Financing Repairs After Hurricane Irma: What You Need To Know

Hurricane Irma came through and set us all about more then we’d like.  No secret there.

Now as we rebuild many folks are finding out that our insurance coverage wasn’t as thorough as expected.  Talk about a screwy situation.  It usually has to do with building code changes.  You see, generally insurance will only cover restoration to the structure as it was built… but substantial building code changes require substantial structural enhancements or alterations changes to complete the repairs to code thus leaving many homeowners with a ‘gap’ that they need to fund out of pocket.

Many contractors will be quick to offer their customers some kind of financing deal for that gap.  Let me just tell you frankly, it’s a bad deal.  Here’s why:

I’m consistently shocked by how many people take the bait and get ripped off when they finance a home improvement through their contractor.

Many contractors offer their own in-house financing options which make it easy for you to get their services.  Usually they offer some type of appealing financing solution such as ‘12 months no interest or no payments’ or ‘84 months at the low interest rate of 3.99%’.  Either offer might be hard to pass up.  If you have the cash, the no interest no payments might seem like free money for a year, in which you can keep your cash on hand in case of emergencies, or to invest.  If you need a low monthly payment to make your budget, the 3.99% interest rate seems like a great deal for the amount of value the home improvement project will bring.  However, all is not as it seems!  The numbers you see on the front end are hardly transparent!

What I Am About to Tell You Will Shock You

The financing is just a sales tool.  All the fancy numbers, and killer financing deals are just there to get the sale.  In fact, the 3rd party financing companies that offer financing solutions to contractors promote this concept as a way to increase sales. They want you to get stuck on the financing details and forget about the overall price of the project and/or think that you can’t get the same deal anywhere else.  Then the salesman drives this point home with their tactics to ‘close the deal’.

They have hidden fee’s which cause price to go up.  Here’s the big secret, the financing isn’t free.  There are usually hidden fee’s that get built into the price.  Let me explain: when a contractor sells a project with financing, the contractor has to pay the financing company a fee, a percentage of the project.  This is sometimes called a contractor’s fee, dealer fee, merchant fee, or discount fee.  The fees vary based on the type of plan they are offering.  Basically the better the financing deal seems, the higher this hidden merchant fee will be.  In some cases, I’ve seen the fee as high as 30%+.

Now you will never see the merchant fee, but you pay it – the contractor certainly is not going to eat it.  You pay it indirectly as it as the contractor will simply factor these merchant fees into their price.  If the contractor plans on offering a financing plan with a merchant fee of 20%, they simply raise their price 20%!

The finance company probably sucks.  Contractors don’t finance their project themselves, they use a 3rd party financing company.  The companies they use often don’t have a good reputation for being consumer friendly.  Just look them online and I’m sure you’ll find dozens (if not hundred) of negative reviews on the company your contractor would get you financing through.  I’ve even seen a major company that doesn’t even have online access to your loan.  Yes, in 2017 a major financing bank doesn’t even let their customers have online access.  What baloney!

You’re better off getting your own financing.  Depending on the terms, (99.9% of the time) it’s a better financial decision to get your own financing.  Many of the home improvement loans pushed by contractors have extremely high interested rates well above 20%.  That’s borderline criminal!  I’ve found financing options, for cabinets, pools, roofing, or any other home improvement that have less that a 4% interest rate.

Even if you’re considering taking one of the ‘no interest no payment’, you’re probably best served just getting a no payment credit card, as in this scenario you can focus on the bottom line price your contractor can offer, and then you avoid their finance company.

You can get a cash discount Even If You Finance.  You can still finance your entire project and get a cash discount!  All the financing programs or lending banks I recommend on this site, fund you directly.  Your contractor will never know that you have any financing at all (and quite frankly its none of their business).  The money will be in your bank account, and then you can pay the contractor CASH.  This give you the power to negotiate a cash discount (since the contractor will not have to pay any merchant fees) as I explain here.

Here are the financing programs for home improvements I’ve found with the best rates, and best business practices, that fund you directly, so you can get a cash discount!

SSo who do I recommend?  In a world of shady finance deals I’ve found these companies to be kosher, when it comes to home improvement financing!  Their rates are generally even been than those credit unions and local banks.  They are all fully transparent — no hidden fee’s — the interest rate you see, is what you pay.  And you pay your contractor in cash — no more awkward conversations about ‘payments’.  The application process for them is fully online as well!

