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Originally posted by Aeteocles:
If you need to split it into payments, you probably shouldn't buy it.

If you have the cash and can afford it, then just pay it off at once.

Nobody in the history of 0 percent financing offers has ever taken the money that would have been spent on X and put it into an interest bearing account for the period and not spent it elsewhere. (Okay, maybe like a half dozen people).

The hit to your credit with the revolving debt load probably isn't worth the 2.2% interest you are making in a FDIC insured high yield savings account.

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Originally posted by Bob at the Beach:

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Originally posted by Black92LX:

quote:

Originally posted by Aeteocles:
If you need to split it into payments, you probably shouldn't buy it.

If you have the cash and can afford it, then just pay it off at once.

Nobody in the history of 0 percent financing offers has ever taken the money that would have been spent on X and put it into an interest bearing account for the period and not spent it elsewhere. (Okay, maybe like a half dozen people).

The hit to your credit with the revolving debt load probably isn't worth the 2.2% interest you are making in a FDIC insured high yield savings account.

Raises hand as one of those half dozen people.
I am certainly not buying anything I don’t have the cash for. Just leaves a bit of extra money in the money market account.
Certainly not gaining more than a few cents a month but ohh well.
Now if I could lump wheels, tires, upper control arms, and struts into one and make 18 payments I would. I am currently saving each month to buy them all at the same time and should take well less than 18 months but I could have them now and be ready to wheel this spring and summer. As I likely won’t won’t have all the cash compiled that quickly.

I would guess that Amazon is getting a kickback from Visa from the folks that don’t pay their CC off each month on top of making money of selling products they likely would not have sold without the payment option.

Years ago, before the the housing crunch I moved with a company. Things for me were thin. I ended up with issues from the move and my car. Life happens. I used zero % offers from a local tire store where the financing was backed by GE. The ding I took applying for credit was small compared to the need.
Years later on a large purchases I can pull out cash and replace it. But if I needed to, I may rather use the long term 0% option and take a ding on my credit.

Side note
Where I work to we offer 0% for for up to 18 mos. The charge to us in some cases for the no interest consideration is backed by manufactures. In those cases the billed percentage to us is very low. In some cases the finance charge to the retailer is less than the bank card fee. Its cheaper for us to offer no interest for 18 mos than swipe a customers credit card. It’s a win for the customer and the retailer. If I had an Amazon Card that offered points and no interest why would you not use it?

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Amazon seems to be doing 6-18 month no interest payments on most everything using their CC.

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Originally posted by egregore:

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Amazon seems to be doing 6-18 month no interest payments on most everything using their CC.

So if the purchase is paid off before this period expires, no vigorish interest is charged? Where's the problem? However, with such "deals," typically if the purchase is not paid off, not only is there interest charged, but it is retroactive back to the original date. And Amazon's card, IIRC, is pretty high interest. Credit cards are a sort of deal with the devil.

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Originally posted by lastmanstanding:
Amazon Prime is the only credit card in my wallet. I pay it off every month without fail. I haven't checked for awhile but I must be getting close to $400 in credit on Amazon right now. I just let it accumulate until I have a larger purchase I need then apply it. Sometimes I let it ride for a couple years and if nothing comes up I will make a more want than need purchase. A couple years ago I bought a Humminbird fishing sonar for just under $600 cost me about $18 out of pocket. Pretty hard to beat the Prime card.

As long as you pay the card off every month it's 0 % interest anyhow. If I can't pay it off at the end of the month I won't buy it.

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Originally posted by egregore:
At 16-24% (variable) for the Visa and 28% for the Prime store card, I still maintain this is a deal with the devil. But as long as you're keeping up and managing it, it's all good.

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Originally posted by Aeteocles:
If you need to split it into payments, you probably shouldn't buy it.

If you have the cash and can afford it, then just pay it off at once.

Nobody in the history of 0 percent financing offers has ever taken the money that would have been spent on X and put it into an interest bearing account for the period and not spent it elsewhere. (Okay, maybe like a half dozen people).

The hit to your credit with the revolving debt load probably isn't worth the 2.2% interest you are making in a FDIC insured high yield savings account.

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Originally posted by bubbatime:
Amazon gives you 5% off if you don't choose the 6/12/18 month finance option. Its almost always better to take the 5% off than pay payments over the course of months. Mathematically speaking.