4 Air Conditioning Financing Options To Compare When You Need A New Air Conditioner

If you discover your air conditioner died over the winter and you need to get a new one, you may be worried about how you'll cover the cost. A new AC is expensive, and you may not have enough cash available.

There are a few options for air conditioning financing that you might want to explore. You'll need to consider and compare your choices so you choose an option that works well for your budget and that gives you the best terms. Here are some air conditioning financing options to consider.

1. Financing Through An HVAC Company

Some AC companies may offer their own financing. You may need good credit to qualify, but you'll have the convenience of only dealing with one company to get your new air conditioner.

You may want to start your hunt for air conditioning financing by talking to your contractor and getting more information so you can compare their terms with other types of financing if you want to look around before you decide to accept their offer.

2. Using Your Credit Card

A credit card may not be the best way to finance an air conditioner because credit cards often have higher interest rates. However, if you already have a credit card with a high credit line and you can't qualify for a loan, you may need to use your card and then pay it off as fast as possible.

However, you might want to think about how adding a large purchase to your card might affect your credit score. It might cause your score to go down, at least temporarily, since your available credit will drop once the purchase is added.

3. Getting A Personal Loan

A personal loan might be the right choice if you have fairly good credit. A loan might be hard to get if your credit is bad. Plus, your interest rate will be higher with bad credit, and that makes the loan harder to pay back. Still, a personal loan might be the best option if you already have a relationship with a lender and your finances are in order.

4. Taking Out A Home Equity Loan

If you have equity in your house, you might be able to get a home equity loan. These tend to have better terms than a personal loan since your house is used as collateral for the equity loan.

Since these loans go through a home lender, it may take longer to get your loan processed. A loan from an HVAC contractor or even a personal loan can be approved much quicker so you can get your new AC installed faster. 

Contact an HVAC contractor near you for more information about air conditioning financing.