  • Lightstream Good To Excellent Credit. These guys have by far the best rates, for good those with good to excellent credit.  They offer home improvement loans from $5,000 to $100,000 and rates as low as 3.99%.  Get Your Rate
  • SoFI Good to excellent credit. There guys are very competitive with Lightstream and tend to have little less stringent credit requirements.  Like Lightstream they do loans from $5000 – $100,000 for general home improvement loans.   See Rates »
  • Prosper Excellent, Good & Fair Credit.This peer to peer lender (don’t get confused, it works just the other options), works with all credit and offers loans from  $2000 to $35,000 with rates from 5.99%.  Find out your rate.

Not sure where to start?  Since similar credit inquiries made with in a shot time period only count has one on your credit report, check them all, and shop around for the best rate!

5 Things To Think About Before Financing Through Your Contractor

So you need to improve your home and you need help financing it, but it’s all new to you. You’re not sure if you know everything you should about your contractor or your loan terms. It sounds easy and convenient to finance through the contractor, but he’s not very straight forward about the terms of the agreement. I can help. Read on and I will tell you everything you need to think about before signing onto that loan.

Was It Used As A Sales Tool?

One thing you should always pay close attention to is the way the contractor talks about his financing plan. Chances are, if it sounds too close to a sales pitch, it is a sales pitch.  Which also means they’re going to be over-charging you.  As I explain all over this website and in this article, financing offered by contractors is usually a sales tool that results in a higher project cost to you.  The reality is that you would be best served getting your own financing, and negotiating a cash discount!

What’s The Interest Rate?

A lot of contractors, in trying to make the sale, will try to hide the interest rates or other fees in the financing they’re offering. Don’t let them get away with this and screw you over financially. Make sure you know what you’re getting into so you can back out and use a 3rd party if necessary.

There’s A Secret Merchant Fee.

You can end up overpaying for products and/or services with the contractor all because they have a pesky merchant fee to offer you the financing.  You seem, on the backend of the deal, the financing company charges a fee to the contractor.  Of course, ‘they’ don’t pay it.  You pay it indirectly through a higher project cost.  They won’t come out and say it directly, but you can see evidence of it on the websites of companies that provide financing solutions to contractors.

Will I Have Access To Things Online?

In modern times, mobile banking isn’t a luxury, it’s a must. You need to be able to see your terms, the money you’re getting and when, and monitor all these things at all times. Unfortunately I’ve found that some companies don’t offer online login access for their customers (in 2017 WTF!?).

How customer-friendly is the financing company?

Like I said previously, the companies the contractors work with are often less than ideal. They usually have poor reviews because of their treatment of customers, hidden fees, or lack of transparency.  Be sure to do your due diligence on the financing company you will be financing through as you might find things aren’t always ethical!

When considering a loan from the contractor, make sure you know all you need to know.  Ask them about and pay attention to these five things to assure you don’t get ripped off.  Their answers to these questions may drive you in the direction of an outside financier that’s more transparent with their terms and better suits your needs.

What Your Contractor Won’t Tell You About Their Financing Offers [And What You Need To Know]

I’m consistently shocked by how many people take the bait and get ripped off when they finance a home improvement through their contractor.

Many contractors offer their own in-house financing options which make it easy for you to get their services.  Usually they offer some type of appealing financing solution such as ‘12 months no interest or no payments’ or ‘84 months at the low interest rate of 3.99%’.  Either offer might be hard to pass up.  If you have the cash, the no interest no payments might seem like free money for a year, in which you can keep your cash on hand in case of emergencies, or to invest.  If you need a low monthly payment to make your budget, the 3.99% interest rate seems like a great deal for the amount of value the home improvement project will bring.  However, all is not as it seems!  The numbers you see on the front end are hardly transparent!

What I Am About to Tell You Will Shock You

The financing is just a sales tool.  All the fancy numbers, and killer financing deals are just there to get the sale.  In fact, the 3rd party financing companies that offer financing solutions to contractors promote this concept as a way to increase sales. They want you to get stuck on the financing details and forget about the overall price of the project and/or think that you can’t get the same deal anywhere else.  Then the salesman drives this point home with their tactics to ‘close the deal’.

