How to Finance a Home Computer

For many people, having a home computer is a necessity. You probably use the Internet on a daily basis to find information. Your kids use your home computer to do school work and write reports. You might even use your computer to work from home or check your work email. If you are in the market for a new or replacement computer and do not have the funds to purchase one, you have the option of financing the purchase of a new computer.

Instructions

1

Decide which method you will use to finance your new computer. You have three main options: 1) finance through the computer store's financing department, 2) use a credit card, or 3) take out a small bank loan.

2

Check your credit report. Before you apply for financing or use a credit card to make a large purchase, order a free copy of your credit report from AnnualCreditReport to make sure that your debt-to-credit ratio is at a reasonable level. If your monthly debt payments exceed roughly 1/3 of your monthly income, your debt-to-credit ratio is too high. If you find yourself in this situation, pay down some of your debt before applying for financing to get a better interest rate.

3

Apply for financing. Complete the application if you are applying through a store or taking out a bank loan. If you plan to use a credit card to finance your computer purchase, check to ensure that you have enough available credit on your card. Most computers cost between $500 and $1,500 dollars, depending on the features that you want. If you don't have that much credit available on your card, you may want to apply for a new credit card specifically to make your computer purchase.

4

Negotiate a finance repayment term of two years or less. This will prevent you from paying unreasonable amounts in interest. To negotiate this term, ask the sales associate or bank loan officer. If they insist on a longer repayment term, ask if there is a penalty for paying the loan off early. If the answer to this question is "yes," consider using your credit card instead.

5

Sign your financing documents and purchase your computer. If you applied for a small bank loan, you may need to wait several days for the bank to process your loan application and to send you a check in the amount of your loan. If you applied for store financing, you should be able to take your computer home that day. If you use a credit card, present your card at checkout and sign your receipt.