What Are Prams On Finance?
Prams on finance work just as any other item on finance would, and that’s by paying for your pram over the course of months and years, instead of emptying your bank account in an instant.
Financing allows you to purchase better quality products that are likely to last much longer than a cheaper alternative, which is far more cost-effective in the long term.
It also allows you to manage your money a little better, and most people find it far more manageable to pay a small amount each month than to spend large amounts at once.
There are a few methods to pay for a pram on finance, and we’ll delve a little deeper into those different methods in the next section.
How Do Prams On Finance Work?
Prams on finance work in a few different ways depending on which finance option you opt for, which can also differ from provider to provider. The vast majority of retailers won’t actually provide the finance themselves, as they tend to partner with a third-party credit agency who will offer customers the option to pay for items on finance.
With an item like prams, this feature is invaluable due to the high price of these items, and how integral they are to prospective parents.
With each retailer, you will pick a pram you wish to purchase on finance, and then proceed to the checkout whether in-store or online. From here you either notify a member of staff in-store that you would like to pay with a finance agreement or select the pay with finance option online.
For both, you will fill out a short application form to provide the credit agency with your personal details, address details, some income information and permission to carry out a search on your credit file.
They will use all this information coupled with your credit score and report to make a decision on whether they can offer you the finance needed to make the purchase.
If you are eligible, the third party will pay for the pram on your behalf, and then you will pay them back directly each month based on an agreed schedule.
Before you agree to the finance agreement, you will be shown the interest rate, the payment schedule and the total amount you will pay for the finance, along with the terms and conditions that will state the rules around late payments and early repayments, amongst other things.
Interest rates are the percentage of extra that you will pay on the item by way of payment to the credit agency, offering you the chance to purchase the item without having the money available.
It’s quite common to find 0% interest deals at certain points allowing you to utilise financing options without paying extra. This particular option is very popular with pram retailers, so you should always be able to find a retailer offering this option.
Benefits of Prams on Finance
There are several benefits to buying a pram on finance, most notably the chance to save yourself from spending a lot of money at once during a time where there is so much to prepare for and buy. Here’s a couple of the best benefits of buying a pram on finance.
Purchase a High-Quality Pram
Prams are notoriously expensive, especially quality prams that have handy features and will never let you down. But the majority of people don’t have the money in hand to make such a costly purchase in one hit without saving for a long time first, and of course, it isn’t easy to plan ahead for such an investment.
With this in mind, you can purchase a pram on finance to help spread the cost of it over a long period so it has a minimal impact on your finances and allows you to buy a pram that would otherwise be unattainable.
0% Interest Rates for Anyone with Good Credit
If you benefit from a good credit score, you should be able to snap up a 0% finance deal. This will allow you to purchase a quality pram, pay for it over a long period and still not pay any more than you usually would have if you had paid in cash—something which is generally a big issue when paying by finance.
Disadvantages of Prams on Finance
Despite the number of benefits to be enjoyed with buying a pram on finance, there are also some potential drawbacks to consider. We’ve noted a few of them here.
Falling Behind on Payments Could Lead to Extra Costs
If you miss a payment or fall behind on them, you will have missed payment fees added to the balance, thus increasing the amount in total that you pay for the finance agreement. If you fall too far behind collection proceedings could begin, which again could incur a lot of extra fees.
If you can’t settle the account, legal proceedings against you could be commenced resulting in a damaging impact on your credit score and a lot of stress.
Anyone With No Credit or Bad Credit Normally Has to Pay Interest
If you don’t have a good credit score, you may struggle to attain credit, and if you do, you may end up paying an inflated interest rate that would increase the price paid for your pram by a great deal.
Who Offers Prams on Finance?
It will be harder to find a pram retailer that doesn’t offer credit options than it will be to find one that does. Due to the popularity of financing products, especially prams, nearly all retailers have ensured that they have this feature available to customers to avoid falling behind the pack and losing customers to competitors.
