To help you afford a new computer, there are several different options for you to consider:
An unsecured personal loan is when you borrow money from a lender, without having to use an asset as security. You then pay the finance back in weekly, fortnightly or monthly instalments over an agreed term. With an unsecured personal loan, you receive the money upfront and then can pay for your new computer or laptop in full.
However, please be aware that most unsecured personal loans are only available from $5,000 and most laptops cost under $2,000. While unsecured loans are flexible and you can use the funds for more than one purchase, over-borrowing can be risky. This is because you will have to make interest payments on the entire principal of the loan, which can be expensive.
Short term loans are available from $100 to $2,000. They are quick to apply for and have minimal eligibility criteria. However, depending on your financial situation, getting a short term loan to cover the cost of a laptop can be an unsound financial decision. This is because short term loans are expensive forms of finance, with high interest rates and fees.
Repayments on short term loans are usually high, so it's a good idea to ensure that you will be able to comfortably meet these repayments prior to applying for one.
With a credit card, you can purchase your new laptop and pay it off over an extended period of time in instalments. You might want to consider a 0% purchase card to give you an interest-free period.
Many shops offer in-store finance to help customers afford expensive products. With in-store finance, you can spread the cost of your new laptop over 6, 12 or even up to 18 months. Many companies even offer interest-free loans or a 0% interest period.
If you're a student, you could be eligible for help purchasing a laptop from the government with StudyAssist. Alternatively, you may be able to borrow a laptop from your university, while you save to purchase your own.
Depending on your circumstances, you could qualify for a low-interest (5.99% p.a.) StepUP loan of between $800 and $3,000 on terms of up to 3 years, to help you purchase a laptop. StepUP loans have no fees. To qualify for a StepUP loan, you must:
If you are under 18, your parents may be able to qualify on your behalf, depending on their circumstances.
If you're on a low income, you may be able to qualify for a No Interest Loan (NILS) to cover the cost of your laptop. NILS are available up to $1,500. To qualify for NILS, you must:
If you are under 18, your parents may be able to qualify on your behalf, depending on their circumstances.
You may still be eligible for a loan even if you have bad credit, though you will usually find that your options are more limited compared to someone with good credit. If you are eligible for a No Interest Loan, your credit score will not be checked. If you are ineligible for NILS, short term loans are often available to applicants with bad credit (though they come with the aforementioned risks attached).
If you want to opt for a personal loan to cover the cost of your laptop, there are several ways that you can compare, to ensure that you get the best deal:
As well as obviously looking for a low interest rate, you need to decide whether you're going to opt for a fixed or a variable rate loan. A fixed rate allows you to lock in a specific rate for the life of your loan, whereas a variable rate may change over the course of the loan. Though you run the risk of a variable rate increasing, they often have fewer restrictions. For example, you can usually repay the loan early without penalty or make additional repayments. Fixed rate loans generally have shorter terms, up to five years, whereas variable rate loans can last for as long as seven.
Don't forget to look at the fees when considering a loan. Common fees to take into consideration include establishment fees, annual fees, monthly fees and penalty charges if you miss a payment. These can really drive up the cost of the loan, so make sure to read all the terms and conditions prior to signing a loan contract.
Personal loans generally have a minimum term of a year and a maximum term of seven years. A longer loan term may reduce the size of the repayments you need to make, but will generally mean you pay more in interest over the life of the loan. For a personal loan for a laptop, you will only need a relatively small loan, therefore it may not be a good idea to opt for a longer loan term. And remember, many retail stores offer interest-free or low interest finance on their products for 6, 12 or 18 months.
Whether or not you are eligible for a personal loan for a laptop will largely depend on the type of finance that you opt for. However, if you are planning on opting for a standard personal loan from a bank or non-bank lender, the below criteria usually applies:
Remember to compare your options thoroughly prior to submitting an application.
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