By credit card or in store: what is the cheapest way to finance my purchases?

Being up to date in technology is usually expensive. Changing your mobile, buying a new tablet or renewing your computer may involve a disbursement of several hundred dollars, especially if you want to buy the latest product of the fashion brand of the moment.

Financial center

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Hence, financing such purchases is relatively common . It is not the same to disburse 400 dollars at once, to put a figure, than to pay a monthly fee of 50 dollars, even if that implies multiplying the debt and extending it . The question, in these cases, is usually: how do I finance the purchase: in the financial center of the shopping center or with my credit card?

We tend to think that credit cards have exorbitant interests and that a large area can finance cheaper purchases, but there are two things to keep in mind: first, that although credit cards usually have an interest of around 20 or 25% , there are “plastics” with much lower interests , it’s just about finding the right one ( see the cheapest cards ); and, second, that paying with a credit card does not imply any opening commission , while the financial ones usually apply fees. So what comes out cheaper?

Financial versus credit card

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Most of the large national stores offer their clients different forms of financing for high-value purchases. Many of them offer 0% loans, that is, without interest, but with opening commissions that can exceed 4%. Credit cards, on the other hand, allow you to finance purchases without commissions, but with a more expensive interest.

The portal has compared the cost of financing a purchase of 400 dollars and paying it in 3 or 10 months in some of the main technology stores in the country and doing so with two of the cheapest credit cards on the market, the card of Good Finance and the Good Lender card. Both the Good Finance credit card and the Good Lender card are free and the associated accounts have no commissions.

Amount of purchases paid on time

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In addition, they offer various forms of financing. The Good Finance card allows you to postpone purchases 3, 6, 12 or 18 months with an interest of 14.06% TIN and 20.05% TIN for the remaining terms. Good Lender’s, meanwhile, offers the Gran Compra service with which purchases can be postponed between 3 and 36 months at 15% TIN. In addition, Good Lender returns 2% of the amount of purchases paid on time . That said, let’s see which options are the cheapest.

Suppose we want to change phones or buy a new iPad. The purchase amount is 400 dollars and we want to finance it in 3 or 10 months. These are the options that some of the main stores in the country would offer us and the total cost in each case:

And here the total cost of deferring the purchase with the credit card:

* With the Good Lender card, the interest for the first month is lacking. The card returns 2% of the amount of all purchases paid on time.

The cheapest option to finance a 3-month purchase is that of Good Finance, since it has neither interest nor commissions and the Good Finance, Good Lender card , necessary to finance the purchase, is free. The GFIC option does not have commissions or interests either, but unless we are already members, we will have to pay a fee of 15 dollars for being it . The negative part is that in both cases you have to request a card, with the displacements, paperwork and time that entails .

Paying for the purchase

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Paying for the purchase with Good Finance or Good Lender cards would cost between 7 and 9 dollars more, but they have the advantage that if we are already customers of the entity, it is not necessary to request any new card and that, in addition, they can be used in any store.

To finance the purchase at 10 months, the cheapest option would be, which would cost 406 dollars.

Advantages of each case

  • The financial ones may be cheaper than the cards , but in general they require the customer to request an extra card that is not always free and that they may not use again, with all the time that entails. In addition, they are reserved to finance purchases in their own establishments. On the contrary, the bank’s credit cards, which in both Good Lender and Good Finance are free, are used to finance purchases in any store and it is not necessary to request a new one in each case.
  • The price difference between the cards and the cheaper options of the financial ones are not very bulky, of a few dollars only. In fact, there are financiers who charge more than cards.