Best Buy's no interest financing (1 Viewer)

[Tim_Stonesifer]

I'm looking into getting a TV from Best Buy pretty soon. They've got this no interest financing for 24 months deal, so I'm thinking I'll take it. Have any of you run into any problems with their no interest financing?

 

[ChrisMatson]

A friend of mine was able to buy a TV this way that he could not otherwise afford. It is a great deal, but be sure to pay more than the minimum monthly charge to pay off the total before the 24 months is up and they stick you with finance charges.

If you know that you'll have the money at the end, you can pay the minimum each month and then pay the balance with your last payment. This is like an interest-free loan.

...but if you can't cover that last payment, you will get stuck with the 24 months worth of finance charges which could be quite high for a $3000 TV over 2 years.

 

[Qui-Gon John]

Yes, unless you know for certain you're gonna pay it off right near the end, you should even them out. What I usually do is, when you get your first statement it will show the date by which you have to pay it off for the no-interest promotion. I usually back up 2-3 weeks from this, then divide the total by the total number of months, and pay that amount, (usually on the 24 month deal I do it in 23, to make sure it is paid prior to the "pay by or pay mega interest date"). So for an RPTV that final cost to you, with tax, etc., was, let's say $3000. This would come to 23 payments of $130.43, not too shabby. Also, I usually track my payments on an Excel spreadsheet.

 

[Matt Stone]

As a poor college student this was my invitation to the wonderful world of HDTV. I bought a Panny 53WX42 last September for 1709 and only owe about 900 now. This is definitely the way to go.

 

[Ted Lee]

no problem for me.

like chris said - as long as you pay it off in full before the end of the term it's the way to go. they're counting on people not being disciplined enough and getting dinked with the back-finance charges.

 

[Rajeev_s]

I bought a 53" Panasonic HDTV for 6 months interest free financing last november, I am about to pay it off.
The plan expires in May. I am very happy with the deal.
And I also bought my reciever and speaker stands for 12 months interest free. All I pay is like $30 a month on that.

I dont know why CC doesnt have good financing deals, they are losing lot of business.

 

[Matty P]

The only problem I ever had with the Best Buy card was once you get the bill in the mail you only have a couple of days to turn around and mail the payment in. For example, I had a due date of Feb. 10th and their "recommended mail date" was Jan. 31...I mailed on the 1st and ended up getting hit with a late fee...most normal credit cards ask you mail at least 5 days before due date...luckily, I got the late charge taken off...otherwise the no interest is a really good deal...

 

[Jason Merrick]

Matty makes an interesting point... sometimes these no interest offers have fine print that states you will be charged all interest if your payments are not all made on time. So make sure to look over the fine print, and then if that is the case make sure to get your payment in on time, every time.

 

[NathanH]

Personally, I'm super paranoid about some screw up on my part that would cause me to incur some serious finance charges. For big purchases, I offer cash for a % discount and talk with the store manager - rarely fails to get me a good deal.

Keep in mind when you buy something with a credit card, the credit company usually takes 1 - 3 % of that $$$.

Cash is king!

Nathan

 

[ChrisMatson]

While Nathan brings up a valid point that it may be possible to get a small discount if one pays in full with cash, this does not help us poor folks who need the payments to be spread out. It is much easier to pay $100/month over 24 months ($2400 total) than to pay a slightly lower $2328 (3% discount) all at once.

Bottom line: It is a great deal. Pay your monthly bills on time. Pay off the balance before the financing time ends.

 

[Jeff Bamberger]

The only problem I ever had with the Best Buy card was once you get the bill in the mail you only have a couple of days to turn around and mail the payment in.

Many banks these days have on-line banking. I would assume Best Buy (or their credit company) would allow electronic payments. But new payees for on-line banking can sometimes take up to 30 days to set up properly. So you'll either have to send a payment or two in via check, or you'll need to up the first electronic payment.

Once set up, you can schedule automatic payments.

 

[Tim_Stonesifer]

Guys, thanks a lot for all the advice. I'm planning on going out tomorrow for this - I can't wait

 

[Mark Yatchak]

Here is something to keep in mind. Any time you use your Best Buy credit card after you buy your TV, the money you send them will FIRST go toward paying off your 90 day purchases, not toward tour TV. So make sure you send in extra money, over and above your predetermined monthly TV payment if you use your card again.

 

[Qui-Gon John]

I usually use my BB card, only for these special promos. And do not usually start another one until I've paid off my existing one.