Game Consoles

Every time a new generation of gaming consoles hits the market, gamers get to enjoy better performance, new games, and improved features. However, these consoles often come with a high price tag. If you're on a budget or have bad credit, then you might not be able to buy the console you want. The good news is that you can get financing and make sure that you stay gaming.

Financing Options

The good news for gamers is that companies know their consoles come with a high price tag and are willing to provide options for customers to enjoy gaming without breaking the bank. These are a few of the options available for some of the major next-generation consoles.

1. Xbox All Access

Xbox Access is a subscription service that launched in 2018 by Microsoft. This program lets gamers pay for an Xbox console over time instead of having to pay for the entire one upfront. You'll get the console but also have access to Xbox Game Pass Ultimate. With a library of over 100 games and the ability to play online, the pass on its own costs $14.99.

The console costs hundreds of dollars but you can also join the Xbox All Access. There are three options for this program. For $35 a month over 24 months, you'll get the Xbox Series X and two years of the game pass. For £25 over 24 months, you'll get the Xbox Series S and two years of the game pass. Finally, for £23 a month over 24 months, you'll get the previous gen Xbox One S, two years of the game pass and also the option to upgrade to an Xbox Series X after 18 months.

If you choose this option, there are no upfront costs so if you can afford the monthly cost, then you'll have an easy way to enjoy a console and access to some great games.

How Does Financing Work?

The financing comes from lender Citizens One. The lender will run a credit report and they don't state a minimum credit score in order to qualify. Since the monthly cost is fairly low, you'll have a good chance of being approved even if you don't have good credit.

2. Store Financing

Although some companies may have their own financing plans, not all of them have opted to provide this for customers. For example, Sony doesn't provide a financing option for their consoles. However, individual retailers may offer their own financing that can give you good options and flexibility when it comes to payment. GameStop is one business that offers several ways to purchase consoles such as the PS5. they have a program for layaway payments, a rent-to-own plan, and installment payments that may be available for third-party companies

The cost for these programs is going to vary depending on which console you want to purchase. However, a rent-to-own plan can be a good option if you have poor credit or no credit. Programs such as layaway won't even run a credit check but you'll have to wait until you've paid for the entire console before you can actually take it home. Rent-to-own programs are some of the best when you can afford a monthly payment but a lump sump. Qualifications for this may vary based on the retailer.

3. Third Party Financing

It's not likely that a bank would give you a loan for a console but there are many third-party companies which offer small loans for these and similar purchases. This will let you have the console immediately and you'll often have no credit checks in the process. The application can be fairly simple and once you're approved, the financer will typically set up payments that match paydays so that you don't have to worry. With this option, you may have to pay an administrative fee and wait until the payment clears. Once you've been approved, you can pick up your new product or have it shipped directly to you.

Interest Rates

When it comes to taking out loans, you'll want to know the interest rate. Depending on the financing option you use, the loan rate may be 0% for a period of time and then go up. This means that if you pay the loan amount back within that time period, you'll be able to pay for the console without paying any interest. This can be a great deal and well worth trying to pay it back early. If not though, you'll probably be paying a little extra for interest.

Interest rates are the amount on top of the loan that a lender charges. They pocket this rate as a fee for loaning you money. Interest rates can be highly variable. A decent interest rate is typically around 5% for a smaller loan. However, if you have bad credit, you may pay a higher rate. This means that if you borrow $500 for a console, you'll end up paying back $525 which is the loan plus the interest rate that's being charged. Obviously a lower rate is better. Anything much above 5% can end up being expensive so shop around for a lower rate. When it comes to offering a loan, finding a lender with no credit checks is not common.

Obtaining Credit

If you have bad or poor credit, you may not qualify for a loan easily. One of the best ways to build up good credit or repair bad credit is to pay your bills on time. Car payments, rent payments, and credit card payments can all have a significant effect on your credit scores. Work to develop a budget that prioritizes these payments. Once you make them on time for about six months, you'll start to see your credit improving.

Paying the Loan

Once you have a loan for your console, you want to make sure that you keep up to date with payments. One of the simplest ways to do this is to take money from your paycheck every month and put it towards the loan. Before you take money for any other expenses, pay your monthly bills such as loan payments, car payments, and any other fixed monthly expenses like rent. Once you have these expenses covered, you can spend the rest of your money the way you want.

Paying for a new console isn't always easy if you have poor credit or no credit. With these simple options though, you'll be able to enjoy gaming on your own terms.