XPS Financing question - please help

Hi all,

Dell currently have a promotion for the XPS line for No Payment No Interest till 2009using the Dell Preferred Account (DPA), as long as the balance is paid by 2009.

I have the DPA card since 2006 and I have sufficient balance, so I assume I can simply order the XPS 1530 and use the DPA card to fund the laptop. However, Dell website says it is only for Qualified customer. The thing that I don't understand is: what constitute a qualified customer?

I mean, I have the DPA card and I have sufficient balance, so I should be able to qualify for the promotion, right?

I emailed Dell Financial Services (DFS) but they don't give me a straight answer, they just said that you MAY qualify. But how do I know whether I qualify or not? I mean, I don't want to buy the laptop, thinking I am qualified and then 30 days later received a bill with HUGE interest.

What do you guys think?

 

If memory serves me correctly, Dell was getting sued for 'bait-n-switch' tactics related to that program. They never defined what 'qualified' meant, and they'd (1) first say you qualify and then (2) on your first bill you'd find the started charing 29+% interest right away.

I would personally not purchase that way unless you were prepared to pay off the full balance right away 'just in case.' I've never trusted DFS after hearing about those scams...

As far as my personal experience goes, Dell DFA opened a line of credit on me. Without my consent. They asked my information for an order, and by the end of the call they said...'oh, and buy the way you now can charge this on...' Shady, yeah...

 

Hi Greg,

Yes, my intent is not to "drag" the payment, but pay the full balance by the due date (2009). I figure that I can stretch the payment but without the high interest rate, much like those ads from Best Buy / Circuity (no payment for 1 year with no interest rate). I know by 2009 the balance is paid off. I have the DPA card now, so I guess might as well take the promotion anyway.

The thing that worries me is that DFS or Dell can later say "Oh, BTW, you're not qualified, here's the 20% interest rate!". I am trying to find out HOW do I know if I qualify.

Regarding your situation about Dell applying for your card withour consent, you should take them to court! There is no way they can apply you for a credit WITHOUT getting your SSN, which I assume you didn't give when ordering. I think it's the trick from CIT Bank or overzealous Dell Salesperson because they make good commission for each approved DPA card.

 

Here's a little secret; when 'no interest' financing is offered by a company, whether they're selling laptops, furniture, vacations, etc. -- you can always negotiate a lower 'cash' price.

Borrowing to buy a laptop, a consumer item that won't retain its value, just seems pretty silly. If saving for a $1000 laptop is a big issue for you -- then, quite frankly, you got money problems and you shouldn't be buying stuff on credit anyways.

 

I know your intent is to pay off by 2009...that isn't the issue. What my concern is that Dell seems to be intent on not honoring the 'you qualified' deal.

 

I disagree with this. If I buy a car (which also won't retain its value) with 0% interest (offered sometimes by car manufacturer), are you saying I (and everyone else) shouldn't buy the car?

I DO NOT like paying interest by buying something with a credit card and paying the interest, even at 3%, is indeed silly for me. But if I can buy something and stretch the payment without paying interest, I can put my cash into some sort of investment while ensuring that I pay the credit card balance (with not interest) and paid it in full. I think the concept of 0% is great for people that manage their finance properly.

Anyways, I am just ranting here. Still wondering whether I should get the XPS with this promotion. BTW, the XPS is also giving $200 off, so it's even more tempting!

 

I used to work for Bank of America in the credit card department. If you really wanna use credit for a laptop heres what I suggest you do. Go out and apply for a credit card from the bank you use, or even use BOFA. don't pay attention to purchase apr or cash advance apr. What you want is a excellent ballance transfer rate and one that will last at least for a year. Once you have the card you contact them and say you want to do a balance transfer into your checking account. "Which is very much allowed, but no bank rep will ever tell you, you can do it" There will be a balance transfer fee around 40-75$ but this is pennies compared to a apr of 29%+.
This method is the proper way to use a credit card. Once I started making decent money in the real estate business first thing I did was go out and get a 5k credit line with BOFA for 0% on balance transfers for a year, what I then did was take that money put it in a CD account and I'm making X amount now on pretty much free money. I still have to make a monthly minimum payment, but as long as you never miss a payment the apr% will not go up.

