If you don't pay it off before the end of the "free" period, then you are hit with all the back interest! :eek:
Usually the interest is 19%=25%!!!
Also doing this will lower your credit score across the board. Way worse than if you have a loan outstanding. (That's the first thing they tell you in real estate school.) Companies that offer 0% financing don't report anything to the credit companies, just that you have an outstanding loan. This raises a red flag to underwriters. Until you either don't pay if off in the amounted time or you do pay it off in the amounted time.
I used to tell all my clients NEVER go out and buy a bunch of furniture or anything else on 0% interest for.... It will usually drop your credit score by 10++ points easily. If could mean getting a home loan and not getting a home loan.
Edited by sports talk, 10 February 2012 - 07:58 PM.