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This is the first time I am carrying a balance, and not that I can't pay it all off immediately because I can, but I have around 50% balance in one card while 0% in the rest. How many months should I carry the balance to take advantage of the 0% APR? WIll carrying balance with CHASE be bad? Should I just pay it all off now?
The impact is on utilization. Utilization doesn't take introductory APR's into consideration. Individual matters as well as total. Generally recommended max is 30% but carrying 50% one one card in the short term shouldn't be an issue if the others in your signature are at 0%. You'd need to monitor to verify.
From an interest standpoint you can carry a balance as long as the introducty offer exists.
@frankietown wrote:This is the first time I am carrying a balance, and not that I can't pay it all off immediately because I can, but I have around 50% balance in one card while 0% in the rest. How many months should I carry the balance to take advantage of the 0% APR? WIll carrying balance with CHASE be bad? Should I just pay it all off now?
As long as you don't max out, pay the minimum every month you have 0% apr, it shouldn't be an issue. Just try to pay it all off before the promo rate expires.
I don't see an advantage to carrying the balance at 0%, if you have the funds to pay it off right now. You're still getting your rewards whether you pay it off the day after you make the purchase or wait three months.
@takeshi74 wrote:The impact is on utilization. Utilization doesn't take introductory APR's into consideration. Individual matters as well as total. Generally recommended max is 30% but carrying 50% one one card in the short term shouldn't be an issue if the others in your signature are at 0%. You'd need to monitor to verify.
From an interest standpoint you can carry a balance as long as the introducty offer exists.
+1
The shorter the timeframe, the better.
@tony46231 wrote:I don't see an advantage to carrying the balance at 0%, if you have the funds to pay it off right now. You're still getting your rewards whether you pay it off the day after you make the purchase or wait three months.
It could very well be a budgeting concern. Sometimes it can be helpful (or at least for peace of mind) to have a little extra cash on hand by not having to pay the entire amount right away.
As long as there's no immediate need for additional credit or fear of AA/FR, then using a 0% offer is perfectly fine.
This was part of the draw for my retail cards. I could have put my couch, coffee table, entertainment center, etc. on a regular revolver. However, that would've taken a nice bite out of my checking account. With the 0% on the card, I got to stretch out those purchases while investing the money that would've otherwise been eaten up by the purchase in something that returned far better than 0%.
I also got 5% rewards on top of the 0% financing, so I have 4 sets of nice towels that I effectively never paid for.
I'm just doing it to have the most fluid money at all times. Its mostly a budgeting/just-in-case-of-rainy-day strategy.
And yes I will be making more than the minimum payments multiple times a month whenever I have money. All other cards of mine will and always will be paid off because I am OCD in that sense. I wont need additonal credit for a long long time.. but I am in fear of AA/FR.. but what are my chances of that happening if I am always paying way more than minimum and never late? Probably low right?
If so, then I shall enjoy my 0% for now
@tony46231 wrote:I don't see an advantage to carrying the balance at 0%, if you have the funds to pay it off right now. You're still getting your rewards whether you pay it off the day after you make the purchase or wait three months.
As NotUsher pointed out, one benefit is budgeting and having cash on hand. Another benefit is to show the lender consecutive, on-time monthly payment ability without having to make a new purchase every month.
Frankietown, in regards to Chase specifically I maxed out my $1000 CL with a $990 BT and am paying it off $100 a month to take advantage of a 0% APR. Chase has not CLD or taken any action against my account (which is now just 6 months old).
To echo what most are saying here, carrying a balance isn't a bad thing or even a red flag for most lenders (maxing out certainly can be a red flag, but not necessarily a negative when you exhibit excellent repayment practices). It does affect your individual card and overall utilization which can lower your FICO score temporarily, but if you aren't apping for anything that shouldn't be a concern either.