Need help before Monday, May 25 - PLEASE HELP!

[Anonymous]

Please help!  I just got a new HOME DEPOT consumer card $1000 CL.  I need a new refrigerator.  DEPOT has a special if I purchase an energy star frig I pay no taxes on it, also I will get an additional 10% discount on frig. 

Here is the rub, if I purchase the frig I will use $909 of the $1000 CL.  How will  using this amount of my CL effect my score? 

I will pay the total amount off in six months and pay no interest on the purchase.  Over all it seems like a good deal. 

Please help deal ends Monday, May 25.

TU - 680

EX - 653

[Anonymous]

We worry about our credit scores for one reason, to save money. If this is the refrigerator you absolutely love and you're saving lots of money on it, I say go ahead and buy it. I would definitely try to pay as much cash toward it as I could though.  Can you sell your old fridge? That money could be used toward the purchase.

I've never dealt with Home Depot credit before, but there may be a possibility of getting a small CLI if you let them know you're making a large purchase. If I'm wrong, others will be along soon to correct me. Several Home Depot Card holders here.

Message Edited by VEEnVEGAS on 05-23-2009 08:28 PM

[Anonymous]

Thanks for the suggestion.  Can't sell the old one it stop working.  Currently, I'm  without a frig. No additional cash to pay down the charge amount.

[Anonymous]

Eh you will take a hit, how much will depend on how much other credit you have, what your utilization is on those cards, how much your AAoA is effected by the new card and the hit on your credit report for pull... and what your score already was

As you pay off the money your hit from the utilization will go down, time will take care of AAoA and the pull - if you need a fridge you need a fridge and if you have no cash you have no other option (if you had some cash I would suggest just hitting craigslist and buying second hand)

Just pay it off asap - you aren't planning on applying for a mortgage or other credit soon i take it?

[Anonymous]

If you're questioning buying it just because of the temporary score hit, I say go buy it. A good used fridge from the classified ads would be a good idea, but if you have no extra money right now to pay toward a new one I'm sure buying a used one might be more than you could spend at the moment also.

You need a fridge...unless you can figure another way to get one, go buy it.

 Be sure to pay it totally off before your 0% interest period expires though...otherwise you have to pay interest on the ENTIRE period of the loan.

ETA: Others here might suggest buying a slightly cheaper refrigerator that you could more easily afford. I didn't think it was my place to suggest that and it wasn't what you asked about.  Also, having just bought one myself I know what they cost and know the importance of buying one that you like as well as one that will last.

Good luck

Message Edited by VEEnVEGAS on 05-23-2009 08:54 PM

[haulingthescoreup]

I've read numerous posts that if you call from the store, telling them that you want to buy a large appliance, using their 0% offer, they'll give you a CLI. I think I read one from just a few days ago.

[GregB]

SCE will give you a rebate and pick up your old fridge, working or not.

Home Depot Credit is Citibank, don't know how that helps.

If you are concerned about credit hit, that will improve as you pay it off to less than 80%. If you hold out to the very end on their no payments no interest, be sure you pay it before the due date. Otherwise they hit you for all the deferred interest. All the big purchases that I have done were 12 months no payment no interest, anything over $300. 

[Anonymous]

Thanks Hauling...thought I'd read that somewhere here!

[Lyythine]

A bit more info is needed to really help you.  For instance, what other credit you have (accounts) and what the credit limit and balances on those accounts are.  Also, how old they are.  If you have 30k in available credit and lets say 4k balance on those accounts, then the extra 1k wont hurt you much.  If, however, this is your only account, then perhaps it will hurt you more significantly.  Like others have said though, this is something you must purchase. That being the case, I would try and call citibank and request an increase due to the purchase of a large ticket item.  Just be sure to explain to them your situation and how you dont want it to affect your overall credit situation - also mention the timeframe in which you will pay if off.  By all means, go get the fridge!!  

[Comp5569]

Also just keep in mind that unless you are planning on applying for something soon (i.e. car loan, mortgage, new credit card) that this will only be a temporary hit to your score.  If you aren't planning on applying to anything, then you shouldn't even worry about the hit.  As you pay the balance down over the course of the 0% financing promotion, your score will gradually increase back up.