help how does finance work?

manoz · 8 Aug 2007 at 19:58

Ok I'm a bit of a noob to this, found something on the net I wana buy and it has a 0% finance option, thought I'd try it as it would be better in the long run for me. I ticked the option to pay a £200 deposit and the rest in instalments. Then I proceeded to fill in the application form, did that and I assumed it would take a while for me to get approved but on the next page it asks for card details to pay the deposit with. Does this mean I've been approved and can pay in instalments and deposit or do I fill out my details anyway and they approveme later?. If I get refused do I have the option to cancel it altogether and buy at a later date? Thanks if you can help

spike's · 8 Aug 2007 at 20:21

i should imagine all this is explained on the site in question. and i should think that different sites have different ways of doing things.

manoz · 8 Aug 2007 at 21:09

ok i filled it in and got an email saying they'll be in contact via post to see whether they approve or not. *sigh* Have to wait now.....

Vonhelmet · 8 Aug 2007 at 22:10

They'll almost certainly approve you. Finance companies will approve anyone if there's even a sniff of cash in it for them.

manoz · 8 Aug 2007 at 22:43

vonhelmet said:
They'll almost certainly approve you. Finance companies will approve anyone if there's even a sniff of cash in it for them.

cool, hopefully it works, not too fussed if it isn't. If I want to pay the rest of the money back sooner then my 6 month instalment plan, will they let me do that?

Vonhelmet · 8 Aug 2007 at 23:01

manoz said:
cool, hopefully it works, not too fussed if it isn't. If I want to pay the rest of the money back sooner then my 6 month instalment plan, will they let me do that?

Sometimes they have penalties for early repayment, but if it's 0% then there's really no benefit in paying it off early, unless you're worried you'll default on payments, which is of course what they hope for.

Alasdair · 8 Aug 2007 at 23:18

vonhelmet said:
if it's 0% then there's really no benefit in paying it off early,

In fact, it is to your detriment as the money could be earning you interest in a savings account instead.

manoz · 8 Aug 2007 at 23:20

vonhelmet said:
Sometimes they have penalties for early repayment, but if it's 0% then there's really no benefit in paying it off early, unless you're worried you'll default on payments, which is of course what they hope for.

cheers, its not that much per month so I shouldn't have a problem.