There may not be one right answer to that question. For many people, it seems to depend on how bad you actually need a computer. However, for others, patience is a virtue.

There are several companies now on the market that advertise financing deals to those consumers with part or current credit problems. Blue Hippo, Financing Alternatives, and Tronix Country are a few of the more widely-known companies that allow consumers with bad or no credit to finance a computer system using a small, monthly payment system.

The Downside 

That system, however, is not always what it appears to be. Consumers are led to believe that such small payments each month will provide them with a computer comparable to competitive computer retailers but in actuality most of the computers sold through these programs are of lower quality and at a much higher cost – sometimes up to a $1,000 difference in price. Many programs require customers to make some initial weekly deposits for a certain time period before the computer system is even shipped. Customers will often find that an automatic debit is required in order to qualify for the program.

While the program may seem ideal to those who see no other options, there can also be plenty of drawbacks. Besides the lower quality of computer equipment and the long repayment terms, there is also the risk of investing a lot of money into something you never receive, as was the case with Blue Hippo, who in February 2008 paid a $5 million dollar settlement brought on by the Federal Trade Commission, to consumers who claim they were victims of fraud by the company for having paid the required money but received nothing in return. Consumers also did not receive refunds in such circumstances.

Consider Cash 

Many consumers with poor credit are led to believe these programs are the only alternative for purchasing a computer system so some people are doubtful they can do this on their own without financing. But the reality is, consumers do not have to make bi-weekly payments to any place other than their own savings account in order to afford a quality computer system. Since using financing programs does not result in the immediate possession of a computer, there is not much difference than in waiting for one while saving the cash. One of the financing companies even offer reliable advice on its website: “For people who have sufficient cash or can obtain financing from other means in order to make a purchase outright, our program is most likely not for you.” Essentially such financing companies’ feel the rates they offer consumers “tend to be lower than a rent-to-own option”.

Additionally, consumers with bad credit will never be refused a computer when paying in cash. There are plenty of places to purchase a quality computer at reasonable prices, without relying on a financing company and it could save you hundreds (or even a thousand) dollars. If you insist on getting your new computer now, just use one of the many low rate cards of credit that are sitting in your wallet. Retail stores such as Best Buy and Walmart have begun offering great deals on current computers and by choosing to pay in cash, the computer is yours free and clear without racking up additional debt in the process .



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