Freedom 0% APR

[vanillabean]

Is there any reason why you would want to pay more than the minimum when the Chase Freedom starts out with 15 months of 0% APR? Does Chase care?

[kdm31091]

Well, if you have a large purchase you want to make and can't PIF, it makes sense to take advantage of the 0% APR.

Do I think you should max out the card and pay the minimum for all 15 months? Probably not, if nothing else your util will be high. Chase shouldn't in theory care, because that's why they offer the 0%, but at the same time, you'd be starting off as a "risky" customer with this behavior.

[Anonymous]

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@Anonymous-own-fico wrote:

Is there any reason why you would want to pay more than the minimum when the Chase Freedom starts out with 15 months of 0% APR? Does Chase care?

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Yes.

To put a dent in the balance if any.

[Imperfectfuture]

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@Anonymous-own-fico wrote:

Is there any reason why you would want to pay more than the minimum when the Chase Freedom starts out with 15 months of 0% APR? Does Chase care?

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I have 15 month 0% on Amex.  I also use it for other purchase.  I planned on paying it down in 6 months, besides the payments for other purchases, then can add some other goody, and pay way more than the minimum.  They gave me a decent starting limit though, so the card never got over 16% util.  I think they like to see bigger payments, but as long as you aren't maxing the card out, whatever should be fine.

If you are taking advantage of the rotating categories, you will probably be paying more than the minimum anyways.

[vanillabean]

So you probably can't go for simply 3-5x the minimum for the billing cycle in question. You would likely take the accumulated statement balance and apply the 3-5x to the standard minimum of say 2%. Does something like that make everyone happy?

[Anonymous]

There are two ways to carry balances on purchases.

One way is to make a large single purchase and pay it back over time.

The other is small, everyday purchases and carry a balance on those.

If you are a lender, Which looks riskier?

[vanillabean]

I'm at a complete loss here. Which one is it?

[Anonymous]

One large purchase not paid in full but in installments if you will can seem less risky than many small everyday purchases being carried over. Repayment ability may be called into question.

[kdm31091]

I would agree one large purchase that you steadily pay down is better than several small balances

[Tszone]

I just made a big purchase with my Freedom card yesterday, but also use it for groceries. Made the purchase right afer 1st statement cut. I plan on paying my regular spending and adding additional to pay down the big purchase every month. I also was approved for the CSP this month, but have not received the card yet.