In your hunt for affordable TVs, it’s likely that someone has recommended paying for a TV on finance. But what exactly does this mean? Is it safe to buy a TV on finance? Will it save you money? And is it worth doing?
In this ultimate guide, we’re going to take you through the ins and outs of paying for your TV with finance, to find out whether it’s a viable option for you! This article does not offer any financial advice. Please ensure you seek professional financial advice before making a decision on whether to make a purchase on finance.
What Does It Mean To Buy A TV ‘On Finance’?
When you purchase a product on finance, the total cost of the product gets split into smaller payments that you can then slowly pay over a set amount of time. Let’s say you wanted to buy a new OLED TV worth thousands of pounds. Buying on finance would break that hefty price tag into many smaller price tags. These individual payments would then be spread intermittently over a set period of time. Usually, each payment takes place each month.
This is also often referred to as a “Buy Now, Pay Later” scheme. These schemes are attractive for those who cannot afford to simply drop tons of cash for a single television. They set themselves far apart from mortgages or loans because there may be no interest incurred or low interest charged. So you don’t have to worry about spending more in the long run but please do check the full credit terms from the finance provider.
Buying a TV on finance simply refers to a plan that allows you to divide a hefty lump sum into a number of smaller, more easily payable chunks. This can make expensive TVs accessible to all!
What’s The Catch?
It’s an attractive option. However, you should still be sure that you have a solid financial plan laid out. To allow you to make each of the monthly payments. Be sure to keep in mind that, until you have paid the full price, you do not fully own the TV.
It’s always worth carefully considering a financing plan before diving into it. You should be sure that you will always have enough money on hand to make each of the monthly payments. Some finance plans might also require a brief credit check.
What Are Some Of The Options Available?
Whenever you are looking to purchase a TV using finance, you should always be sure to check what financing options each retailer offers. Some retailers offer a range of financing plans, while others might have a more narrow selection.
Let’s take a look at some of the most popular and recognisable financing options on the market.
ClearPay
Clearpay is one of the most popular financing schemes on the market, thanks to how rewarding the platform is to use. One reason why this platform has proven so popular with consumers across the UK is because it is accessible entirely through the associated smartphone app.
Using the app makes it much easier to stay on top of payments, that get withdrawn every week for six weeks.
Users receive rewards for making payments on time, to make further buying all the more easy. And even when payments are late, Clearpay will help users get back on track by capping spending.
A number of retailers support ClearPay, making it a very rewarding financing platform to use.
Klarna
Klarna is another web-based platform accessible entirely through the handy mobile app. It is a little more rigid with how many payments users can make. With a “Pay in 3” model that requires users to pay back the full value of the product within three monthly payments. The first payment is at the point of purchase.
While Klarna may seem a little more rigid, it is easily one of the most recognisable financing options around. It’s also incredibly safe and robust. Making it easy to recommend.
PayPal Pay In 3
PayPal is already one of the world’s leading finance management platforms in the world, making it easier to buy and sell on the web. Thanks to its own “Pay In 3” model, PayPal is even more useful! This plan works similarly to Klarna’s three-month plan and helps to split much larger payments into smaller monthly payments.
V12 Retail Finance
If you want true flexibility from your finance options, then V12 Retail Finance is easily one of the best. Far from the usual 3-month plan offered by other finance options, V12 Retail Finance offers users the chance to make payments over much more extensive time periods. Whether you want to pay in 12-month instalments or up to 48-month instalments. This makes it a truly great option for those looking to save.
However, it is worth noting that V12 Retail Finance does incur an APR rate that will add to the total cost of a given product. The added cost is much less daunting when you consider how little you will spend each month. Let’s say you wanted to buy a TV that cost £1,000. With the V12 Retail Finance 48-month plan, you could be spending less than £30 per month with a deposit paid.
V12 Retail Finance is one of the most secure finance options on the market. Towards this end, you will need to pass an initial credit check. This is great for your peace of mind, however, because it will ensure that you will be able to make each of the payments whenever they arrive!
What Are The Requirements To Be Eligible For Finance?
Though not all finance platforms will perform a credit check, it’s always best to have a healthy credit score before agreeing to one of these plans. A stronger credit score will fill the financier with confidence that you can make each of the monthly payments as they occur.
