topic Re: 0% APR? in Credit Cards

0% APR?

Anonymous — Fri, 20 Feb 2015 03:39:07 GMT

I have my new cards with 15 months 0% APR, should i take advantage of it? will it affect my credit score and report?

Re: 0% APR?

Anonymous — Fri, 20 Feb 2015 03:40:23 GMT

@Anonymous wrote:
I have my new cards with 15 months 0% APR, should i take advantage of it? will it affect my credit score and report?

By take advantage you mean..

Re: 0% APR?

Anonymous — Fri, 20 Feb 2015 03:43:03 GMT

take advantage of buying what you want... if its a lot of money it will impact your score. but once its paid down scores will climb back up..

my discover just showed a showed a 0 balance from 800 and my scores jumped 10 points. i still have balances left so they should raise once those get paid as well.

Re: 0% APR?

Anonymous — Fri, 20 Feb 2015 03:44:13 GMT

@Anonymous wrote:
@Anonymous wrote:
I have my new cards with 15 months 0% APR, should i take advantage of it? will it affect my credit score and report?
By take advantage you mean..

I don't get it? isn't it i can carry balance but no interest right?

Re: 0% APR?

Anonymous — Fri, 20 Feb 2015 03:44:44 GMT

If by take advantage you mean buy us all gifts then of course.

Re: 0% APR?

Anonymous — Fri, 20 Feb 2015 03:45:55 GMT

Are you going to transfer a balance in that you have on another card or are you going to spend on things you may not need because of the 0%?

Re: 0% APR?

firetech593 — Fri, 20 Feb 2015 03:48:13 GMT

Yes, Its to get 0% when you carry a balance, BUT you only want to carry a balance on one card at a time, and try to stay under 30% utilization, or it will drop your score. Good thing is, once you pay it down, your score comes right back up.

Re: 0% APR?

Anonymous — Fri, 20 Feb 2015 03:48:59 GMT

No, i use the card for everyday purchase, but i won't pay the balance in full every month?

Re: 0% APR?

Anonymous — Fri, 20 Feb 2015 03:49:53 GMT

@firetech593 wrote:
Yes, Its to get 0% when you carry a balance, BUT you only want to carry a balance on one card at a time, and try to stay under 30% utilization, or it will drop your score. Good thing is, once you pay it down, your score comes right back up.

Thats what i do, and my AMEX is the only card that i want to carry balance because it has the highest limit i have.

Re: 0% APR?

Anonymous — Fri, 20 Feb 2015 03:50:45 GMT

@Anonymous wrote:
No, i use the card for everyday purchase, but i won't pay the balance in full every month?

I would say if you can pay, then you should. Unless you have a crazy savings account paying a great interest rate.

Re: 0% APR?

Anonymous — Fri, 20 Feb 2015 03:52:22 GMT

And btw, i never carry balance since i started credit. My 0% APR from BoFA will already expired but i never carry balance on it, i always pay it full every month. So i was thinking trying to take advantage this AMEX of carrying a balance because it has 0% APR.

Re: 0% APR?

Anonymous — Fri, 20 Feb 2015 03:53:57 GMT

@MstrPTato wrote:
@Anonymous wrote:
No, i use the card for everyday purchase, but i won't pay the balance in full every month?
I would say if you can pay, then you should. Unless you have a crazy savings account paying a great interest rate.

I don't use my card if i don't have money to pay for it. i treat my cards like debit card.

Re: 0% APR?

Anonymous — Fri, 20 Feb 2015 13:23:26 GMT

I understand the whole time value of money thing, but unless you're investing it, it doesn't matter to the present case.

"Taking Advantage" of the 0% offer by not paying in full necessarily involves increasing the amount you have on the card, which will have a negative effect on your utilization. So, yes, taking advantage of the 0% offer will hurt your credit score. However, utilization is just a snapshot in time, so once you pay the card off, it is as if you never let it get high to begin with.

If you are going to take advantage of the 0% APR, make sure you pay it off before 15 months have elapsed from your APPLICATION DATE. The 15 months is typically not based on billing cycles or when you received the card, and if you miss the (somewhat hidden) deadline, you'll have to pay your full APR on the amount you didn't pay for the entire 15 month period. READ THE FINE PRINT. Not all CCCs do it that way, but enough treat the 0% as really just deferring the interest that you should make sure.