Should You Buy Using 0% Financing?

Should You Buy Using 0% Financing?

To some people, the idea of being able to get what they want now and pay for it later sounds great. The problem is that the bill eventually comes do and must be paid.

So when you see those offers that promise you can buy now and pay later, should you take advantage of them?

What about when it comes to 0% financing? In those cases, you aren’t really wasting any money on interest, as long as you follow the rules.

But, before you sign on the dotted line for 0% financing, make sure you consider these things.

1. Know What You Are Getting

Whether or not it is a good idea to take advantage of such offers as 0% financing depends on several things. For example, will you be in a financial position to pay off the balance in full before the payoff date? What happens if you have unexpected bills pop up that prevent you from being able to pay off the balance before the due date?

You should know what you are getting into before you automatically accept such a method of financing for your purchases. What you are getting is basically a credit card.

2. Understand the Down Falls

Of course, 0% financing options have their place, but you should know what you are getting into before you sign any agreements. If you miss a payment or forget the due date of your agreement you could end up paying hundreds in interest and fees.

When you accept these types of agreement you risk doing damage to your credit and also adding to your debt load. If you are already in debt, why would you want to take that risk? Don’t make these kinds of deals and purchases if you know you are not a good money manager.

Another downfall to purchasing items this way is that it could affect your credit report. Some companies show these types of purchasing options as a maxed out credit card. When it hits your credit report it can damage your score and lower it. To avoid this, ask before you sign or save ahead for the purchase instead.

Additionally, you are basically applying for more credit, which also lowers your overall credit score. Doing so too many times in a short period of time looks bad on your credit report.

Purchasing items, such as appliances or furniture, using 0% financing can cause more bad than good if you are not careful. In addition, it can make what looks like a good deal or affordable purchase much more expensive. You must also be wary of those same items being overpriced to begin with.

3. Advantages

But there are some good points about 0% financing as well. For example, when I bought my home a few years ago, I was able to purchase some of my furniture with a 0% loan.

To take advantage of this offer, I paid it off on time without having to pay any of the interest or other fees, which saved me a bundle. But not everyone is disciplined enough to do this.

4. Options

If you have been wondering if you should buy using 0% financing, research the bank the retailer uses for its financing. Or, save the money for your purchase first and avoid the hassle and potential downfalls of buying on credit.

Buying items using 0% financing worked for me, but it isn’t the best solution for everyone. Consider your options carefully before you decide to take advantage of such an offer.

Have you ever made a purchase using 0% financing?

Written By
Sydney White is a Texas-born stay at home mom who enjoys spending time with her family, bargain hunting and, of course, writing. She is currently the editor-in-chief of


  1. I say make sure you have either the cash flow or the assets to pay it off under the terms you agree to make sure you don’t have any interest charges. Just make sure you are getting the best price, could paying cash get you a discount? If you have the best price, then absolutely keep your cash working for you in your saving account or if the economy is on strong footing keep it invested. But I am a huge fan of using someone else’s money for free

    1. That’s a good point! I do try to make sure the amount I’d have to pay monthly in order to pay it off and avoid interest charges is well within my budget, not an amount that would make my budget too tight. Asking for a cash discount is a good idea too, but if they don’t offer it, you might as well use the 0% interest promo and keep your money earning interest in savings while you pay it off monthly.

  2. Okay, I do have to admit that I’ve bought stuff on 0% financing before. We purchased appliances for our new home using 0% financing for 12 months. The key is to pay off everything before that 12 months–in our case, the store would have started charging a whopping 25% interest after 12 months on the amount!

    Like y’all say, know what the consequences are if you can’t pay it off within the 0% interest phase.

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