They have hidden fee’s which cause price to go up.  Here’s the big secret, the financing isn’t free.  There are usually hidden fee’s that get built into the price.  Let me explain: when a contractor sells a project with financing, the contractor has to pay the financing company a fee, a percentage of the project.  This is sometimes called a contractor’s fee, dealer fee, merchant fee, or discount fee.  The fees vary based on the type of plan they are offering.  Basically the better the financing deal seems, the higher this hidden merchant fee will be.  In some cases, I’ve seen the fee as high as 30%+.

Now you will never see the merchant fee, but you pay it – the contractor certainly is not going to eat it.  You pay it indirectly as it as the contractor will simply factor these merchant fees into their price.  If the contractor plans on offering a financing plan with a merchant fee of 20%, they simply raise their price 20%!

The finance company probably sucks.  Contractors don’t finance their project themselves, they use a 3rd party financing company.  The companies they use often don’t have a good reputation for being consumer friendly.  Just look them online and I’m sure you’ll find dozens (if not hundred) of negative reviews on the company your contractor would get you financing through.  I’ve even seen a major company that doesn’t even have online access to your loan.  Yes, in 2017 a major financing bank doesn’t even let their customers have online access.  What baloney!

You’re better off getting your own financing.  Depending on the terms, (99.9% of the time) it’s a better financial decision to get your own financing.  Many of the home improvement loans pushed by contractors have extremely high interested rates well above 20%.  That’s borderline criminal!  I’ve found financing options, for cabinets, pools, roofing, or any other home improvement that have less that a 4% interest rate.

Even if you’re considering taking one of the ‘no interest no payment’, you’re probably best served just getting a no payment credit card, as in this scenario you can focus on the bottom line price your contractor can offer, and then you avoid their finance company.

You can get a cash discount Even If You Finance.  You can still finance your entire project and get a cash discount!  All the financing programs or lending banks I recommend on this site, fund you directly.  Your contractor will never know that you have any financing at all (and quite frankly its none of their business).  The money will be in your bank account, and then you can pay the contractor CASH.  This give you the power to negotiate a cash discount (since the contractor will not have to pay any merchant fees) as I explain here.

Here are the financing programs for home improvements I’ve found with the best rates, and best business practices, that fund you directly, so you can get a cash discount!

SSo who do I recommend?  In a world of shady finance deals I’ve found these companies to be kosher, when it comes to home improvement financing!  Their rates are generally even been than those credit unions and local banks.  They are all fully transparent — no hidden fee’s — the interest rate you see, is what you pay.  And you pay your contractor in cash — no more awkward conversations about ‘payments’.  The application process for them is fully online as well!

  • Lightstream Good To Excellent Credit. These guys have by far the best rates, for good those with good to excellent credit.  They offer home improvement loans from $5,000 to $100,000 and rates as low as 3.99%.  Get Your Rate
  • SoFI Good to excellent credit. There guys are very competitive with Lightstream and tend to have little less stringent credit requirements.  Like Lightstream they do loans from $5000 – $100,000 for general home improvement loans.   See Rates »
  • Prosper Excellent, Good & Fair Credit.This peer to peer lender (don’t get confused, it works just the other options), works with all credit and offers loans from  $2000 to $35,000 with rates from 5.99%.  Find out your rate.

Not sure where to start?  Since similar credit inquiries made with in a shot time period only count has one on your credit report, check them all, and shop around for the best rate!

No Interest No Payments Financing Or Put It All On Credit Card?

There are all sorts of obstacles that come along home improvements and one of the most daunting can be finding the right financing. It can be tempting to take the no interest, no payment loan from the contractor for convenience sake, but this isn’t always the best option. Oftentimes, contractors are in cahoots with a third party financing company and sneak their costs into the price of your estimation.

Why shouldn’t you finance through your contractor?

Though no interest and no payments for [x] amount of time seems like an amazing deal, they often get you back for this later through interest fees and the price of the product becomes higher. How? The financing companies the contractors use (they don’t finance you out of pocket) charge a fee for offering their services to the contractor. Rather than eat this expense, the contractor then adds it to the cost of the product, costing you more money. There may be other hidden fees, as well, contributing to the price hike.

Is taking out a credit card just for this really a better option?

