What began for many as a way to pay for concert tickets and vacations is becoming an ordinary tool that Gen Z and millennial shoppers use for food, contact lenses and trash bags.
When I used to work at a Best Buy subsidiary, it was free for the 3 or 12 months… but if not fully paid by the end of term, you got walloped with the full interest on the whole value. It was like 28.9% APR too.
People would routinely finance thousands of dollars in Christmas presents and would actually get furious, screaming at me or others if they weren’t approved for the amount they applied for. One woman was screaming that it was my fault and I just couldn’t help myself and replied along the lines of ‘nah bitch, you’re just broke. We’re hiring for the holidays though’ cue an epic Karen episode… later my manager told me that’s not how I’m supposed to get a referral bonus LoL. He was a good guy.
I’ve used affirm a few times in the past for larger purchases. So I bought a $600~ table saw and you pick the length of the loan in months 3/6/12 whatever. I didn’t get whatever months interest free but the interest didn’t seem too crazy. It was like a couple of bucks every month and if you pay it off early you don’t have to pay the rest of the interest. It’s convenient for the purposes that I use it for. I’m really glad that I’ve not been in a position to need it for groceries.
“Payment Plans” can be set up on credit card charges with TD Canada for 6, 12, 18 months… where you have to pay 4%, 6%, 8% of the charge as interest, which works out to 8%, 6%, and 5.33% per annum respectively.
What’s the interest payment/cost for this kinda service? I’ve fortunately never been in a position to need it.
Usually interest free for 3 or so months. Pay 1/3 a month.
Ahh, okay. So a financial gun pointed to your head. This has certainly no chance of going awry.
When I used to work at a Best Buy subsidiary, it was free for the 3 or 12 months… but if not fully paid by the end of term, you got walloped with the full interest on the whole value. It was like 28.9% APR too.
People would routinely finance thousands of dollars in Christmas presents and would actually get furious, screaming at me or others if they weren’t approved for the amount they applied for. One woman was screaming that it was my fault and I just couldn’t help myself and replied along the lines of ‘nah bitch, you’re just broke. We’re hiring for the holidays though’ cue an epic Karen episode… later my manager told me that’s not how I’m supposed to get a referral bonus LoL. He was a good guy.
Most of them no interest 4x payments every other week…
Some offer longer terms with interest though
Little or nothing if you make the payments.
If you miss a payment, the rates go sky high.
I’ve used affirm a few times in the past for larger purchases. So I bought a $600~ table saw and you pick the length of the loan in months 3/6/12 whatever. I didn’t get whatever months interest free but the interest didn’t seem too crazy. It was like a couple of bucks every month and if you pay it off early you don’t have to pay the rest of the interest. It’s convenient for the purposes that I use it for. I’m really glad that I’ve not been in a position to need it for groceries.
“Payment Plans” can be set up on credit card charges with TD Canada for 6, 12, 18 months… where you have to pay 4%, 6%, 8% of the charge as interest, which works out to 8%, 6%, and 5.33% per annum respectively.