Just when we thought the great graphics card (GPU) crunch was coming to an end, we’ve been stung with another invisible enemy – inflation. The money you’ve saved up yesterday isn’t worth as much as it is today, which means big trouble for your dollar going as far as possible.
Couple that to the DDR5 platform becoming the standard and new sockets coming (the inevitable death of Socket AM4!) digging deep into your pockets for your next big-ticket gadget or tech purchase seems less and less likely.
So how can you finance your next big-ticket purchase? What pitfalls can you avoid?
Don’t use the credit card
Though you may be tempted to finance your next big-ticket tech purchase on the credit card – don’t. Businesses often fail using short term debt to finance purchases they will use long term. Fine if you’re buying little things like keyboards, though.
Worse still is that credit card interest is sky high compared to personal loans. They also roll over each month if you haven’t paid them off, which means you could be on the hook for thousands upon thousands in additional interest – leaving you in the lurch when the GeForce 50/Radeon 7000 series or AM6 comes calling.
What is your credit score?
A credit score is literally a score or number – usually out of 1200 and 0 – showing banks and lenders if you are a good borrower – or not. Taking out too many debts, paying bills late, or making too many inquiries can lower your score. Paying bills on time and having few debts means you have a higher score. A higher score means you’re a lower risk and vice versa. A higher score means lenders are more likely to approve loans – and at more competitive rates. You can check your score and entire credit history once per year for free at a credit reporting bureau.
Taking out a personal loan
The best and most cost-effective way to finance your big-ticket tech purchase is to take out a personal loan. It may be a little inconvenient compared with paying cash or with your credit card, but in most cases, you can have funds transferred within a few hours if you’re approved. Where credit card interest rates hover around 18-20%p.a., personal loans are around 9-11%p.a. – and personal loans are on fixed terms, which means your interest paid is too.
If you have a lot of little credit card debts nipping at your heels and damaging your credit score, you may want to consider taking out a debt consolidation loan. This is a personal loan that you use to get rid of all your debts in one payment. You then make regular repayments on the personal loan. The best part of this is each repayment gets you closer to a zero balance.
Using a broker
A personal loan broker can help you find a more competitive loan than simply going to your bank and getting the cookie cutter loan that they offer everyone. Shopping around on your behalf, a broker can find a personal loan that’s better suited for you and your financial situation. It’s worth a look!