Mobile phones are almost vital these days, whether it’s confirming that a loved one arrived home safely, checking your work emails, or even taking photos of moments you don’t want to forget. Most people own a mobile phone and many use one daily. Despite the fact that phones have become almost a necessity, they can still be very expensive, especially certain smartphones. So, can Polar Credit help you finance a new phone?
Polar Credit is a new way to borrow money which can help you manage cashflow shortfall or finance large expenses. Polar Credit offers credit lines, which can be an alternative to small personal loans for people with bad credit or even credit cards. You apply online, and if approved, you can access the funds the same day. You have a specified credit limit, and you can withdraw money up to your credit limit whenever you need the cash. At the end of each statement period, you have to pay at least a minimum payment, but you can choose whether to make a larger repayment or repay the balance in full, depending on your finances at the time.
Credit lines can help you manage large expenses, like a new phone, by allowing you to spread the cost of your borrowing over as few or as many months as you need. As long as you make the minimum payment each month, your repayments can be flexible to match your fluctuating budget. This means credit lines can act like a short term line of credit if you know you can repay the money quickly. Plus, an advantage over fixed term loans, is that once you’ve repaid the funds, you can withdraw them again at your next financial hiccup, so you don’t have to apply for new credit each time you need to borrow.
Because of the flexible repayment nature of a credit line, it can be a good choice when considering how to spread the cost of expensive items. Polar Credit also considers people who have a less-than-perfect credit record, which means it can be a great alternative to mainstream credit options if you find are you financially excluded from high street banks’ credit cards and loans.
While a credit line can help you manage cashflow shortfall, it’s worth noting that interest is charged for your borrowing which means it’s more expensive to use credit than it is to purchase the phone outright with money you’ve saved up. As well as interest, credit lines usually charge transaction fees for the amount you withdraw. While still much cheaper than payday loans, for example, using any kind of credit is going to cost more than the price of the phone. However, in some cases, borrowing might be your only option, so it’s important you compare the different types of credit available so that you find an affordable credit facility that works in your financial circumstances.
Some of these types of credit might include making the purchase on a credit card, or even using a payday loan or arranged overdraft. There are pros and cons to each type of borrowing so it’s important you read up on your options first. You can also often get a phone contract directly with the retailer, though this usually includes your data, texts, and calls so it may be more expensive over the contract term than buying the phone outright to begin with and repaying the credit over a couple of months. You normally need a fairly reputable credit history to get a mobile phone contract as well, so if you are planning to get a new phone in the coming months, you may want to consider how you can improve your credit file – by settling existing debts, closing old credit facilities, and signing up to the electoral register – to widen your available borrowing options.
For more helpful information about how to manage your money, different financial products or what we do at Polar Credit, take a look at our Info Hub.