Monthly Payments for TVs
Often when the topic of monthly payments for TV’s comes up, the automatic assumption is that the only option available to the consumer is in the “rent to own” arena. While the nationally known rent to own stores do serve a very specific need, particularly for those with marginal or bad credit, the fact is that purchasing a big-ticket item, like a flat screen TV through them, can raise the purchase price by 50% or more than, if it was bought online or in a regular retail store.
The good news is that there are a number of reputable online and retail electronics stores that offer reasonable low payments on a monthly schedule and do so without gauging the customer with the end price. Most of these payments for TVs have a limited time term, often 12 to 24 months and as a bonus, those who successfully complete the payments according to the terms of the agreement may not have to pay a single penny in interest.
Some of the retailers offering the interest free monthly payment options only offer them on specific brands or models and generally the purchase price of the items exceeds $500, and sometimes may even be a higher limit, like $1000. Various retailers have relationships with various finance companies and some television manufacturers like Sony; have their own financial services company. In order to receive these monthly payments for TVs, there are generally some credit-worthiness requirements.
In some cases, the financing package is actually tied to using the financial services providers’ credit card. Nearly all of these promotional item packages require regular monthly payments be made and these payments are paid when due. As long as the purchaser makes 24 regular monthly payments if that is the offer, at the end of this time, the television is paid for, fully owned and not a penny of interest has been charged.
On the other hand, if the consumer already has an existing balance with the moneylender, any existing balances will continue to be assessed at the original interest rate. Additionally, if the buyer opts to pay more than the minimum monthly payment, the extra money will first go to the promotional item before it is applied to any existing balances.
Do be aware that defaulting on one of these low payment/interest free options does have serious penalties. As a first step, not making the required monthly minimum will result in the termination of the promotional agreement and the full finance charges will accrue from the original purchase date.
As an example, Sony is offering a 24 month no interest monthly plan for televisions over $999. It requires qualifying for Sony’s credit card. If the terms are not fulfilled, the full interest rate is nearly 24% and for those that go into default, the interest rate is dangerously close to 30%.
