bad Credit
It can be hard to get a new laptop with bad credit. That being said, you’re not totally out of options. There are a few ways that people who struggle with bad credit can buy a Laptop by themselves. Let’s take a look at several of them.
#1: Put More Money Down (Or Pay for the Laptop in Cash)
You can try to purchase a laptop by putting more money down to begin with.
If you purchase your laptop in cash, the store won’t do a credit check at all. The laptop will just be yours. That being said, laptops are extremely expensive: some can run close to $2,000. Not everyone has that much cash on hand.
If you can’t pay for the laptop in full, you might still be able to get it by putting down a larger initial payment. If you are able to put down 50%, for instance, the company might be more likely to lend to you because you’ll have less to pay off.
Again, putting down that much cash isn’t a feasible option for many people. And, if you put down 50%, you’ll likely still have to undergo a credit check while the company determines what happens on the other 50%. That means your credit can still be affected.
#2: You Can Ask a Friend or Family Member to Cosign
If you can’t qualify for a loan by yourself, you can ask a friend or family member to cosign.
A cosigner is someone who says that they will pay for your device if you default (stop paying) on your loan. Stores like cosigners because they help guarantee that someone will pay for your new laptop even if you can’t or don’t pay anymore.
Unfortunately, there are some downsides to cosigning. First, your cosigner will need to have better credit than you do. In many instances, cosigners need to have excellent credit in order to even qualify to cosign. It’s often harder to be a cosigner than it is to take out a loan for yourself.
It can also be hard to find someone who will help you cosigning. You might not want to ask a friend or family member or they might want to help, but be unable.
Thirdly, you (and your cosigner) will still feel the negative effects of the hard credit check when you take out a loan by cosigning. You’ll both undergo a credit check when the provider decides to determine if you’re worthy.
#3: You Can Get Your Laptop Through a Lease-to-Own Program
Lease-to-own programs, like the one offered by InstantFinance24.com, can help you own your new laptop without giving up a ton of cash upfront or asking a friend to cosign. In fact, you can even get your new laptop without a credit check!
Here’s how it works:
First, you shop for what you like. Most lease-to-own programs have an extensive inventory for products.
Next, you add the product you like to your cart. Macbook Pro, here you come!
Then you go the checkout and fill out an easy application. The application checks information like employment history. You do NOT have to do a credit check.
When you’re approved, you’ll start making daily or weekly payments based on your contract’s schedule. You can get the new laptop shipped to you or pick it up in a store. It’s up to you! You’ll make your payments until your device is paid off. If you pay it off early, it’s yours early!
The best part of lease-to-own? No credit check! So, if you have bad or no credit, you don’t need to worry about getting denied. If you have good credit but don’t want a ding to your credit score, lease-to-own can help you, too, by letting you avoid the dangerous credit score drop that comes from a credit check.
How to Buy a Laptop With Bad Credit: Final Thoughts
If you have bad credit, it can be intimidating to think about how to buy a new device like a Llaptop. That being said, you do have options! You can pay in cash, ask a friend to cosign, or work with a company like InstantFinance24.com to get your new device right away.
Ready to start shopping? Head to our homepage now to see our extensive selection of products!