@Anonymous wrote:
@Anonymous wrote:
@Anonymous wrote:
@takeshi74 wrote:
@Anonymous wrote:
For not using my 0% promotions on my cards that have a promo?
Be careful thinking of it that way. Spending money you don't have just to take advantage of a 0% offer is throwing away money.
@Anonymous wrote:
What do you guys think about this? Also, what do PIF people think about this? Would like to discuss.
I PIF anything that isn't on a 0% offer. I don't use 0% offers just to use them. I get 0% offers all the time.
Keep in mind that when carrying balances in many cases you lose your grace period. While I have 0% offers on many cards I'm using some of those for rewards and would not be able to do so while carrying a balance on a 0% offer.
Additionally, it's not just about the APR on the offer but BT and other fees as well.
You have to look at and consider the entire picture -- not just the 0%.
Yes, but what about when I've already spent on something I needed? Like going out to restaurants and letting that sit in the 0%?
What would you do with the money you're not paying it off with? If you can make significant money with that money then yes you are costing yourself some money. Few investments are guaranteed and if you are using your credit card responsibly the potential opportunity cost with the limited money is likely quite low.
As a rule no reason exists to not PIF simply because you have a 0% promotion UNLESS you can make money with that cash.
If you use credit cards to buy stuff you don't need simply because you are getting rewards you are screwing up.
If you deviate from smart money behavior because of a credit card promotion you are screwing up.
If you get in trouble later because you put huge balances on a card and let it float because of 0% interest you are screwing up.
In NO scenario is PIF a bad thing. None, zero, zip, zilch. The only time it would be bad would be if you had 0% on one card and other big balances.
For the most part I would say don't let 0% change your typical good credit behavior habits. If you are used to paying things off in full and not carrying a balance I would continue on. 0% offers aren't exceptionally rare.
Great post. 5% savings account that was previously mentioned?
I would need all the details like how much money are you going to be getting on the 5% and what the details are on the 5% account. If someone posted them I must have missed it. For the most part I wouldn't worry about things that are only going to yield you small amounts of return. 5% of 500 is 25 dollars. Sure 25 bucks is 25 bucks, but this isn't worth "chasing" imo for the amount of effort it would take to get. Not to mention the bigger risk you may take in carrying a balance if you can't pay it later.
I would avoid chasing every little dollar out there and I used to do those type of things. For the most part they are more trouble than worth imo. If what you're going to do would make a significant difference to you then it's worth doing. If we are talking about doing a bunch of work to net 25 dollars then I would say it's not worth it.
For the most part I would keep good credit behavior rolling unless significant money could be made in taking advantage of your 0% offer. Significant money may differ based on each user.
I've spent money I shouldn't have spent "chasing" rewards before and I think almost everyone on here has. This is throwing money away to "get" rewards. You certainly aren't throwing money away by paying off your debts.
