However, if you do not pay off the full price of the purchase within that time period, you will then be charged interest on the entire purchase amount dating back to the purchase date, even if you have paid off most of the balance. More than half of the consumers who signed up for no- interest financing plans with one company did not pay off the balance in the time required and ended up paying interest. In some no interest programs, your payment each month does include an interest charge. If you make all of your payments on time and pay off the entire purchase price by the agreed-upon date, the interest you have paid is credited back to you. If you miss a payment, pay late one month or do not pay off the whole balance by the end of the agreed upon period, you don't get your rebate.
Some stores offer no-interest financing but inflate the selling price to make up the difference.
Read your billing statement carefully to understand what payments you have to make and when they are due. If you are interested in a zero-interest offer, read the fine print in the advertisement and the financing agreement. Make certain you understand exactly how the store's zero-interest program works. There are many different types of programs. Also, if you are not familiar with the product's price, do comparison shopping to make certain the product is not available elsewhere at a substantially lower price.