Wanting to make a purchase on finance- 0% APR?

Apples2

I suspect we will get nothing but riddles from this poster.

Everything far too secret to divulge but wants specific advice about it

Just give us the details and explain why everything is so difficult.

fozmcfc

I think the OP may be related.

http://www.youtube.com/watch?v=4U58sZcZj1g

The7thGuest

Apples2 wrote: »

I suspect we will get nothing but riddles from this poster.

Everything far too secret to divulge but wants specific advice about it

Just give us the details and explain why everything is so difficult.

I asked a valid question, where are these 'riddles' you speak of?

Apples2

The7thGuest wrote: »

I asked a valid question, where are these 'riddles' you speak of?

And you had a valid answer but you keep asking for more.

We can't help you unless you tell is what the problem is.
What's wrong with taking a credit card?
Why is this mysterious object you want to buy a secret?
Why do you discount a 0% credit card option but want a retailer 0% option?

In short, what is your problem?

The7thGuest

I want to purchase a personal computer, £2000. I can afford to pay it between 12-18 months. I can get it on a 0% purchases APR for say 16-17 months (if approved), so if I do get approved does that mean I have to pay them a set amount each month to repay the debt, or can I opt to pay much more than what I owe for one month's installment so I get rid of the debt faster? I'm not sure if there is any perceived difference between making a purchase on a credit card, or getting a 0% APR installments from the sellers.

eschaton

The7thGuest wrote: »

I want to purchase a personal computer, £2000. I can afford to pay it between 12-18 months. I can get it on a 0% purchases APR for say 16-17 months (if approved), so if I do get approved does that mean I have to pay them a set amount each month to repay the debt, or can I opt to pay much more than what I owe for one month's installment so I get rid of the debt faster? I'm not sure if there is any perceived difference between making a purchase on a credit card, or getting a 0% APR installments from the sellers.

If you know as little about credit as you make out - maybe you should just avoid credit as you sound like a financial disaster waiting to happen.

fozmcfc

The7thGuest wrote: »

I want to purchase a personal computer, £2000. I can afford to pay it between 12-18 months. I can get it on a 0% purchases APR for say 16-17 months (if approved), so if I do get approved does that mean I have to pay them a set amount each month to repay the debt, or can I opt to pay much more than what I owe for one month's installment so I get rid of the debt faster? I'm not sure if there is any perceived difference between making a purchase on a credit card, or getting a 0% APR installments from the sellers.

Fair enough.

It will depend on the company you buy it from.

Most companies, who give interest free, do a buy now pay in a certain amount of month deals. I.E. Buy now, pay March 2014.

Sometimes these deals come with a finance set up fee of £25 and sometimes require a 10% deposit.

After everything is set up, in my experience, you normally don't have the option to make any payments, unless you want to pay the full remaining balance off.

So you save up the money perhaps in a high interest saving account and then pay it off in full any time before the due date in March 2014.

That way your computer ends up costing £2,000, plus possibly a set up fee as in my example above, so in this case your computer costs £2,025.

If the balance isn't paid in full by the due date in March 2014, then you normally get interest backdated from day 1 and then have to pay a set amount each month with further interest something like 29.9% APR for it over the next 2 - 4 years.

So that £2000 computer, could end up costing you £4000 + over 3-5 years, if you don't pay it off during the 0% period.

The credit card option, can be easier, you apply and get the card, hooray.

You then purchase the computer and have a balance of £2000 on your card. Each month you must make the minimum payment required, usually 1% - 3% of the balance. Providing you pay the minimum required payment, then you were receive no interest during the 0% period.

This option of course allows you to make extra payments with ease, so for instance you could pay off £200 a month and pay it off in 10 months, or £500 a month and pay it off in 4 months.

I've done both the above. I bought a TV for roughly £800 on a 0% buy now pay later deal, but didn't pay off the balance during the 0% period and ended up paying over £1400 for it, over 5 years.

I've also made a £2,000 purchase on a 0% credit card and pay it off at £200 a month for 10 months and not paid any interest.

The7thGuest

eschaton wrote: »

If you know as little about credit as you make out - maybe you should just avoid credit as you sound like a financial disaster waiting to happen.

Well done for that thought-provoking addition to the thread. Troll.


Fozmcfc:

Thank you for your reply, that was extremely helpful and enlightening. I think I will go for the card option in the end, much appreciated for your input! :beer:

eschaton

The7thGuest wrote: »

Well done for that thought-provoking addition to the thread. Troll.

Happy to help.

iolanthe07

perhaps in a high interest saving account

I have been searching around, but I haven't been able to find such a thing since about 2008.