Help me understand!!!!

Maybe the purchase qualified for interest free for X amount of time?

Who knows what their thinking is but I do know that many of those store cards do run 0% interest for so many months so Lone Gunman might be right.

I do agree with you about using your saved money first but that is only because I got into trouble with credit. Maybe they haven't???

There are a ton of people that would rather take out store credit then use cash for purchases . . . . It can be very dangerous behavior.

But I agree that if you haven't gotten into to trouble with credit in the past, you probably wouldn't think twice about taking more out instead of using cash for large purchases.

Maybe he can pay it off before the interest is added on the to card. If there are no other added fees etc..it might be a good deal. If he needs the appliance now and will have the money later...it makes sense.

I have looked at the big boxstore credit app. and the interest rate at the time was around 23%. My thinking is, why pay 23% when you only get around 4 maybe 5% on a CD. Why dig a big hole when a small hole will do!
I have looked over alot of post and i"ve have not seen much on saving for things you would like to have. My dad told me "If you can not pay cash for it, then you don't need it. Sure people need loans for a house or a car.

I worked with a lady and she and her husband always bought furniture and appliances on the 6 month no interest plan and paid it off within that time frame.

ladybug

Poordad, their standard interest rate may be 23% but as I said, many of them run "no interest for 6 months" specials on big ticket items. If you think about it, your money sitting in a CD at 5% will make you money in the 6 months until the card needs to be payed off. If you paid cash you'd actually be loosing money (the 5% from the CD), of course they are counting on you not being able to pay it in full in the 6 month time frame.