Purchases of Online Game Consoles
New game consoles are pricey, but when you consider how much you’ll use them, they’re usually a good investment. However, their high price tag makes them prohibitively expensive, so you may want to consider financing a PS4 or Xbox One. There are several credit options available, such as buy now, pay later, monthly, and weekly payments. Renting an Xbox One or a PlayStation 4 from a rent-to-own store is another option. Alternatively, purchasing a used or refurbished Xbox or PS4 is most likely the most cost-effective option.
What Exactly Are Financial Consoles?
Finance allows you to pay for an item over a set period of time through a credit agreement that protects and keeps both parties up to date. This will typically spread the cost of anything from clothes to cars over a period of 3 to 48 months.
Similarly, a retailer will allow a customer to pay a set amount each month until the product is paid for, plus the interest incurred on the cost over the repayment period, which is typically set at 24.9 percent APR (Annual Percentage Rate), but can technically be set at any amount or completely free at 0 percent.
A game system can technically be purchased on credit by anyone. Nonetheless, each store and lender will have their own criteria, which will typically be based on your personal credit score, which effectively determines how well you handle your money and helps lenders determine whether you’re a good risk to lend to, but some are more relaxed than others.
To find out what your credit score and report are, go to any of the well-known credit reference agencies, such as Experian and Equifax.
How Do Financial Consoles Function?
Console financing is simple and can be completed entirely online. Once you’ve decided on a console, find out which retailers offer financing for it. For example, the new PlayStation 5 is available at Curry’s and Smyths, both of which sell appliances.
Find out how to apply for financing with a retailer once you’ve found one. Nine times out of ten, you’ll proceed with the sale as usual, then select financing or something similar in the payment method section of the order.
You’ll then be asked to provide some personal information as well as information about your ability to afford the monthly payments for the console.
The retailer will almost always use a third-party lender to finance the product, and this lender will use the information you provide as well as your credit report to make an instant decision on whether or not to finance the product.
If you are accepted, the payment schedule will be displayed, detailing the amount you must pay each month as well as the dates and times of the first and last payments. The total amount will be divided by the time period chosen to calculate these payments.
Financial Advantages of Consoles
Finance is becoming a much more viable option for large purchases that would otherwise necessitate a large cash purchase. In the age of surprise announcements and exclusive ‘drops,’ it’s difficult to know when to start saving for upcoming products, especially sought-after items like games consoles that sell out in a matter of hours.
The benefits of purchasing a financial gaming console are listed below
Cost
The fact that you only need to pay the first payment or nothing at all to get a new console is a clear advantage. The ability to pay monthly makes it far easier to manage and maintain than attempting to recover financially after spending £400 in a single day. We all calculate our monthly income versus salary to see how much money we have left over, which makes another £25 bill much more manageable than losing a large sum of money all at once.
Security
If you purchase a game console on credit, you will have access to the retailer or manufacturer in the event of a problem, which you will not have if you purchase a used or second-hand item. This offers some protection against potential issues as well as clear proof of purchase.
Finance Offers
Some lenders and retailers will provide special discounts when purchasing a product on credit. For example, Klarna lets you spread the cost of a brand-new XBOX Series X & S over two years with 0% APR, meaning you’ll pay no more than if you bought it outright.
Many lenders, like Klarna, will offer 0% APR for the first few months of a credit agreement or, in some cases, the entire agreement.
Flexibility
We all manage our money in different ways, and we all make money in different ways. Salaries are typically paid on a monthly basis. However, because some people are paid weekly or biweekly, and self-employed people may receive smaller amounts of money on a daily basis, having a large sum of money on hand is not always easy.
With financing, you can pay your monthly instalments on a specific day of the month, giving you far more flexibility than if you paid for the console up front.
Financial Disadvantages of a Console
While there are numerous benefits to financing a video game console, there are a few disadvantages to be aware of if they apply to you. These are their names:
Future Credit Impact
If you are unable to make your game console payments and begin missing them, your credit score will suffer, making it difficult to obtain other loans.
