Computer Financing with Bad Credit for 2020

Computer Financing With Bad Credit
GUIDE
Aaron Crowe
By: Aaron Crowe
Posted: October 12, 2020
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Computer financing with bad credit can make owning a computer possible with low payments that, if paid on time, could improve your credit score.

That’s a big upside for someone with bad credit. And so is owning a computer, or at least renting or leasing one, since a computer is practically an essential item at home and can make working from home possible.

If you can’t buy a computer with cash, you have options, including taking out a personal loan, leasing one, rent-to-own companies, and using credit from a retailer that sells computers.

Personal Loans | Store Financing | FAQs

Personal Loans for Computer Financing with Bad Credit

A personal loan can be a good way to finance a computer if you have bad credit because it’s usually much cheaper than other options for people with a low credit score. The companies we recommend below specialize in helping you find the best personal loan you can use to purchase a computer.

  • Short-term loans up to $2,500
  • Online marketplace of lenders
  • Funds available in as few as 24 hours
  • Simple online form takes less than 5 minutes
  • Trusted by more than 2,000,000 customers
  • Not available in NY or CT
  • Click here for official site, terms, and details.
★★★★★

4.8

Overall Rating

Loan Amount Interest Rate Loan Term Loan Example
Up to $2,500 Varies Varies

See representative example

MoneyMutual offers cash advances through its online marketplace. You start by filling out a simple form in about five minutes, and MoneyMutual sends it to lenders that may be able to provide you with financial assistance.

You will receive an approval decision in minutes and the money can be direct deposited in your account in as little as 24 hours.

   
★★★★★

4.7

Overall Rating

Loan Amount Interest Rate Loan Term Loan Example
$500 to $10,000 5.99% - 35.99% 3 to 72 Months

See representative example

CashUSA can help you get a personal loan of up to $10,000, though obviously a computer won’t cost that much.

Interest rates from its network of lenders range from 5.99% to 35.99%, and loan terms vary from 90 days to 72 months. CashUSA gives the example of borrowing $1,500 over two years at a 7.9% APR. The 24 monthly payments would each be $67.77 for a total amount payable of $1,626.54.

CreditLoan specializes in helping people with low credit find small loans of $250 to $5,000, which should be more than enough to buy a good computer.

Making monthly payments on time on a personal loan can improve your credit score. Instead of using a credit card and increasing your credit utilization rate, a loan will diversify a credit mix, just as a bad credit auto loan would.

BadCreditLoans also works with lenders that provide loans at 5.99% to 35.99% APR. The site does a good job of explaining the financing process, but its explanation of how the annual percentage rate, or APR, affects a loan is especially clarifying.

Borrowing $2,000 for 12 months at 19.99% APR means a monthly payment of $183.63. The total repayment is $2,203.56, which can make buying a computer affordable.

PersonalLoans.com helps people find personal loans of up to $35,000. That doesn’t mean you have to borrow that much, of course, to buy new computers for everyone in your family. It also offers loans of as little as $500.

It reminds customers that the lender or lending partner they choose will provide details on APR, cash loan refinance terms, and other terms once the customer is directed to the loan agreement during the process of requesting a personal loan. This is important information to keep in mind when comparing loans from different lenders.

Store Direct Computer Financing for Bad Credit

If you want to skip the middleman of being approved for a personal loan you can work directly with retailers that sell computers and offer bad credit financing options. These include rent-to-own computers and leasing programs, as well as buying directly from stores that sell computers.

6. FlexShopper

FlexShopper offers a lease agreement for many types of computers it sells, and a weekly payment with an option to buy it can make it affordable.

Flexshopper Screenshot

Flexshopper offers an instant spending limit of up to $2,500 with no money down for applicants who earn at least $1,000 per month and have a bank account from which to deduct weekly payments.

The lease term can be ended after seven to 29 days, depending on which state you live in. Or you can continue making payments until it is paid for and you own the computer. An early purchase option is also available. Flexshopper offers laptops, computers, and tablets, including Apple products.

7. Best Buy Progressive Leasing

Best Buy offers a progressive leasing program that gives customers the chance to rent or buy technology such as computers. Its lowest monthly payment option is to lease a computer for 12 months. The other options are to buy it after 90 days of lease payments, or an early buyout with a significant discount on the remaining lease amount.

Best Buy Progressive Leasing

Best Buy offers a progressive leasing program for applicants who meet its income and banking requirements.

For example, suppose you did a lease signing for a $1,000 computer and agreed to make payments every two weeks. Your recurring biweekly payment would be $77.41 for 12 months.

The leasing cost would be $1,090, which is added to the retail cost of $1,000 for a 12-month lease-to-own total of $2,090. If you wanted to buy it under the 90-day early purchase option, the total cash price would be $1,000.

8. Montgomery Ward

Montgomery Ward offers buy now, pay later financing through Wards Credit so you can buy a computer and start using it right away. It isn’t a layaway program. The products you buy are sent to you immediately and your first monthly bill will be sent within five days of your order being shipped.

Wards Credit

Wards Credit may require a down payment if you have poor credit, limited credit, or your order is large enough that the store is only willing to finance a portion of your total.

Montgomery Ward Credit is open-ended, meaning there aren’t a fixed number of payments like in auto financing. The credit is revolving which means your available credit increases and decreases based on your credit limit, how much you’ve bought, and how much you have paid.

