Be careful if you are financing through Moto

[Raptor007]

I've purchased lots of stuff like this. Tires, appliances, TVs, etc. It's pretty simple and if they're going to let me basically borrow money for free, I'll do it. They tell you how many months you have to pay it off interest free. Take the total price and divide by that number of months. Boom, there's your real monthly minimum payment if you wish to avoid the large finance charge at the end. Ignore the minimum monthly payment on the statement, you won't get it paid off in time using that number.

Agreed, if I can get 0% so long as I pay it off early or on time then I am cool with it. The key is not to spread yourself thin and not be able to keep up. Kind of like people who buy ATV's or Jet Ski's only to have them up for sale a few months later or taken back due to payments not being kept up.

 

[travaz]

It is all up to the individual to know the terms of the agreement you sign up for, and your financial ability to live up to the agreement. I have sufficient income to buy the Pure outright with no problem but I choose to use the zero APR option because it gives me options for my money. I will pay it off in about 6 months and be happy. I used Edge on Verizon because it was zero interest. When I bought the Pure yesterday I went to Verizon and paid off the Turbo so I would be free of that debt. ALWAYS know where you stand financially. Be realistic about your job situation and your bill situation. Take advantage of free money when you can! I am now in remission from IWIN ( I Want it Now) now that I have ordered the Pure. So it was Purely for Medical reasons that I ordered it!!!

 

[ibcop]

You can't beat 0% for 18 months. Whatever the scheduled payment is, double or triple it and it'll be paid for in time for the next one!

Posted via the Android Central App

 

[diesteldorf]

I decided to get the Moto Style/Pure and use my Moto Credit Account. I could've bought it outright or used a different credit card, but I chose the Moto account since I already had it available and for the 0% APR

I am not advocating using credit just because it's there, but I also hate to leave accounts sitting open with no activity for extended periods of time. I either like to use them or close the account completely.

Closing older established accounts can negatively affect your FICO score, but this account was setup in December 2013 and had no activity of any kind for 5 months.

It was a little weird since my entire order was $524.99 before tax and $553 after, so I was planning to select the 12 month option at 0% APR. However, the website must have been having issues because it said the 12 month option was not available because the dollar amount was below the minimum required.

So....I selected the 18 month option and the order went through. The other alternative was a 24 month option at 9.99% with no 0% introductory APR.

Now, I am just waiting for the charge to post so I can verify I am getting the correct payment plan.

Regardless, whether 12 or 18 months, it doesn't matter, as I'll pay it off much sooner.

 

[The Harrington]

You can't beat 0% for 18 months. Whatever the scheduled payment is, double or triple it and it'll be paid for in time for the next one!

Posted via the Android Central App

That's exactly what I intend to do. If I put it on my regular credit card it would get lost in the shuffle and I'd end up paying more for it with the added interest. Going through Motorola credit means I will pay zero interest.

 

[tgp]

I decided to get the Moto Style/Pure and use my Moto Credit Account. I could've bought it outright or used a different credit card, but I chose the Moto account since I already had it available and for the 0% APR

I am not advocating using credit just because it's there, but I also hate to leave accounts sitting open with no activity for extended periods of time. I either like to use them or close the account completely.

Closing older established accounts can negatively affect your FICO score, but this account was setup in December 2013 and had no activity of any kind for 5 months.

It was a little weird since my entire order was $524.99 before tax and $553 after, so I was planning to select the 12 month option at 0% APR. However, the website must have been having issues because it said the 12 month option was not available because the dollar amount was below the minimum required.

So....I selected the 18 month option and the order went through. The other alternative was a 24 month option at 9.99% with no 0% introductory APR.

Now, I am just waiting for the charge to post so I can verify I am getting the correct payment plan.

Regardless, whether 12 or 18 months, it doesn't matter, as I'll pay it off much sooner.

This is pretty much my situation. I had the money when I purchased the phone, but I decided to finance since it was no cost. I'm paying the minimum payment each month, then at the end I'll pay it off. No problem, since I have it. And I do like to keep my credit accounts active and serviced. My credit score is over 800, and I intend to keep it there.

As others have said, you do need to make sure you don't miss a payment or something! Credit card promotions are like that too. They'll often offer 0% financing deals, but send one payment one day late, and you'll find out what the real cost is!

 

[sulla1965]

As others have said, you do need to make sure you don't miss a payment or something! Credit card promotions are like that too. They'll often offer 0% financing deals, but send one payment one day late, and you'll find out what the real cost is!

Obviously Its a win win for the credit card companies. They're glad when you pay off on time, they get their money back. If you don't pay,they win and make money from the interest. So why not offer 0% if it gets you to sign the dotted line as it were. So it always gets me one some then claim its a scam when they didn't really understand what they were getting into in the first place.

 

[hallux]

Good point, that's another point some don't understand. The minimum payment is just an amount given to keep the account in good standing. The min payment doesn't come close to paying off the entire debt. So people pay the min every month, then get surprised when the promotional 0% APR runs out and becomes 29% or something outlandish like that.

It's not like you CAN'T pay the minimum payment each month. You just need to be aware of the lump sum you'll need to pay at the end of the promotional period to avoid the finance charges. I did that with my LASIK, did it with a mattress, did it with tires. Paid the minimum (or a little more) every month, then made a large payment at the end, just before expiration of the promotional period, still paid no interest.

 

[tgp]

Paid the minimum (or a little more) every month, then made a large payment at the end, just before expiration of the promotional period, still paid no interest.

And this is exactly what I plan to do. I have the money in the bank; I could have paid for the phone at the time of purchase. I decided to use Motorola's financing option since it doesn't cost anything. Credit activity is good for your credit score. Another advantage is that the money is available for an emergency.

 

[phyo21]

This is how most places operate with special 0% financing deals. Basically if you don't pay it in full by the end of the promo term they will retroactively go back and charge you the interest on the entire amount. So basically if you still have $15 left on the loan and the promo period expires they will go back and charge 20%+ interest on the entire amount meaning getting charged like $100 or more in interest despite only having $15 left on the loan. Best Buy operates their 0% financing this way and Amazon does as well. This is why you almost must make sure you pay the loan off in full before the 0% financing period expires.

Thats some [language removed] up game they play..

 

[hallux]

Thats some [language removed] up game they play..

What game is that? The one where they offer super-low (or 0%) financing for a specific time period but if you miss a payment or don't pay it off by the end of the promotional period it turns into an outrageously high rate on the entire purchase (not just what isn't paid off)?

Have you been living under a rock? This has been common practice for a long time and it's no game, it's spelled out clearly in the fine print/agreement when you sign up for the promotion.

 

[dmark44]

What game is that? The one where they offer super-low (or 0%) financing for a specific time period but if you miss a payment or don't pay it off by the end of the promotional period it turns into an outrageously high rate on the entire purchase (not just what isn't paid off)?

Have you been living under a rock? This has been common practice for a long time and it's no game, it's spelled out clearly in the fine print/agreement when you sign up for the promotion.

No need to be so condescending. Everyone has a first time that they read up on or applied for one of these plans.

And hopefully they read up when they applied.