Comments on: Why Financing Your Computer is a Terrible Idea

By: Michael

Michael — Mon, 23 Jul 2007 21:15:07 +0000

There is a way to finance a computer without getting hit with the interest and the poor financing terms that most companies offer. My Computer Club actually offers no interest/no credit check financing without the requirements of payment that Blue Hippo uses to default on delivery.

They do charge a membership fee though. It is $89 a year but you get your hardware delivered rightawway after your 20% deposit (i think its 20 but don’t quote me). Blue Hippo requires 3 months of payments without a default before they will send their customers the product. If the customer misses the 3rd month of payment the timeframe resets and they need another period of 3 months payments before they will send the product (again please don’t quote me). I would recommend at least taking a look at this as an option if you are in need of a computer but don’t want to wait.

By: Viola

Viola — Mon, 21 May 2007 13:49:27 +0000

I do not like the idea of purchasing anything on finance. If you can’t afford it, you shouldn’t make debts.

To me paying cash for everything works. However, I do buy certain things with my credit card, as for the additional warranty/insurance/protection (that is usually holidays/trips and of course the internet). BUT, when I get the statement, I always have the money ready to pay the whole amount (whatever that is) off within the asked period so there are no additional costs.

By: Amy F.

Amy F. — Mon, 21 May 2007 03:46:16 +0000

Stingy Student, I have never heard of Blue Hippo–I’ll be sure to look them up. Thanks for the tip.

By: Brett Johnson

Brett Johnson — Mon, 21 May 2007 00:25:33 +0000

I “financed” an Apple PowerMac several years ago. It was actually a decent deal – no interest, no payments for 6 months. 5 months and three weeks later, I paid it off in full. The only downside was the nonstop MBNA credit offers over the next 5 years.

I have purchased computers on credit cards. Not just for the convenience, but for the additional purchase protection and warranty coverage. I also benefit from the card purchase rewards program.

However, like my first example, I pay off the card fully within the billing period, avoiding any finance charges.

Paying for a computer on a monthly installment plan, especially with double-digit interest rates, is a terrible idea.

By: Stingy Student

Stingy Student — Sun, 20 May 2007 23:44:52 +0000

Watch out for companies like Blue Hippo as well. They have a pretty bad history of ripping off customers, just google them, and all the links after the first few are complaints against the company.

By: poundwise

poundwise — Sun, 20 May 2007 23:21:25 +0000

Financing a computer is a terrible idea. The only reason to finance one is the ‘spoiled child’ syndrome of ‘I want it and I want it now!’

By: Kristine

Kristine — Sun, 20 May 2007 16:38:49 +0000

Yikes! I had no idea that the financing terms on computers were so poor. I was thinking about purchasing a new laptop and was planning on reviewing the financing options available – now I know I’ll be paying cash for my new laptop. Thanks for educating us!