Loans for Computers – Best Laptop Financing for Bad Credit

Loans for Computers – Best Laptop Financing for Bad Credit


10 Min Read

Since many of us have switched to freelancing or remote jobs, having a good computer affects our incomes and freedom of movement. Also, with the help of a computer, we can communicate, explore the world, learn, and relax. In addition, computers are almost indispensable for students as they go through the educational process and gain new knowledge with their help.

Loans for computers can come to the rescue if you need extra funds to purchase a computer without having a dip into your savings. This way, you can obtain the latest technology at competitive interest rates and with no down payment. But what if a borrower has a bad credit history? Are there some guaranteed options for them? The short answer is “yes!” But let’s delve deeper into the topic.

How Do Computer Loans Work?

Computer loans have a working mechanism that is similar to other types of personal financing. These loans allow borrowers to obtain a PC or laptop along with all the necessary accessories by using lenders’ funds instead of spending their own money. Thus, you don’t need to pay for a computer upfront. You just buy it with a borrowed amount and make fixed monthly payments within the agreed loan terms.

Like all loans, computer cash advances come with additional fees that a lender typically charges. This means that you will be obliged to repay not only the amount that your computer actually costs but also an interest rate. The interest rate on a computer loan can be from 4.99% to 35.99% or even higher, depending on the type of loan and your credit score.

What Credit Score Do I Need to Get Computer Financing?

Like any other lenders, companies that offer computer financing prefer to lend money to people with excellent and good credit, which is 670 and over. However, borrowers with all credit types can find a variety of options when they need to finance a laptop they can’t purchase without additional help. Even if your credit score is under 670, which means it falls into a “subprime” category, you can find almost guaranteed computer financing that will be available for you. In this case, the main deal is to find the right lender that can offer you bad credit computer financing at reasonable terms.

laptop financing bad credit

How Much Money Can I Get with The Help of Loans for Computers?

New computers typically cost between $600 and $2,500, depending on the brand and the characteristics. The cost may also grow if you’re going to add some gimmicks to upgrade its appearance or buy expensive software you need for a job or education. Add accessories here – and the total cost can differ significantly from the one you see on a price tag.

But a loan amount you can get approved for mostly depends on your income. If you can’t confirm you earn enough on a regular basis to cover your monthly payment amount, a lender or a dealer can reject you or ask you to consider a lower sum. Also, the conditions of your lending company’s agreement play a role. For example, you may be required to make a down payment of about 20%, so it will be impossible to get more than 80% of your laptop’s cost.

What Are Bad Credit Computer Financing Options?

Having a 500 credit score or less can make your financial life more difficult. It can also cause some problems in getting computer financing or obtaining any other form of debt. However, customers with low credit scores still have more than one option they can turn to. Here are the most popular and reasonable of them.

Personal Loans

Personal loans are a type of borrowing that can be spent toward almost everything. They are almost perfect for covering any borrower’s personal needs, including computer purchasing. A personal loan is an option with affordable monthly payments, which means the total loan cost will be split equally by the number of months of the repayment period. Personal loan terms can reach up to 60 months, and the amount you can request is usually limited only by your income.

However, personal loans offered by banks and credit unions may not work for people with poor credit. It happens because traditional financial institutions always check your credit history through major credit bureaus. Therefore, if your credit rating is low, try to shop around for loan options from alternative lenders.

Computer Leasing

When it comes to leasing, you’re usually not the owner of the computer. This way, a lease agreement gives you the right to use it for a limited period specified in your lease documents. When leasing a laptop, you pay interest and fees, which are typically included in the monthly payment, much as when taking out a loan for business. There can be additional costs for insurance, upkeep, and repairs.

Plans Offered by Manufacturers

If you’re going to purchase a computer of a specific brand, consider programs offered by the manufacturer or retailer. Sometimes they can offer various discounts for customers who already own some of the brand items and can use them towards purchasing a new laptop. For example, you can use an Apple Trade In program or search for options offered by other brands.

Student Loans

If you’re a student who needs a laptop for education, you can turn to student loans. This form of debt allows you to spend money not only toward your tuition costs but also to cover school supplies. Thus, you can use part of the money you receive to pay for a computer. But be careful. If your credit score is bad, you should avoid private student loans, as they always come with hard credit checks. This way, seek help from the federal government by applying for a federal student loan.

In-Store Financing

If you want to buy a computer directly from a store, this option can help you save time. Some stores can offer you their local financing programs or store credit cards to help you buy their gadgets and technologies. However, getting an in-store loan may be an option that is available to good credit customers only. Also, in-store financing programs are usually pretty costly and feature high interest rates.

