6 ways to get electronics financing in Canada

Whether you’re shopping for a new computer, TV, home theatre system or noise-cancelling headphones, buying electronics is expensive. But if you don’t have the cash to buy your new gadget outright, there are several options for electronics financing in Canada.

In this guide, we’ll compare six ways to finance electronics in Canada, including options for bad credit and tips on how to get the lowest rate.

1. Buy and finance electronics through a retail store

• How it works: In-store electronics financing is a quick and convenient way to fund your purchase. Many retailers work with third-party finance companies to provide easy financing when you checkout. Payment terms range from 3 to 60 months, and 0% financing may be available if you have excellent credit. Some stores also offer Buy Now Pay Later plans for smaller purchases, allowing you to divide the purchase price into four no-interest payments over six weeks.
• Suited for: People looking for easy and convenient electronics financing.

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2. Finance electronics with a personal loan

• How it works: You could take out an unsecured personal loan from a bank or credit union to finance your purchase, but you’ll need good to excellent credit. But if your credit history is less than perfect and you’re searching for online financing for electronics, you could apply for a personal loan from an alternative lender. These lenders have more lenient eligibility criteria and will consider your income and existing debts before approving your loan. Terms range from 6 to 60 months.
• Suited for: Shoppers with good credit.

Compare personal loans for electronics financing in Canada

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3. Buy and finance electronics through the manufacturer

• How it works: If you’re buying direct from the manufacturer, many major electronics companies partner with third-party finance providers to offer financing options at checkout. Larger purchases can be split up into monthly payment plans with low or 0% interest available for those with excellent credit, while smaller amounts can be split into four equal payments with a Buy Now Pay Later plan.
• Suited for: People looking for a convenient financing option.

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4. Finance electronics with a credit card

• How it works: The next option for financing electronics in Canada is to buy with your credit card. Provided your card has a low purchase rate, this can be a convenient and reasonably cost-effective solution. Of course, you’ll need to be wary of using too much of your credit limit, reducing the funds you have available to cover any emergency expenses.
• Suited for: People who already have a low-rate card and are looking for a convenient way to pay for purchases.

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5. Layaway

• How it works: A less common way to finance electronics in Canada is to put the item in layaway. Available from some retailers and pawn shops, layaway allows you to put down a deposit so the store will set the item aside for you. You then have a predetermined period to pay off the outstanding balance, either in installments or as a single lump sum. Once you’ve paid in full, you get to take your purchase home.
• Suited for: People with bad credit and anyone who doesn’t want to pay interest.

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6. Rent-to-own

• How it works: If you’re searching for electronics financing with no credit check, you might want to consider a rent-to-own plan. This allows you to use the item while you pay it off, making weekly or fortnightly payments as part of a lease agreement. When the lease ends and you’ve made all your payments, you own the item. However, be warned that rent-to-own programs are expensive, so your total payments will likely add up to much more than the monthly purchase price.
• Suited for: People with bad credit who want to use their electronics while they pay them off.

How does Buy Now Pay Later work with electronics financing?

Buy Now Pay Later (BNPL) is a relatively new way to pay for purchases in Canada. It allows you to split the purchase price of an item up into a short-term payment plan.

The most common BNPL plan structure is four equal payments over six weeks. So if you were buying a soundbar for $500, you’d pay $125 at checkout and then make three more $125 payments every two weeks.

There’s no interest to pay, and many BNPL providers will consider your income rather than requiring you to pass a credit check. It’s usually as easy as choosing BNPL at the checkout (when shopping at a retailer or buying through the manufacturer) and then providing your personal details and income information.

However, there are a few risks you should be aware of before choosing BNPL at checkout:

• Limits apply. BNPL is only available on purchases up to a specified limit, such as $650. If you’re buying expensive electronics, you’ll need to consider a longer payment plan.
• Late fees. Check the fine print to find out how much you’ll be up for in fees if you miss a payment.
• Impulse buying. Making an impulse purchase is the most common BNPL mistake made by Canadians, closely followed by missing a payment and overstretching your budget.

