How does 'Pay By Finance' from Hitachi work?

I've used it a few times in the past and always just pay it off early and the whole thing ends up costing you £20 or so.

Not something I'd make a habit of doing all the time but it's convenient when you need it.
 
Bouton Aide said:
So you telling me people are getting this finance option to pay £150 a month over 12 months?
Click to expand...
it's not a bad idea depending on what you're doing with that 1800, you can easy gain 10-20% on it in 12months.

in some circumstances finance makes sense, obviously not if your money is sat doing nothing in a bank account
 
Bouton Aide said:
So you telling me people are getting this finance option to pay £150 a month over 12 months?
Click to expand...

That's more or less what I did. My computer died an unexpected death in December 2018 and I didn't have the cash then and there to buy a new PC so I used the 12 month interest free option from OCUK to get my PC in a few days and then did a payment of a few hundred pound every other month and cleared it before the year was over.

Cost me £29 - Well worth it. I'm thinking of getting a new monitor and GPU for my computer and I'll probably buy one outright and use the 12 month plan to get the other.
 
Bouton Aide said:
So you telling me people are getting this finance option to pay £150 a month over 12 months?
Click to expand...
Why is this so profound to you? BNPL is a huge market for exactly this reason. You'd be a mug to let it go onto the 4 year payment plan. Smart people would pay the £150 into an interest bearing account to further offset the £29 fee. Smarter people still, would get a 0% credit card and do the same thing.

It is a real shame schools do not teach this to people.
 
tlrBeta said:
Yep your correct and it isn't widely known, Buy Now pay in instalments don't have to by law e.g. Klarna. They don't even age check!

I'm sure the FCA will close that loop asap.

On this specific thread, 20% apr, your crazy to even consider it. Get a credit card, transfer balance to bank account and pay the one off fee. Interest free from that point for X months.
Click to expand...

You're assuming these people are eligible for 0% balance transfer cards, if you're looking at a 36 month loan term with 20% APR, it's likely you're in a financial position where a credit lender won't even offer you a 0% balance transfer card.

It sounds like the second poster didn't read the quotation, either they accepted blindly (sheer stupidity) or are now just realising the costs (naivety), but i hope it's more just a case of they;ve got a quote and are questioning the costs. You should never take out credit if you don't understand what you're signing upto.
 
Bouton Aide said:
So you telling me people are getting this finance option to pay £150 a month over 12 months?
Click to expand...
Yes, myself included. Although instead I've chosen to pay absolutely none of it off each month and just dump what I'd normally save regardless of the loan into a savings account ready to pay it off near the 12 month mark
Then after I finish paying off my 43" monitor I'm going to open another one to finish building my new PC
 
Semple said:
You're assuming these people are eligible for 0% balance transfer cards, if you're looking at a 36 month loan term with 20% APR, it's likely you're in a financial position where a credit lender won't even offer you a 0% balance transfer card.

It sounds like the second poster didn't read the quotation, either they accepted blindly (sheer stupidity) or are now just realising the costs (naivety), but i hope it's more just a case of they;ve got a quote and are questioning the costs. You should never take out credit if you don't understand what you're signing upto.
Click to expand...
This.

I also found BNPL to be a good way to build credit at a fixed charge. My first credit was on a £500 Toshiba TV which cost £25 for 6 months BNPL.
 
dLockers said:
Why is this so profound to you? BNPL is a huge market for exactly this reason. You'd be a mug to let it go onto the 4 year payment plan. Smart people would pay the £150 into an interest bearing account to further offset the £29 fee. Smarter people still, would get a 0% credit card and do the same thing.

It is a real shame schools do not teach this to people.
Click to expand...

Agreed, it seems only the financial savvy know.

FWIW you'll also get "extra protections" whilst under a finance agreement. i.e. if you bought a sofa on BNPL and it turned up damaged, and you were having a hard time getting the store to replace it, then the finance company (which in a good few cases is actually part of the company who sold the product) tends to have a bit more clout in getting it sorted.

We bought our sofa on BNPL as it didn't even have an admin fee, you just cover all payments within the agreed term and it'll cost you the exact amount as it would have done if you'd paid the full balance on the day that you ordered it.
 
This post reminds me to cancel some of my old BT cards.

I cycle them all the time. About 1 a year. Pretty much always have 1-3k on some 0 percent balance transfer with 0 percent fee.

Sometimes you even get cashback for taking it out! :D

Can't be many of the big boys I haven't had an account with at some point
 
413x said:
This post reminds me to cancel some of my old BT cards.

I cycle them all the time. About 1 a year. Pretty much always have 1-3k on some 0 percent balance transfer with 0 percent fee.

Sometimes you even get cashback for taking it out! :D

Can't be many of the big boys I haven't had an account with at some point
Click to expand...
Same.

There was a chap on MSE with 65k cycling through these cards! He had taken something daft like 5 years off of his mortgage by doing it.

It's a shame the general masses are stuck to comparing headline APR rates. You see it all the time when AMEX post an advert and people misunderstand the purpose or how to use the cards.
 
You must log in or register to reply here.
Back
Top Bottom