If you missed payments and amounts are not resolved, you may be subject to County Court Judgements (CCJs), in which a court will order you to pay the amount owed, and if you do not, you may find it difficult to obtain any financing at all.
Interest
If you buy things on credit on a regular basis, especially if you do so frequently, you will end up paying far more than the RRP. Using these options on occasion will not harm your finances, but putting too much on credit at once will result in high monthly payments and is most likely a bad investment.
Who Offers Finance Consoles?
Financial services are provided by a variety of retailers, both online and in-store. Depending on where you look, you can learn about the various types of financing that are available. To begin, there are stores that specialise in financed goods and handle all of the financing.
Financing is not provided by traditional stores that now offer it. You can, for example, finance items at Curry’s and apply on their website; however, the actual credit is provided by a company called Creation Consumer Finance, with Curry’s acting as a broker rather than a lender.
Many businesses specialise in allowing other businesses to offer financing to their customers without taking on any of the risk or work. If you fell behind or stopped paying for your goods, the credit company, not the store, would pursue the debt.
With the increase in demand, finance is becoming more popular, and it won’t be long before you can finance items in a store even if they don’t advertise it.
Can I Buy a Console on Finance if I Have Bad Credit?
If you have bad credit due to a poor repayment history or a low credit score, it can be extremely difficult to obtain credit with companies for things like game consoles, but it is not impossible. Some credit agencies specialise in providing credit to people with less-than-perfect credit reports and scores.
They achieve this by increasing the APR in exchange for taking the risk of lending to someone with a poor credit history. While applying for credit with these agencies isn’t ideal, if you can make your payments on time, it can help you improve your credit score.
Although it is worthwhile to consider whether you can afford to pay for a game console on a monthly basis if you have credit problems, that is a decision you must make for yourself.
Speak with a debt management company for free advice if you’re having issues with your credit score or file and need help clearing your debts so you can get back on track and be eligible for financing and credit.
There are government-backed programmes that offer free advice and services to assist you in getting back on track, as well as companies like StepChange that have award-winning programmes to assist people in getting out of debt and back on track with their finances.
If you have bad credit due to a poor repayment history or a low credit score, it can be extremely difficult to obtain credit with companies for things like game consoles, but it is not impossible.
Some credit agencies specialise in providing credit to people with less-than-perfect credit reports and scores. They achieve this by increasing the APR in exchange for taking the risk of lending to someone with a poor credit history.
While applying for credit with these companies is not ideal, if you can make your payments on time, it can help you improve your credit score. Although it is worthwhile to consider whether you can afford to pay for a gaming console on a monthly basis if you have credit problems, that is a decision you must make for yourself.
Speak with a debt management company for free advice if you’re having problems with your credit score or file and need help clearing your debts so you can get back on track and be eligible for financing and credit.
There are government-backed programmes that offer free advice and services to help you get back on track, as well as companies such as StepChange that have award-winning programmes to help people get out of debt and back on track with their finances.
Thoughts to Consider Before Purchasing a Console
Before you buy a game console on credit, consider a few factors to ensure it’s the best choice for you.
Monetary Situation
Consider your current financial situation; if you’re already in a bind, any additional monthly expense, no matter how minor, will be unwelcome. If you’re worried that your job won’t be as secure as you’d like it to be, or if you’re expecting another child soon, you’ll be glad you didn’t sign up for another monthly expense.
Depreciation
Consider how quickly video gaming systems degrade; the Nintendo Switch could be purchased for £100 less than its launch price after only six months. Could you avoid a lengthy credit agreement by being patient and waiting for a good deal?
High-Quality Financial Deals
If you’ve decided to finance a new gaming console, shop around to see if you can find a better finance deal or a better console deal. Many retailers will sell the system with games, making it a much better deal.
Games consoles are fantastic sources of escapism for people of all ages, whether playing online with friends or unwinding after a long day at work with a fantastic adventure game, but they are not free.
Financing has enabled people to purchase items they would not have been able to afford otherwise, which is wonderful to see, but only if it is financially feasible for them. Too many people are enticed by the promise of low monthly payments that go unnoticed, but this can lead to major issues later on.
