How to Finance Computers Without a Down Payment

Computers, especially notebooks, can be quite expensive. However, most major computer companies offer financing to help spread the cost over time. In addition, many local banks, credit unions and finance companies offer small personal loans for any purpose. Financing a computer is relatively easy so long as your credit is not substandard.

Instructions

1

Access a copy of your credit report. Go to Annual Credit Report, the federally mandated site for citizens to pull free credit reports (see Resources). You should also pay for a FICO score, a three-digit number that represents your overall creditworthiness. Excellent scores are above 720; poor scores are below 600. If your score is below 600, you should work toward improving your credit prior to seeking computer financing.

2

Find the computer you want to buy. Do not base your decision on the type of financing available at a particular company. You should find the exact model, purchase price and software add-ons before thinking about financing.

3

Check to see if the computer company offers in-house financing. Companies like Dell and Apple offer financing. Other companies, too, have financing programs.

4

Look at the financing options offered. Many companies will finance a computer if you sign up for a credit card associated with the company. These loans are standard credit cards--the loans are revolving and the payments are only the minimum required.

5

Try to secure a closed-end loan through a computer company, if possible. Closed-end loans (also called installment loans) offer fixed rates, fixed terms and standard monthly payments. This means that the loan has a definite expiration date, unlike revolving loans.

6

Research personal-loan programs at your local bank or credit union, if you have good credit. These companies often offer more competitive rates than computer credit-card financing programs. Finance companies (like Wells Fargo Financial and CitiFinancial) also offer consumer loans, but come with higher rates and fees.

7

Make sure your computer loan is beneficial. For example, if you struggle with credit, you may not want to accept a $3,000 credit line to purchase a $1,000 computer. If that much credit is available to you, you may be tempted to continue to spend rather than pay off the accountt.