Representative example: Manu finances a new sound system

Manu wants to upgrade his sound system so he can listen to his classical music collection in surround-sound glory. He finds a Sony home theatre system package that fits the bill, but he doesn’t want to spend all his savings paying for the system upfront.

He decides to shop around for electronics financing that will allow him to make regular affordable payments to pay off the sound system.

	Lender A	Lender B	Lender C	Lender D
Amount borrowed	$1,500	$1,500	$1,500	$1,500
Interest rate	12.99%	0%	7.99%	0%
Loan term	24 months	24 months	12 months	6 weeks
Admin fee	$0	$69.99	$0	$0
Total interest	$211.34	$0	$65.71	$0
Total cost	$1,711.34	$1,569.99	$1,565.71	$1,500
Monthly payment	$71.31	$130.84	$130.48	$375 over 4 bi-weekly payments

Manu decides to apply for financing through Lender C. While Lender D offers the lowest total cost, Manu is worried that the fortnightly payment amount will stretch his budget too far. Lender C’s $130.48 monthly payment is a much more affordable prospect.

Am I eligible for 0% electronics financing?

Just because a retailer advertises 0% financing, that doesn’t mean that every customer who walks through the door will qualify for such a low rate. Instead, the finance provider will consider several factors before approving you for 0% electronics financing. These include:

• Your credit score. You’ll need a good to excellent credit score of 660 or higher to qualify for 0% financing.
• Your income and employment. You’ll need to be in steady employment and meet minimum income requirements.
• Your purchase amount. You may only be able to access a financing special offer when you exceed a minimum purchase threshold, such as $500.
• What you’re buying. Financing special offers may be restricted to specific products.
• Your loan term. A 0% rate may only apply for a limited period, such as six or 12 months, before your payment plan reverts to a higher rate.

Financing electronics with bad credit

You can still qualify for electronics financing if you have bad credit. Check out the following options:

• Personal loan. Many online lenders offer bad credit loans with lenient eligibility criteria. When assessing your application, they’ll consider your income, employment details and debt-to-income ratio to work out whether you can afford to repay what you borrow. However, high interest rates apply.
• In-store or manufacturer financing. Some Buy Now Pay Later providers don’t perform credit checks. However, you’ll need to make sure that the electronics you’re buying sit within the provider’s purchase limit.
• Credit card. If you’ve already got a credit card, you can use it to purchase electronics and avoid applying for new credit. It’s quick and convenient, and you can also try to pay down a lot of your debt during the interest-free period. But keep in mind that using a large portion of your credit limit will have a negative impact on your credit score. Learn about the best credit cards.
• Layaway. There are no credit checks when you put an item on layaway, so bad credit is OK. Of course, you’ll need to be patient enough to wait until you’ve paid off your electronics before you can use them.
• Rent-to-own. Bad credit electronics financing is also available with a rent-to-own plan. Just keep in mind that these plans are usually very expensive, so you’ll end up paying much more in the long run than if you’d just bought the electronics upfront.

Bottom line

If you can’t cover the full purchase price of new electronics, there are several financing options to choose from. Just watch out for steep rates if you have bad credit, and avoid making impulse buying decisions on items you don’t need or can’t really afford.

Frequently asked questions

• Can I get electronics financing with no credit check?

  Yes. You may be able to access no credit check financing with a no credit check loan from a private lender, but you should expect high interest rates. Layaway is also an option — because you're not borrowing money, a credit check isn't required. Finally, some Buy Now Pay Later services also offer financing without a credit check.

• Can I finance electronics with no down payment?

  Yes, some retailers will allow you to finance electronics without paying a deposit. However, be sure to check the interest rate and any fees that apply, and make sure you'll be able to afford your regular payment amounts.

• Can I get no credit financing for electronics?

  If you don't have any credit history, you may be able to access financing through a BNPL plan or by using layaway. Rent-to-own plans also don't require credit checks, but their expensive nature means they're not a cost-effective option.

• What electronics stores offer PayBright?

  PayBright is now known as Affirm. Many electronics retailers and manufacturers in Canada offer Affirm as a financing option. These include Apple, Samsung, The Source, Factory Direct, Jump+, NZXT, The Sony Shop and more.