Introductory Deferred Payment Plan

Author: Consumercity
Posted: Tue Dec 07, 2004 5:00 pm
Post subject: No payment, No Interest (Is There a Catch?)

Has anyone tried one of those "no payments, no interest until 2007" type offers? Has anyone been burned by one of these offers and if so, how?

The reason I ask is that "same as cash" offers are really deferred interest plans. I was wondering if the "no interest, no payment" offers work the same way.

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Board Monitor
Board Monitor/ Administrator
Posted: Tue Dec 07, 2004 5:39 pm
Post subject: No payment, No Interest (Is There a Catch?)


consumercity,

Some do. Depends on the offer. Some charge retroactive interest from the purchase date if the balance isn't PAID IN FULL by the end of the intro. period. So, even if you're a few dollars short of paying off the balance, you'll get hit with huge finance charges. Ouch!!!

This was a good article about this subject recently in Consumer Reports Money Advisor and I'm proud to say that CardRatings.com was featured. :0)
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Curtis Arnold
Board Monitor
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Author: NightStar
Posted: Tue Dec 07, 2004 7:40 pm
Post subject: No payment, No Interest (Is There a Catch?)

That sounds like them Lowe's credit cards, make a purchase and don't have to pay for 6 months, but if you don't pay off before then, you have interest charged on the whole balance, and not just the remaining balance. I have also seen American General do the same thing on their loans... if you don't pay within 12 months, they are going to hit you with 21% interest on the original balance... close to loan sharks. Least the Lowe's is better at their standard 18% - not bad deal for some as long as you pay before time is up.