I have a 0% APR interest credit card from AMEX and I need to replace my defective phone.

[Anonymous]

Unexpectedly my iPhone is defective and will cost $300 for replacement since its out of warranty. I have a credit limit for my new AMEX card at $2000. I think it would be best to just get a new iPhone since my defective one is 2 years old. The phone that i want is $753 with tax. If I split the payment by paying $300 on my debit card and pay $453 on my AMEX, which I dont need to pay interest until 3/19, will this hurt my credit score (current FICO 08 730). I'm confident that I will be able to pay the balance off by 2019 or even earlier if I put down $50 each month for 9 months.  What do you think?

[Anonymous]

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@Anonymous wrote:

Unexpectedly my iPhone is defective and will cost $300 for replacement since its out of warranty. I have a credit limit for my new AMEX card at $2000. I think it would be best to just get a new iPhone since my defective one is 2 years old. The phone that i want is $753 with tax. If I split the payment by paying $300 on my debit card and pay $453 on my AMEX, which I dont need to pay interest until 3/19, will this hurt my credit score (current FICO 08 730). I'm confident that I will be able to pay the balance off by 2019 or even earlier if I put down $50 each month for 9 months.  What do you think?

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Even though it's a few models old, you're still getting a refurbished phone that has been gone through (and is in essence "new") for $300 bucks. Food for thought.

You may get dinged a few points for having 23% utilization on the card, but this is a healthy use of 0% financing in my book. With a 730 score, I wouldn't stress it too much.

[rooeez]

I wouldn't worry about the FICO score hit from utilization unless you have need to apply for additional credit products, etc. Assuming you have no balance and can charge the whole amount I wouldn't even split the payment and keep the money in the bank. Use the 0% APR and pay more to pay down faster. 

[Anonymous]

Some

 wrote:

I wouldn't worry about the FICO score hit from utilization unless you have need to apply for additional credit products, etc. Assuming you have no balance and can charge the whole amount I wouldn't even split the payment and keep the money in the bank. Use the 0% APR and pay more to pay down faster. 

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Yes i agreed with rooeez! Sometime we worry too much about small things in our life such as Fico score hit from utilization in the short time period! Who care!!!

Do what ever make your life easier and happy. Just be responsible and use credit wisely!  Even tho your score get hit for holiday season (most people do), dont worry much about that! Your score will get back 2-3 months after the holiday season finished if you manage your credit responsibily.

Remember: family is always number #1 on this holiday season, Fico score ding for 2-3 months maybe just number #10. Happy Holiday and just be happy, relax! Buy your iphone!