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Pros and Cons of using GE Finance


Taiko
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Was in personal loans.

 

35% interest rates were common, even some people paying 35% on 15k+. Interest charged as a step rate plan.. E.g., $10000 loan over 5 years, interest is charged at a step rate e.g the first month you pay interest on the $10000(+establishment free, insurance etc so its more like $12000ish and yes you are charged interest on the insurance and establishment fee, not the $10000 originally taken.. If you pay off 5grand the next day after getting the loan, youll still be charged interest on that $10000, then the next month charged on $9900 as its a predetermined amount of interest that corresponds to the month your in of your loan term. If you pay a settlement amount late, the amount will be invalid by a few dollars as that days interest is added on. So say you have $10000, get a settlement figure for that next day, pay it a day later, then the loan is effectively in prepay, until a few years down the track when the interest catches up to what you've paid, (the 10k and interest has been charged still on that predetermined rate, not your 1$) and theyre your back in debt - all because the settlement figure was slightly out and didnt close off the loan. Normally could get this wiped, but i've seen borderline cases where it hasnt been. Agents are paid a small base + big commision, high interest rates + insurance = big $$$. Creditline is abit different whereby its the same as a credit card except higher interest and generally longer interest free days. Interest free means its a interest free loan to a set date, differed means interest is adding everyday, and is wiped once the principal amount is cleared (amount you borrowed) - all before a set date. Once that set date expires, the interest will no longer be wiped.

 

Moral of the story, dont get into unnecessary debt, and if you must, use a bank or learn how your debt is setup. Somethin like that.

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After careful consideration of this thread, and some support from the folks, I’ve decided to run with it.

After going in this morning, I was told there is NO penalty for paying it off before the interest free term ends, which was good to hear.

Interestingly, I was hassled more by the Apple salesman for not getting the extended warranty than by the finance woman who at that time did not even mention insurance.

I am not surprised at all though that people get caught in traps doing this sort of thing. I had to be far more proactive in asking questions – nothing was forthcoming. If you don’t ask you don’t know.

The next few weeks will be telling in regards to the ease of setting up APs, statements etc.

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haven't read the whole thread but interest free ge creditline is my friend

 

so long as you pay it back before the interest free period expires then you're sweet

 

take the amount it is going to cost you, divide by the number of pay periods you will have over that 40 month period and set up an automatic payment for that amount to go out every pay day without fail

 

sorted

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  • 2 weeks later...

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