How to Buy a TV on Finance

Financing a television can be easy -- if you have an acceptable credit score. Home electronics items are often purchased on credit, with some stores offering "instant" approval on financing. A credit score of 720 or higher generally represents excellent credit, but it is possible to be approved for financing for scores much lower. Credit scores range from 350 to 850, with higher scores generally leading to the best interest rates on loans and credit cards.

Instructions

1

Review your credit report and score. Order the report online at the Annual Credit Report website (see Resources). This website is the only site authorized by the federal government to offer free credit reports under the terms of the Fair Credit Reporting Act. Follow instructions on the credit report to order your credit score separately, for a fee.

2

Analyze your credit score. With a score above 720 you should qualify for many types of financing for your new television. Possibilities include an installment loan from bank or credit union or a low-interest credit card. You may even qualify for a zero-interest promotion -- an option that is good only if you can pay off the television during the promotional period. Financing through a department store or electronics store could be your best bet if you have a credit score less than 620. Many stores have flexible lending standards, allowing them to grant credit to a wider variety of customers. However, interest rates on some department store cards can exceed 23 percent, MSN Money reported in 2010.

3

Apply for credit before you shop for the television. This will allow you to avoid the urge to accept high interest-rate "instant" financing. MSN Money also recommends avoiding store financing in exchange for a discount on your television. Over time the finance charges could exceed the value of the discount. Instead, decide how much you would like to spend on a TV and then apply for an installment loan from your bank or credit union. Installment loans generally offer lower interest rates than credit cards. Apply for a bank credit card if you are turned down for the installment loan.

4

Apply for credit at the department store or electronics store if you are turned down by the bank. Make more than the minimum payment each month to help offset the higher interest rate on the store credit card as you enjoy your new television.