Can I Finance a Computer with Bad Credit?

Yes, computer financing is available if you have a bad credit report. Unlike a home mortgage or bad credit car loan, this type of financing is for a lot less money.

It can also come with a higher interest rate than if you had good credit and were borrowing from a traditional lender, such as a bank or credit union. You can see the typical personal loan APRs for someone who has bad credit below:

Average Personal Loan APR

The financing costs for someone with a poor credit history can be high, so ask yourself if it’s worth paying those extra costs before agreeing to a loan. If it helps you find a job and maybe even work from home, then a credit check and the financing costs are probably worthwhile.

And, as we’ve shown, a personal loan isn’t your only option for making periodic payments if you have a low credit score. You can also make a lease signing agreement that allows you to rent a computer for a few months before deciding whether you want to use the option to buy it early or make timely payments until you own it.

How Does Computer Financing Work?

A personal loan is pretty straightforward. Apply for a loan through the lender networks we’ve recommended above. Like sub prime auto loans, these lenders specialize in helping people with a poor credit score get a loan term they can live with.

Another option is to buy a computer directly from a store and do the financing through the seller. But this can be much more expensive than a personal loan.

Leasing a $1,000 computer for a year may cost you double that amount when the lease fees are added to the original price. Borrowing $2,000 through a personal loan for a year at a 20% interest rate costs only about $200 in interest.

Store direct computer financing, such as that offered by Flexshopper, avoids having to get a loan and the computer can be paid for directly with the seller’s finance department. Store financing also offers a weekly payment option that can make a computer affordable. Payments are spread out over a period and the computer is all yours when it is paid off.

Some plans allow you to buy the computer outright for the original cost after leasing for about a month or so. This can save you a lot of money on leasing costs.

Some plans let you buy a computer through its in-house credit program. Wards charges its credit users 5.75% to 25.99% APR, depending on their credit score. You can treat this financing as you would a credit card and pay more than the minimum monthly amount due on time and aim to pay it off as quickly as you can.

Can I Finance an Apple Computer with Bad Credit?

All but one of the financing methods we’ve listed allow financing of an Apple computer. Both Best Buy and FlexShopper sell and lease Apple computers — Wards does not. It instead offers financing for nine other brands of computers, but not Apple.

Compare Apple Mac Notebooks

You can use a personal loan to finance an Apple computer or finance directly through Best Buy or Flexshopper. Apple also offers 0% financing for 12 months but requires good credit for approval.

The beauty of a personal loan is that it can be used for just about anything. This means you can take out a personal loan through any of the networks mentioned above, head to your nearest Apple retailer, and choose the computer of your dreams.

You’ll then make direct payments to the lender that approved your loan, usually monthly, and may even improve your credit score with timely payments.

Can I Finance a Laptop with No Credit?

Yes, all of the types of financing we’ve reviewed allow laptop financing with limited or no credit history. Having no credit is different than having bad credit, and someone with bad credit will generally face tougher lending requirements than someone with no credit.

No credit means you have no credit history. You’re building credit from scratch, which can be easier than rebuilding credit. College students and people starting their first jobs are most likely to have no credit.

Bad credit is the result of making credit mistakes. Paying bills late or using too much credit can lower a credit score, making it difficult to qualify for future credit. Overcoming a poor credit history isn’t impossible, but it takes time.

Can a Credit Union Help Me Finance a Computer?

Loan terms and amounts vary by credit union, but if you’re a member of one, it’s worth looking into because credit unions offer good rates on personal loans.

Some credit unions offer technology loans specifically for financing smartphones, tablets, laptops, computers, and the like. These loans charge much lower rates than you’d receive with a personal loan or credit card for bad credit.

Credit Union Technology Loan

Some credit unions offer technology loans specifically intended for financing items such as computers.

Credit unions are nonprofit institutions owned by their members, which means its profits are returned to members through lower rates on loan and credit products. A small loan for a computer is possible, even for credit union members with subpar credit.

Can I Use a Bad Credit Auto Loan to Finance a Computer?

Probably not. The lender for an auto loan will likely want all of the proceeds to go to the dealership to pay for the car. This may be especially true if you have not-so-great credit.

Auto lenders aren’t in the business of financing computers, and taking some of that money to buy a computer may be seen as fraud. One reason for this is that your car is collateral for the loan.

If you default on the loan the bank can take the car from you. A computer isn’t legally collateral on an auto loan, so the lender can’t repossess something that isn’t listed on the loan as collateral.

The finance staff probably doesn’t want to find out you can’t afford a payment as a car buyer because you spent part of its loan on a computer. There are other ways to finance a computer that are preferable to using an auto loan, including all the ways we’ve mentioned above.

You Have Options for Computer Financing with Bad Credit

Computer financing with bad credit isn’t as difficult as you may think. A computer isn’t as big of a purchase as a car or home, of course, but it’s a big enough expense and often necessary in everyday life to make financing it worthwhile.

Options include a personal loan, buying directly from a computer seller or lease program, and using a computer retailer’s credit program to finance it. With on-time payments and sufficient income to make them, you can purchase a computer and have it in your hands quickly — all while rebuilding your credit in the process.

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