The Truth About “No Interest… No Payment” Financing Offers

We’ve all heard the offers — “No interest until next year!” or “90 days same as cash.” These teasers are often employed by retailers to lure you into their store.

While the offer may sound good, especially for big-ticket items such as furniture or appliances, the fact is the majority of people won’t pay the item off in the “no interest” period. And, once your grace period is over, you may find some unpleasant “catches” to this offer.

Two of the more common ones are:

  1. Interest accrues during the grace period. If you don’t pay it off during the “no required payment” period, then you have to pay all the interest that has accrued on the total amount of the loan from day one.
  2. Interest rates are generally high, up to 25 percent.

If you need to make a large purchase, check with TFCU before you sign up for those promotional offers. You may find you will be better off arranging a low-interest loan with us. Put smaller purchases, say under $400, on a low-interest TFCU credit card that you already carry, or save up for a few months until you can write a check.

Is the Clock Already Ticking on Your Grace Period? If you are one of the many people who have purchased items on this payment plan, and it is getting close to your grace period, TFCU can expand your options. Pay it off with cash if you can. If not, we can help you.

You could use your low-interest TFCU credit card to pay the balance, apply for a TFCU signature loan or draw on your home equity line of credit. Any of these options are likely to result in savings to you through fewer fees and less interest. See us today before your 90 days runs out.

Get Help from TFCU

Transfer the balance of your “No Interest…No Payment” loan to your TFCU credit card online now. | Transfer Balance Form

OR

Apply for a TFCU credit card and transfer your balances now | Apply for a TFCU Credit Card

OR

Apply for a TFCU loan and consolidate your balances now | Apply for a TFCU loan

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