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0% APR Credit cards

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AyaMai
Frequent Contributor

0% APR Credit cards

I apply for 0% APR credit card per year in case I need it for unexpected emergency as I tend to keep my utilization to 0% - 1% with 305K credit limit, I might be paranoid. What's your strategy with 0% APR credit card besides moving your debt from one card to another. 

Message 1 of 9
8 REPLIES 8
FicoMike0
Valued Contributor

Re: 0% APR Credit cards

I just got a zero percent offer in the mail. I have a balance due in a couple of weeks I could transfer. The deal has a 5% transfer fee! That's 5% upfront too. No deal for me.

Message 2 of 9
DakotaM
Regular Contributor

Re: 0% APR Credit cards

I find that once you've acquired enough cards, at least one issuer sends a balance transfer offer your way pretty much every month.  The terms vary from 10-15 months and 3-5% transfer fee.  So if I really do ever need to use a balance transfer, I can count on one of those showing up.

 

Discover just randomly gave me a 0.9% promo APR on purhcases I think for 9 months on one of my cards.  They are also known to give 0% APR on purchases for a year if you ask them nicely.

 

I will sometimes make use of 0% purhcase APRs on new cards, but I don't have any particular strategy for doing so.



Workers-Credit-UnionWorkers-Credit-Union

Message 3 of 9
DebbsSeattle
New Contributor

Re: 0% APR Credit cards

I agree, 5% upfront not worth it everyone all the time. However, For those digging themselves out of the debt trap, the 0%apr is still worth it with a 5% bt fee. Example... If you carry the $10,000 @ 25% interest for 21 months making amortized payments to be zero balance in 21 months you would pay a total of $12,449. If you carry the same $10,000 for 21 months amortized to be zero balance at 21 months you would pay a total of $10,500 assuming the 5% fee. Using simple math and all 10 of my fingers and my toes too, that is almost $2k savings. That beats all of my cash back rewards on any card I now possess. As long as the borrowers intentions are solid and they are disciplined in their execution of the plan, they are really money ahead by making that move regardless of the 5% BT fee. Many offers out there are even 3% fee for the first 30/60/90 days of the account. Even beyond that, my Credit Union has zero BT fee for balance transfers regardless of intro period or otherwise. The intro BT period offered 0% and 0% BT fee...that WAS a solid WIN! Zero Apr balance transfers are a very valuable tool for those who are dedicated to digging out of the credit card debt sand trap once and for all.

Message 4 of 9
xenon3030
Valued Contributor

Re: 0% APR Credit cards

Obtaining one 0% APR credit card per year with a large CL is indeed a good financial strategy.

 

To make it work, the CL should be sufficiently high like 20-25k, to be able to support you for a few monthes, in case of an emergency such as job loss. Since several lenders provide a low CL such as 5k, to get such large CLs, it might be good to try local CUs or small banks. 

 

For example, US Bank gives a small CL, when approving customers for Cash+ such as 5k. But if somebody applys for Elan Max Cash, the typical CL can be around 15-20k. Anyway, not sure whether they still provide 0% APR in the first year.


Fico8: EX~EQ~TU~840 (12 month goal~850).
BOA (CCR, UCR), Chase (CFF, CSP, Amazon, CIC, CIU), US Bank (Cash+, AR, Go, Ralphs), Discover, Citi (CCC, DC, SYW), Amex (BCP, HH, Biz Gold, BBC, BBP), Affinity CR, Cap1(Walmart), Barclays View.
Message 5 of 9
Spotsy
Frequent Contributor

Re: 0% APR Credit cards

Not sure I would term it a good financial 'strategy'..but definitely a good 'tactical ' weapon if you are trying to tackle some lingering debt.  Life NEVER goes as planned and setting your expectations for getting a yearly 0% card may not always go as planned ( you don't get approved, or not approved for enough to accomplish your goal ). If that happens, things start to get expensive, the balance grows, interest expense eats into your rewards value, etc...

A good 'strategy' would be to apply for CC only as needed, such as to take advantage of a good SUB for upcoming large spends, and only as a last resort to tackle lingering debt.  The key is to PIF monthly and don't apply for anything unless it's truly needed. Save those inquiries for growing existing cards, or if you decide to buy a house, or multiple houses, or if you truly need a new card that has some long term value.  Don't get sucked into the FOTM cycle apps....it can get messy at times.

 

What you have proposed to do make sense as long as all things in life go as planned....but ya know they rarely ever do. :-)

FICO 8: TU:843 / EQ:837 / EX:848 as of 1/26/2025
Message 6 of 9
IslaFox
New Visitor

Re: 0% APR Credit cards

You can use it for emergencies, large purchases, or short-term interest-free financing.

Message 7 of 9
mAtchew
Member

Re: 0% APR Credit cards

I do not specifically look for a new card with 0% every year, but I do pay attention to the cards that I already have that offer some good balance transfer options. Sometimes they are 0%, but more often a single-digit interest rate. I am actually trying to consolidate some of my cards just to have less to worry about, luckily I feel like I get enough balance transfer offers that I will not be missing out on any options. 



Message 8 of 9
SpaceCityCCuser
Regular Contributor

Re: 0% APR Credit cards

I have NFCU as a back up if I need to use 0%BT offer. I don't currently have one of their cards but I recently got a mailer with 0% BT/fee for 12months on a new 2% card. I thought that was neat. I have heard horror stories about claw backs. I have not had this myself. But I would suggest you pay off any spend to earn a SUB. Don't try to BT the SUB spend. That is all I can add.


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