Debating - Need Help

[John060675]

I know you all get tired of me asking questions, but this past month has been a whirl wind of excitment.  I just got a promotion, which will bring me from the mountains of Colorado to the coastal area of North Carolina. 

I will be renting an apartment initially, and I really do not want to lug my furniture with me.  I have looked online at a couple furniture stores, and they are offering 12 months to 18 months of "no payments, and no interest."   I am thinking of applying for one (possibly).

My question is will this just destroy my CC utilization?  I am not sure how they report this, as a loan or a revolving account.  I assume it is a store card, so it would be revolving. 

It is so tempting to spread out the payments or wait until just before the interest hits to pay it off.  A not interest loan.  I just do not want to destroy my credit.

Thank you.

[Anonymous]

I don't know how they will report as loans- but I know that from a consumer standpoint you end up paying much more than the furniture is worth- you would fare better to get a small loan and buy the furniture up front.

The only time I know that the whole rental thing has worked for people is military people who are on very short temp assignments and need to rent a washer or dryer for like six mos.

Otherwise- you end up paying three times the amount of what the furniture (or whatever it is) is worth.

JMHO.

[Anonymous]

Whoops! Didn't read your post correctly- I thought you were talking about rent to own. Ok- w/ the reg furn stores they will still show up as finance co loans- even though they may have great terms. But you must remember that you must pay everything in full by the due date- or all the interest that has been held for the 12 or 16 or 18 mos suddenly becomes due when the promo period ends.

So- unless you have the money to pay if off in a minimum of three lump payments or less- be very careful cuz like I said ALL the interest will come due.

[John060675]

Netpanther.

Sorry, I must have wrote my situation wrong.  It is not a rental.  It is a furniture store that is offering no interest and no payments for 12 months.  I would have to apply for the store credit card.  My understanding is that if I buy $5000 in furniture, then I could pay $5000 in 11 months and not owe any interest.

It is definitely not a rental place. 

[Anonymous]

Reason I know that in most cases it will still report as finance co- is because we went through Rhodes furniture- now in BK- and even though it was on their CC it still reported as a fin. co loan. That is just in my case though.

[John060675]

Thanks Netpanther.  I acutally could pay for the furniture now, but my mind is just thinking of how to use their money for 12 months. 

[Anonymous]

No- I was reading it wrong. Like I said- in my case it reported as a finance loan. However, if you were to go to Sears- and put it on their CC it would be revolving. However, does Sears even sell furniture anymore?

You will just have to check on an individual basis w/ each store.

[Anonymous]

IMHO find out who the backer is of the loan.  It may be a consumer finance company which FICO penalizes you for.

[Anonymous]

This will be a "consumer finance" unless they give you a card, then it will be considered a "store card".