[RancidLunchmeat]

I doubt this offer would raise a subscriber's credit score at all.

Their credit will get hit from running the initial credit check, just like any other case. But I doubt this would show on any report during the payment period and would probably never be reflected on the credit report except upon default.

[Silent_Buddha]

It all depends on whether MS actually reports whether a buyer is on time with thier monthly payments. As well as to how the contract is structured.

But as long as the MS reports the purchaser's monthly payments and whether they are on time, late, or defaulted, then it will show up in the purchaser's credit report either positively (ontime payments for the duration) or negatively (default on the credit loan/subscription).

If MS doesn't report it to the credit agencies, then and only then will it not show up. However, it is in MS's interests to report it as that is additional incentive for purchaser's to make their payments on time.

And seriously with all the people whining. Once you factor in the one year extended warranty, the interest rate for this "loan" drops to 5-6% annually...Non-compounded. Unlike a typical credit card which is compounded monthly. If making "only" minimum monthly payments a purchaser with a credit card can and will exceed whatever the cards actually annual interest rate is by the time the purchase is paid off. So if a purchaser had a CC with a 24% APR, they'll end up paying far more than 24% interest if they only made the minimum monthly payments. And those types of credit card users far outnumber those that pay off their balance early or monthly.

For any savvy shopper that knows to shop around, this obviously isn't the deal for them. For people that never pay more than the monthly minimum on their lines of credit, this is an amazingly good deal. For everyone in between those two extremes, it's likely in most cases to be a good deal.

So savvy shoppers? Not a good deal.
Shopper typically pays off entire credit card balance monthly? Not a good deal.
Shopper typically pays off credit card balance early? Might be a good deal if they don't manage to pay off the item before 5-6% interest has accrued on their purchase by the time the balance is paid off.
Shopper typically pays minimum monthly on CC or line of credit? Amazing savings and a fantastic deal.

Once again, it's just offering another purchasing option. An option that is great for some, and not so great for others. The people that the deal is not good for will already know it and avoid it. Unless you think savvy shoppers who shop around or pay off their credit balance every month suddenly turn into braindead zombies only for this deal. For all other's it's likely to be a great deal compared to buying on a credit card.

Regards,
SB

[mrcorbo]

Major Nelson has announced that the program is being extended to Best Buy and "select" Gamestop locations.

[Silent_Buddha]

The initial program must have been fairly successful then if they are now expanding it out to select retail locations to test it out on a larger audience.

Microsoft are being very careful and very conservative in rolling out this pilot program.

Regards,
SB

[AlphaWolf]

Oh shocking, no longer MS only. Never would have suspected that.