Is it bad to not pay off purchase before 0% APR offer ends?

Discuss anything related to interest rates & fees, like balance transfer offers, low rate cards, annual fees, etc.
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agp
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Is it bad to not pay off purchase before 0% APR offer ends?

Postby agp » Sun Jul 08, 2012 4:59 pm

When you get a credit card that offers 0% APR for X months, if you don't pay your monthly balance on time before the 0% APR offer expires, is that counted as a baddie on your credit report?

Main Card: Amex Platinum
For gas: Penfed Platinum Cash Rewards
For travel & dining: Chase Sapphire Preferred


Dylan1982
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Postby Dylan1982 » Sun Jul 08, 2012 6:14 pm

NO. But one thing to consider is that lets say you rack up $500 and your 0% offer is for 18 mos and you do not pay your full $500 in that 18 mos, your card might be accruing interest from day #1.

After the 18 mos is up, that interest might be added to your balance. You might need to check your terms and conditions.
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Ratfacedudeguy
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Postby Ratfacedudeguy » Sun Jul 08, 2012 6:56 pm

Typically prime card issuers won't do this "deferred interest" method. While it's still a good idea to check your terms and conditions, you'd mainly only run into this type of scenario with subprime and store cards. As far as it counting negatively on your credit report, your interest rate is never even disclosed, so they would have no way of knowing anyway.

Wait... I just re-read that post. Are you asking if you fail to make your minimum payment during a promo period if it would still count negatively? In that case, yes absolutely. It's treated with the same weight as a regular missed payment. Plus you'd lose that promo apr on the remainder of the balance at the very least. They may even jack up your rate to your penalty apr depending on how seriously the issuer decides to take it. The only exception would be if you had an offer specifically worded "no payments no interest for x months" like Bill Me Later does sometimes.
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SECU Platinum Visa - $5000 - 08/08
Bank of America Cash Rewards Platinum Plus Visa - $3000 - 06/08
Citi Diamond Preferred Mastercard - $3000 - 05/12
GECRB Old Navy Visa - $2500 - 11/12
Chase Amazon Visa - $2000 - 11/12
Chase Freedom Visa - $2000 - 07/12
Citi Thank You Visa - $1000 - 06/12
Amex Blue Cash Everyday - $1000 - 01/13

agp
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Postby agp » Sun Jul 08, 2012 8:32 pm

Two conflicting answers.

My question, rephrased, is, let's say I just got approved for a card that offers 0% APR for 12 months. I get the card and go out and spend $100 on grocery. I don't pay it off when the current billing cycle ends. Even though I will not be charged interest, my credit report will still show that I missed a payment. Correct?

Main Card: Amex Platinum
For gas: Penfed Platinum Cash Rewards
For travel & dining: Chase Sapphire Preferred

DavidNY
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Postby DavidNY » Sun Jul 08, 2012 8:44 pm

All my credit cards require a minimum payment regardless of whether a promo APR is in effect.

Ratfacedudeguy
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Postby Ratfacedudeguy » Sun Jul 08, 2012 8:56 pm

agp wrote:Two conflicting answers.

My question, rephrased, is, let's say I just got approved for a card that offers 0% APR for 12 months. I get the card and go out and spend $100 on grocery. I don't pay it off when the current billing cycle ends. Even though I will not be charged interest, my credit report will still show that I missed a payment. Correct?


Correct. And like I was saying at that point they may charge you penalty interest and remove your promotional apr altogether if you don't make at least the minimum payment due. You're not required to pay off the entire balance every month --the 0% intro apr allows you to carry a balance but not be charged interest. You'll always be required to at least make a minimum payment.
Amex Green - NPSL - 05/12
Amex Zync - NPSL - 06/12
Discover it - $7750 - 11/12
Chase Sapphire Preferred Visa Signature - $5000 - 11/12
SECU Platinum Visa - $5000 - 08/08
Bank of America Cash Rewards Platinum Plus Visa - $3000 - 06/08
Citi Diamond Preferred Mastercard - $3000 - 05/12
GECRB Old Navy Visa - $2500 - 11/12
Chase Amazon Visa - $2000 - 11/12
Chase Freedom Visa - $2000 - 07/12
Citi Thank You Visa - $1000 - 06/12
Amex Blue Cash Everyday - $1000 - 01/13

agp
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Postby agp » Sun Jul 08, 2012 10:00 pm

If you make minimum payment but not the full payment, is that still counted as a baddie on your credit report?

Main Card: Amex Platinum
For gas: Penfed Platinum Cash Rewards
For travel & dining: Chase Sapphire Preferred

Ratfacedudeguy
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Postby Ratfacedudeguy » Sun Jul 08, 2012 10:17 pm

agp wrote:If you make minimum payment but not the full payment, is that still counted as a baddie on your credit report?


No. Not at all.
Amex Green - NPSL - 05/12
Amex Zync - NPSL - 06/12
Discover it - $7750 - 11/12
Chase Sapphire Preferred Visa Signature - $5000 - 11/12
SECU Platinum Visa - $5000 - 08/08
Bank of America Cash Rewards Platinum Plus Visa - $3000 - 06/08
Citi Diamond Preferred Mastercard - $3000 - 05/12
GECRB Old Navy Visa - $2500 - 11/12
Chase Amazon Visa - $2000 - 11/12
Chase Freedom Visa - $2000 - 07/12
Citi Thank You Visa - $1000 - 06/12
Amex Blue Cash Everyday - $1000 - 01/13

birdman22
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Postby birdman22 » Wed Jul 18, 2012 2:36 pm

Actually with the CARD act, those promo balances are normally protected, and even current standard apr balances are protected as well unless you default (3 consecutive payment due dates pass with no payment received). Now the standard apr on the account after the promotion might go up, but if there is to be a change in APR, your card issuer must give you written notification at least 45 days in advance, and the increased APR would only apply for new purchases, not for any balance you already have outstanding at your current APR. (again unless default which they normally will raise entire balance to penalty APR)

But absolutely credit wise, definitely always pay at least the minimum payment on time :)

KingVicc
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Postby KingVicc » Wed Aug 01, 2012 3:24 am

Ratfacedudeguy2 wrote:Correct. And like I was saying at that point they may charge you penalty interest and remove your promotional apr altogether if you don't make at least the minimum payment due. You're not required to pay off the entire balance every month --the 0% intro apr allows you to carry a balance but not be charged interest. You'll always be required to at least make a minimum payment.


Nopeee. As long as you pay it on time, you're good to go. However, it isn't a good idea to send in minimum payments. Most of these cards do have a high apr rate. Carrying a heavy balance while only making minimum payments, won't hurt your credit, but will definitely make it harder to pay off the debt. If you can, pay in full.
[size=80]Wells Fargo Platinum Card (2010)
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