Credit and Finance Articles
Computer Loans- Become Techno Savvy the Easier Way
By: James Taylor
I read of computer loans as a banner advert on a website. The loan provider had mentioned of easy finance options to help people purchase computers. Suddenly the dream of owning a computer became so easy to realise. It had been my insistence to purchase a branded computer and an insufficient personal income that were obstructing me from the purchase. But, now with the finance options in hand, computers from the best known companies are not far off.
Computer Loans have been born out of the idea of assisting every person in the UK to have a computer of his own. It is difficult to do without computers in the present age. Whether it is a simple classroom work for kids or your own office work, almost everything demands a computer. Such is the craze of computers that people will prefer to have a computer just as people would have craved to have television in its heydays.
People desirous of purchasing computers can easily apply for computer loans. Computer loan is similar to a personal loan, as far as the terms go. Though computer loans have a long list of benefits for borrowers, the best among these is the facility of stretched payments. Payments in a computer loan are stretched over a period called the term of repayment. Had it been for a cash purchase of the computer, borrower would have to pay the price of computer immediately. Only those with enough cash to make the immediate payment would have been able to purchase computers.
However, when computers are purchased through computer loan, borrower does not have to pay to the seller through his own pockets. It is the loan provider who makes the payment instead of the borrower. However, it will appear as though the borrower is making the payment. Bargaining on price, commonly associated with cash purchases can be conducted on purchase through computer loans too. This is because the borrower has the loan proceeds with him and he has the discretion on the manner and the amount up to which he wants to use the computer loan proceeds.
The amount that one had to pay to the computer dealer will now have to be paid to the computer loan provider. The manner in which computer loan is to be amortised is an important decision. The complexity of the decision increases because of the multiplicity of options available for loan repayment. You can either make a balloon payment towards the loan or pay through instalments that accrue monthly or quarterly.
Balloon payments are advantageous for borrowers who hope to lay hands on a sizable sum in the near future. Interest charges are significantly reduced through this method. The alternative method whereby payments are to be made through periodic instalments will bring greater interest to borrower’s loan, but suits people with fixed incomes.
Interest is the cost of inflation on the amount lent to borrowers. Typical interest rate on a computer loan ranges from 7.25% to 15%. APR is generally dependant on the amount of loan that is being taken and the borrowers’ credit status. Yes credit history is not going to leave you even in computer loans. A good credit history is preferable to get a larger amount for computer loans at cheap rates. Loan providers who work with sub-prime borrowers may arrange good deals for the borrowers with bad credit in computer loans.
As far as the question of mode of application goes, it is easier to apply for computer loans online. Borrowers who are about to purchase computers are already too techno-savvy to be explained the online process of application. In brief, the process of online application will not require the borrower to visit lenders office. By logging onto the lenders website and filling up his details in the application form given there, the applicant can initiate the approval process.
Computer loans help boost the technological revolution by making computers more accessible.
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