What are the Risks of Computer Loans?

Computer loans are an attractive option if you do not want to pay for a new PC in one payment. You can seek a computer loan through a traditional lender in the form of a personal loan or you can also seek a loan through the computer manufacturer or retailer. Be aware of the risks as well as the benefits. Risks include:

  • High interest rates if are seeking a bad credit loan, making your computer purchase proportionally much more costly. Because a computer costs less than $2,000 on average, a high interest rate can add a significant portion of cost to your purchase.
  • Credit score penalties for late payments or missed payments. Your computer loan will go straight to your credit report, and all payments you make on the loan will be tracked just like your mortgage or auto payment.
  • Seizure of assets if you default. If you do not place collateral, the computer itself will be seized at the time of default. Any collateral you place may also be seized. 

 

 


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