 

Yeah.. I think now when you apply for DFS financing for a purchase they tell you if you qualify.... at least for a new DFS card.. not sure how it works for existing.. that might be a result of the litigation..
I have really good credit but when I checked with DFS they said I don't qualify for the 0% financing.. obviously I said no to the card when given the option, however, Dell sent me one in the mail anyway! annoying to say the least since it went on my credit record as well...

I would say unless the offer is really really really good stay away from DFS.. they are a scam.. and not directly run by Dell...

Post #500.. yeah baby!!!

 

Hmm... this is interesting. I know DFS is not managed by Dell, but they outsource that to CIT Bank, who is also the bank for NewEgg and those "Bill Me Later" from different vendor sites. I didn't know CIT Bank is..well.. have bad reputations.

I am going to try put the order and talk to the Sales Dell guy to see if I "qualify"... not for a new card but for existing card. What do you think, would the sales guy will be playing games with me? I.e. say yeah I qualify but he doesn't have that authority and just want to sell the computer.

 

lol I completely disagree.. A car looses 25% of it's value as soon as you drive it out of the parking lot of the dealer. So like what was said - I guess it's stupid to finance a car too.

I financed my laptop with 13% interest rate. Only 3 dollars of the 43 dollar monthly payment is interest roughly. I didn't finance it because I have money problems or I'm broke. I'd rather keep the 1500 bucks in my pocket just encase hell rains down on me one day, and I find myself without a job or a car or a home - or some other huge unforeseen catastrophe. And considering the cost of living now'n'days, I can imagine many other people do the same or agree with my logic.

Oh well I guess 'borrowing to buy a laptop' is almost as silly as you're comments.

 

Thats certainly a most excellent reason to finance larger purchases. Not only will making payments on time and then paying it off these alone will boost your credit score. In the event something drastic does happen you have the cash to take care of it instead of selling off your laptop. "common site in the B/S/T section"

 

EXACTLY

Everyone I know goes out and buys something for $1000+ every once and awhile; slaps it on the credit cards, then pays it off the next day. Raises you're credit like mad. Doing that myself, I raised a card I got starting at $3,456 credit line to about $14,375 credit line in a few months.

I will warn you right now, the downside to good credit(yes apparently good comes with bad). The phone calls, spam, mail - never stops. Everyone wants to offer you something to put you in more debt. Bastards never quit.. lol

 

Yes, I forgot to mention this. Credit score is a big thing and unfortunately, the creditors wants us to purchase something with a credit to have good credit (as long balance is paid in full).

 

Baby, if you got good credit, they will loan you/give you everything you're credit score is worth. Problem is, you gotta pay it all back. That the only problem they need to work on...

 

Actually if you register with the non solicit act you can avoid those annoying calls and junk mail. Only problem is it can take up to two months to kick in.
Like I posted earlier though, excellent credit has its benefits and since I turned 19 I have yet to swipe my card again because I do a balance transfer into my checking account for the cash and pay a pathetically low apr compared to 14%+ like a lot of people do when they just swipe their card.

 

Yeah that's the ***** about credit cards.. The rates.. Brutal.. Mine are all 18% one is 21%.. I don't leave anything on those cards amount to anything because it would take a life time to pay off.. LOL

Anyone wanting to finance an Alienware, hope you like the 29.9% interest rate. 8|

I'm gonna have to check out the non solicit act thing, because I'm harassed 3 times daily by phone and get crap in the mail all week.

 

another reason to finance is if that 1500 dollars is better off in a mutual fund earning more money than you would pay interest.

 

0% financing isn't stupid, its smart. Keep the money for yourself. Just be sure to pay off by due date or you'll be gigged with all the interest from day one.

Usually "qualified" means you need to have the credit, and you already have the credit card.

 

Called DFS and they said even though I already have the card, the qualifications depends on the credit information at the time I got my card. I got my card 1 year ago.

So how do I know if, say the promotion requires a credit score of 730 and my score only 720 1 year ago? This doesn't make sense...

I am going to order with the promotion anyway and if I see interest, I'll return the laptop.