topic Re: Will you use a card because 0 Intro APR (but less rewards)? in Credit Cards

Will you use a card because 0 Intro APR (but less rewards)?

vwgrrc — Sun, 29 May 2016 03:04:10 GMT

So if you have a 0 apr card but earn less rewards than your other cards, will you use it during the period?

Re: Will you use a card because 0 Intro APR?

kdm31091 — Sun, 29 May 2016 03:05:12 GMT

I don't ever want to be carrying a balance unless I need to. If I am using a 0% period it's been planned ahead of time for a specific purchase. I pay in full for all "everyday" purchases, so therefore, rewards are my primarily concern, not a 0% promo.

It's nice to get 0%, of course, but credit card companies just want to trap you into charging up more than you can pay back. It takes discipline, but you can beat them at their own game.

Re: Will you use a card because 0 Intro APR?

Anonymous — Sun, 29 May 2016 03:15:25 GMT

I love the option of having that 0 Apr available to me. However, because I budget and go to my budget screen everyday, if I carried a balance there would be red numbers staring at me dead in the face. I couldn't handle it. I charged 4500 of furnitures to one of my cards, 18 months zero interest after two months it was bothering me and I paid it off. I'm a PIFuller. haha

Like the previous poster said, when the charges rack up it gets harder to pay off. My balance was sitting at 4500 and I didn't dare touch that card anymore until I paid it off. Had it been more than 4k it would have been hard to pay it off since it was such a large balance already.

That's why don't charge too much or over what you can actually handle. If you do make a large purchase, make it and then pay it off slowly. But don't keep adding to that debt or it will swallow you up.

Re: Will you use a card because 0 Intro APR (but less rewards)?

Aahz — Sun, 29 May 2016 03:16:54 GMT

@vwgrrc wrote:
So if you have a 0 apr card but earn less rewards than your other cards, will you use it during the period?

Only if the math works out. In this case, "the math" means looking at what I'm saving with the 0% and comparing that to what I'd be earning in higher rewards.

So, for example, let's say I have a 0% BT offer coming to an end and it would cost me a 3% fee to transfer this to another card. If, instead, I put spend on my new 0% intro APR card and let the balance ride, using that money to pay off the previous BT then I've effectively done a 0% fee BT. So, as long as the rewards card I would have used pays less than 3% I've saved money.

Re: Will you use a card because 0 Intro APR?

Anonymous — Sun, 29 May 2016 03:34:18 GMT

I only use credit cards for rewards, and to build credit. I never want to use a card becuase of its apr. Hopefully I am never put in that situation.

Re: Will you use a card because 0 Intro APR (but less rewards)?

Anonymous — Sun, 29 May 2016 05:05:13 GMT

@Aahz wrote:
@vwgrrc wrote:
So if you have a 0 apr card but earn less rewards than your other cards, will you use it during the period?
Only if the math works out. In this case, "the math" means looking at what I'm saving with the 0% and comparing that to what I'd be earning in higher rewards.

So, for example, let's say I have a 0% BT offer coming to an end and it would cost me a 3% fee to transfer this to another card. If, instead, I put spend on my new 0% intro APR card and let the balance ride, using that money to pay off the previous BT then I've effectively done a 0% fee BT. So, as long as the rewards card I would have used pays less than 3% I've saved money.

I have a no-frills card with 0%APR, and I have been using it for home repairs. Things that I can't get from Lowes (where I use the crap out of their deferred interest)

My favourite cards have 0% interest AND rewards. But sometimes the 0% makes more sense than the rewards.

Re: Will you use a card because 0 Intro APR (but less rewards)?

Creditplz — Sun, 29 May 2016 05:19:59 GMT

I like 0% but it's not really for me.. I have the ability to PIF all my daily and entertainment charges so I do just to have no debt. If I was ever in the position where something came up and I did not have cash in hand to PIF I'd use a 0% without hesitation even if the rewards program was minimal.

Re: Will you use a card because 0 Intro APR (but less rewards)?

