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Watch out for 0% APR offers when buying something

Established Contributor

Watch out for 0% APR offers when buying something

Read the terms of agreements, sometimes they say 18 months 0% financing, but if you don't have it paid by 18 months all that interest they SHOULD have charged will come on your bill all at once.

 

Just a friendly reminder to not overcharge for things you can not pay for in cash Smiley Happy


total credit limits $108,400 Credit scores Ex 728 EQ 738 TU 758
Message 1 of 8
7 REPLIES
Frequent Contributor

Re: Watch out for 0% APR offers when buying something

Pretty sure almost all 0% offers are like this. I know Best Buy and Sears are. I try to pay off all my promo's 2 months before they are about to end to be sure i don't get any funky charges.

Message 2 of 8
Established Contributor

Re: Watch out for 0% APR offers when buying something


Mike360 wrote:

Pretty sure almost all 0% offers are like this. I know Best Buy and Sears are. I try to pay off all my promo's 2 months before they are about to end to be sure i don't get any funky charges.


yea just trying to help a few people cause people complain about this all the time, they never fully read before they sign.

 

Also remember if they usually charge 20% interest on $1,000 annually they won't charge just $200 in interest if you pay after 12 months, it's interest on top of internet monthly that would've added upto that point. 


total credit limits $108,400 Credit scores Ex 728 EQ 738 TU 758
Message 3 of 8
Valued Contributor

Re: Watch out for 0% APR offers when buying something

This is a good reminder. I believe this applies to all retail store credit card 0% APR promos.
Message 4 of 8
Established Contributor

Re: Watch out for 0% APR offers when buying something

+1

Message 5 of 8
Valued Contributor

Re: Watch out for 0% APR offers when buying something

A good, timely reminder!

 

I sometimes make purchases like this, to take advantage of no interest loan for something I'd prefer to not have to PIF at the end of the month.  For instance, I bought an outside storage shed and had it installed by Home Depot this summer, with 24 month 0% financing if PIF during that time period.  I check the website frequently for my balance, to make my payments, to check my terms, and also have a reminder in my phone calendar to remind me monthly of the due date.  I'm sure not going to need all 24 months, but it's nice to have that option.  As with anything, it's all about how you manage your money.

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Message 6 of 8
Established Contributor

Re: Watch out for 0% APR offers when buying something

This happened to me once on my Lowe's account.  I had purchased a utility trailer on 12 mo. 0%.  I paid on it regularly, and knew when it expired.  The day before expiration I paid it off on-line, and it took my payment as it always does.  To my surprise, when my statement cut, there were the charges.  Full interest from the beginning.  I quickly called customer service and they fixed everything.  I guess they jumped the gun, because they posted the charges, some $300, THE DAY BEFORE the expiration!  So buyer beware!


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Message 7 of 8
Epic Contributor

Re: Watch out for 0% APR offers when buying something


distantarray wrote:

Read the terms of agreements, sometimes they say 18 months 0% financing, but if you don't have it paid by 18 months all that interest they SHOULD have charged will come on your bill all at once.

 

Just a friendly reminder to not overcharge for things you can not pay for in cash Smiley Happy


I believe this is a good reminder but should proably change title more directed at store type offersand maybe clarify little further.

~~As been said you take 0% for 12 months and you pay just $25 minimum lets say then at month 13 if not paid the interest over the 12 months that was not paid will get hit with the entire 12 months and moving forward you would continue to be billed on the current rate of the card.

~~Now this is different for say a Discover Card 15 months 0% offer on purchases or BT's.  You will not get "Retro-Active" interest if you do not pay in full before the 15 months expires.

~~ Additionally when a BT offer doesn't include purchases at same rate, understand that if you pay just the minimum on payment, if you have say $1k at a promo rate your min. might be $30.  But then lets say you bought $100 on the card that is on regular interest. if you pay just the minimum probably $25, so you have $55 min. due then you would still be paying interest on that $75 of the $100 purchase into the next month... if you wanted to pay off the part that is charging interest you would have to pay the BT offer minimum and the ENTIRE purchase that is not on the BT to avoid additional interest charges.

 

Hope that make sense!

 

Message 8 of 8