Such a Deal?

[MDJAK]

Hope this is the right part of the forum for this. If not, the mods have my permission to move it.

Just visited the B&H website. It is probably one of the best laid out sites on the web, imo.

It is so good in fact that it rarely changes in format. Sometime ago, they started inviting customer reviews and posting them, which I find helpful and fun to read.

Tonight, I noticed something quite different, which I would strongly advise anyone considering it to steer clear of.

They have a new buy now pay later option, and they make it quick and easy to get.

The great (not) deal? Only 17.9 percent interest. If you don't pay it off quickly, and I do mean lickety-split, it'll cost you a small fortune in interest.

Shame on them.

[JohnnyG]

Agreed but you just advertised the plan for them!

Yikes!

[MDJAK]

You have a point there, johnny. shame on me.

[JAZZ D.P.G.]

And this is worse than carrying it on your CC how?

Not that I would advocate carrying a balance on a CC, not my habit.

I thought the "instant gratification" generation had gotten over it.

B&H just entered another profit center that would have gone to another business: Visa, MC etc. if a purchaser is willing to do the rate for the bank, why shouldn't B&H try for a chunk of that business?

As a business plan, this is a good profit center. Even if they "borrow" the money to float the loans, their interest to the bank would be 10 points or better less than the charge. Risk would be minimized by amortizing the equipment.

Chances are, they are in a deal with a major underwriter (Citi Financial, HFC etc) and are only taking a commision up-front on any deal signed, and letting the leasing/financial company carry the risk.

Diversify your income without adding to your outlay, good business plan.

As P. T. Barnum said....................

[MDJAK]

Different than carrying it on a CC? Yes, quite different, considering if one has decent credit, one is bombarded with CC offers for zero percent interest for a year at a time. One can then usually transfer the balance to another zero interest card.

I think that qualifies as different, don't you?

As far as B&H being smart and making money by doing it, I never doubted that for a moment. They are absolute geniuses. I've been around the block quite a few times and have never, ever seen an operation such as theirs.

Today on WCBS 880 AM radio, during the business report, they stated that B&H can expect over 9,000 people PER DAY to come through their store. They deserve it. I've been doing business with them for 20 of their 32 years and highly recommend them. I always have. In fact, in a recent post where somebody complained about them, I vociferously backed B&H.

They are the best, bar none. But I digress.

That said, they are still ripping people off by charging 17.9 percent. If one can't get a CC for zero percent, which I get in the mail all the time, aside from a ripoff department store CC, one can surely get a CC with interest rate under 10 percent.

[RTMiller]

Originally Posted by MDJAK

One can then usually transfer the balance to another zero interest card...

The credit card companies have wised up. You can still get a zero interest card and transfer other balances to it. But now they usually charge a 2-3% balance transfer administration fee up front. For years I kept a few thousand dollars on credit cards and would transfer the balance to another card when the introductory period ended. Afterall, this was like being loaned money with no interest. I can't find any more credit card offers that don't have a transfer fee. I you find one, let me know... I could use another "loan".