Short-Term Loans

Small loans with short terms can work for you if you need a trifling amount of up to $1,000 to repair your computer or use it as a remaining amount that is not covered by your savings or other loans. These cash advances offer an easy financing process but must be repaid in full within a short period, typically in a few weeks. Small loans are known for quick funding and high approval rate for bad credit. However, you shouldn’t expect low rates from them. This form of debt is usually quite expensive.

Guaranteed Computer Financing with No Credit Check – How Is It Possible?

Computer loans can come with various forms of financial verification. Traditional lenders, official stores, and most private lending companies tend to check your credit application details through major credit bureaus. They do this because the information contained in your credit report can reveal a lot about your financial situation and creditworthiness. Such loans typically have the minimum credit score and income requirements which you must meet to qualify.

In contrast to computer loans with hard credit checks, there are also forms of debt that lenders allow you to obtain just by making a soft verification. Such loans are also known as “no credit check loans“. They don’t involve any request to three major credit reporting bureaus. These borrowing types are considered almost guaranteed, as lenders are not focused on an applicant’s credit score. Thus, if you can prove your income allows you to cover your loan payments, you can get approved regardless of your FICO rating.

But keep in mind that there are no 100% guaranteed products when it comes to the financing field. A lender will check your solvency through alternative sources in any way. It can also reject your loan request in case of any doubts about your reliability.

guaranteed computer financing

Can I Get Apple Computer Loans with Bad Credit?

When it comes to Apple’s in-house financing that involves using the Apple Card, this option is available for borrowers with good and excellent credit only. However, you can apply for a bad credit personal loan or use other obtainable forms of borrowing without turning to in-house financing. Moreover, Apple offers discounts for students, their parents, homeschool teachers, and other educational staff, so if you belong to one of these groups, you can even save money when paying for an Apple computer or laptop upfront. Just contact the nearest store and ask for a detailed explanation.

What Are the Features of Good Computer Loans?

The quality of a loan is usually measured by how comfortable you are with repaying it. Here are some features that make your computer loan a good deal:

  • Reasonable rates. The lower rates, the less will be the total amount you need to return. Choose a deal with the lowest possible interest charged;
  • Suitable loan amounts. It’s amazing if your loan can cover the full cost of the computer you choose, along with all the gimmicks and accessories if needed;
  • No prepayment penalties. If you want to save money on interest by paying early, options with no prepayment penalties are preferable. This way, you won’t be charged extra fees for paying off your loan balance before your debt expires;
  • Convenient payments. A flexible payment option allows you to stay on track with your monthly budget and make loan payments that fit your financial situation;
  • Simple application. It’s great if a lender or dealer offers an online application procedure that doesn’t involve hard pulls and doesn’t take much of your time to provide a decision.

Pitfalls of Getting Computer Loans with Bad Credit

When you have bad credit, an annual percentage rate on your loan will always be higher compared to good credit options. Thus, you need to pay attention to your loan cost to avoid sky-high interest. Also, when you take out a loan for a computer, your laptop will most likely be obsolete by the time you pay it off. So, you may need a new computer and another loan to purchase it. Thus, computer loans can drive you into a debt cycle.

Bottom Line – Is Computer Financing a Good Idea?

New computers or software typically cost much, even if you try to purchase them at a sale price. Loans for computers were designed to help people get items they need for effective work, study, or entertainment without having to save money. Although most loans require you to have at least good credit, people from the “subprime” category can also finance a notebook with bad credit.

All you need to get a pleasant borrowing experience is to find the right lender, decide on the loan amount, and avoid late payments. This way, you should slow down and ensure your financial situation allows you to make loan payments on the due date. In case of delays with paying interest and principal, you can be charged late fees, and your credit score will drop.


Where Can I Get a Loan for a Computer with Bad Credit?

Many banks, credit unions, dealers, and online lenders offer programs for financing items like laptops, cell phones and accessories. However, people with bad credit should turn to loan providers that deal with applicants with credit issues.

What Do I Need to Qualify for Laptop Financing with Bad Credit?

In most cases, you will be able to get a loan at 18 or older. Also, you need to have a valid bank account, and provide an income confirmation. However, each lender or dealer may have additional requirements.

Do Computer Loans Build Credit?

It always depends on the type of computer loan you choose. For example, personal loans for computers can help you build credit over time if you make on-time payments. At the same time, short-term loans usually don’t affect your credit in any way.

Apply today and get financing for a laptop you need!Apply

Kerry Vetter

Written by Kerry Vetter

Written by Kerry Vetter

Kerry is a finance expert thanks to her Boston College education during the 1990s. Today she shares this valuable knowledge through the pen and online from her home in Chestnut Hill, Massachusetts. The years of experience results in relevant, practical and wise advice.

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