Buying an Apple iPhone, iPad or Mac? Spread the cost interest-free over 12 months – but you’ll need to be quick
You can spread the cost of a new Apple iPhone or iPad with this new interest-free loan
IF you can't afford to pay for an iPhone, iPad or Macbook outright, Apple has launched a new deal that allows customers to pay in monthly instalments, interest-free.
Those who are interested will have to act fast - applications close on Tuesday March 14.
The deal means that you can get a 0 per cent loan or credit agreement on all Apple products - including the latest iPhones, iPads, Apple watches, TVs and Macbooks.
It can be a good way to spread the cost if you're keen to get your hands on the latest Apple gadgets.
It means that, on a new iPhone 7 Plus, that costs £719, you'll pay just shy of £60 a month in instalments.
But as you're applying for credit, your credit file will be checked, and if you're turned down for the loan - which is a possibility - the mark will stay on your file, and will be seen by other lenders when you apply for credit in future (including mortgages).
The deal is available via Apple's website (not in-store) and will be done via a 0 per cent loan or credit agreement with one of two lenders; Barclays or PayPal.
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How it works
According to MoneySavingExpert.com, the deal will either be a credit agreement with PayPal or a loan from Barclays.
With Barclays, you apply for the loan (via the Apple website) and you'll either be offered 12 months at 0 per cent, fewer months at 0 per cent, or be rejected entirely.
You can choose to turn down the offer if you're offered fewer months at a higher cost, but the search will stay on your credit file.
If you accept the offer, you must pay off the loan within the agreed period.
Alternatively, you can apply for PayPal credit, which means - if you're accepted - you'll be granted credit to pay for your Apple product, which can then be paid off over 12 months at 0 per cent. In this way it's similar to a credit card.
MSE says there is a possibility that you could be granted more credit than the cost of your order, and the remainder can be used for other purchases (or not) via PayPal in future – but with interest.
If you're not accepted by PayPal, you'll be rejected outright.
Crucially, there is no penalty if you want to repay early.
To apply for the credit agreement, just choose the product you want to buy on the and choose either PayPal credit or a Barclays loan at checkout. Minimum spend is £99.
ARE THERE CHEAPER ALTERNATIVES?
BORROWING credit can be a risky business and it's advisable to avoid doing it on non-essential items.
If you can pay outright, iPhones and other Apple devices are cheaper elsewhere. For example, you can get the 32GB iPhone 7 Plus from giffgaff for £699, or you can buy it pre-owned from the same site for £629.
Buying the phone directly from Apple costs £719. If you're just interested in an iPhone 7 or 7 Plus, you can use Apple's other payment scheme, which offers 0 per cent finance over a longer period - 20 months. It's avaible in-store only. Y
ou could also get a longer interest-free period by applying for a credit card which offers up to 30 months 0 per cent on spending. Halifax offers such a card, but not everyone will be approved and again, a credit mark will be added to your file.
What happens if you can't keep up with repayments?
If you fail to keep up with repayments, Barclays or PayPal will do what other finance providers do when credit isn't repaid – put a black mark on your credit file.
PayPal also charges a £12 fee for late repayments and would charge its standard 17.9 per cent APR on any outstanding balance at the end of the 0 per cent period.
Barclays doesn't have a late payment fee, but the bank will work with customers on a "a case-by-case basis", says MSE.
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