FYI, check your newegg statements...

[fastcobra]

So I signed up for no payment/interest for 6 months promo in Dec 05 and purchased a new rig.
Now my wife usually handles the bills, but she is out of town this week, so I am doing them, and I noticed in my newegg preferred account statement that they have been charging me interest since my inital purchase.
My purchase was over $500 so I did qualify for the 6month no payment/interest promo they were running at the time.
So I called them and the very next day, they had credited me all the interest.
Charging me interest when I signed up for the promo really tivked me off, but they did fix it.
Just an FYI, so check yours.
Even though I had to deal with this, I'll still shop at the egg, good customer service.

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[Starbuck1975]

I received a similar statement and it showed that I had accrued interest for my first month on the deferred payment plan.

However, the statement also mentioned that should I pay the entire balance of my initial purchase prior to the termination of the 6 month grace period, that I would not owe any interest.

Most deferred payment plans work like this...you still accrue interest, but don't have to pay that interest if you pay off the principle prior to the end of the grace period.

Similarly, the interest rates after the grace period tend to be rather aggressive, so make sure that when you take these deferred payment options, that you have the cash on hand to ultimately pay it off once the grace period ends.

 

[fastcobra]

Originally posted by: Starbuck1975
I received a similar statement and it showed that I had accrued interest for my first month on the deferred payment plan.

However, the statement also mentioned that should I pay the entire balance of my initial purchase prior to the termination of the 6 month grace period, that I would not owe any interest.

Most deferred payment plans work like this...you still accrue interest, but don't have to pay that interest if you pay off the principle prior to the end of the grace period.

Similarly, the interest rates after the grace period tend to be rather aggressive, so make sure that when you take these deferred payment options, that you have the cash on hand to ultimately pay it off once the grace period ends.

actually, the no payment/no interest plan is what it says.
Deferred interest? is not applied until end of "grace" period, not charged monthly.
Then what? The bean counters must then recalculate your balance.
This interest was being applied monthly, due to them not actually giving me the 6 month plan promo.
Accruing interest and actually billing interest is different, fyi.

 

[dabuddha]

Originally posted by: fastcobra

Originally posted by: Starbuck1975
I received a similar statement and it showed that I had accrued interest for my first month on the deferred payment plan.

However, the statement also mentioned that should I pay the entire balance of my initial purchase prior to the termination of the 6 month grace period, that I would not owe any interest.

Most deferred payment plans work like this...you still accrue interest, but don't have to pay that interest if you pay off the principle prior to the end of the grace period.

Similarly, the interest rates after the grace period tend to be rather aggressive, so make sure that when you take these deferred payment options, that you have the cash on hand to ultimately pay it off once the grace period ends.

actually, the no payment/no interest plan is what it says.
Deferred interest? is not applied until end of "grace" period, not charged monthly.
Then what? The bean counters must then recalculate your balance.
This interest was being applied monthly, due to them not actually giving me the 6 month plan promo.
Accruing interest and actually billing interest is different, fyi.

On my other cc statements where I had 0% interest for x amount of months, the statement would list the amount of deferred interest charged every month and the running total. It wouldn't affect my balance or amount owed however.

 

[homestarmy]

I just thought that I would point out that this is not a hot deal.

You do know this is the Hot Deals forum, right?

 

[Wiseguy69]

Originally posted by: homestarmy
I just thought that I would point out that this is not a hot deal.

You do know this is the Hot Deals forum, right?

I think the reason for posting in the HD forum is that some of us don't visit other forums regularly and wouldn't have seen this post... but probably have taken advantage of this offer from Newegg when taking advantage of a Hot Deal.

Good point though.

 

[jfunk]

Yeah, not sure if the OP was actually being billed or not, because while he one minute says he was definately being billed, in the next he shows that he is not aware how these "no interest for x month" offers actually work. Yes, you DO acrue interest each month, based on your CURRENT balance. If you do not pay off the entire balance before the date, you pay ALL the interest. This is how all of these offers work. Every 0% department store, credit card, or line of credit offer out there works this way. Your Newegg statement DOES show the amount of this interest that you have built up, which I think is rather nice since most companies don't even bother to show this number. They're actually hoping you will fail to pay it off, even if it's because you leave $1 on there by accident, cause then they can hit you with all that built up interest.

 

[Phenocain]

Well 6 month deferred payment is a hot deal, so to speak I think anyways. The guy who is originated the post was just letting us know to becareful and check. I am glad he posted cause I was planning on buying computer parts for a new computer from newegg. I didn't think it was suppose to work that way. When I bought a computer interest free for a year at Best Buy I was never billed for interest while I paid it off month to month.

 

[911paramedic]

Originally posted by: jfunk
Yeah, not sure if the OP was actually being billed or not, because while he one minute says he was definately being billed, in the next he shows that he is not aware how these "no interest for x month" offers actually work. Yes, you DO acrue interest each month, based on your CURRENT balance. If you do not pay off the entire balance before the date, you pay ALL the interest. This is how all of these offers work. Every 0% department store, credit card, or line of credit offer out there works this way. Your Newegg statement DOES show the amount of this interest that you have built up, which I think is rather nice since most companies don't even bother to show this number. They're actually hoping you will fail to pay it off, even if it's because you leave $1 on there by accident, cause then they can hit you with all that built up interest.

What jfunk said. If it's not paid off by 6 months you still owe interest from the date of purchase. Read the fine print next time.

 

[jfunk]

Originally posted by: Phenocain
Well 6 month deferred payment is a hot deal, so to speak I think anyways. The guy who is originated the post was just letting us know to becareful and check. I am glad he posted cause I was planning on buying computer parts for a new computer from newegg. I didn't think it was suppose to work that way. When I bought a computer interest free for a year at Best Buy I was never billed for interest while I paid it off month to month.

Like I said, Newegg is not BILLING the interest, they are just letting you know how much interest you have acrued up to this point that you will owe IF you fail to pay off your entire balance before the proper date. All 0% offers do this, most just don't bother to show you the amount you are acruing.

Once again, I'm not saying that I know for a fact that the OP was not incorrectly getting billed when he shouldn't have, I'm just saying it is normal for the Newegg statement to show you how much interest has acrued to this point. They aren't billing you, they're just warning you how much you will owe if you still haen't paid your balance after 6 mo.