If the no interest, no payments option is what you are after, then a credit card is a much better financing option than getting ripped off by your contractor. You can have the same opportunity without the hidden fees hiking your starting price up. Instead, you get the lowest price your contractor offers with potentially less interest. If you do take out a credit card, be sure the interest rate is acceptable and, if it’s a new account, look for the credit card company with the best starting bonus or discounts.

What to Consider

There are a lot of factors to take into account when deciding on your financing options for your home improvements. Your income, budget, the amount you need, and time-frame to receive it all play a role in this decision, as well as many other things. If you aren’t concerned with the no interest, no payments option, a loan through a bank or credit union might be a better option for you. However, if that is a necessity to you, it would be wiser to receive that from a credit card company than be ripped off by the marketing ploy your contractor is trying to pass off as a good loan.

Home improvements can be stressful from the construction and the planning to the financing. The financing option offered through the contractor can then seem convenient and acceptable when offered, however, accepting this financing would be a mistake. With so many loan options available, there’s few reason to pay extra to your contractor because he made a deal a financing company on your behalf. The research can seem tedious, but, with our help, you can find the perfect loan option for you, even if it’s just funding it through a credit card.

How Large Of An Unsecured Home Improvement Loan Could I Get?

Home improvements can seem dauntingly expensive and with contractors potentially ripping you off with their financing offers, it can seem impossible to make any sort of improvement on your home. Credit scores can often make it difficult to find financing at the interest rate you need. But what if I told you that you could afford it through a third party financier and remake your house into your dream home. Through this post, you’ll see just how affordable it can be no matter your credit score.

Excellent Credit Score

The ideal scenario would be having a flawless credit score, so let’s talk about that first. If you have an amazing credit score, there’s a lot more options available (but don’t worry if you have a bad one, that doesn’t mean you won’t be able to get a good loan). You also have a tendency to get a lower interest rate. LightStream offers a low APR range coupled with a high limit (up to $100,000). Plus, the only fee they charge is interest and you have up to seven years for repayment. This loan cannot be used for anything other than home improvements.

Middle Credit Score

The reality for most Americans is a medium credit score, not horrible, but not great. There are lots of good options still available for those needing a home improvement loan that don’t have excellent credit. Avant targets people with a lower credit score by lowering their minimum credit score to qualify. They offer quick approval and are flexible on repayment deadlines. They offer lower APR’s than most with equivocally low qualifying credit score, but they are higher than a lot of loan options for those with better credit scores. Do keep in mind that they are a new company, so there’s a minimal level of risk involved. Wells Fargo offers a lower rate, but they require a slightly higher minimal credit score to qualify. They offer short-term options for repayment (a year) as well as long-term (up to five years).

Bad Credit Score

Having a bad credit score doesn’t immediately knock you out of the running for a home improvement loan. Government loans can be a viable option, offering up to $35,000 to be financed into the mortgage for repairs. You could also get a co-signer on your loan and, based on their credit, potentially become eligible for some of the better loan options. Be sure to read all the documentation and pay attention the interest rates because they can be higher for those with poor credit scores.

Improving your home can be affordable regardless of your credit score. Don’t settle for the contractor’s financing offer as they have a tendency to have higher rates, offering convenience in the way of research but charging you for it. There are many options available for unsecured home improvement loans with varying maximums, making it possible to find the largest unsecured home improvement loan available no matter your credit score. For instance, you can quality for up to 60% of your annual income. If your annual income is $80,000 then you could be in line to obtain a loan of up to $48,000. You see, your home improvement dreams are within your reach.

How To Get Any Contractor To Accept Your Financing

You have been planning a home improvement project for what seems like forever, and now your main concern is around the financing. You could wait until you have saved the necessary money to fund the project, but that could take far too long and the project is important now. You have also heard the horror stories about the financing that home improvement contractors offer, and you know that many contractors imply that they are your only option.

Know this, it quite simply isn’t true! They imply it, without saying it, hoping that you will snap up their offer of 18 months’ interest free no payments. Those offers, though, tend to come with strings attached. Now, you may not realize what strings there are, but they are there and I’m happy to tell you about them.

With the financing from a home improvement contractor, comes a hidden merchant fee. Now, you assume that it is up to the contractor to pay that fee, because you have your financing and that’s that. That fee can be as high as 17%. Which means that your contractor is going to apply it to their labor fees and the cost of equipment. You are going to pay more for your home improvement project to cover their merchant fee.

