0% APR 18 months fees and credit score

Discuss anything related to interest rates & fees, like balance transfer offers, low rate cards, annual fees, etc.
3 posts
funnybunny
 
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Joined: Thu Feb 13, 2014 6:45 am
Location: United States

0% APR 18 months fees and credit score

Postby funnybunny » Thu Feb 13, 2014 7:15 am

I may apply for a credit card with 0% APR for 18 months on balance transfer and purchases and without any annual, foreign, or over-limit fees. I have an excellent credit score at this time. There is a 3% balance transfer fee but I don't have a balance to transfer.

Provided that I pay the minimum required amount monthly, on time and have sufficient funds, what will happen to my credit score if I don't pay off the full balance monthly? I will, however, pay the full balance prior to the ending of the promotional 18 month period. So, does this tarnish my credit score? I won't use cash advance.

Given the above, will I incur any fees?

For instance, after a brief search, I became aware of reward redemption, reward recovery, in-activity, paper statement, application, set-up, credit-limit-increase, additional card, and non-sufficient fund fees. But I had never encountered any of these in my past experience. So, I'm just wondering what other fees are out there.


daniel2304
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Postby daniel2304 » Thu Feb 13, 2014 11:32 am

funnybunny wrote:Provided that I pay the minimum required amount monthly, on time and have sufficient funds, what will happen to my credit score if I don't pay off the full balance monthly? I will, however, pay the full balance prior to the ending of the promotional 18 month period. So, does this tarnish my credit score? I won't use cash advance.
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Paying minimum during 18 month free interest will affect your credit score just a little bit (given the fact that high balance lower your debt-to-credit ratio). Having said that, it does not mean that the effect is outrageous. Considering you have total credit limit of 100k, then 10k balance won't ding your credit score much. It will be different if your total credit limit is 15k, and you have 10k balance.

However, this is temporary and you should not worry too much, unless you are trying to apply for car loan, or home loan. Stay away from credit cards if you plan to apply some big loan in near future.

Paying full balance before the period won't have any effect.
All my posts are my opinions. All my posts mentioned "you" are merely for discussion-purpose only. No advice is given in any post at any time. It is also impossible for me to put effort to verify every statement that anyone has given.

samhradh
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Postby samhradh » Thu Feb 13, 2014 2:22 pm

On a personal note, I am reporting about 3-4K in balances between all my cards right now. In the past two months my credit score went from 785 to 771. So that's a 14 point drop penalty but one I'm happy to have since I am getting to make use of 0% APR grace periods on three cards.
Citi Forward ($10.1K), AmEx Blue Cash Everyday ($30K), Chase Freedom ($12.4K), Discover it ($5.5K), Barclaycard Arrival ($12.5K), L.L. Bean Visa ($5K). FICO 806 (TU), 812 (EQ), 806 (EX).



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