CareCredit 0%APR, but not reporting as such

[Anonymous]

Can anyone tell me if this is normal?  Either way, are there any actions I can take to improve this?

I opened and promptly put $4800 on my $4800 limit CareCredit card.  Terms = 0% if paid within 5 years (to take advantage of the 0% and put my money elsewhere).  However, on the statement and credit report, they are figuring in the interest which is doing two things, 1) shows me over my limit for the 1st month and, 2) shows my usage ratio higher than it actually is. 

[Creditaddict]

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@Anonymous wrote:

Can anyone tell me if this is normal?  Either way, are there any actions I can take to improve this?

I opened and promptly put $4800 on my $4800 limit CareCredit card.  Terms = 0% if paid within 5 years (to take advantage of the 0% and put my money elsewhere).  However, on the statement and credit report, they are figuring in the interest which is doing two things, 1) shows me over my limit for the 1st month and, 2) shows my usage ratio higher than it actually is. 

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I'm not sure I have seen it on the credit report, but this is deffered interest if paid within the 5 years, if not the interest for the past 5 years will bill out, so you should see a running calculator of deffered interest through the 0% time frame.

My Macy's Furniture line shows it to the right of the balance but is not added into my total of what is due currently.

[Pushto700]

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@Anonymous wrote:

Can anyone tell me if this is normal?  Either way, are there any actions I can take to improve this?

I opened and promptly put $4800 on my $4800 limit CareCredit card.  Terms = 0% if paid within 5 years (to take advantage of the 0% and put my money elsewhere).  However, on the statement and credit report, they are figuring in the interest which is doing two things, 1) shows me over my limit for the 1st month and, 2) shows my usage ratio higher than it actually is. 

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The statement should show the amount of interest accruing (which will defer) shoudl it be paid within the 0% timeframe. I would call and ask them about it as it should not reflect in your aggregate total (deferred interest). It should be reflected on the bill, but not the purchased amount. Ensure that there are not any "kickers" in the contract which would void the interest deferrment such as going over the limit, etc. I would contact them.

[Anonymous]

Hi cbrown,

Which credit report is showing the interest included in your balance?

Or is it just on the Care Credit statement itself?

Also, I see that you are hoping to take advantage of the 0%, but keep in mind that any card at 100% utilization (or high utilization, for that matter) will hurt your FICO score, and more importantly can scare the bejeebers out of your other creditors.  Even if taking advantage of certain card promo fees, you'll always want to keep one eyeball strictly trained on individual and overall utilization.  Your creditors are watching, remember they soft your credit reports (or can).  Kind of like Santa - you get the best responses from other creditors if you behave all year, cuz they are always checking you out.

Best wishes. 

[rom828]

You might want to check with your health care provider to make sure they put their charge in as 0%.

The first time DH used his new Care Credit Card at dentist,  it didnt show as 0% when the receptionist ran it (he wanted to take advantage of the 18 mos   0%) so she had to call to get corrected with Care Credit.

I also agree with beam  regarding utilization.  100% really will hurt your score and look bad to other creditors.

 But the good news is, you should be able to call Care Credit and easily get an CLI.  DH did that immediately upon opening account and went from $4500 to $7500, and I think others on this forum have had the same experience.

Please post back with any updates!!

[Anonymous]

YES - I will call to clear that up.  Thank you for the remind of the 100% utilization - it's always a delicate balance between paying down the higher interest first vs. having a higher utilization.  Which brings up a question - how is utilization figured?  Weighted or the average?

THANK YOU everyone

[Anonymous]

Overall utilization as well as individual utilization will have an impact on your score, and your other creditors willingness to impose AA.

Also, have to agree on the CLI - DH called during his first month for a CLI and went up from 6 or 8 grand to 11.5 grand.

Just watch these guys - the internet is full of horror stories.  If there's an emergency i.e. losing your job, and you are still paying after your 0% time period, your new (and very high) interest rate is retroactive to the service date - which can be months or years.  It's a killer.  To me, it's akin to an ARM but worse (ARM's adjusted interest rates are not retroactive) - a potential recipe for disaster. 

We closed our Care Credit last month.  Three days later I was in ER and stayed at hospital for two days.  What timing!  We had already decided to use our local CU account, with its very low interest rate, for medical surprises rather than Care Credit, so we had a plan.  Have not missed CareCredit at all - even with this medical emergency.  

Hope that's helpful, and best wishes as you work forward.

[MarineVietVet]

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@Anonymous wrote:

YES - I will call to clear that up.  Thank you for the remind of the 100% utilization - it's always a delicate balance between paying down the higher interest first vs. having a higher utilization.  Which brings up a question - how is utilization figured?  Weighted or the average?

THANK YOU everyone

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Utilization is dividing your total CC balances by the total available credit limits. Since scoring is done on overall utilization and individual card utilization you'll need to run the numbers both ways.

BUT........ not every CC reports a CL so you'll need to know which of your cards does to get the accurate figures.

ETA: After reading beamME up's post I'm not sure now if I understood what you were asking. 

From a BK years ago to:
EX - 9/09 pulled by lender 802
EQ - 7/06-663, 3/10-800, 10/10-813
TU - 10/10-774
You can do the same thing with hard work

[Itsmeagain]

I am carrying a balance on my Care Credt account at this time. 

I just pulled a current tri-merge report through USAA and it only shows the actual balance, not the balance plus interest.