Just by accepting their offer of financing you are driving up your own project fee costs. You are going to pay more for the renovation, simply by opting to choose financing through the home improvement contractor. This might annoy you, you may feel as though your contractor can’t be trusted because of this- but the truth is, every business needs to improve their bottom line in these difficult times. So, the contractor is simply trying to make more money from the deals that he makes. That, however, does not mean that you have to go along with it!

So, how is it that you can get financing elsewhere and use it for your home improvement project? It’s simple. Find your own home improvement loan through a reputable third-party financing company and use the funds directly. You can compare offers from a variety of financing companies to ensure that you find the best possible offer.

Your contractor does not need to know that you have obtained financing to pay for the project. As far as your contractor is concerned, you will be paying cash for their services. For you, you are getting the best possible financing deal for you and your home improvement project. So, you can sit back and watch your contractor complete your dream renovation project with the knowledge that you financed it the most efficient way possible. Why spend more money than you need to just to save a little bit of time searching for a better offer? Plus, with a third-party financing company you don’t need to worry about hidden fees written in to the fine print.

The HIDDEN Fee Behind Home Improvement Financing

…and how you can avoid it!

Summary: Its not just interest and payments.  Most home improvement loans offered by contractors come with a hidden fee that causes your price to go up.  Here I tell you what it is, and how to avoid it.

Begin: You take up the starting position on your couch every weekend. You tell yourself that you are ready to tackle your list of chores, but instead you flip through the channels and find the home improvement shows. It’s hard to resist back to back to back episodes of normal people buying, selling, and renovating homes, and by the end of it you feel like you know enough to conquer the world.

The truth is, those shows are fairly misleading, because rarely do they talk about the financing behind the budget. Rather, they focus solely on how much the homeowners have to spend and where it is best used. Plus, you watch as these renovations increase values of homes, thinking yes, this is realistic, before you’ve ever spoken to a contractor! The truth is it’s going to take longer and cost more than the jobs you’ve seen being completed on those home improvement shows, and financing will be a necessity unless you have a large savings in reserve.

Behind most loans offered by home improvement contractors are hidden fees. Find out what they are and how to avoid paying them!

Sadly, there are hidden fees that come with home improvement financing. You certainly won’t know about them and you won’t hear many talk about them – except for me. At the end of the day, everyone is in a business and they’re trying to make money from it, and you’re the person trying to navigate the situation to get the best deal possible.

Once you’ve set your budget and gotten estimates, your contractor might extend an offer of financing to you. It will sound incredible. 60 month terms at 2.99% interest? WOW! Yes, it sounds great, but the truth is that there are hidden fees with this type of financing. Think about it, do you really believe that your contractor is going to finance your project out of the kindness of his heart and wait for you to pay him back? Nope. Contractors are in business with the finance companies to offer financing to their customers. That sounds like the next generous thing they could be doing, right? Well, not exactly.

It Is Not What Your Think

Now you might be thinking “well they probably just make their money on the people that don’t pay it back in 18 months and get whacked with an outrageous interest rate”.  Yes that is true, the lending companies do make a pretty penny off of that, but there another whammy hidden in the numbers – that you still pay even if you pay it off in the 18 months.  Your contractor financing likely has a hidden merchant fee.  A fee that he (or the company) pays to the financing company every time they sell a financed project. If you don’t think the fee could be much, it can be as much as 30%+. Basically the ‘better deal’ it seems like you’re getting (ie. Longer duration of no payment or interest, lower loan rate), the higher that hidden merchant fee is.  It appears as though it’s a fee that the contractor will handle, but in all honesty, he will just inflate his price to cover that additional fee. So, if you’re aiming for a $35,000 loan to get the kitchen of your dreams, then that merchant fee will be quite a hefty price to pay to achieve it.

3rd Party Loan Is Always Better

The contractor financing isn’t the only option available to you, in fact, it’s the most expensive option that is available to you. Rather, you should take the time to see what third party finance companies have available. Whether you have excellent credit, or poor credit, there are plenty of finance companies that will cater to your needs, budgets, and provide you with a better interest rate than your contractor will.  These third party finance companies let you keep your financials to yourself, avoid the awkward ‘financing sales pitch’ and put you in the driver’s seat to getting a lower overall price on the project.

