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Need a Computer Loan – Perhaps

Usually when a borrower needs a computer loan they’re young students that are in University, or on their way to college soon. They may not even have a credit record developed with the credit agencies yet, so this makes it difficult to get approved with any kind of lender. Another problem is that computers (laptops, desktops, MAC or PC) and electronics cannot be used as security with a bank. It’s not like buying a new car, or a house, where the bank uses the bought product as the security on the note. They can’t just come over to your house, apartment, or dorm, and take your $3000 laptop and resell it if you have been defaulting on your payments.

However, after saying all this, you will see lenders advertising loan products called Computer Loans. Why you ask? Because some lenders who lend money for the purchase of a computer ARE the companies that manufacture the laptop or desktop. Companies like MAC, HP, DELL, etc.

Some lenders are private lenders who let you lease to own, or they lend you the money directly for your computer. These lenders are usually zero down payment and around 18% interest. Very high, like a department store credit card. You may as well have a typical credit card if you are going to be paying interest rates between 13% and 18%. You may be better off financing your computer directly with Apple, HP, or DELL. Here are some links to the three computer manufactures mentioned.

Manufacturing Company Computer Loans

Apple Computer Loans (MAC)

MAC finances computers and their lending program is called Apple Financial Services. This is obviously my favorite option for a computer loan, because I am very much PRO-MAC. I do almost all my work from a MAC laptop now and all other peripherals are made by Apple as well. Highly recommended.

DELL Computer Loans (PC)

DELL finances computers and their lending program is called DELL Financial Services. I’ve used some of the DELL equipment in the past, and their computers are “not bad”. Their price point is low, and the customer service is usually very good. Beats the hell out of HP in almost every way.

HP Computer Loans (PC – Business)

HP has a lease and financing department but this is for businesses. Not likely what you are looking for, but if you are running a small or large business, you may be interested in the HP financing process.

Private Lender Computer Loans

There are many different private lenders who lend you cash for your computer, and like I mentioned above, they charge hefty interest rates on these loans. All most all of these lenders focus on one brand of computer, for example this company called sends you the computer and you pay it back over time. These are the conditions on most of their computers (this is an example);

  • Loan Principal: $599.00
  • Length of Time: 2.5 years (30 months)
  • Down Payment: $0
  • Fixed APR: 18%
  • Monthly Payment: $24.94

Now if we use a real loan calculator like the one at the bottom of this page, these are numbers we get;

Total Amount to be payed: $738.24
Total amount of interest $139.24
Payments: $24.27

Notice how they are carving some extra profit. Payments are really $24.27, but they want you to make payments of $24.94 every month. Over 30 months that is an extra $20 dollars and change in their pocket. That’s nothing though because they are making $140 dollars on interest. Of course if you really need a computer that bad, then you will be willing to pay the interest – right?

What You Have To Have to Be Approved for a Private Computer Loan

Most these lenders have the same lending practices in place and this is what you have to have going;

  • they want you to have a checking account because your account is debited for the monthly installments
  • you have to be over 18 years of age and they don’t want you to even apply online unless you are
  • your income has to be at least $700 – $1000 dollar a month (gross income before deductions)
  • your FICO score has to be higher than 550 (this varies depending on the lender) This goes for all three credit reporting agencies – Experian, Transunion, and Equifax.

Some of the private lenders have a little deal going on with credit report companies who charge a fee for you to get your credit score. They will make a commission on every customer they send to the credit score company – of course you have to use their services before they get their commission. Some don’t and provide FICO information for free.