I love electronic store credit cards. They are the best invention ever. Since the passage of the Gramm-Leach-Bliley Act of 1999 all financial institutions are allowed to do anything. Before banks could only make loans, not sell insurance. At the same time insurance companies were not allowed to sell mutual funds. So there were separate entities for all different kinds of financial services. Now-a-days most retail stores through partnerships with banks, or with their own banks will offer to finance bigger ticket items. Most of the time the retailer will offer no interest on the item for anywhere from 3 months to 3 years. The way the bank and retailer make money is because most of the people that finance a stereo only make the minimum payments, which could be none, then get hit with a very high interest rate when the ‘teaser’ period is up. This way the retailer and bank make money on the sale of the item, and the cruel and unusual interest rate they charge you. Unless you’re me of course. I have been able to finance a huge TV, and more recently a computer without paying a dime when I took them home, or in interest. I would suggest against this unless you have at least ½ of the cost of the item. Then you can at least earn interest in your high yield savings account as you make the payments.
Credit is Awesome!
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