Installments 0% – no extra cost?

Posted: August 15th, 2013 | Author: | Money

Papers in stores and billboards often shout to us using capitals about 0% installments. And although apparently it’s a great deal, it is very rare that installment actually entails no additional cost. What can we expect? First of all, be careful about any additional insurance, extended warranties and other services that are offered to us as a necessarily, because they all may bear additional costs for us.

It very often happens that installments indeed have no hidden fees or interest, but only if the loan is repaid on time you will be insured, of course, by the insurer selected by the lender. Another situation is 0% installments linked to a credit card. Then, indeed, we can get such a card very quickly and we will not pay for our purchase any additional cost. The problem is only the cost of the card, usually billed as an annual fee monthly or less frequently. In addition to its limit, it reduces our credit rating, sometimes very significantly. It is worth to pay attention to all the “extras” and promotions offered to the monthly instalments, about which it is written in small print or in the “rules of the promotion”. And even if there are no additional costs, you might want to check interest payments in another, cheaper stores, which may prove to be a bit more profitable.

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