Samsung offers enticing financing options to help you purchase their latest smartphones, TVs, and other devices. But before you apply, you may wonder what your odds are of getting approved. Here’s a comprehensive look at Samsung financing, including how it works, what credit score you need, and tips to boost your approval odds.
How Samsung Financing Works
Samsung partners with TD Bank to provide financing exclusively through Samsung’s website. It operates similar to a credit card – you get a revolving line of credit that lets you make multiple purchases over time and repay the balance in monthly installments.
When you apply for Samsung financing, TD Bank does a hard pull on your credit to check your score. If approved, you can use your line of credit to finance eligible Samsung purchases either interest-free or with deferred interest, depending on the offer.
- 0% APR financing – Some purchases, like Galaxy smartphones, may come with 0% APR financing for up to 36 months. This means you pay no interest as long as you pay off the balance during the promotional period.
- Deferred interest financing – Other products may have deferred interest promotions, where interest accrues during the financing term but is waived if you pay in full by the end date. If not paid off, all accrued interest gets added to your balance.
- No down payment – Samsung financing allows you to buy eligible devices for $0 down. However, you still have to pay applicable sales tax upfront.
- Revolving credit – It’s a credit line, so you can keep using your Samsung financing account to make additional purchases without reapplying.
- Upgrades – Some purchases let you upgrade to a new device annually with credit for your old gadget.
What Credit Score Do You Need for Approval?
Samsung doesn’t publicly share its credit score requirements. However, customer reports suggest a minimum credit score of around 650-700 is needed for the best approval odds. Those with scores below 650 may still get approved but likely need a down payment.
According to Experian, a credit score of 700 is considered good. This means having little to no late payments, a reasonable credit utilization rate, and a healthy mix of credit types.
Before applying, check your credit reports and FICO score so you know where you stand. Pay down balances, fix any errors, and take other steps to boost your score. This gives you the best shot at instant approval with no down payment.
Tips to Improve Your Samsung Financing Approval Odds
Here are some key ways to maximize your chances of getting approved for Samsung financing:
1. Have a Good Credit Score
As mentioned, a credit score of 700 or higher is ideal. The higher your score, the better your approval odds. If your score is below 650, approval will be very difficult without a down payment.
2. Lower Your Credit Utilization
This measures how much of your available credit you’re using. Experts recommend keeping it below 30%. Pay down card balances to lower your utilization.
3. Avoid Applying for Other New Credit
Each new credit application causes a hard inquiry on your credit report. Applying for multiple things at once raises your risk level in the eyes of lenders.
4. Pay All Bills on Time
Payment history is the biggest factor in your credit score. Pay all bills on time to avoid late payments being reported. Set up autopay if needed.
5. Review Your Credit Report
Verify all information is correct and that no fraudulent accounts have been opened. Dispute any errors with credit bureaus.
6. Meet Minimum Income Requirements
Be prepared to prove your income. Lenders want to see you can afford the monthly payments.
7. Provide Valid ID and Social Security Number
These verify your identity and allow TD Bank to pull your credit report. Make sure all information you provide matches your ID.
How Does Samsung Financing Affect Your Credit?
When used responsibly, Samsung financing can help build your credit over time. But it also comes with risks if you’re not careful.
Applying causes a hard credit check, which may lower your score a few points initially. However, these points are usually recovered within a few months.
Making all your payments on time shows lenders you can responsibly manage credit and will improve your score.
If you miss payments, they will be reported to credit bureaus and significantly hurt your credit score. This also risks account default.
Having an installment loan like Samsung financing improves your credit mix, which boosts your score. Revolving credit alone is less ideal.
The balance you carry raises your credit utilization. Try to keep it under 30% by making payments larger than the minimum due.
Keeping your Samsung financing account open and active for many years establishes a longer credit history.
Is Samsung Financing Worth the Risk?
Samsung makes it quick and easy to finance the latest tech. But before applying, weigh the risks and make sure it aligns with your financial goals. While a temporary credit score drop is normal, missed payments can seriously damage your credit for years.
If you have good credit and budget carefully for the monthly payments, Samsung financing can be a great way to buy devices you otherwise couldn’t afford upfront. Just be sure to make payments on time and pay off the balance as soon as possible.