Comments for 0-Percent-Credit-Cards

Comment on 0% APR credit card question? by smartcreditchoices

smartcreditchoices — Sat, 29 Oct 2011 00:54:28 +0000

CCC,

If you have good credit, there are lots of credit card companies offering 0% rates for 1 year. If you’re credit is decent, but not great, you’ll likely only be able to get a 0% rate for 6 months.

Once you choose, apply, and get your credit card, be sure to make at least the monthly minimum every month and you’ll be in good shape. Try to put some extra money aside and use it to make a lump payment the month before the 0% rate expires.

Also, avoid store credit cards. Get a real one, as store credit cards charge interest rates that are 5 to 10 percentage points higher than standard credit cards.

Comment on Is balance transfering a credit card to another 0% APR credit card illegal???? by Mar Mar

Mar Mar — Wed, 26 Oct 2011 07:38:23 +0000

No, I do it all the time. You have to play the game. Another option would be to call the current card and tell them you’re going to transfer your balance unless they extend your 0% APR, they might do it and that would be easier than transferring it.

Comment on Is balance transfering a credit card to another 0% APR credit card illegal???? by hmark

hmark — Wed, 26 Oct 2011 06:51:20 +0000

No, many people do this. If you can pay off a balance in a year’s time, it’s better to do it without interest. Usually, after a year, you lose the 0% APR and whatever you’ve already paid toward the balance transfer is interest free. However, if you also start to use the card, the bank will put only a percentage of your payment towards the transfer balance and the rest towards your purchase. They are counting on you to use the card and thereby still make you pay interest on your purchase more until the year is up and they can charge you interest on the transfer balance. Many cards have a time period where the transfer balance is free: 6 months to a year. If you can pay off the balance by that time, it would be worth it (and I would not use that card for purchases).

Comment on If I have a 0% APR on a credit card for 12 months, will I pay interest on monthly payments? by Common Sense

Common Sense — Sun, 16 Oct 2011 16:09:45 +0000

What part of ZERO APR is unclear? If you do not pay it all in 12 months you will be charged 15% back from date of purchase.

Comment on If I have a 0% APR on a credit card for 12 months, will I pay interest on monthly payments? by Overnight

Overnight — Sun, 16 Oct 2011 15:42:51 +0000

Right. You will likely however get stuck paying a balance transfer fee of 3-5% of the balance transfer.

Also don’t take out any cash advances because they will charge you interest on them. And when you make a payment it only goes towards the 0% items, while the high interest cash advance sits there accumulating finance charges month to month.

Comment on Will an outstanding balance on my credit card during 0% APR period affect credit score? by Kim

Kim — Thu, 13 Oct 2011 21:25:01 +0000

No, but the smart thing to do would be to pay the principal balance off while there’s no additional interest. A balance + zero is much better than a balance + 13% that will continue to grow and grow if you only make the minimum payments once payments are required.
Not paying it off during the 6 month promotional time doesnt impact your score…that’s just a courtesy given by the card company usually as an incentive for you to open the account.

Comment on Credit Card 0% APR Balance Question? by BubbaGump

BubbaGump — Wed, 12 Oct 2011 13:03:11 +0000

Mostly all the time it is based on how much is on the card each month. You will be charged the 9% of 500 for each month you have 500 in there. IF the following month you have $ 450 in there you will only pay on teh $ 450

You would be better to find another card that you can transfer the money too the has a 0% apr.(make sure they allow you to tranfer) That is possible I have done it and it worked.

Comment on Credit Card 0% APR Balance Question? by William H

William H — Wed, 12 Oct 2011 12:13:56 +0000

It would be charged on the remaining balance. Call the credit card company and confirm when you need to pay off the balance and pay no interest, then do it.

Comment on I want to purchase a $3000 motorcycle, is it a good idea to open a 0% intro APR credit card buy it? by Doctor Deth

Doctor Deth — Fri, 07 Oct 2011 03:07:36 +0000

what happens after the the zero rate expires? do you really want to be financing a motorcycle at 15-20% and possibly 30% if you are even a day late with a payment twice – and once you get up to 30% – it will stay there pretty much forever

and very few credit cards are going to give you a $ 3000+ credit limit right from the start – you might be lucky to get a $ 500 limit

Comment on I want to purchase a $3000 motorcycle, is it a good idea to open a 0% intro APR credit card buy it? by Alter Ego

Alter Ego — Fri, 07 Oct 2011 02:08:57 +0000

It depends if you can pay it off by the end of the promo APR period. Here’s what you could do to find the actual real answer to this question:

First, figure out how much would be the MAXIMUM you could afford to pay PER MONTH for the motorcycle. Divide 3,000 by that amount. It will be a one or two digit number. If that number is lower than the number of months on the promo APR, then it is a good idea since you will pay it off before the end. If the number is *higher* than the number of months, take the extra months, the remaining balance, and multiply by your regular APR for the card. This is how much interest you will pay if you go past the promo period.

Then, you can ask the dealer or a bank about a loan for the bike. Calculate the amount of interest you will pay over the life of the loan. It will probably be some fixed rate X the amount of the loan. Well, that would give you the interest rate for a year. You have to ask if you can pay the loan off early if you want.

Anyhow, doing all of this, you could see what the difference in interest would be between different ways of financing the bike,