Should you Loan for your new devices?
Technology has become such an important part in our everyday lives whether its for leisure or business. Smartphones of today don’t just connect us to our friends and loved ones, they also provide a way to earn a living in one form or another. This is the reason why phone brands and manufacturers continue to create phones with specific features to appeal to their target audience. This is also the reason why computer brands tend to update their product line at least every quarter, to compensate for new products and new trends for their demographic.
This leaves consumers with an important question. Should you take out a personal loan to get a new device? Here are the pros and cons for this question.
Getting a loan is pretty much like getting a credit card. You need the necessary paperworks, get approved and you can get the means to purchase whatever you want. Of course, this isn’t free as you eventually have to pay the financial institution or the bank back with some sweet interest to boot. That being said, there are a number of pros in this situation if you want to go and get the latest devices.
You get the product right away.
Borrowing money to get your new device means that you get to bring it home as soon as possible. No need to wait for a specific time, no need to put money away. You get to use that new iPhone 11 or that brand new MSI gaming laptop with the money you got. That’s a pro right there if you look at it from that point.
You should loan for devices for work
There’s a lot of Filipinos who have already embraced the work from home or the freelancer model to earn a living. That would mean that they are also funding for their own devices so when it breaks down and they still don’t have enough to buy a brand new device, they can go and apply for a personal loan for the meantime. In this scenario, the loan becomes a way to mend the gap between actual income and buying a replacement device. Once the money comes in, the buyer can pay back the bank or the financer. Whether its an online influencer who needs a brand new smartphone with a camera like the Vivo V17 Pro or a game designer who needs to work with complex designs on a high-end Asus laptop, they can both fall back on this scenario or setup.
It helps your credit standing
Another great thing about taking advantage of smaller personal loans is the fact that it can help improve your credit standing. Making payments on time and not missing a beat will say a lot about you as a consumer. It even lets banks and credit card companies know that you are a responsible loaner and trust-worthy. Managing to pay off loaned money on time and properly can even increase your credit limit both for credit cards and loans.
There are an equal number of cons when it comes to loaning for devices or gadgets. Here’s a few.
Its a bad idea to loan just for devices because it should be reserved for more serious purchasing. Ideally speaking you get loans to use as funding for a house you are building, a property you want to purchase or even starting your own business as capital. Sure there are now personal loans that offer smaller amounts with different requirements but there’s stll this notion that it should be used for bigger things. Just because you can doesn’t always mean you should.
Another con is that you may not be approved. Yes it is now easier to go and borrow money than ever before but just like a credit card application, there will still be a chance that you get denied. There are a number of different reasons for getting your application denied but that could mean you dont get your desired device through this method.
There you have it a few pros and cons as to why you should get a loan to purchase a device.
Joseph Ongsoyco is from eCompareMo.com, Philippine’s leading and complete comparison portal aiming to help Filipinos looking for quick and secure banking and insurance information. Follow him on twitter @Josephongss.