This article was co-authored by Michael R. Lewis. Michael R. Lewis is a retired corporate executive, entrepreneur, and investment advisor in Texas. He has over 40 years of experience in business and finance, including as a Vice President for Blue Cross Blue Shield of Texas. He has a BBA in Industrial Management from the University of Texas at Austin.
Laptop computers are a major part of the electronics market today. More and more people are going from the old, non-portable, desktop varieties to smaller and sleeker laptop designs that often include the same computing power in a more compact shell. But sometimes consumers face challenges in affordability for even the cheapest laptop computers. Computers are major appliances that can cost hundreds of dollars. However, some people have no credit history to rely on and no savings to fall back on when the time comes to purchase a new laptop. For those people who need to finance a laptop with no credit, a little research will help you figure out a way to get the laptop you need.
- Retail credit card – a retail credit card is a good credit-building option because it usually has a higher acceptance rate than a regular card. They can also offer promotional incentives to help you save money at their store. But these kinds of cards may also have lower credit limits than a normal card.
- Authorized user – being an authorized user on someone’s account means that you’ll have a card with your name on it for someone else’s credit account. So, you have access to the credit (and, therefore, the account holder’s payment history will positively affect yours), but you are not responsible for any of the payments. Ask your parents or another friend or family member who already has good credit if they’ll let you be an authorized user on their account. X Research source
3Keep your balances low. Using your credit cards is important, but it’s also a good idea to not use them too much. Try to keep your balances low by paying them off every month (or as close to it as you can get). X Research source
- Using 30% or less of your available credit looks good to potential lenders.
- If you max your credit cards out, this can appear to lenders as if you rely too much on your credit, which is not a good sign to them.
4Get a credit builder loan. These kinds of loans are low-risk (for your and the lender!) loans that you can get from most banks. They are usually for a small amount (not more than $1000) and the money is put in an interest-earning account while you make monthly payments toward this "loan." X Research source
- Once the amount is paid off, the funds are released to you plus the interest it accrued while it was being held by the bank.
- These kinds of loans are usually designed to be paid back within 6 to 18 months.
- Always evaluate business deduction possibilities for a laptop purchase. Buying this kind of device for work-related goals can get you some savings on future annual federal and state income tax filing.
- Remember that purchasing a laptop with any kind of credit, whether it’s a credit card or a rent-to-own option, will always cost you more money in the long run than buying it outright would.