"Free!" Credit

[Sunset]

Quote:

Originally Posted by The Cosmic Avenger We first took out a 0% loan many years ago for a home improvement project. We didn't have the cash for it, but were ready to take out a home equity loan. I read the terms very carefully and noted that if even one payment was late, all the interest that WOULD HAVE accrued at the prevailing interest rate would be due! So I was VERY careful to pay it on time, and double-checked that each payment was credited properly. ....

I had the same deal for bedroom furniture about 20 yrs ago.
I made sure to pay it off 1 month early in case there was suddenly a "problem" with the final payment.
The whole thing made me nervous and in the end didn't seem worth it to earn 8% on the money at the bank for the 12->18 month period.

[pacergal]

We've used 0% deals many times, easy to pay back with auto pay set up from the bank, set up for 11 months to make sure item is paid off before the 12 month timeframe rolls around.

[Walt34]

Quote:

Originally Posted by FLSUnFIRE I'm surprised the banks don't blacklist those of use that don't pay interest...

It surprises me a bit too. They do have a term for those of us who don't pay interest - "Deadbeats".

We did take one of those 0% deals when helping FIL fix his house up for sale and had the floors refinished. Paid it off a month ahead like many just to make sure there were no "gotchas" in it.

Then the buggers tried to slip one past me. I got a letter that they were going to charge me $10/year to keep the account open! Um, no. I closed that account pronto, with a not-nasty-but-not-exactly-polite letter delivered certified mail, return receipt requested so there was no arguing about it later.