When you need to buy something expensive, reaching for your wallet and finding you are short on cash doesn’t have to ruin your day. Retailers want you to buy their products and they are willing to go the distance when it comes to selling you something. If you really want to get it, there are several financing options available for you. Here are some tips to ensure that you get a good deal:
Always Do a Price Comparison
Whenever you are making a big purchase and hope to get a loan for it, you should look around for a good rate. Comparing prices or financing rates will allow you to calculate how much you will end up paying. Some rates can be really bad, though they say they will allow for a longer payment period. You might even end up paying double the price of the actual product. Note that asking for rates can affect your credit score since it usually means various banks and lenders asking for your credit report.
You could also apply for or use a credit card. Credit cards are great since you can use them as long as they are within the credit limit. They also have rates, so you will want to shop around for deals that will give you a low interest rate and reasonable fees.
Consider Using Your Equity
Borrowing money is a desperate move when you need to make a big purchase. If you own a house though, you have another option. Instead of completely borrowing the money, you can use the equity in your home to finance a loan. Considering homes are the most valuable property most people have, you’ll have a huge amount to use for your loan.
There is a middle ground to borrowing money, though. Some sellers have the option for you to get an instalment plan. This is a great choice if the purchase was unexpected. The idea behind it is that the payment for the purchase will be extended over a specific period. The price is then divided into several lower monthly payments. Some of them even offer zero interest as long as you pay on time.
You will need to look at the paperwork, though since some plans can have hidden fees. For example, some zero-interest instalment plans can have punishing penalties if you miss a payment. Look around for an instalment plan that has good rates and can work for you.
These days, electronic devices are the preferred choice when it comes to instalment payment plans. This is because multiple sellers often have a great deal on electronics, which can range from smartphones to computers. Considering how much a gaming laptop or PC is worth, this can be a good option.
Financing is a great option if you need to buy something but are short on cash funds. The problem is that if you don’t pay them off on time, you will end up facing a ton of fees and additional expenses. But if you think you can handle the payments, then go for it.