TV's: Pay Weekly, Pay Monthly & Bad Credit Options
Are you in a dire financial situation and don't have enough credit score to get financed for a brand-new Ultra HD TV? Some people would flatly tell you to pay with cash upfront. However, this is simply not in the realm of possibility for most.
Fortunately, you may be able to find alternative ways to enjoy the benefits of new TV technology while not having to go through strenuous credit checks.
A bad credit score is defined by situations in which an individual has been unable to fulfil his repayment duties from a debt or loan agreement in due time. This score is supposed to quantify how a borrower has behaved in the face of debt throughout his financial life.
Credit histories are touted as being very accurate, but they can be very arbitrary in some instances. Even if you had a bad score due to missed repayments from very old debts, this could ultimately affect you even when achieving an improved financial condition and a stable source of income.
Credit scores vary in their measurement according to the CRA we speak of. For example, 380 is considered a fair credit score (the minimum required for most lenders) according to Equifax, while TransUnion will grant a fair tag to any number over 566.
Tv Finance With Bad Credit, Is It Hard? Is It Convenient?
People who enjoy a good credit score will have it easier to get loans with low-interest rates and a plethora of other advantages. Furthermore, they won't get asked a lot of nosy questions just for purchasing a new smart TV.
Nevertheless, it's still possible for people with bad credit scores to get clearance, but some of the more serious companies that offer these loans are not any less picky.
Surely, they won't be browsing your credit score, but you would expect to be more thoroughly researched in other areas, and you'll have to provide additional data, such as proof of address.
Also, some of these companies will even request that your employer signs up so payments would be taken directly from the salary, or they can demand that a family member or acquaintance co-signs the agreement.
In many cases, these companies will offer a limited number of TV models from a small list of makers, and the total amount of credit will be much lower than what regular lenders grant.
These special lenders are prone to charge high monthly repayments over lower time frames, and the penalties for missing a repayment can be considerably high. It should be assessed by the individual customer whether the monthly amount is affordable and if the payment schedule can be religiously observed.
Another major setback is that many of the companies that offer loans for TVs without credit checks are actually rogue companies not approved by the Financial Conduct Authority (FCA). One should tread carefully so as to not give sensitive information to fishy retailers and lenders, which is why it's crucial to do proper research before enrolling on a loan application with any of them.
To elude all these potential hindrances, you can consider putting some money on the side – from your monthly income – that you may use later on in order to make what is called a “down payment”. This will ensure that your interest rates are much lower while having it easier to secure a loan from a trustworthy provider.
Relying on a trusty old credit card is another fine solution. Surely, you'll find it a bit more difficult to elude the high APR that financial institutions charge by default for the use of these instruments, but you'll. effectively bypass any approval window while not having to disclose any additional personal data or having your employer, family member, or friend involved in a cumbersome loan application procedure.
In the event that you decide to use your credit card, some banks offer flexible financing options, including the ability to set a fixed monthly rate or recurrent payments for a percentage of the debt. You could also be offered the possibility of setting up instalment payments to conform to your specific budget profile.
Rent To Own An Alternative To TV Finance With Bad Credit?
Owing to the oftentimes rigorous thresholds adopted by most CRAs, companies with a rent-to-own model have stepped to the fore in recent years to provide an optimal solution for people who simply wish to have new gadgets in their homes but who are unfortunate enough to have a bad credit score.
The main problem with the rent-to-own model is that _YOU DON'T ACTUALLY OWN THE GADGET THAT YOU USE_, nor would you be able to ever own it and dispose of it at will. Additionally, you'll find yourself having to pay a weekly or monthly fee for an undetermined amount of time,
All things considered, the idea of renting a TV can be enticing if you only want to use a TV for a special occasion, such as the FA Cup final or a similar event. If the fee takes up a minimal percentage of your monthly wage, you'll probably fare better just having your TV rented indefinitely.
These rent-to-own services are also offering free repairs and a myriad of other benefits that you won't get with a regular warranty.
Most importantly, you may decide to return your TV and cancel the subscription anytime without any additional costs, or at least that's the case with most providers. Within this purview, you'll be essentially free from any liability or debt, for there are no terms you could breach by withdrawing from the agreement.
Should You Get a TV On Finance?
You could already see, from the explanation given above, that getting a loan with a bad credit score is not as hard as it may appear on first thought, yet it does have its major hurdles. Opting for a loan under these encumbering conditions (high interest rates, onerous monthly payments, etc.) may be your only option if you truly want to own a TV without being a credit cardholder, but you'll need to be prepared to pay a sizable amount of money in the long run, as well as go through a very tedious application process in which you may have to involve other people. Renting, on the other hand, is a viable alternative if you're not that crazy about ownership.