Newegg (No Payment for 6 months)

[Drtydzn12]

Today I'm going to be ordering the parts for my very first PC build. I'm planning on using that "No Payment for 6 months" offer. I can pay for it today if I want to. I'd just rather pay for it later. My question is, if you have used this offer Newegg has, is there anything negative that would want to make me just pay for it now?

I know about the whole interest thing. But the way it seems, interest only "kicks in" after the 6 months and I haven't paid it fully.

[David M]

You had better read the fine print. For most of these offers, the balance due must be paid in full before 6 months is up. I highly advise you pay the balance due a couple weeks before the six month time period is up because if you are even a day late, you pay a pretty hefty penalty...like a 21% penalty over the principle. Make the last payment payable via FedEx or UPS so you have proof you made the last payment on time. The way they make their money on these types of loans is from that percentage of people who are late on their last payment...or any payment on the loan.

I am pretty certain that your idea that interest only starts accruing after 6 months is wrong. You owe them a large penalty after 6 months if you are a day late in fully paying off the principle.

Best Buy does this for their no interest loans. It is almost criminal the way they word these loans.

I may be wrong about Neweggs interest free loans.

If I am wrong then it is a good deal...let them lose money on the time value of money. Be sure to read the fine print so you are not assessed any penalties. You may find that the interest rate after 6 months is something criminal like 30% APR...so be prepared to have it payed off within 6 months.

[Hi Ho]

I looked into it. The offer is really a credit card. I opted to pay in full at the time of purchase using my debit card when I purchased the components for my PC.

[ktkendall]

The catch is that if not paid in full within the alloted no payment/no interest time period then you get hit with the whole amount of interest that accrued during that time period. It is spelled out clearly and every month you get a statement with the promotional payoff date clearly shown. I have used the one at newegg for my last upgrade and its fine just be sure to pay it off well within the time period. I do that with homedepot and lowes for home improvement projects also and it a perfect way to get what you need and not have to come up with a large lump sum all at once, and make interest free payments.

[jamesrpm]

Keep life simple , if you can pay for it today , do so.

[Kov-Ice]

I'm with kendall. I use those types of offers all the time. As stated before, all you have to do is make sure you pay off the complete balance several weeks or even a month before the deadline.

There is one thing to watch for... If you make multiple purchases on the same account or credit card, the company will sometimes apply your payments to the most recent purchase rather than the one you made first. In this case, you have to pay off the recent purchase balance in order to then have your funds applied to the original 0% purchase. Just a thought.