What's in it for a company offering a 0% interest loan?

PixelPound

There is no risk to the company, and you would go through a credit check with the finance company as part of the purchase - its not guaranteed. Why do they do it, because it drives sales and the interest cost is factored in the price. It is like many companies that do big sales, they'll often up the price for a certain amount of days so that when they say 20% off etc it's based on the inflated price.

As to the virgin CC query - the opening offer is a sweetner/loss leader to get people signed up, because most people won't cancel once its run out or transfer it out but start paying interest on the balance they run up because it was interest free - if you were paying interest you might not use a CC but interest free you see it as no cost money without working how to pay it off when the interest period finishes.

fred246

When we got our first house I tried buying items on 0% interest even though we had a lot of cash available. The finance provider wasn't happy because I had many previous addresses. I asked for a discount expecting 5% or similar. He said he'd ask his manager and came back with about 30% discount. I couldn't believe it. If you see 0% finance you can normally buy it cheaper for cash elsewhere. I say elsewhere because I have been told that companies get in big trouble when they say 0% interest or cash discount. It's not 0% if it's cheaper cash. You have to go to a different shop.