Anonymous — Sun, 29 May 2016 05:25:04 GMT

While I have a low APR card just in case I need to carry a balance, I hope to never need to use it for that purpose. And 0% interest is always promotional, so I don't pay much attention to it. That said, I'm using my Quicksilver a lot now, and that has a 0% APR until January, I think. But I use the card for the rewards, not for the interest rate.

Re: Will you use a card because 0 Intro APR (but less rewards)?

vwgrrc — Sun, 29 May 2016 13:45:35 GMT

Re: Will you use a card because 0 Intro APR (but less rewards)?

vwgrrc — Sun, 29 May 2016 13:54:08 GMT

Kinda of surprised by the result. I expect to see most people utilizing 0 apr when i started this topic.

I'm on the opposite side. I enjoying maxing out 0 apr cards and set up auto payment for the minimals, then a balloon payment by the end of intro period. I have no problem paying cash on any expense I could run thru CCs, including a luxury car ordered last week. But my saving earns 1%+, I like to see more balance their without additional cost！

Re: Will you use a card because 0 Intro APR (but less rewards)?

Turbobuick — Sun, 29 May 2016 14:37:09 GMT

Many cards expect you to use the 0 intro and they are providing a bonus incentive to do so... aka "spend $1000 get $250 back" etc..

Other than that, I like to use 0% transfer offers when they mail checks of which I can extract cash at a low transfer rate 2% or less.

Re: Will you use a card because 0 Intro APR (but less rewards)?

tcbofade — Sun, 29 May 2016 14:37:09 GMT

We do both.

DW has a NFM card that we ONLY use for major purchases once a year...when they're offering 30-36 month no interest financing. In nine years, and I've lost count of how many large purchases, we've never paid any interest at all.

Re: Will you use a card because 0 Intro APR (but less rewards)?

Anonymous — Sun, 29 May 2016 16:29:00 GMT

I traditionally PIF all of my accounts so APR hasn't been very important to me. But I did get a 0% APR for 24 months deal on my Care Credit account which is great because I am using funds that contribute to my HSA (Health Savings Account) to pay it back so I will have it paid off in 12 months.

I recently had an unexpected expense of $4k come up and really did not want to dip into my savings to pay for it. So I purposefully applied for the Venture One so I can earn rewards, qualify for the bonus and take advantage of the 0% APR until May 2017. I do have the Venture card which earns more rewards than the Venture One but for this "emergency" the 0% APR is more important.

Re: Will you use a card because 0 Intro APR (but less rewards)?

Anonymous — Sun, 29 May 2016 15:22:59 GMT

@tcbofade wrote:
We do both.

DW has a NFM card that we ONLY use for major purchases once a year...when they're offering 30-36 month no interest financing. In nine years, and I've lost count of how many large purchases, we've never paid any interest at all.

This is def a great way to do things... love it!!

Re: Will you use a card because 0 Intro APR (but less rewards)?

jbsea — Sun, 29 May 2016 17:12:28 GMT

DW and I have a Chase Slate that we got for the purpose of carrying a balance on a purchase.... But I hate to carry a balance so I ended up just paying it off. So not it just sits in the SD. It was a waste of a Inq and now we have to wait to get any other chase card.

Re: Will you use a card because 0 Intro APR (but less rewards)?

Revelate — Sun, 29 May 2016 17:42:31 GMT

Eh, if I can't write a check for something I'd use 0% absolutely. There is a breakpoint in there mathwise as Aahz correctly states (fractional interest rate before full payment vs. rewards) but it's a back of hand calculation to figure that out and nothing challenging.

Case in point, if my darned school didn't happen to be one of the few that didn't accept CC's for tuition payments (it's a serious outlier) I would've financed the whole damned thing on that Citi 21 month 0% offer and just keep kicking 1K a month to it and then BT it off or just pay it off with the quickness post graduation; instead I get to do similar minus the BT thing (well maybe) at 3.25% HELOC instead, with maybe some stupid reindeer games with student loans

Can't wait till I'm clean on EX/EQ and I can stop trying to maximize every little stupid thing in the algorithm.

Re: Will you use a card because 0 Intro APR (but less rewards)?

RonM21 — Mon, 30 May 2016 04:07:40 GMT

I do it if it works for me at that time. In the times I've been in that situation, like someone else mentioned, I usually already have it planned for already.