Clean, spotless clothes not only enhance one’s overall look but also help ensure hygiene. Premium washing machines eliminate different types of stains and impurities, leaving clothes looking neat and tidy. But buying a washing machine is a major decision, and down payments can cause a financial crunch for buyers. On the bright side, one can make arrangements to save money on their washing machines and avoid making a down payment.

1. Look for zero-down-payment loans
Many financial institutions in the country offer loans with zero down payments for buying home appliances, including washing machines. While such institutions most likely have branches across the country , one should look for local branches while shortlisting lenders offering low-rate, zero-down-payment loans. Factors like tenure flexibility, brands covered, and the institution’s reputation should also be considered before one applies for a loan to buy a washing machine. Also, one shouldn’t opt for loans that exceed or are lower than the total amount to be spent on the appliance. Setting a fixed budget is half the battle won in deciding the ideal principal amount for the zero-down-payment loan.

2. Go for an affordable washing machine
One of the best ways to avoid making a huge down payment is to buy a budget-friendly washing machine, which comes with all the required features that one needs but doesn’t have unnecessary add-ons. Such added features or components increase the overall cost of the washing machine. Another way to save money is to buy a used washing machine in good condition. Since second-hand washing machines cost less than unused ones, one ends up spending less money even if a down payment is inevitable. Checking out all the available washing machine offers and discounts is another essential step to save money.

3. Use a credit card
Credit cards allow one to make payments flexibly at a later date, which helps one evade a down payment when buying a washing machine. Also, many dealers tend to accept credit cards as a mode of down payment because the amount gets credited to the vendor’s account immediately but isn’t debited from that of the consumer. Credit cards also come with flexible equated monthly installment (EMI) options, which means that the amount can be paid conveniently in installments over certain months and without hefty interest if one chooses a lender wisely. While credit card payments involve an additional fee, it is still better to buy a washing machine on credit than pay a larger amount as a  down payment.

4. Check the credit report and try to boost it
Those with high credit scores have a much better chance of securing zero-down-payment loans than those with low scores. So, one should monitor their credit score carefully and try to maintain it by paying credit card bills on time, having a low credit utilization score, and retaining old credit cards. In case one’s credit score cannot be increased before applying for a loan, it’s best to look for institutions that have lenient credit score requirements. Getting a co-signer for the loan may also help assure the lender of one’s ability to repay the loan.

5. Negotiate higher monthly installments
If one negotiates a higher EMI, they might stand a better chance of doing away with down payments when buying a washing machine. Higher EMIs also mean higher interest rates, so one should be prepared for increased monthly expenses when opting for such loans. Comparing the interest rates of specific loan amounts offered by different financial institutions may help make a decision on the most cost-effective one.

6. Explore different financing options
Different lenders may have different eligibility criteria for their loans, so it is best to compare the various financing options available before opting for a zero-down-payment loan to buy a washing machine. Minimum and maximum age, credit score requirements, specific conditions for self-employed persons (if applicable), and citizenship status are some factors to consider when comparing financial options. Also, processing charges need to be considered and compared. At the same time, just to save a few pesos, one shouldn’t compromise on the lender’s reputation, brands covered, and ratings.

Why opt for loans with zero down payments?

No compromise on current financial requirements
One of the major advantages of zero-down-payment loans is that they allow one to fulfill their current financial requirements while flexibly paying the total amount for the products purchased. For instance, products like washing machines may be expensive, but one shouldn’t compromise on brand and quality for price. So, going for a zero-down-payment loan can help one buy a premium washing machine without facing any financial problems.

Enhanced savings
When making a down payment, one may have to withdraw money from their savings because they might not be able to afford it otherwise. Such hefty payments may reduce the balance in one’s savings account and disturb other financial goals for which one may have been saving. With zero-down-payment loans, one doesn’t have to dig into such savings, as they are allowed to pay the amount in small installments.

When going for zero-down-payment loans, one should read the terms and conditions by the vendor carefully and check the washing-machine brands that the lender covers. It’s best to shortlist vendors who cover all the major brands and models of washing machines and have good ratings. Checking out online reviews of lenders and consulting one’s family, friends, or colleagues is also a good idea.