Everyone has seen the ads. They are in stores, on television, and on the radio. They are loud, obnoxious, and tempting. It is not infrequent to see ads advertising that zero percent financing is available for the first three months or year or two years of signing up. Except for very certain circumstances, these are the too good to be true variety of loan and should be avoided. They sound great but another method of payment or waiting until the purchase can be made without borrowing is much wiser.

Typically, the down side of the zero percent loans is the terms. The interest rate will be high and it won't just apply to the balance that remains after the premium period of time has passed. Once the initial advertised length of time has expired the interest rate will be applied as though the zero percent advertisement never existed. The only real time to take advantage of zero percent offers is when the loan is not necessary. If the money is available to pay off the borrowed amount within the given time, the high interest rate will never apply and the borrower was simply able to take advantage of the offer to stretch out the time to make payments at no additional cost.

In the instance that it is possible the loan will not be repaid within the advertised period of time, other methods of payment would be better. Waiting until the money can be saved up would be one preferred option that would be among the wisest, but is often the most difficult to do. A credit card with a low interest rate would also, in the long run, be more affordable. One other option is to take out a traditional personal loan at a bank or lending institution.

If you are considering making a purchase that will require a loan and want to use a lending institution, some research into different options may net a good loan. Start researching by verifying your credit score with the major credit reporting agencies. With time and patience you may even be able to positively impact your score, giving you more favorable options in the future. Research current rates online, taking into consideration your credit score. A local bank or credit union with a good reputation may be able to assist in writing a loan and also checking online for a valid lender will give additional options for a better interest rate.

Just remember that the louder the ad, the larger the type, and the more fantastic sounding the offer is, the more likely you'll be taken advantage of. Before signing or even considering anything remember that too good to be true offers usually are. With zero percent loans, read the details and know what will happen if the loan takes longer to repay than the advertised time limit on the offer. Knowing all the costs, terms, and conditions up front and avoiding bad deals will save a mountain of headaches later.