You see them all the time... buy furniture or TVs, whatever and 'make no payments until 2008!'
I know the typical catch is that if you don't finish paying it off by the time limit, they rack up all the interest for the 3 yrs (or however long) and it's usually an astronomical interest rate like 25%.
But... has anyone successfully purchased something under this type of financing plan and paid it all off before getting hit with any interest?? Is there any other catch?
Just wondering....
marymoon
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Re: No payments until 200X!! Anybody done this?
We bought out Couch (from macy's) and our entertainment center( fortunoff) both with this kind of financing.
The deal with macy's was that you had to pay it off befoe the time was up, and if not you had to pay ALL of the interest on it from Day 1. We're still working on payning it off before april, but if we don't, we're just gonna transfer the balance befoer then to a low interest rate CC.
At fortunoff it's the same deal except that you had to pay 1/3 of the price up front.
I think it works really well if you can pay it on time, and if it comes down to the wire and you don't have the cash, you can always transfer it to a low interest rate CC (you know how you always get those offers for low rates on balance xfers)...we are happy with it, there was NO other way we were going to afford furniture
JimmysBride
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Re: No payments until 200X!! Anybody done this?
Oh so wait a minute... are you actually applying and opening a credit card line with the store?
Like if I bought a TV at Circuit City with this type of financing, it means I'm opening up a Circuit City credit card account?
marymoon
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Re: No payments until 200X!! Anybody done this?
I'm not sure how circuit city does it, but yes, for my furnture the 'no interest financing' was on a store credit card. That's why the itnerest rate is so high. it's not some astronomical made up rate, it's the regular rate for a store credit card (which is usually around 20%)
cjb88
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Re: No payments until 200X!! Anybody done this?
i bought a mac computer on a similar plan... you had to open up a credit line...kind of like a credit card with them... I paid everything off before my due date, so I had no additional fees or intrest... it was great!! and well worth it as long as you pay it off by the agreed date!
pschica
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Re: No payments until 200X!! Anybody done this?
we did this with our window treatmetns - just b/c we also saved 15% whereas if we paid it outright, they wouldn't give us the deal......the only thing to consider is whether you will be able to pay it off then - b/c if you don't they can get you with big finance charges and stuff...
Hazeleyes33
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Re: POLL: No payments until 200X!! Anybody done this?
We did this 12 years ago when we got married and just bought a dining room table this way. The only way it works is if you save the money every month so you know you will have it for that last payment. We actually got interest back at Levitz 12 years ago. I don't think they were supposed to do that, but it was a nice surprise!
DjPiLL
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Re: POLL: No payments until 200X!! Anybody done this?
There is nothing wrong with this, but you have to read ALL THE FINE PRINT on these deals.
You have to be careful with this type of financing. Make sure the promo is no payments AND NO INTEREST for 12 months.
Sometimes they will continue to charge you interest even if they don't ask for a payment.
And even if its no payments and interest... make sure you pay it off before the end of the promotional period or else they hit you up for ALL of your missed interest (big bux).