So who do I recommend?  In a world of shady finance deals I’ve found these companies to be kosher, when it comes to home improvement financing!  Their rates are generally even been than those credit unions and local banks.  They are all fully transparent — no hidden fee’s — the interest rate you see, is what you pay.  And you pay your contractor in cash — no more awkward conversations about ‘payments’.  The application process for them is fully online as well!

  • Lightstream Good To Excellent Credit. These guys have by far the best rates, for good those with good to excellent credit.  They offer home improvement loans from $5,000 to $100,000 and rates as low as 3.99%.  Get Your Rate
  • SoFI Good to excellent credit. There guys are very competitive with Lightstream and tend to have little less stringent credit requirements.  Like Lightstream they do loans from $5000 – $100,000 for general home improvement loans.   See Rates »
  • Prosper Excellent, Good & Fair Credit.This peer to peer lender (don’t get confused, it works just the other options), works with all credit and offers loans from  $2000 to $35,000 with rates from 5.99%.  Find out your rate.

Not sure where to start?  Since similar credit inquiries made with in a shot time period only count has one on your credit report, check them all, and shop around for the best rate!

No Interest – No Payments For 18 Months: How Same As Cash Home Improvement Financing Screws You

Recall that HVAC Contractor Offering ’18 Months Same As Cash’ aka no interest, no payments for a brand new Trane AC system? Sounds like a great deal right. 18 months of ‘free money’. We all know nothing is really ‘free’, so what’s in it for this company doing same as cash? To most consumers the answer is obvious, a REALLY high interest rate if you don’t pay it off in 18 months. That’s true, those types of financing deals do whack you with an outrageous interest rate after the promotional period, but there’s even more going on behind the scenes.

The financing companies (I’ve never seen a contractor financing in-house, they all use 3rd party) that offer these plans generally charge a ‘merchant fee’ or ‘dealer fee’. You could think of it like a closing fee… that you never see. Let me explain further. When you buy that nice new 6 ton, ultra energy efficient air condition unit for $5,000, and take the free money, ‘same as cash deal’, the contractor that sold you the system pays a fee to the company that does the financing. Yes, you read that right. The contractor who sold you the system, and closed the deal, pays the financing company a fee. You never see it, and you’re not supposed to know it changed hands. How much you might ask? The fee’s are based on a total percentage of the amount financed, and vary based on the type of plan. On an 18 month plan like this, the fee would likely be around 15%. In other words, $600 just went to the financing company. And you paid for it!

high interest rate

Contractors that offer these types of financing options, don’t just eat the cost. They build it in to their price. If their financing option is going to cost 12%, they just mark up their price 12% and sell you on the financing. Now we see that the free money, ‘no interest no payments’ isn’t free at all. You pay for it! You’re better option is going with a 3rd party lender, and then getting the best price you can on the services you need financing for whether it is an HVAC system or new kitchen cabinets. I’ve gone ahead and compiled the 5 best home improvement loan options below.

The amount of the merchant fee varies from program to program. For example a 6 month same as cash program would have a lower fee, and on the flip side, a 24 month program would have a higher fee. Usually, the ‘better’ a financing offer sounds the HIGHER the merchant fee is. I’ve seen merchant fees as high as 35%. Think about that, you’re paying 35% extra and you had no idea.

So who do I recommend?  In a world of shady finance deals I’ve found these companies to be kosher, when it comes to home improvement financing!  Their rates are generally even been than those credit unions and local banks.  They are all fully transparent — no hidden fee’s — the interest rate you see, is what you pay.  And you pay your contractor in cash — no more awkward conversations about ‘payments’.  The application process for them is fully online as well!

  • Lightstream Good To Excellent Credit. These guys have by far the best rates, for good those with good to excellent credit.  They offer home improvement loans from $5,000 to $100,000 and rates as low as 3.99%.  Get Your Rate
  • SoFI Good to excellent credit. There guys are very competitive with Lightstream and tend to have little less stringent credit requirements.  Like Lightstream they do loans from $5000 – $100,000 for general home improvement loans.   See Rates »
  • Prosper Excellent, Good & Fair Credit.This peer to peer lender (don’t get confused, it works just the other options), works with all credit and offers loans from  $2000 to $35,000 with rates from 5.99%.  Find out your rate.

Not sure where to start?  Since similar credit inquiries made with in a shot time period only count has one on your credit report, check them all, and shop around for the best rate!

