Have you ever wondered how retailers can possibly afford to offer the no-interest, no-payments, no-money-down kind of deals you see advertised? That was the subject of a question I received recently.
Dear Mary: There are several appliance, electronics, and furniture stores in our area that run television commercials offering nothing down—no interest and no payments until 2022. It sounds like I can just walk in and take what I want and not pay for three years! How do these companies really make money? —Kate
Dear Kate: First, these offers are on approved credit and come with a lot of other fine print. You need pristine credit to qualify for those attractive terms.
Good Luck Qualifying
One retailer told me only about 25 percent of the people who apply for these amazing no-interest, no-payments offers can actually qualify. The other 75 percent are offered some other deal with horrible terms. People often accept these terms because, by the time they fill out the paperwork, they’re so emotionally involved and have their hearts set on that “free” deal that they’re ready to sign anything.
