Taking Advantage of 0% APR Offers

[Anonymous]

I'm seeing many lenders offering credit cards with 0% apr intro offers, some for periods of as long as 15 months. From a financial standpoint it appears to make sense to (responsibly) take advantage of these offers but I'm curious about how lenders feel about these offers being used. Does anyone have any experience with any lender frowning at spreading payment of large purchases over the 0% apr period? I know this may have some impact on credit scores (increased util) but can this have any negative impact on relationship with the lender? 

[Loquat]

I don't know about the majors as most of my large 0% purchases are on a couple of store cards (Lowe's & Best Buy).  And neither of those have a problem with the large purchase spread over a long time.  They actually encourge it with their 6/12/18/24/36 month 0% offers.  

[Anonymous]

They are advertising it to millions, and hope to get millions of signups.

They would also like to see swipes (where they make money) and also late fees (where they make money)

and perhaps some balances that are not paid off and the card holder pays interest (where they make money)

And if a BT has the 0% intro, normally has a BT fee (where they make money)

I have open/used it many times, and none have frowned upon me or my file. (yet)

[Anonymous]

Amex and Chase have both been known to get a bit freaked out if you put too large of a balance on a 0% offer without a payment size they deem satisfactory enough towards the balance but Discover and Capital One both don’t mind if you carry a balance with them. It really depends on the card and financial institution, how large your payments will be, and the utilization amount. Up to 40% you should be fine with most of them but beyond that you’re moving into sticky territory. 

[CreditInspired]

I haven’t had any problem with AmX, Citi, or Discover. But granted, I never, ever paid the minimum. So I would divide the amount of the BT, including fee, by length of BT minus 1 month. Example: $3,090 (BT and 3%fee) divided by 11 months is $280.90. So minimum payment is probably only $50 and I paid the BT off in 11 mos vs 12 mos. AmX definitely love huge payments.

And because these 3 cards also had 0% APR purchase, I could still make purchases too if I had wanted too.

[Anonymous]

I'm afraid to even attempt anything like that on an Amex card. Way too many horror stories floating around the forum about FR. I'm considering putting some wedding expenses on a BOA card with a 15 month 0% apr intro offer. I figure why spend my money when I can spend the bank's without paying a dime of interest?

[Anonymous]

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@Anonymous wrote:

I'm afraid to even attempt anything like that on an Amex card. Way too many horror stories floating around the forum about FR. I'm considering putting some wedding expenses on a BOA card with a 15 month 0% apr intro offer. I figure why spend my money when I can spend the bank's without paying a dime of interest?

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You should be fine. You already have a relationship with BoA. The people who have problems are the ones who get a new card and throw a huge balance on it then make the minimum payment. Or throw a huge balance on a new card and add more new cards. 

[Merlin3482]

As long as you use the card responsibly there shouldnt be any issues. The more you use it the more they make money. And they are betting that you will not pay it off before the end of the period.