Fozzle Posted August 4, 2007 Report Share Posted August 4, 2007 I was recently approved for a Best Buy/HSBC card. The only reason for obtaining this card is to take advantage of BB's frequent 36-month, 0% interest specials when purchasing the plasma tv that I can no longer live without. So, using round figures for the sake of argument, here's my question:TV costs $1500, delivery $50, extended warranty $200. If I make monthly payments of $100/mo, how is that divvied up? Does it go to pay the TV first, which has the lowest (none) interest? Or does it go to pay the higher interest warranty & delivery first? If it pays the tv first, does that mean the $250 for the warranty & delivery will continue to accumulate interest until the very end? I haven't received the card yet, so I haven't had a chance to look at the cardmember agreement for details. If any of you have had a similar experience, please let me know!Thanks as always. Link to comment Share on other sites More sharing options...
merkurfan Posted August 4, 2007 Report Share Posted August 4, 2007 payments are always applied to the lowest interest item first. At least that was our experiance with the best lie er buy card.. So, if you buy a 5000 dollar TV that qualifies for 0%, but the warranty and delivery don't and are at 19.9% you'll rack up 50 months (if making 100 dollar payments) of interest on the warranty and delivery.I suggest, charge the TV, pay cash for warranty, go to local building supply chain (lowes, home depot, menards) rent truck for 20 bucks and bring it home yourself. (or sucker a friend with beer that has a pickup) Link to comment Share on other sites More sharing options...
Fozzle Posted August 4, 2007 Author Report Share Posted August 4, 2007 I suggest, charge the TV, pay cash for warranty, go to local building supply chain (lowes, home depot, menards) rent truck for 20 bucks and bring it home yourself. (or sucker a friend with beer that has a pickup)I like the way you think. That is my backup plan if they don't apply the promotional code to the entire transaction. Link to comment Share on other sites More sharing options...
newbie7069 Posted August 4, 2007 Report Share Posted August 4, 2007 Reading the other poster's response, I guess each card has it's differences. Home Depot offers 0% for 12 mths on any purchase over $299. We have made 2 purchases on that card. One for slightly over $300 and another smaller purchase around $80. They took our first $200 payment and paid off the smaller purchase and then applied the rest to the 0% purchase.I think merk gave you some great advice though. Link to comment Share on other sites More sharing options...
PolarBearnCO Posted August 5, 2007 Report Share Posted August 5, 2007 I worked for Best Buy about 15 years ago and have had and now have their card. They have always applied the financing promotion to the entire purchase. You should really call Best Buy about this.If nothing else, take no chances and pay cash for the extras as was previously suggested.JUST MAKE DARN SURE you pay off the entire balance before the promotion expires or you will be charged all accrued interest for that 36 months. You pay no interest for 36 months, but that doesn't mean it doesn't accrue over that 36 months. It's basically SAME AS CASH financing. If you can pay it off in 36 months, no interest. If you can't pay it off in 36 months, then you pay lots and lots of interest. Link to comment Share on other sites More sharing options...
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