| There was a time when computers where a luxurious | | | | you can easily get approved for an unsecured |
| item. Only those with a high income could afford | | | | personal loan of $7500. Most pre-approved loan |
| getting one. Nowadays, the computer industry has | | | | packages that come along with credit cards and an |
| evolved and new products arrive every day driving | | | | overdraft agreement for your bank account feature |
| older ones obsolete. This has greatly reduced the | | | | that amount ratio. |
| prices but also created the need of upgrading or | | | | Another important advantage is that you can repay |
| buying new equipment regularly. | | | | the loan in many loan installments even lower than the |
| Financing your purchase | | | | minimum payments on a credit card balance. |
| Thus, the need for finance becomes more marked | | | | Moreover, since the loan installments usually come with |
| especially for those with a limited income. Using your | | | | fixed amounts you can be sure that when the last |
| credit card is always an option but not the cheapest | | | | payment is due, you'll have cancelled all your debt and |
| one and sometimes not available for everyone. If you | | | | you'll have become debt free. Paying credit card |
| are buying a new computer, your credit card limit may | | | | minimums, on the other hand, often implies paying only |
| not let you purchase it through that means. Sometimes | | | | interests while your debt's principal stays unaffected. |
| your credit card limit would allow it but other expenses | | | | What if I have Bad Credit? |
| may have exhausted your credit. | | | | If your credit is less than perfect you needn't worry. |
| Using a personal loan to finance the purchase is a | | | | Most stores that offer personal loans specifically |
| much better solution for several reasons. For starters, | | | | designed for buying their equipment and other |
| the interest rate charged for personal loans is | | | | non-traditional lenders feature personal loans for |
| significantly lower than that charged by credit card | | | | people with bad credit, no credit at all and sometimes |
| companies. Credit Card holders are used to paying a | | | | you can even get approved if you have recently gone |
| two digit interest rate that can get as high as 25% | | | | through a bankruptcy process. What you need to do is |
| while those who request a personal loan may have to | | | | request loan quotes from different lenders and |
| pay, in the worst scenario, an interest rate of 10%. | | | | compare rates and fees. Make sure to do this, |
| The amount of money you can obtain through a | | | | especially if you have bad credit because the interest |
| personal loan is significantly higher than your credit card | | | | rate charged to those with bad credit tends to be |
| limit (Often, the difference being 5 to 1 in terms of loan | | | | higher so it won't hurt you to get the best deal possible. |
| amount). If your credit card limit is $1500, chances are | | | | |