02-05-2017 08:12 PM
02-06-2017 07:46 AM
02-06-2017 08:08 PM
Well, that's basically how all of the monthly payment plans work anyways.
You're better off getting a line of credit from the bank and paying that back.
02-06-2017 08:22 PM
02-07-2017 11:10 AM - edited 02-07-2017 11:16 AM
At least with a line of credit or a regular credit card, the interest fees are (relatively) transparent. With gimmicky "No Interest for X Months" in-store financing offers, the risk is huge. What they won't tell you is that if you miss a payment, or if you fail to pay off the full balance by the end of the "No-Interest" term, then all the previously waived interest on the unpaid amount is retroactively charged to you (at an insane interest rate) for the entire period of the loan, and now the juice is running with that very ridiculous interest rate. Probably something like 20 - 30%!
This is why these cards are so profitable to banks. People don't read the fine print. People miss payments. People end up owing sometimes as much as 50, 60, 70% more than the actual purchase price of the item they bought the day their "interest free" period ends, and counting.
It's despicable. The Bank is wooing everyone with the promise of a flashy new purchase at zero interest. "Get it now! Pay Later!" Sure, many people probably pay it off with no issue, but things happen... life happens... for every one who does, there's another consumer who was sure they'd have no problem paying that little amount owing every month... until they didn't. That's what the Bank is counting on, and then they rake it all in.
Just my unsolicited 2 cents, but nobody should ever make a large purchase on a no-interest in-store credit promotion. The math just blows my mind.