Second-Hand Consoles
They are, indeed, less expensive. When shopping for used items, it is common to come across game bundles, controllers, and other packages. Furthermore, as a used customer, many catalogues are more willing to haggle. When looking for a low-cost gaming console, keep in mind that these advantages are not without drawbacks.
In addition to the benefits and fantastic discounts, there are a few drawbacks to buying used. For starters, it has been used. You are not the first to purchase the property. Even if the system is no longer in use, it is frequently highly depreciated because it was previously owned by someone else. The system will not be warranted if purchased from a private vendor. As a result, if something goes wrong, you’re out of luck.
When you buy used, you may find better deals and lower prices. However, as a customer, you must consider the disadvantages as well to determine whether this is the best path to take when purchasing a gaming system.
Console Rental
A brand new gaming console can be an expensive investment, which is why many people prefer the rent-to-own option. This makes it much easier to buy a console without saving money. This tutorial will give you a quick rundown of the advantages and disadvantages of renting a game console.
Pros:
- Rather than waiting, make a purchase right away.
- Easier on your wallet – you’ll know exactly how much the console will cost you each month without breaking the bank.
- Generally, no deposit is required; however, check the current offers.
- There are some solutions that do not require interest.
Cons:
- Keep an eye on interest rates; you may end up paying more.
- Once you’ve paid off the loan, the console may become obsolete.
- It may be difficult to get accepted if you have a poor credit history.
Instead of renting, you might want to consider purchasing a gaming console with interest-free financing. Many retailers, including Game, Argos, and Currys, offer their own financing. The Argos card, for example, can be used to spread the cost of a new gaming system over a 12-month period, making it more affordable.
Any credit granted is subject to the results of credit and affordability checks.
No credit check gaming consoles FAQs
Q: Is it possible to finance a gaming console?
A: There are several financing options available, including Buy Now Pay Later, which allows you to postpone full payment for a set number of months, and pay monthly offers. Go to any electronics or gaming store to see what’s available.
Q: Can a credit card be used to buy a Nintendo Switch?
A: There are several ways to finance a Nintendo Switch, including PayPal, which recently launched a new financing system that you can use directly from their app.
Q: Can new video game consoles be financed?
Yes, both the new XBOX Series X and S, as well as the PlayStation 5, can be pre-ordered with financing.
Q: Do you finance games and accessories for gaming consoles as well?
A: On a website that advertises financing, you can finance almost anything. You may be required to spend a certain amount of money in order to qualify for financing, though this varies by store.
Q: What happens if I don’t pay on time?
A: Missing payments on your finance could lead to major problems in the future. Beginning with letters and phone calls, this will progress to credit file entries, bailiff visits, County Court Judgements, and, eventually, the possibility of having your property repossessed to pay off the debt.
As a result, it’s critical to keep up with payments and only use financing when you’re in the best financial situation.
Q: Can you buy a PlayStation 5 on a monthly basis?
A: No credit check required. Monthly Payment Plan for PlayStation 5
PS5 monthly payments can be made monthly or weekly.
Q: Is it possible to rent a PS5 and then buy it?
A: Right now, you can rent a PS5 in order to own it. Because supplies are limited, act quickly. If you sign your lease now, you could receive your new PS5 with free shipping in about a week. Save money in the beginning by making low monthly payments, or pay cash for a better deal!
Q: Is it possible to rent a game system from GameStop?
Finally, GameStop is collaborating with a third party to offer a rent-to-own option, which allows customers to make a small deposit, take the console home, and pay the balance over a one to twelve-month period.
Q: Is it possible to rent Xbox systems?
A: At Rent-A-Center, you can select from a variety of cutting-edge gaming consoles, including the PlayStation 4 and Xbox One.
Q: Is it possible to rent a PlayStation 4 and then buy it later?
It’s easier than ever before with our rent-to-own video game systems! … Simply apply for one of our simple payment plans and you’ll be able to get your new gaming console right away.