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There are plenty of reasons to invest in a laptop, such as attending graduate school or starting a business. Laptops can be expensive, however, and some consumers may need to spread out the cost of the purchase rather than pay it all at once. Fortunately, there are ways to do this, including using a personal loan for a laptop.
Read on to learn all about getting a personal loan to purchase a laptop, pros and cons of personal loans for laptops, qualification requirements, and more.
Yes, personal loans can be used to finance the purchase of a laptop. Many lenders offer personal loans that can be used for any purpose, including buying electronics.
Unlike a car loan or mortgage loan that are earmarked for specific purchases, personal loans are flexible. That means you can use a personal loan for a laptop.
Personal loans are usually unsecured loans, which means they don’t require any form of collateral. These loans typically have fixed interest rates and repayment terms, allowing you to borrow the amount needed and repay it over time.
When you take out a personal loan, you pay interest to borrow the money. You pay back the principal balance of the loan plus the interest in monthly installments until you pay off the loan in full. The shorter the length of a personal loan, the higher your monthly payment will be, but you’ll end up paying less in interest over the life of the loan.
There are a number of advantages to using a personal loan for a laptop, such as:
There are also some disadvantages to using a personal loan to buy a laptop that you should be aware of, including:
Students can use personal loans for laptops as long as they qualify. Most undergraduate students, though, haven’t yet built up a strong credit history and credit score before they head college.
Graduate school students, on the other hand, may have built up enough of a credit history during their undergraduate or early working years that they can qualify for a personal loan. Students can use those funds to buy a laptop to complete their coursework while attending law school, medical school, or business school.
Another option for financing a laptop is using in-house laptop financing provided by the store you’re purchasing from. Here’s how in-house financing for a laptop differs from a personal loan.
In-House Financing
Personal Loan
Interest is often deferred as a promotional offer
Interest kicks in right away
No interest paid if balance is paid off before promotional period ends
Paying off the loan early can help you save on interest
Offered by the retailer
Offered by banks, credit unions, or private lenders
To qualify for a personal loan, a borrower generally needs to meet the following requirements:
Different lenders have different personal loan approval times. Typically, once you apply for a personal loan and meet the lender’s requirements, the personal loan approval time can be fairly quick. In many cases, it takes just a few business days. Some lenders even offer next-day or same-day approval. Check with your lender about their specific timeline.
In addition to a personal loan, there are options to financing a laptop you may want to consider. These include:
As mentioned earlier, some retailers that sell big ticket items, like laptops and furniture, offer in-house financing. In-house financing typically comes with a promotional offer of deferred interest for a set period of time. If you pay off your balance in full before the promotional period ends, you won’t pay any interest at all. However, if you don’t pay off the full balance, you will need to pay all the interest that began accruing from the day you started financing. The interest rate for in-store financing is typically high, so this is something to be aware of.
Credit cards often come with high interest rates. One option you might consider is to open a new credit card with a 0% APR introductory rate, buy your laptop interest-free, and pay it off before the introductory period ends.
Buy now, pay later financing makes it possible to spread out the cost of a purchase without having to pay interest. Usually, you pay a certain amount upfront and then pay the rest in installments. The payments are often interest-free, but only as long as you make them in full and on time. If you miss a payment, you may be charged a late fee.
If you’re in the market for a new laptop and you don’t have enough cash to pay for it, you can use a personal loan to purchase it. This can help spread out the laptop payment over time, making it more affordable.
Personal loans do come with interest charges, so this is something to consider. You’ll also want to make sure that you can pay back the loan regularly and on time.
If you’re looking for a personal loan, Lantern by SoFi can help. With just one application, you’ll be connected to our network of lenders to find the best rate and terms for you.
Check your rate today with Lantern!
Jacqueline DeMarco is a personal finance writer and editor based in Southern California. While she spends the bulk of her time writing about complex financial issues, she also tackles a variety of subjects ranging from food to fashion to travel. Her work can be found across dozens of publications such as Credit Karma, LendingTree, Northwestern Mutual, The Everygirl, and Apartment Therapy.
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SoFi Lending Corp. ("SoFi") operates this Personal Loan product in cooperation with Engine by MoneyLion. If you submit a loan inquiry, SoFi will deliver your information to Engine by MoneyLion, and Engine by MoneyLion will deliver to its network of lenders/partners to review to determine if you are eligible for pre-qualified or pre-approved offers. The lenders/partners receiving your information will also obtain your credit information from a credit reporting agency. If you meet one or more lender's and/or partner's conditions for eligibility, pre-qualified and pre-approved offers from one or more lenders/partners will be presented to you here on the Lantern website. More information about Engine by MoneyLion, the process, and its lenders/partners is described on the loan inquiry form you will reach by visiting our Personal Loans page as well as our Student Loan Refinance page. Click to learn more about Engine's Licenses and Disclosures, Terms of Service, and Privacy Policy.
Personal loan offers provided to customers on Lantern do not exceed 35.99% APR. An example of total amount paid on a personal loan of $10,000 for a term of 36 months at a rate of 10% would be equivalent to $11,616.12 over the 36 month life of the loan.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
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