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Other Financing Options
If a cash loan is not the answer for you, there may be other ways to get the money that you need for a guitar. Here are some other ways to get the money that you need.
Guitar Store Financing
This is something that will be available mainly to those with good to excellent credit, but the option is worth mentioning.
The Good
The biggest benefit to financing in store is the fact that this type of financing typically comes with incentives. This could be anything from zero percent interest to a few bucks off your purchase. If you have the credit, this is a fabulous option to take and it will be hard for any other form of financing to match it. After all, who can beat 0 percent financing?
The Bad
The worst part about this type of financing is that it is just hard to get. These offers are designed to lure in low risk, high dollar customers. If you have bad credit, you are not in this group.
Another problem with financing at a guitar store is that the interest is often deferred. What this means is that if you do not pay off the principal in time, the finance company could dump all of that interest back into your account. Interest being deferred is often at the default rate of 29 percent, so this could be a very costly hit.
Finance With A Credit Card
If store credit is not an option, a credit card may be useful in financing your guitar.
The Good
The good about using a credit card to finance your musical instrument is that there are dozens, if not hundreds of credit card providers. Many of these providers, a big one being Credit One, even specialize in working with those who have bad credit. This means that your odds of getting an approval from a credit card company are much higher than with music store financing.
Another perk of going this route is that you can often use the credit very quickly. Many credit card companies will provide you with a credit card number the same day or they can overnight you a card. This means that you do not have to wait weeks to buy your guitar.
The Bad
Now for the bad news, and there certainly is a bit of bad news. With bad or even poor credit, you are going to have some very high interest rates. Expect your APR to be close to the 29 percent range. That is a lot of money being paid in interest, so you need to decide just how much you want this guitar.
On top of the interest, you will also have fees associated with your credit card. Most of the fees, such as late fees, will be high albeit avoidable. Just pay your bill on time. The annual fee however is something that you can not avoid. Almost all credit cards for bad credit will have an annual fee, and it will probably be applied just as soon as you open your credit card. A typical fee is close to $100, so be prepared for the extra expense.
Ask Friends For Gift Cards
Is there a major holiday or birthday close? If so, you can ask your friends and family for gift cards to a music store. Just let it be known that you need a new guitar and that gift cards to your store of choice would be appreciated.
The Good
This is free money, so everything is mostly good. Any gift cards you receive will be earmarked to pay for your guitar. It can not be wasted like cash and money will not be locked up in a present that you might not need or even want.
The Bad
On the negative side of things, you might not get all of the money that you need. Guitars are expensive, and unless you have a lot of friends, you will probably come up short. This is not to say that this is not a great option, it just might not provide the immediate level of satisfaction that guitar financing will.
Buy Used
Do you really need a brand new guitar?
If you can settle for a used guitar, you can save hundreds of dollars. That Yamaha guitar might go for $500 cash in store, but it could be had for half that on Craigslist or Facebook Marketplace.
The Good
Deciding to purchase used could allow you to buy the guitar that you want now, ias long as you have a bit of money saved. Just be sure to thoroughly check the guitar for damage. Luckily, people cherish their instruments, so most used guitars have been well cared for.
The Bad
The only real downside to shopping the used market is that you do not get to pick the exact model that you want. You will have to take what is available. If you are lucky or extremely patient, you might find your perfect guitar, but in most cases you will have to settle.
Save The Money
One last option is to just forgo financing your guitar altogether and save the money that you need.
The Good
The benefit here is that you will not incur any finance charges or fees. Once you finally have your guitar, it will be yours and there will be no payment to worry about making. For a luxury item like a musical instrument, this is financially one of the smartest options to take.
The Bad
Obviously, time is the negative point about saving for your guitar. You will have to be patient, knowing that you will eventually have what you want and that getting it will not wreck your finances. Hopefully, you already have a guitar and can wait it out, if not you might consider buying a cheap used one until you have enough money saved.
