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# What does 4 months same as cash mean?

Updated: 12/17/2022

Wiki User

15y ago

it means that, if you are elligible (often based on credit score), the retailer will extend a line of credit to you, in order for you to purchase something from them. if the entire balance is paid off in 4 months or less, you don't pay any interest. if the item is not fully paid off in 4 months or less, you will be charged interest on the loan (usually at a high rate) for the 4 months, in addition to what you already owe on whatever you bought.

Example

Bill buys a chair from a furniture store for \$500, and gets 90 days same as cash. He now has 90 days to pay that \$500 back. if he does, he isn't charged any additional interest, and the chair costs \$500.

if he does not, then he will be charged interest (usually 20%-30%) for the entire 90 days on top of the \$500 he already owes the store.

Wiki User

15y ago

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