Guide to Using a Personal Loan for a Laptop Purchase
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Editor’s note: Lantern by SoFi seeks to provide content that is objective, independent and accurate. Writers are separate from our business operation and do not receive direct compensation from advertisers or partners. Read more about our Editorial Guidelines and How We Make Money.
Are There Any Personal Loans for Laptops?
How Do Personal Loans for Laptops Work?
Pros of Using Personal Loans for Laptops
Spreading out the cost of a large purchase Getting lower interest rates than you would with credit cards Consistent monthly payments Building your credit score by making on-time payments and improving your credit mix (the different types of credit you have)
Cons of Using Personal Loans for Laptops
Interest charges add to the cost of the purchase Personal loan impact on credit score can be significant. Missing a payment or defaulting on a personal loan could damage your credit score Having debt to pay off can be stressful
Can Students Use Personal Loans for Laptops?
In-House Laptop Financing vs Personal Loans for Laptop
Personal Loan Requirements
Good credit score. The higher your credit score is, the more likely you are to qualify for a personal loan and for lower interest rates. Consistent income. Lenders want to see that you have a steady source of income to pay back your personal loan. Low debt-to-income ratio. Your debt-to-income ratio (DTI) is your gross monthly income compared to your monthly debts. Generally, the lower your DTI, the better. That indicates that you aren’t taking on more debt than you can afford to pay off. Healthy credit report. This shows lenders that you have a track record of paying off debt and making your payments on time.
Personal Loan Approval Time
Alternative Laptop Financing Options
Buy Now, Pay Later
3 Personal Loan Tips
Shopping around helps ensure that you’re getting the best deal you can. Lantern by SoFi makes this easy. With one online application, you can find and compare personal loan offers from multiple lenders. If the interest rates you’re being offered seem too high, try lowering the loan amount. Generally, the larger the loan, the greater the risk for lenders, who likely charge a higher interest rate for the increased risk level. Don’t assume that if you have bad credit, you can’t get a personal loan. There are lenders who specialize in bad credit loans.
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