topic Re: How does promotional financing work with store cards? in Credit Cards

How does promotional financing work with store cards?

Blake312 — Mon, 05 Oct 2015 23:46:50 GMT

I was looking all over the forums on how promotional financing works with store cards, can you use it unlimited amount of times has long has it meets the store card requirements or is i t like normal credit cards where you can only get 0% intererest for your first 18 months of the card? IE I get the Best Buy Store card and purchase iPad and fiance it for 12 months and then I pay it off, can I now fiance a TV for 12 months using 0% interest again for 12 months or was that only for purchases during first couple months? Basically what I am asking is 0% unlimited has long has meet the minimum spend requirements for the purchase?

Re: How does promotional financing work with store cards?

Anonymous — Mon, 05 Oct 2015 23:50:57 GMT

My experience with Best Buy, Lowe's, a furniture store card, and Care Credit, each purchase you have a choice. BB and Lowe's, you can get 5% off (might be 5% back in rewards with BB) OR you can opt for 0% for some specified period of time which often depends on the purchase price. Example, maybe $300 they'll give 0% for 6 months but $3k they'll give 0% for 24 months. All off the top of my head, so don't quote me on specifics.

ETA: And reading your quote again, you woulnd't have to pay off the iPad first. As long as you had available credit enough for your next purchase, you can have overlapping purchases with different dates and arrangements.

Re: How does promotional financing work with store cards?

SunriseEarth — Mon, 05 Oct 2015 23:55:53 GMT

@Blake312 wrote:
I was looking all over the forums on how promotional financing works with store cards, can you use it unlimited amount of times has long has it meets the store card requirements or is i t like normal credit cards where you can only get 0% intererest for your first 18 months of the card? IE I get the Best Buy Store card and purchase iPad and fiance it for 12 months and then I pay it off, can I now fiance a TV for 12 months using 0% interest again for 12 months or was that only for purchases during first couple months? Basically what I am asking is 0% unlimited has long has meet the minimum spend requirements for the purchase?

Typically, promotional financing is available for the life of the store card, but this could vary with product. For example, on my Amazon Store card, I was able to make several purchases using promotional financing and could use one now, if I desired.

Re: How does promotional financing work with store cards?

ddemari — Tue, 06 Oct 2015 01:22:25 GMT

@SunriseEarth wrote:
@Blake312 wrote:
I was looking all over the forums on how promotional financing works with store cards, can you use it unlimited amount of times has long has it meets the store card requirements or is i t like normal credit cards where you can only get 0% intererest for your first 18 months of the card? IE I get the Best Buy Store card and purchase iPad and fiance it for 12 months and then I pay it off, can I now fiance a TV for 12 months using 0% interest again for 12 months or was that only for purchases during first couple months? Basically what I am asking is 0% unlimited has long has meet the minimum spend requirements for the purchase?
Typically, promotional financing is available for the life of the store card, but this could vary with product. For example, on my Amazon Store card, I was able to make several purchases using promotional financing and could use one now, if I desired.

This is why I sometimes regret closing out my apple financing visa. because when I had the card, I didn't appreciate the fact you could finance a 0% apple purchase whenever u pretty much wanted as long as the purchase price was high enough. and I guess my level of apple spending has increased lol.

Im pretty sure if you go online to look at the lenders application, if available online wil tell you in the terms of the financing specifics.

Re: How does promotional financing work with store cards?

CreditDunce — Tue, 06 Oct 2015 02:28:11 GMT

Before you use a store card for 0% financing, be sure to read the terms carefully. Pay special attention if they use retroactive interest.

Re: How does promotional financing work with store cards?

SunriseEarth — Tue, 06 Oct 2015 07:16:57 GMT

@CreditDunce wrote:
Before you use a store card for 0% financing, be sure to read the terms carefully. Pay special attention if they use retroactive interest.

Correct. What you may be getting is "deferred interest"; in this case, interest has been accumulating the entire time and you may have to pay it all if your balance is not paid off before the promotion ends.

Re: How does promotional financing work with store cards?

UncleB — Tue, 06 Oct 2015 08:19:11 GMT

@SunriseEarth wrote:
@CreditDunce wrote:
Before you use a store card for 0% financing, be sure to read the terms carefully. Pay special attention if they use retroactive interest.
Correct. What you may be getting is "deferred interest"; in this case, interest has been accumulating the entire time and you may have to pay it all if your balance is not paid off before the promotion ends.

Yeah, I have this with Care Credit right now. I made a purcase of $670, with deferred interest for 24 months (which is a really good deal).

However, if I go even one single day past 24 months in paying it off in full, they'll add on back interest from the very first day, at a rate of 26.99%. Ouch!

Needless to say, I'll have it taken care of long before the promotion runs out!

Re: How does promotional financing work with store cards?

Kutuzov — Tue, 06 Oct 2015 10:15:47 GMT

The store cards I use, Kanes Furniture and Amazon sc, do a 0% deferred interest for 6 or 12 months. If you pay the whole purchase before the promotion ends, you pay no interest. If you didn't pay it all you have to pay the interest from day 1. What I do is I do 1 purchases and pay that off before I do a new one.

Re: How does promotional financing work with store cards?

takeshi74 — Tue, 06 Oct 2015 13:19:22 GMT

Definitely read the terms. Store cards are not all the same so don't rely on generalizations.

Re: How does promotional financing work with store cards?

CreditDunce — Wed, 07 Oct 2015 04:17:22 GMT

@SunriseEarth wrote:
@CreditDunce wrote:
Before you use a store card for 0% financing, be sure to read the terms carefully. Pay special attention if they use retroactive interest.
Correct. What you may be getting is "deferred interest"; in this case, interest has been accumulating the entire time and you may have to pay it all if your balance is not paid off before the promotion ends.

Thank you for the correction. Years ago when I read the terms on a 0% offer, I decided I would just use my normal credit card and PIF at the end of the month. I guess it just stuck in my mind as retroactive instead of deferred.