ABC's of Financing a Gun Safe
Wondering how you can pay for that gun safe you have your eye on if you do not have the cash to spare at the moment? You could choose to pay by credit card, but a better option for financing a safe is to do it through Liberty Safe's financing program. Here are a few things to know before choosing how to pay for your new safe.
Buying a Gun Safe With a Credit Card Is Not Always Best
Sometimes it's too convenient to whip out a credit card to pay for a large purchase. But let's consider for a moment the real consequences of using your credit card, even if you have a card that gives you rewards points. When you use your credit card, you could run the risk of nearing your maximum credit limit in some cases. Plus, you are then hostage to any interest rate increases your card might have until you pay off your credit card debt in full. This only adds to the cost of your safe purchase over time.
You might not think that is such a big deal, but your credit score can take a hit. Why? Because credit card debt is considered revolving debt, which has a greater effect on your credit. Once you are carrying a balance that is more than 30 percent of your card's limit, your credit score begins to suffer. This makes it more difficult for you to obtain credit at a decent interest rate when you need it.
Why Is Liberty Safe's Financing a Better Way?
There is such a thing as good debt and bad debt when it comes to your credit score. For example, the mortgage on your home or car loan is good debt because it is a closed-end loan. With this type of loan, the borrower and the lender agree on how much money will be borrowed and must be paid back within a set amount of time. Included in the loan amount is the interest that will be charged. During the repayment of the loan, the interest rate will remain the same, unlike how credit card interest can fluctuate. Closed-end credit helps prove your creditworthiness when you apply for future credit.
Financing a safe through Liberty Safe's program is a better way to finance your gun safe purchase because it is also a closed-end loan. You can choose between a 12.99 percent fixed rate loan or a zero percent 12-month plan to finance your safe.
The benefits of these plans include:
- Fixed rates
- No interest charges or late payment fees with zero percent loans
- Lower interest rates than average credit card rates
- Minimum grace period of 10 days before account is considered delinquent
- Late payments not reported to credit bureaus until 30 days delinquent
- No hidden fees or prepayment penalties