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@Walt_K wrote:
@john398 wrote:
@pastnow123 wrote:No. Not a bad idea at all.
They offer you 0 interest rate because they really want you to take advantage of this. They charge swipe fee for the amount you used.
Also, they have normal expectation that people won't pay back all the amount they used when the introductory period ends. They can charge crazy interest for the unpaid amount.
I think usually iif you dont pay it back in the alloted time they go back and collect intreast from the begining, someone correct me if I am wrong
That is not how most 0% intro offers work for credit cards. That is how deferred interest deals work at places like Best Buy, furniture stores, etc. But a typical bank card doesn't normally work in that fashion. Doesn't hurt to check to be sure, but I doubt if the Citi card is deferred interest, it is 0% interest.
My bad I was thinking you were talking about Jewerly store card 0% intreast
Not a bad idea at all. My Fiancee's diamond was paid for in two payments equalling just over 15k, no tax since it was out of state, so i'm in the same boat but I paid cash because I don't have a card that will handle that charge. She's happy though! VVS2, E, 1.31ct triple excellent GIA hearts and arrows round stone. She said yes so I must have done something right
I do have a feeling that she likes it a little more knowing that I didn't finance it in any way. I bought the ring from her Aunt who deals in diamonds heavily so financing it wasn't really an option for me. Can't let the fam bam think I'm spending out of my budget!
@Greg34 wrote:Okay, so I've already posted the thread about applying for my Citi card. I got the limit I needed (10,900), now its time for me to ask the real question.
I got this card specifically for the Zero Interest rate for 21 months. I've recently put down $2,000 on a $7500 (after tax price) engagement ring for my girlfriend and plan on putting the remaining $5,500 on this card. I'm going to throw $500/ month at it for 11 months and pay it off. I don't plan on using the card for anything else over those 11 months and will probably throw it in a safe deposit box just to be safe. Essentially I'm treating the credit card as a term loan with 0% interest. Is this a terrible Idea?? I'm sure that it will initially ding my credit because I am spiking that utilization way up. But I don't plan on buying a house or buying a car over the next 2 years.
What I'm really worried about is how Citi will look at this. The last thing I want is for them to decrease my credit limit because I made a huge purchase the first month of having the card. What do you guys think? I'm very fiscally responsible and have never had any money issues, my credit score is in the mid 750's. I actually have more than enough cash now to pay for the ring, but I want to take advantage of this zero% rate.
Also, my other credit card is an Amex Blue with a $15,000 CL. So I have $25,900 in available credit. My Amex normally reports about a $1,000 balance every month (I pay in full after the statement cuts). Running the citi up to $5500 will really only bring my total utilization to just over 20%.
Anyway, I just wanted to see if this was a terrible Idea or not. What do you FICO guru's think?
Thanks in advance!!!
@Greg34 wrote:Okay, so I've already posted the thread about applying for my Citi card. I got the limit I needed (10,900), now its time for me to ask the real question.
I got this card specifically for the Zero Interest rate for 21 months. I've recently put down $2,000 on a $7500 (after tax price) engagement ring for my girlfriend and plan on putting the remaining $5,500 on this card. I'm going to throw $500/ month at it for 11 months and pay it off. I don't plan on using the card for anything else over those 11 months and will probably throw it in a safe deposit box just to be safe. Essentially I'm treating the credit card as a term loan with 0% interest. Is this a terrible Idea?? I'm sure that it will initially ding my credit because I am spiking that utilization way up. But I don't plan on buying a house or buying a car over the next 2 years.
What I'm really worried about is how Citi will look at this. The last thing I want is for them to decrease my credit limit because I made a huge purchase the first month of having the card. What do you guys think? I'm very fiscally responsible and have never had any money issues, my credit score is in the mid 750's. I actually have more than enough cash now to pay for the ring, but I want to take advantage of this zero% rate.
Also, my other credit card is an Amex Blue with a $15,000 CL. So I have $25,900 in available credit. My Amex normally reports about a $1,000 balance every month (I pay in full after the statement cuts). Running the citi up to $5500 will really only bring my total utilization to just over 20%.
Anyway, I just wanted to see if this was a terrible Idea or not. What do you FICO guru's think?
Thanks in advance!!!
I'm no guru, but I can give you my experience in a very similar situation. When my Citi app was approved back in April, it was for a $4k CL and 0% for 21 months. I immediately - within a week of activation - charged up to about 75% of the CL, paid that down to about 30%, then around mid-June I charged another $1925 on it taking my util to about 80%. Currently my balance is about $900/4000 and will be PIF in 2 weeks.
Now, the part that you actually care about. My limit was not reduced, I wasn't contacted or questioned about the charges, and as of September when I looked at all 3 of my CRs, they hadn't even done a soft to see what else I was up to. So, as far as I know, you'll be just fine getting your fiance her ring.
Well, I just app and approved for the Discover 0% for 15months bal xfer as well. I took my Dell 25.99% balance of $4200 and xfer it to my Discover. Sure, it may take a hit, but guess what??? My Dell will have 0% utilization, in which I have no need to ever use since everyone in my family have our own Dell laptops (sorry mac people)
So, in so many words, it is a smart financial move, as long as the xfer balance is paid off. And of course, you keep the utilization low.
I think it's a great idea!! Your taking advantage of your good credit buy buying a large purchase and paying it off over a year. Citi made their money on the P.O.S. Purchase. Your doing exactly what they expect you to do during a 0 apr balance transfer!!! Don't think too much into it!!
Congratulations on the wedding!!!