How does 'Pay By Finance' from Hitachi work?

Hurdock

Hurdock

Hurdock

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Hey guys! I'm new here so I'm sorry if this isn't the right place to post.

Next february, it's my birthday and I'm considering getting a bunch of components to upgrade my pc in one go. But I'm considering using 'Pay By Finance' which the website says is a service provided by Hitachi.

So the thing is though, I don't see any information when I select it that would inform me how many months, or how much I'm gonna pay per month..

So how does it work usually? Do I have to apply and see If I'm getting accepted first ?

How do I find out if I can pay in 10 months and see their math about how much they want me to pay per month ? Or is it interest fee?

Thanks! I've attached an image here: https://ibb.co/C9Qs1YT

Full screenshot available of the page (removed my address)
 
Select it and the next page after "Pay Now" will show you a calculator page with the various finance options.

It all costs more than paying up front.

Actually there is a delayed payment option with no interest but penalty charges if you fail.
 
What happens if let's say I select 12 months but I decide to pay it in full on the 6th month, can that be done ?

Also if I select 12 months, after that is there a credit score check ? My credit score is not that good right now (570 I think)
 
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fairly sure there's credit score/affordability checks for any finance

google says there's some 'buy now pay later' options that won't do credit checks but the balance is due in 4-6 weeks for those, rather than months
 
If you've done what I said and selected finance and clicked pay now it shows you all the options and the details.

For example, options 1 is pay later with numbers shown.

Your repayments will be deferred for 12 months, after this period if you have not paid back the loan in full you will pay 36 monthly repayments of £????.
If by the Deferred First Payment Date, you have paid to Hitachi Capital (UK) the amount of credit in full, you will not have to pay any interest but you will have to pay an administration fee of £29.
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So if you pay it off in 6 months you pay whatever the item cost plus £29. Otherwise you get a large interest hit if you haven't paid it off by the 12 month deferment period.
 
Hotwired said:
If you've done what I said and selected finance and clicked pay now it shows you all the options and the details.

For example, options 1 is pay later with numbers shown.



So if you pay it off in 6 months you pay whatever the item cost plus £29. Otherwise you get a large interest hit if you haven't paid it off by the 12 month deferment period.
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Sorry for being an idiot, but what does 'Deffered' mean ? I'm foreigner, and english isn't my first language. Can't really find a good definition on google to make sense of what 'will be deferred for 12 months' means
 
It means waiting until a future date to do something.

finance companies like it when you don't pay on time, that's how they make their biggest profits charging high interest.
 
Ok so basically it means: "You have 12 months to put the amount of money back in your loan account." if you don't -- you pay in 36 months. So that means they don't care how much money I put back each month as long as I pay the full amount back in 12 months, right ?

Also -- they do a credit check to check if you seem able to afford the loan, or do they need a minimum amount of credit score ?
 
Hurdock said:
Ok so basically it means: "You have 12 months to put the amount of money back in your loan account." if you don't -- you pay in 36 months. So that means they don't care how much money I put back each month as long as I pay the full amount back in 12 months, right ?

Also -- they do a credit check to check if you seem able to afford the loan, or do they need a minimum amount of credit score ?
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You pay a set an each month.

You can pay more but not less.

If you pay more or all you pay less interest.
 
Psycho Sonny said:
You pay a set an each month.

You can pay more but not less.

If you pay more or all you pay less interest.
Click to expand...


Hmmmmm, be careful there. Most personal loans/hire purchase don't work like that. It's true for most mortgages, but with most other finance agreements making overpayments doesn't reduce the amount of interest you pay back in total, just reduces the term.

Settling early sure, although keep in mind the interest is always front loaded.

If you can afford it, your better off not making overpayments at all, save the money aside, then settle early once you have enough to clear it in full.
 
BUDFORCE said:
Hmmmmm, be careful there. Most personal loans/hire purchase don't work like that. It's true for most mortgages, but with most other finance agreements making overpayments doesn't reduce the amount of interest you pay back in total, just reduces the term.

Settling early sure, although keep in mind the interest is always front loaded.

If you can afford it, your better off not making overpayments at all, save the money aside, then settle early once you have enough to clear it in full.
Click to expand...

It worked that way for my Hitachi loan for an avr. It also worked that way for my several zopa loans.
 
Psycho Sonny said:
It worked that way for my Hitachi loan for an avr. It also worked that way for my several zopa loans.
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Fair enough, you certainly cannot assume though, I used to broker out (sort of) personal loans and hire purchase through mainstream lenders and the ones we did you definitely did not reduce the total payable by making overpayments. Parts of what I did was trying to explain it, over and over lol.
 
BUDFORCE said:
Fair enough, you certainly cannot assume though, I used to broker out (sort of) personal loans and hire purchase through mainstream lenders and the ones we did you definitely did not reduce the total payable by making overpayments. Parts of what I did was trying to explain it, over and over lol.
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Yeah it will depend on the loan arrangement. I tend or research properly before committing. MSE loan section is pretty good for that.

I wouldn't take a loan where interest is front loaded. Unless it was for a tiny amount where the interest is negligible.
 
BUDFORCE said:
Hmmmmm, be careful there. Most personal loans/hire purchase don't work like that. It's true for most mortgages, but with most other finance agreements making overpayments doesn't reduce the amount of interest you pay back in total, just reduces the term.

Settling early sure, although keep in mind the interest is always front loaded.

If you can afford it, your better off not making overpayments at all, save the money aside, then settle early once you have enough to clear it in full.
Click to expand...

How long ago was this? AFAIK since 2011 the Consumer Credit Act has required lenders to allow overpayments on unsecured loans up to £8,000 per year without penalty and up to 1% penalty for over £8000.
 
EvilRob said:
How long ago was this? AFAIK since 2011 the Consumer Credit Act has required lenders to allow overpayments on unsecured loans up to £8,000 per year without penalty and up to 1% penalty for over £8000.
Click to expand...

Hmmmmmm, I think it was after that, was a good few years ago though.

It wasn't that you couldn't make overpayments, it's just that the overpayments didn't reduce the overall interest paid.
 
Hitachi pay by finance fixed term deferred loans e sign on application but no mention of how much in years time interest is which is £700! I’m gobsmacked how this is happening emailed but no reply from them has anyone else had this?
 
So you signed a loan agreement without checking the interest rates?

That's the only thing to be 'gobsmacked' about in all honesty.
 
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