Get Your Questions Answered About Financing a Laptop or Smartphone

Finding the right smartphone is always a good feeling. That first time you use a smartphone that feels like it was designed for your hand, there a certain tingle of excitement. The same can be said if you manage to find a laptop you want. It has exactly the features and size you want. Whether you’re a gamer, businessperson or casual user, everyone can take advantage of their laptops for their personal or professional lives.

However, there’s often a problem with the “perfect” smartphones. They tend to be rather expensive. New phones are coming in at higher prices with every iteration. What once was a few hundred dollars are now over $1000 for something new and top notch. The best laptops can easily exceed $2000. This can be a pretty big pill to swallow for someone who may not have the finances to pay that immediately. That’s where financing comes in handy. Financing allows you to get the electronics you’re interested in without having to pay a huge upfront commitment financially.

The 6 Important Questions

1. Is my Credit Score Important When Financing a Phone

A: This depends on who you are financing the phone from. When signing up for a phone plan and financing a phone at the same time, it’s common for credit checks to be run. Since a phone tends to be a smaller commitment than other items requiring a credit check, moderate credit scores are typically fine. For people

2. How Long Can I Finance For?

A: When it comes to electronics, most financing terms last for two years. This length of time allows the payments to reach a manageable level. The other consideration is that electronics after two years are typically less effective and often ready to be replaced. The two year term essentially means you’re paying for the top end lifespan of the device. Choosing to keep and use it after that is entirely up to you.

3. Who Do I Finance a Smartphone From?

A: There are three main ways to finance a smartphone. The first is through a telecommunications provider. They will often package financing of a phone into the usage plan. This disguises the entire financing from your monthly budget. The downside is they may have limited phones that work on their network. The second option is to finance from a big box or electronics store. These will often try to package in some sort of provider based plan in addition to the hardware. They get a nice kickback from turning customers toward them. Finally, the third option is to finance through a third party lender. These companies have higher interest rates and treat these small loans very seriously. Any breach of terms can result in huge financial penalties.

4. Where Do I Finance a Laptop From?

A: Laptops are almost always financed from the retailers. While financing can last as much as two years, many prefer 6 month terms with large annual interest rates approaching credit card levels. There are many online retailers which will also allow for financing. They can set up the terms online and set up automatic payments to a credit card or other viable payment source.

5. Is Financing a Good Idea?

A: One of the best things about financing electronics is that you are essentially always using an updated piece of technology. The downside is you’re doing so at a slightly higher price than simply buying outright each couple of years and selling your old devices. Financing isn’t for everyone, but if you find yourself in need of top end tech for a purpose, it can be a great idea.

6. Can I Finance Multiple Items?

A: As an individual, it may not make much sense to finance multiple items. However, businesses (and especially startups) will often finance when they need to make purchases of multiple laptops. This is perfect for a startup with limited cash flow as they are growing their business. They can simply pay as they go along and increase their cash flow.

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