Dont understand it yet. Does the amount of the purchase get charged to your credit card? My best buy mastercard only has 300 limit. Can i finance a product larger than my limit?
Yes it gets charged on to your credit card and dont pay interest in that 18 month period.
And Best Buy allows you to go 10% over your limit. If you make the monthly payments on time and finish paying off by the end of the 18 month period all interest will be waived. If you dont do one of the above you will be hit with all the interest starting from the purchase date. Make sure you pay attention to any requirments of the financing, sometimes they require a minimum purchase amount or a specific category (i.e. 18 months on all appliances or home theater)
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You should wait until Citi takes over in 4 more days ans ask for a CLI. Citi is more flexible than Cap1, just tell them you want to take advantage of the 18 month financing and they should take care of it. Although who knows what rewards and financing Citi will provide. I would wait and see.
... and put it into your monthly budget.
A few years ago I charged a large purchase (different credit account), 12 months 0% interest, and I thought I would pay it off. On the 11 month I realized I had $180 left to pay, yet only $150 in my checking.
lol, ok I'm sure you realize that... I've personally grown a lot since then.
It is definitely a good plan to budget the amount to pay equal parts monthly so you don't get at the end and can't pay it all off.
For example, if you buy an item for $1200 and 12 months 0% interest, then pay $100 per month. Or even pay a little more each month and pay it off in 11 months just to be safe.
I don't have a Best Buy card so I don't know if they do the same but, I have taken advantage of two seperate 0% interest offers on my Sam's Discover and they have a place where you log in to your account that shows your promotional information. It tells my purchase date, date of the end of 0% interest and what the interest would be if I don't get it paid in time. I have did what others here have recommended and calculated the least I need to pay each month but I do like to have that information in black and white so I know myself and Sam's are on the same page with dates/balances/etc.
I usually give myself 2 months cushion so i give them no chance of screwing me over with the interest. So if its 12 months i pay it off in 10. Or pay it off sooner if possible.
I love the 18 months on my Best Buy - I have used it twice and have always paid in full in less than 12 mos, (paranoid I guess - don't want the retro interest)....one thing to keep in mind - more likely than not, the minimum payment due that they put on the statement will not be enough to pay it off in the 0% time frame. I just calculate how long I want to take to pay it off in the specified time frame and see what it will take per month and that is what I pay.
Just a little of advice that I use.