I have a store card that has the promotional 0% financing for 24 months from when we purchased our furniture. Our monthly payment is less than $100.00 and the balance is only about $2000.00 at this point. We have been making payments since last May.
It's early and so maybe that's why I can't figure out this in my head but would it be better to pay off the credit card even though it has 0% interest or put the extra money in sasvings instead of paying off the card?
What are your thoughts?
I have 8 tradelines and 2 have a balance. This account and a Visa card.
I know this is bordering on OCD so thanks for your help in advance. 
With the ridiculously low interest rates right now, I'd just pay off the card.
If you had a savings account with like a 5% interest rate, then I would definitely consider this. In fact, I and many others have done similar things in the past. You put your money where it can work the hardest for you.
i.e. two TVs ago, I had the cash to pay for the TV, but instead got the 24 months 0% interest and bought an 18 month CD, then paid off the TV when the CD matured.
Starting Score: EQ: 665 - TU: 687
If interest rates were higher than 2% or so, I'd advise you differently, but because your money really can't make that much right now, I would recomend just paying off the debt. The worst thing that can happen is that you forget to make that last payment or miss a payment and that accrued interest comes back to bite you.
Another positive is even if you have the money now, if you draw it out something could happen, you spend that money and then you have nothing to pay with. You'll feel better with it paid off and take the money you would have paid and put that in savings from now on.
I wouldn't worry about the FICO score aspect, I'd be more concerned about screwing something up. See cdtotten's post, just above this one.
"The worst thing that can happen is that you forget to make that last payment or miss a payment and that accrued interest comes back to bite you."
That's how they get you. Just don't let 'em.
IMO, put the money in savings, earmarked for only that payment. You're not going to get much of anything in interest earnings, so balance that against the fear factor of messing up somehow and getting hit with accrued interest on 2 year old furniture.
Maybe an easy choice, but definitely a personal one. What's your comfort zone? Only you know.
You'll figure it out.
Good point, although I have signed up for auto-payments so they take the money out of my account every month and it will be paid off prior to the 24 months according to the schedule. Am I still at risk for that accrued interest thing if the account is on auto pay?
@soliloquy wrote:Good point, although I have signed up for auto-payments so they take the money out of my account every month and it will be paid off prior to the 24 months according to the schedule. Am I still at risk for that accrued interest thing if the account is on auto pay?
If it was me, I'd put one additional payment on there in advance of the due date, just in case of a glitch not under your control. In other words, make sure that final auto-pay clears that debt one month early.
(I'm paranoid of auto-pays, BTW...in case you couldn't tell.)