Low, Low Interest Rate: How You’re Paying for It

Why pay more when you don’t have to?

A new air conditioning system can be a heavy expense, whether you are installing for the first time or replacing an existing, out of date system. So, it’s vital that you obtain financing for new air condition system that makes sense for you. If you want to avoid paying hidden fees in your loan, then it’s important you know the best air conditioning loans that are on offer.

Those air conditioning replacement loans are not the ones that the HVAC company will offer you, as convenient as they are, and as tempting as they may sound. It’s difficult to imagine finding a better deal than 36 months of interest free goodness, isn’t it? That would be true if that was everything you needed to know about the offer. It isn’t. Any loan offer from an HVAC company is going to be accompanied by hidden fees. Why is that?

Well, your HVAC contractor has joined forces with the finance company. They are all out to make a profit, remember. You don’t really believe that a contractor is offering financing off of his own back, do you? And, the finance company isn’t just going to join in without applying a cost, are they?

Part of the deal that they strike between them is the merchant fee. The merchant fee can be as high as 19%. That’s a lot of money when you consider you are going to have to spend around $8,000 to have your new air conditioning system involved. Who wants to pay an extra $1500 if they don’t have you? You definitely don’t!

The best way to avoid paying hidden fees on your new air conditioning system loan is by obtaining financing through a third-party finance company. As convenient as the contractor’s offer is, it’s certainly not worth an additional $1500! How can this be, you’re asking? Well, it’s simple, really. The contractor will just work the cost of the merchant fee into your invoice to ensure that you cover the fee, not them.

It may sound underhanded, but these are the typical steps that a contractor who offers financing will take. It ensures that they are at no risk of the customer not paying, and gives them a happy bonus.

Another excellent way to save money by opting for a third-party finance company is that many contractors offer a cash discount for a customer who pays their invoice before it’s due. So, by taking out a loan from a third-party finance company and paying off the contractor in full, you will save even more money.

Let’s now count the ways a third-party finance company is the smart way to finance your new air conditioning system. You will get a better interest rate, you won’t need to pay a merchant fee, and you’re going to enjoy your new system knowing that you got the best deal possible.

How to Avoid Paying Hidden Fees on Your Loan for a New Air Conditioning System

Why pay more when you don’t have to?

A new air conditioning system can be a heavy expense, whether you are installing for the first time or replacing an existing, out of date system. So, it’s vital that you obtain financing for new air condition system that makes sense for you. If you want to avoid paying hidden fees in your loan, then it’s important you know the best air conditioning loans that are on offer.

Those air conditioning replacement loans are not the ones that the HVAC company will offer you, as convenient as they are, and as tempting as they may sound. It’s difficult to imagine finding a better deal than 36 months of interest free goodness, isn’t it? That would be true if that was everything you needed to know about the offer. It isn’t. Any loan offer from an HVAC company is going to be accompanied by hidden fees. Why is that?
Well, your HVAC contractor has joined forces with the finance company. They are all out to make a profit, remember. You don’t really believe that a contractor is offering financing off of his own back, do you? And, the finance company isn’t just going to join in without applying a cost, are they?

Part of the deal that they strike between them is the merchant fee. The merchant fee can be as high as 19%. That’s a lot of money when you consider you are going to have to spend around $8,000 to have your new air conditioning system involved. Who wants to pay an extra $1500 if they don’t have you? You definitely don’t!

The best way to avoid paying hidden fees on your new air conditioning system loan is by obtaining financing through a third-party finance company. As convenient as the contractor’s offer is, it’s certainly not worth an additional $1500! How can this be, you’re asking? Well, it’s simple, really. The contractor will just work the cost of the merchant fee into your invoice to ensure that you cover the fee, not them.

It may sound underhanded, but these are the typical steps that a contractor who offers financing will take. It ensures that they are at no risk of the customer not paying, and gives them a happy bonus.
Another excellent way to save money by opting for a third-party finance company is that many contractors offer a cash discount for a customer who pays their invoice before it’s due. So, by taking out a loan from a third-party finance company and paying off the contractor in full, you will save even more money.

Let’s now count the ways a third-party finance company is the smart way to finance your new air conditioning system. You will get a better interest rate, you won’t need to pay a merchant fee, and you’re going to enjoy your new system knowing that you got the best deal possible.