It’s also worth keeping in mind that some finance platforms can impose limitations if you were to miss payments regularly. For instance, PayPal will impose limits that make it harder to borrow more money, if payments are regularly missed.
It’s also worth checking the unique requirements of each specific finance plan. Requirements can massively vary from plan to plan. Some providers may require that you are above the age of 18 and that you have lived in the UK for more than 3 years.
Most providers will also require that you are under full-time employment, receiving a regular salary. If you are working freelance, your contract is close to expiry, or you otherwise aren’t receiving a consistent salary, then you might encounter more trouble during the application process.
Finance options can vary massively from plan to plan. To find an option that works best for you, it’s important to take your time and find out what each one offers. Some may impose more significant barriers to entry!
Is It Safe To Buy A TV On Finance?
Generally speaking, it is totally safe to purchase a TV using a finance option or buy now, pay later plan. However, you should keep in mind that many of these plans are not regulated in the same way that credit card repayments are. This can make them a potentially risky investment if you are not fully prepared to make each payment as it is incurred.
Before jumping into any finance plan, you should be sure to carefully check the legitimacy of the provider. You should also be sure to carefully consider the terms of the plan. Check that the terms are clear and fair so that you won’t get caught unawares by any tricky small print!
You should also never jump into a finance plan without carefully considering your existing finances. Many providers will require that you make payments as soon as they are requested. In fact, most providers require that payments be auto-withdrawn from a bank account through a standing order. Will you always have enough money when each payment arrives? Missing your payments can incur hefty extra fees, or could affect your ability to make use of other services from the provider.
You should also be sure that you truly want a product before making use of a buy now, pay later plan. Even if a user returns an item, some plans may require that they finish making payments well after. This could prove incredibly frustrating in the long run.
What Happens If You Miss A Payment On Finance?
This is generally down to the providers themselves. Each provider has its own set of terms outlined to the user before starting a plan. While some providers might be very forgiving with missed payments, others might be a little less forgiving.
Providers such as PayPal will incur fairly significant repercussions for missing payments. PayPal is a platform that provides a number of financial services. Missing payments on their “Pay in 3” plan can make it very difficult to gain access to these other financial services.
This is why it is so crucial to carefully consider a finance plan before you dive into it. Be sure that you will have enough money to make each of the payments as they arrive, and that you fully understand the limitations that the provider may impose on you for missing any of them.
Is It Worth Buying A TV On Finance?
TVs can cost a lot of money. UHD models, in particular, regularly cost multiple thousands of pounds. This is the kind of money that many people simply cannot afford to drop in one lump sum. Buying a TV on finance can absolutely be worthwhile, especially if you need to make use of a lot of money each month.
However, we recommend that you carefully check all of the options on the market. There are so many finance plans that you can choose from, and you’ll want to be sure to grab one that is fair, and that works around your needs. We recommend opting for a plan that offers more flexibility, to extend the length of the payment plan, for the added benefit of lower costs each month or week.
Never dive recklessly into a finance plan. Though they are incredibly convenient initially, they can very quickly get out of hand if you don’t have the finances to make any of the monthly payments. Be sure to plan out your finances so that you can always make each payment as and when needed!
Frequently Asked Questions
What Does It Mean To Buy A TV “On Finance”?
Purchasing a TV using a finance plan helps to make it much easier to pay for costly thousand-pound TVs. Instead of paying one large lump sum for access to a TV, you can divide the cost into a number of smaller costs. These costs are then usually spread out over a number of months.
Can I Finance A TV With Bad Credit?
If you’re planning to finance a TV, it’s much better to approach the plan with a healthy credit score. This will help to ensure approval for a specific plan, so you can get right to making your payments. However, some providers may be a little more flexible, and may not impose a strict credit check.
Is It Smart To Finance A TV?
If you can’t afford the total sum of a TV in one full payment, but you can afford it with spread-out costs, then it is smart to finance a TV. Before applying to finance a TV, you should always be sure that you can actually make each of the payments as they arrive. Missing payments can make your financial future a little more tricky!
Is Buy Now, Pay Later Risky?
Before engaging with any buy now, pay later plan, you should always be sure to check that it is legit and that it offers fair terms. Once you have done that, you should make sure you have the right finances. Using buy now, pay later would be significantly risky if you were unsure whether you could make all of the incoming payments.
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