Trek Financing Options
Trek financing is no longer available in-house through a Comenity Bank credit card. Fortunately, there are other Trek financing options to help you afford a new bike from this popular brand.
Budget and save
Saving up enough money to pay for the full cost is always an option for a big purchase like a bike. By setting a savings goal and sticking to your budget, you can build a big enough fund to afford a new bike from Trek. Paying out of pocket can help keep you out of debt.
If you have an immediate need for a new bicycle, you have a few other choices regarding Trek bike financing.
Borrowers turn to personal loans for various reasons: debt consolidation, home improvement projects or emergencies, to name a few. You could qualify for a new loan, depending on your credit history, existing debt and other credit accounts. If you have a higher credit score, you’ll likely receive better rates and more favorable repayment terms from lenders.
The notable downside of a personal loan is that it will cost you money in the long run. Suppose you fund your purchase of a new Trek bike with a $5,000 personal loan. Depending on your interest rate, you may only need to pay a few hundred bucks each month, but over the loan’s lifetime, you could pay closer to $6,000 or $7,000 — or even more. Spreading out the cost of the bike will force you to pay more than the sticker price.
0% APR credit card
There are other ways to finance a Trek bike that could allow you to pay over time without accruing interest. If you qualify for a credit card with a 0% APR introductory period, you could theoretically pay off the balance in installments. If you spend $5,000 on a bike, you may have more than a year to pay it off. Ordinary credit cards accrue interest on the unpaid balance, but your balance won’t grow if you’re in the introductory period.
But, if you can’t pay off the card balance before the period ends, you may have to pay interest. This financing option has its drawbacks: namely, there are interest charges past the introductory period. If your card has 0% APR for 18 months and you successfully pay off most — but not all — of the balance, you could be hit with an unexpected surprise bill. Even if that $5,000 balance shrank to $100, you could be on the hook for over $1,000 in back interest once that period ends.
Other merchant financing
Even though Trek no longer offers financing, many bike shops do. Buy Now, Pay Later works a lot like a 0% APR credit card, although there is more structure with installment payments. If you successfully make your payments on time, you won’t have to pay interest. But, if you fall behind, you could have to pay more money in the long run.