Financing a TV?

Question

I have a Best Buy credit card and I want to know how I can finance a TV

Will they charge the entire balance on my card and I need to pay it off in the allocated time or something else

Answer 1

Your card has a credit limit.  You can charge any amount you want up to this amount.

When you get your bill it will have a minimum amount to pay.  About 1/2 of this amount will be interest.  Anything additional you pay will go toward the balance on the card.  Doing this will reduce the amount of interest owed the next month and allows you to pay it off sooner.  You really want to pay as much as you can  each month to get out from under the debt as soon as possible.  On an electronics purchase, you want to make sure you are able to pay if off completetly within 6 months.

Minimum payments on a a $1500 TV at 20% interest will be about $40.  If you only pay the minimum you'll be paying on the TV for about 5 years.  To pay off the TV in 6 months you'll have to pay about $270 a month.