Up here thats what it means Glenda. But you'd better have it paid off by 2011 or whatever the date may be! BIG interest charges if you don't!
We bought some new furniture awhile back, I know it was no interest for 2 years. We figured if they offer it why not take it, the payments were reasonable and may as well use someone else's money besides ours! LOL
BUT we made sure not to ever forget that payment or now I think of it maybe the interest charges would start if you missed one payment? I don't remember for sure now but the interest was something like 24%???
No way you want to forget or go past whatever the deadline is on it thats for darn sure!

Also heard, that if you make a late payment, your credit numbers, even a day late, lowers your credit rating!
Not high income, but I do make sure I pay ON TIME!

I was just thinking about that today when I heard a commercial on the radio for a furniture store. They said they had all new LOWER prices with no interest until 2013. I too wondered where the hidden charges were if they were advertising new LOWER prices with NO INTEREST until 2013. Heck that is 5 years from now. Many people will be ready for new furniture in 5 years and not even have these paid off yet. I thought to myself, if the furniture store gets into financial trouble, they have no one to blame but themselves for giving crazy financing like that.

Luckily, I don't need to do that, but it sounds like a lot of big bucks to me, to those that need to do that kind of financing!
Was just wondering!
Thanks!

often there is also a minimum purchase amount to qualify for the no interest.

They probably expect someone to come in and buy a whole household full of furniture, then hope they don't pay it in time. They get you by then charging you an outrageous interest rate that is retroactive to the start of when you purchased the items.

I can't imagine buying new furniture every five years, CBTexas. I guess it's normal these days, though.

We took advantage of a no interest purchase of some new furniture when we were furnishing an addition to the house. Wasn't anything we had to do, but figured why take money out of savings that was earning interest. Big mistake! The no interest purchase was turned over to a credit company (Wells Fargo)that bugged the livin' daylights out of us for the next 3 years. A full 2 years after the purchase was paid in full. There were weekly phone calls wanting us to take out loans that bordered on harassment, plus mailings two or three times a week doing the same. We vowed we would never do it again.

When we bought our home 3 years ago, we bought all new furniture and bought it with no interest for 3 years. There are no hidden charges - the key is to pay on time. I didn't even trust the mail because I've heard where creditors make those offers and then hold your payment a day after it's due and then slam you, so I would make phone payments - they were free too. We paid it off early and never paid any interest or finance charges at all. Actually, at the same time, we bought appliances for the kitchen from Sears and took advantage of the same type of offer. I do think that the stores are banking on you being late so they can impose their late fees and then up your interest rate.

There are two forces at work here: first, the economy is sagging, so many retailers need to "move" their merchandise to bring in the new stuff they have already ordered. You cannot sell sofas covered in spring fabrics if they are still packed in plastic in the warehouse.

Second, they count on you missing that payment date in 2011, because if you do, even by a single day, they end up with some outrageous annual APY (like, say 25%). And even if you remember and pay off before the due date, someone else will likely forget, so they may lose money on you as an individual customer, but they make money on the total promotion.

If you can remember to pay, it is a fantastic way to borrow money for free.