Each year, consumers marking items off their holiday shopping lists are tempted by retailers’ store-branded credit cards and the offers of “0% interest for 12 months” or “special financing.” And this year – although it’s only October – is no different. [More]
Whether you shop online or at brick-and-mortar retailer this holiday season, you’ll undoubtedly be offered countless chances to save money with store-branded financing options offering “0% interest” for six, 12, 18 months. These can be incredibly tempting, but many people don’t realize they are often signing up for deferred interest accounts that can come back to bite you on the rear-end in a very nasty way. [More]
As you make your way through the final days of this holiday shopping season, you will undoubtedly be asked on numerous occasions if you would like to save money on your purchase by signing up for a store credit card. It’s definitely tempting, but you need to be aware of just what you’re signing up for in order to get that discount. [More]
CareCredit is a medical financing service operated by the folks at GE Capital. For almost all of its 4 million customers, CareCredit is a deferred interest loan, meaning cardholders who don’t pay off their balances in full by the end of the initial promotional period are hit with all of the interest that had been accruing during those months. That would be fine (and is quite common in retail credit cards), if the company hadn’t misled consumers into thinking CareCredit was an entirely interest-free product. [More]
I suspect some readers will say that Assefa Senbet is to blame for screwing up one of his final payments to Citibank on a deferred interest loan agreement. They’ll be right–it was his responsibility. But he didn’t skip a payment, and he wasn’t late. In fact, he frequently overpaid in order to pay it off early. Near the end of the loan, however, he sent in a check for $70 instead of $81. As a consequence, he’s now paying off $887 in deferred interest fees at a 30% interest rate.