Playstation 5 on finance from GAME uk

[Ganger]

I am planning on buying a PS5 or Xbox within the next 12 months. Just checking out UK prices on GAME website for both. But I came across this.....

It seems they do a interest free credit upto 3 months and with nothing to pay at checkout. As long as you pay the full amount within 3 months, you pay no interest at all.

Was thinking, buy now... pay it off in 3 installments and be done and get my credit score boosted on top.

Just saying, this type of offer will trap so many people. I guess they know some people will pay the full balance off but many will simply end up paying for the next couple of years with 39% interest.

[kilésengati]

Basho の投稿を引用：

kilésengati の投稿を引用：

Oftentimes it is an interest-free consumer loan. At least here in Germany, for B2C transactions like these, they'll usually make you sign a loan agreement through their consumer bank (usually PayPal, Klarna or Santander, if they don't have their own) for stuff like that. Maybe you have more specific technical terms for that in English, but in German it's all a type of Kredit.

There are some places were the single-installment pay-next-month options are basically consolidated bills (iirc, Amazon and a couple smaller stores do that), but most big retailers handle it through consumer loans.

fair point, since i havent used such a payment option i havent looked into the details very much.
but it makes sense that if you have a outstanding payment, you are essentially in debt.
so since the conditions presumably come with some sort of consequence if you fail to meet the deadline - i'd assume you actually go into debt for real at that point.

guess i will have to look into it more at some point just for the sake of knowledge.

If you fail to meet the deadline, they bill you a hefty interest, similar to credit card companies.

Hobbit XIII の投稿を引用：

Yew Nough の投稿を引用：

I used two companies that would spot you the money and would charge no fees (so long as you payed it off in 4 monthly installments).

Now (due to US regulation): They are classified as credit companies and are treated as such, so all transactions now come with fees, rendering them useless.

Enjoy it while it lasts.

Curiosity question :
There are no fees at all, do they rely on people who thinki at the time oh yeah ill pay it off by then , and then they get hit with interest when they don't? or is there a subscription fee to use the companies as well?

Yes, behind the friendly payment processor façade, they often are basically loan sharks that live off the usury they impose on people that fail to meet the deadline. It can easily become a debt trap for people that use it to live above their standards. That, and offloading payment processing fees to retailers as well as data collection, etc.