Comparing Computer Loans and Personal Loans

Computer loans are directed specifically toward the purchase of a new personal or business computer. They are provided by retailers or manufacturers, at the time of purchase. Computer loans, however, are just one way to achieve financing for the purchase. A borrower may also secure a personal loan in the amount of the cost of the computer.

Computer Loans

If your loan is coming from the dealer or manufacturer, you may find a lower interest rate as an incentive to purchase the computer. You will also be securing the loan against the computer, which will make the interest rate lower. However, if you default, your computer may be seized without notice to you. Secured loans mostly benefit those people who are primarily looking for a very low interest rate on the financing.

Personal Loans

Personal loans are available through banks and lenders; online lenders are good resources for personal loans. They are typically unsecured loans, which makes them more expensive. However, the borrower assumes less risk in this situation and may not have the asset seized in case of default. Personal loans are also a great way to build credit if you are considered high risk. Paying off a high-risk personal loan will boost credit fast.

 


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