Store Finance
Many large retailers offer in-store finance, provided customers have an adequate credit rating. This can be easier to arrange than a personal loan or credit card. It is common for retailers to offer an interest-free period, or a long period before payments are required.
- If the loan is paid before interest falls due this will be cheaper than borrowing money, providing the item is competitively priced.
- Interest must be paid after the interest-free period ends, or when payments start to fall due.
- Interest rates are often higher than personal loans or even credit cards. This means that items can end up costing much more than their purchase price.
- Applications for store finance may attract a card, that means it is easy for the customer to make further purchases.
- Consumers need to check all the paperwork carefully before signing agreements, and not just rely on the information the sales assistance provides.
