Cookers For Bad Credit – Can I Get One With No Credit Check?

How It Works

The “pay weekly” program used for pay weekly cookers resembles both a rental and a loan. When you go to get a pay weekly cooker, the store or company examines your credit and works with you to find an interest rate and payment schedule that fits your needs and budget. The terms of your deal will vary, but in general, as long as you make weekly payments on your cooker, your deal operates like a loan. Once you've paid off both the initial cost of the cooker and any interest accrued over the duration of the loan, the cooker is yours to keep. If you decide you don't need it anymore or you miss too many payments, you return the cooker to the store and end the deal.

Pay weekly cookers are great options for people with bad credit. If you default on the loan, the store can always retrieve the cooker, which makes it relatively safe from the store's perspective. While the store will probably charge more interest to people with bad credit, it's still a good option to get a quality appliance that you don't have to pay for up-front.

How Interest Works

Most of the time, you'll have to pay compound interest on your pay weekly cooker. The interest is often charged monthly on the total amount you owe. Each month, the interest on your loan is added to the total amount you have to pay, forever. This means if you borrow £1000 on a 10% monthly interest rate and pay $0 per week, you'll owe £1100 after the first month, 1210 after the second month, and so on,

Every time you make a payment, however, the amount you owe decreases. In the earlier example, if you're paying £100 per week, you'd only have to pay interest on £600 the first month, taking your total owed to £660. At the end of the second month, you'd have to pay interest on £260, taking your total to £286. You'd only pay £86 of interest, compared to the £210 you'd pay in the first example.

The important takeaway here is that the faster you pay, the less you pay overall. If you stretch your payments out over two years, you'll often wind up paying more than double the initial cost of the item with a pay weekly appliance. If you can get it down to a couple of months, you can save hundreds of pounds.

When considering a pay weekly cooker, be sure to consider the interest rate, the length of the loan, and what your payment options are. What happens if you miss a payment? Can you pay more early? Will the interest rate change over time? The answers to these questions can have a big impact on how much your pay weekly cooker winds up costing you in the long run.

Find A Reputable Provider

The companies that offer pay weekly cookers are not all the same. While there are a handful of community interest companies with low interest rates and transparent policies, there are also a number of less reputable stores that will employ disreputable business practices. Take some time to research the company that you're using for your pay weekly cooker before you sign anything, read all of the fine print, and keep records of the whole transaction and each payment you make. Having a paper trail will help to protect you against any shady schemes, like a company claiming you missed a payment when you didn't.

Do I Need Good Credit for A Pay Weekly Cooker?

Unlike cars, which depreciate rapidly the moment they're driven off the lot, used cookers hold their value reasonably well. This means that a company can simply repossess a cooker if you fall too far behind on payments without losing a lot of money. In other words, it's fairly safe for businesses to offer pay weekly cookers to people with bad credit.

That said, the process of getting a pay weekly cooker may vary based on your credit. If you have bad credit, you may have to jump through extra hoops during the application process or pay more interest. You also might be more limited in your selection of cookers. Finally, the business might ask for some extra money down to help offset the risk of lending a cooker to a person with bad credit.

Many businesses offering pay weekly cookers have simple online applications that can instantly qualify you for a pay weekly cooker. If you're worried about your credit, try using one of these applications and see what happens. There's a very good chance that you'll be approved.

Are Pay Weekly Cookers A Good Idea?

There are two fundamental things to consider before choosing a pay weekly cooker. The first is that you'll pay more than the initial purchase price of the product. This is because you'll pay interest over a period of time. The longer it takes for you to repay the loan, the more interest you'll pay. Interest rates on pay weekly cookers can be quite high. Some community interest companies charge a comparatively low rate of 3.75% per month, or 55% APR. For-profit companies tend to charge even more. At 3.75% per month and a one-year term, paid weekly, you'll pay more than 20% more than buying the cooker outright.

The second thing to consider is that you're probably choosing a pay weekly cooker to save money. Because of interest, you're probably not saving money in the long run. A pay weekly cooker can be a good option, but over the course of your lease term you'll likely pay back a significant premium over the initial cost of the cooker. If you had saved £10 a week (or whatever the rate for your cooker of choice is) instead, ideally in an interest-bearing account, you could purchase a nicer cooker at the end of a year of saving while having some money left over.

This isn't an option for everyone. Sometimes you need a cooker, now. Other times, you'd like to trial a particular model, or you're only in a house for a couple of weeks, or there's some other wrinkle. When these wrinkles exist, pay weekly cookers are a good idea. If they don't, however, you may want to think twice before taking the plunge and signing a contract. No matter what, before you decide to get a pay weekly cooker, be sure you thoroughly understand the interest being charged, what your options for early repayment are, and what your options for exiting the contract are. As long as you understand these things and you're happy with your decision, you'll do fine.