Deals with little or no interest are everywhere these days, and are particularly included with purchases in high end stores, like department stores and furniture stores. Sure, the no interest factor is appealing to almost everyone. However, what some people don’t realize is that there may be lots of hidden terms and conditions and potentially nasty hidden charges that can deem these no interest deals less than convenient. Below are the 5 most important questions you should consider thoroughly before accepting any of these deals.
Does my credit score qualify?
It is often the case to obtain no interest deals that you are required to have an almost impeccable credit score. A lot of the time, people do not realize this until the very last minute, when they have already gone through the entire process of signing up for the deal. By this point, they are then required to pay the original interest on whatever they were buying with ‘no interest’ in the first place. This seems awfully unfair, but it does happen. To ensure that it won’t to you, check that your credit score qualifies for the no interest deal in the beginning – this will save plenty of unnecessary stress and hassle.
How long does the no interest actually last?
On many products, the ‘no interest’ period does not actually last forever. It is important to check when you will have to start paying interest on the product, in order to be prepared to pay the extra money. On the other hand, sometimes the ‘no interest’ will last until your first purchase, and other times it may apply only to bank transfers. Whatever the case, it’s vital to check, because there is nothing worse than believing you will pay ‘no interest’ for good when in fact, you will not.
Is there anything I have to do to get no interest?
This is where the sneakiness of many ‘no interest’ deals comes into light. A lot of the time, lenders may require you to spend a certain amount of money within a certain time frame in order to qualify for the ‘no interest’ deal. This is a cunning way in which lenders will trap you into spending more money than you wanted to in the first place, just so you can get this deal. The question to ask is whether it’s worth it or not – usually, it isn’t.
Which purchases will qualify for no interest?
Another common thing that lenders tend to do is offering ‘no interest’ deals on selected purchases only, which does confuse many customers. For example, if you’re visiting a furniture store and come across an advertisement offering ‘no interest on selected sofas’, finding out which sofas do qualify and which ones don’t is key. Otherwise, you may make a purchase believing that you will pay no interest when you will.
What are your no interest limits?
Some lenders only let you pay no interest on balance transfers up to a certain amount, and if you transfer more than that, the offer is void. Asking about this before accepting the deal is important, and could help to save a lot of money in the long term.