If you are shopping in-store, just ask a store assistant for advice on financing their products. If shopping online, you will typically find links along the bottom of the home page which should lead you in the right direction for finance options.
Can I Purchase a Pram on Finance with Bad Credit?
The short answer to this is, yes you can, but this isn’t without caveats. Whilst it is possible to attain credit with a bad credit score, it isn’t guaranteed, and you will likely pay a higher interest rate as a result.
The problem with credit scores and reports is that it isn’t an exact science. Different credit providers will use various credit reference agencies, and you will have a differing score with each agency.
There also isn’t a score threshold that you must be above in order to be eligible for credit, meaning the only way to discover whether your will accepted is to apply and see the outcome.
Be aware that if you are declined with a retailer, you shouldn’t try many others until you are accepted as each search will leave a mark on your file and too many searches in a short time will be damaging to your credit file.
Instead, apply for a copy of your credit report to find out where the issues may be and begin to address them. There are also several no-credit-check pram finance options available on the market; you can search for them on any search engine to find out whether this suits your needs.
Considerations Before Purchasing a Pram on Finance
Before buying a pram on finance, you should consider how much you are willing to pay each month as a result. Some people will purchase a pram far too expensive than what they need and, in the end,, fall into financial trouble when paying the monthly payment back when they could have spent far less and avoided any problems.
You should also consider the length of time you take the finance over, if you’re only going to need the pram for 18 months, you don’t want to pay for it over five years. Things like this can lead to you falling behind on payments.
Where you purchase the pram is also important where you are buying the pram. If a retailer is offering you 19.9% interest on a purchase, but another store has 0% interest available, try and find a pram that you like with them and avoid paying an additional amount on the investment.
Deposits also have a significant impact on the amount of money you will pay back, as credit and interest are worked out on the remaining amount.
So, if you have £250 available to put down as a deposit, don’t be tempted to keep that money and finance the entire amount as you’re likely to pay double the interest as a result on the remaining amount.
Buying prams on finance has become very popular in recent years with the rise of more accessible financing options. Today, we’re far more used to managing monthly bills leaving our bank accounts each month than we are to saving for a long time for high-cost items.
Some people think buying things like TV’s and clothes on finance to be a poor utilisation of finance options, but prams are a genuinely essential item that must be purchased one way or another. Use this article to learn which financing options suit you the best and then take the information with you into shopping for a financed pram.
FAQs
Q: Which companies offer the best finance pram deals?
A: As nearly all retailers now offer finance options, they also compete with the quality of these deals, meaning that you can usually secure a 0% finance deal with almost anyone with good credit.
If you’re looking for a good place to start, try Mamas & Papas, along with UberKids to begin your search, but a quick search engine hunt for prams on finance will unearth many retailers that you can shop with.
Q: Will purchasing a pram on finance boost my credit score?
A: Credit scores and reports are based on your ability to manage credit, not on the amount that you borrow. If you take out credit agreements and follow the schedules without any missed payments, this will have a positive impact on your score. This will show potential creditors that you are very capable of handling any credit agreement you take out and won’t cause any problems.
If you have a poor credit score, once you have cleared any outstanding issues on your file, the best thing to do is try to attain credit somewhere and demonstrate that you can now manage your credit without any problems.
Q: Can I pay weekly for a pram?
A: Some retailers are flexible in their terms in which you can pay weekly or monthly for your repayments, although not all of them will allow you this feature. The only thing you can for pay weekly prams is to ask the question to whichever creditor you opt to go with.
Q: What type of prams can I get on finance?
A: There are so many different designs, styles and sizes of prams these days that you can finance any of them. If you need a double pram on finance, you can simply search for it on a retailer’s website or store and proceed as you would with any other pram.
Q: Can I buy other baby items on finance?
A: The finance will be based on the items in your cart when you checkout, not just on a single item, so as long as you’re spending a considerable amount, you can pretty much pay for anything on finance.
