You can finance just about anything these days and some people are taking that concept to the extreme by getting puppy financing.
It might sound funny to some, but if you have ever seen the price tag on a “designer pet” you would understand why puppy loans are “fur real”. While they are definitely a real thing, are they a good thing? Some dog breeds can be extremely expensive based on the overall rarity and characteristics of the breeds. Look at some of the pros and cons so that you can decide for yourself.
What Is A Puppy Loan?
Before we get into the pros and cons, let us take a look at what puppy loans really are. Is there anything special about them?
In short, no.
A puppy loan is essentially just a personal loan that you use to pay for your puppy. It is no different than a loan that you might get to consolidate debt or pay for a home improvement project. The only difference is that you are using the money to pay for a dog.
Getting a puppy loan is essentially the same process as taking out an ordinary personal loan. You simply need to get a quote. These days, there are many places like the Puppy Lending Website where you can do so relatively quickly. Once you have your quote, you should carefully consider your offer before deciding to accept an offer.
Puppy Loan Pros
Like most loans, there are pros and cons involved. Let us start by looking at some of the pros.
You Get Paid Directly
When you take out a puppy loan, your lender will often pay you directly. This has several benefits when you are looking for a pure breed. The chief one is that you can purchase your new pet from any breeder that you like.
Most breeders do not accept financing. Dogs are in such demand these days that they simply do not have to take on the extra burden of paperwork. Having money in your account allows you to work with these breeders and that greatly opens your shopping options.
You Can Avoid Pet Shops
Let us face it, a pet shop is just not the best place to buy a puppy. Many of them get their animals from puppy mills and there are some very unpleasant ethical dilemmas that go along with that.
Want another reason to avoid the pet shop? Consider the availability. They are unlikely to carry a huge selection of animals and most tend to go with the trend of the “designer pet”. This is essentially a mixed breed dog sold at hugely inflated prices.
There is simply no good reason to want to shop at a pet store for a pet.
No Collateral Is Needed
These are unsecured loans, meaning that you do not have to put up your home or automobile for collateral. This means that, while you would face consequences if you did not pay off your loan, you would not face the risk of losing any property.
Puppy Loan Cons
Now, what about those cons? Well, there certainly are a few worth mentioning.
Loan Costs Can Be High
Any unsecured loan is likely to have higher fees than a secured one, but this is particularly true if you have less than perfect credit.
With bad credit, you need to be careful about both your interest rate and loan fees. Your lender is required to reveal these details to you, so if you are considering a puppy loan, pay attention.
You Can Go Over Budget
It is all too easy to go over budget when taking out a personal loan. You may be planning on spending $1000 on a dog but what if you get approved for $3000? Do you have the discipline to only accept a smaller loan, or will you go for broke?
Before you apply for a puppy loan, be sure to sit down and write out a budget. Figure out how much you want to spend on a dog and how much of a monthly payment you can reasonably afford.
It Is Simply More Debt
In the end, a puppy loan is simply more debt piled on to all your other debt. You must consider whether it is worth adding to your financial obligations for something non-essential to your life, like a dog.
What Is The Verdict?
Given the pros and the cons, should you take out one of these loans?
That depends. If you have good to excellent credit and can secure a favorable interest rate, then one of these loans might be for you. Just make sure that you can afford the loan payment.
If, on the other hand, you have a less worthy credit rating, you should be careful. Interest and fees could very well make the loan a nightmare to pay off. In these cases, you may be better off considering other options such as adopting a pet from a local animal shelter.