In need of card with no interest period

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southerndude
 
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In need of card with no interest period

Postby southerndude » Sat Feb 07, 2015 9:15 am

I am needing to do some upgrades to my home and do not want to pay the entire amount up front (it will be around 3 thousand dollars). My question is whether it would be best to get a store credit card from somewhere like lowes or home depot, or simply get another credit card that I can have that could be used elsewhere. I have been leaning towards a non store card just for the flexibility but not sure if this is wise. I will likely pay it off in about 6 months but just dont want to have to worry about interest as i always make payments in full with my current cards.
My first question is would it be better to go with a store card or some other card that offers an interest free period like the Chase Freedom or Citi Double Cash that provides an interest free period.
My second question is if there would be any negative reasons not to put it on payments? As in issues with my credit by carrying a no interest balance? I know it would affect my utilization but just curious if there are any other negatives?

current FICO: 784

Not sure if this is important but my current cards are:
Chase Sapphire Preferred 10k limit
Discover IT: 8500k limit
Amex Blue Cash Preferred 12k limit

Income is 65k

thanks for any advice!


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CarefulBuilder14
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Postby CarefulBuilder14 » Sat Feb 07, 2015 4:48 pm

The Home Depot card is awful. It has no rewards, a high APR, and the '6 months of no interest' offer has a trap that could trigger retroactive interest over a 6 month period.

The Lowes card give you a choice of 5% off OR a similar 6-month interest trap for a $3k purchase. $3.5k+ gets a longer financing option, but the interest will exceed the rewards.

I'd go with the Chase Freedom - 15 months at 0% and you have very high approval odds based on your FICO and an existing prime Chase card. You can merge the rewards from Freedom with the Sapphire Preferred, so it's probably a card you'll want to keep. And if you go through the Chase portal to buy some of the stuff online at Lowes (not sure about HD) you can get extra rewards. You'll just get the basic rewards at the brick-and-mortar store.
Wallet: Prestige CSP SchwabPlat Freedom It Hyatt SallieMae AAPlat
SD: Arrival BrooksBros BCE ED IHG
Letting new accounts cool off since May
Really not sure what I'll add next or when

takeshi
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Postby takeshi » Mon Feb 09, 2015 8:45 am

southerndude wrote:My question is whether it would be best to get a store credit card from somewhere like lowes or home depot, or simply get another credit card that I can have that could be used elsewhere.

Best is always highly subjective. Which is more useful to you in the long run as well as the short term?

southerndude wrote:My second question is if there would be any negative reasons not to put it on payments? As in issues with my credit by carrying a no interest balance? I know it would affect my utilization but just curious if there are any other negatives?

Utilization is the main concern. If you can't pay it off before the intro offer expires that's a potential concern.

jcarte29
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Postby jcarte29 » Mon Feb 09, 2015 5:00 pm

CarefulBuilder14 wrote:The Home Depot card is awful. It has no rewards, a high APR, and the '6 months of no interest' offer has a trap that could trigger retroactive interest over a 6 month period.

The Lowes card give you a choice of 5% off OR a similar 6-month interest trap for a $3k purchase. $3.5k+ gets a longer financing option, but the interest will exceed the rewards.


There's no trap about that. 1) common sense tells you if you don't pay it off in the period stated, you're gonna acrue the interest from the entire time (Isn't that any 0 promotion offer, no matter the brand?) 2) It clearly states on the promotional summary of your statement the date to have it PIF by. 3) Lowes has one other long term financing offer, and thats 84 months (if my memory recalls it's 3 point something APR)

With that being said I would go with the store card. I have one from Lowes and not only does it keep me from the temptation of using it elsewhere, they have actually told me that no matter what the current promotion is, if I have a purchase at or above only $299, I can choose 6, 12, 18, or 24 months 0 percent. I essentially use it solely for home projects. In fact I'm just waiting for the right time to do my next one, which will replace all the flooring in my house (minus kitchen and bathrooms). I've estimated it to be around $2,500, not much different from your plans cost wise.

And given the score and information you shared, and you have the same or better discipline than myself (you gave no reason not to think so, and you make 20k more annually than me), a store card will suit your needs just fine.
Portfolio:
CITI Diamond Preferred $7,000 [06-16]
AMEX Platinum (Charge) [11-16]
AMEX EDay $12,000 [11-14]
Lowes Store $15,000 [4-14]
CSP VISA $6,000 [7-14]
GM MC $9,000 [9-14]
AAdvantage Red MC $10,350 [10-14]
Discover IT $4,500 [03-15]
Chase Marriott VISA $5,000 [04-15]
Cap One Quick $2,600[4-10]

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CarefulBuilder14
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Postby CarefulBuilder14 » Mon Feb 09, 2015 6:20 pm

jcarte29 wrote:There's no trap about that. 1) common sense tells you if you don't pay it off in the period stated, you're gonna acrue the interest from the entire time (Isn't that any 0 promotion offer, no matter the brand?) 2) It clearly states on the promotional summary of your statement the date to have it PIF by. 3) Lowes has one other long term financing offer, and thats 84 months (if my memory recalls it's 3 point something APR)

With that being said I would go with the store card. I have one from Lowes and not only does it keep me from the temptation of using it elsewhere, they have actually told me that no matter what the current promotion is, if I have a purchase at or above only $299, I can choose 6, 12, 18, or 24 months 0 percent. I essentially use it solely for home projects. In fact I'm just waiting for the right time to do my next one, which will replace all the flooring in my house (minus kitchen and bathrooms). I've estimated it to be around $2,500, not much different from your plans cost wise.

And given the score and information you shared, and you have the same or better discipline than myself (you gave no reason not to think so, and you make 20k more annually than me), a store card will suit your needs just fine.


No. '0% for X months' is not the same as 'no interest if paid in X months'. Note how HD and Lowes cards carefully avoid using the term '0%'. What the HD and Lowes cards do is a sneaky tactic really only used in the subprime financing world. It's not something you have to accept if you have good credit and know what you're doing.

If I make timely payments from January to April while carrying a balance on a true 0% card but then miss the fifth payment in May, the issuer can only raise the rate and apply it to the period after I was late - from May onwards. The APR that applied from Jan through April doesn't change retroactively. The Lowes and HD cards can trigger interest all the way back to January. It's a high APR that is simply forgiven if you pay according to schedule.

southerndude, If you were paying the Lowes card off in full in a month (which you're not planning to do) then it would be a reasonable option to get the Lowes card. But you're not doing that.

If you had bad credit, then maybe the Lowes or HD cards would be the best you'd be eligible for. But you have good credit, and are really best off avoiding those cards. I don't really see any room for an informed counter-argument here.

Get a Freedom and have the best of both worlds - have a real 0% card for 15 months and earn rewards that feed into the UR system you're already using with CSP. Or, if your Discover is still at 0% and you can wait to make the purchase until the summer, you can enjoy the Discover 5% bonus category.

http://creditcardforum.com/store-issued-cards/887-home-depot-credit-card-scam.html

That's the review for HD. It ends with:

"Conclusion?
Whether you’re after low interest rates or rewards, this is a rotten credit card all around. To add insult to injury, I hear the customer service is treacherous on it.

The only half-way logical reason I can think of for getting it is if your credit score is garbage and you need an easy to get credit card. If that’s the case, the Home Depot credit card requirements/qualifications aren’t too strict. But for anyone with average credit or above, you can do much better getting a card elsewhere. "


Yes, the Lowes and HD cards can come with high limits, but that doesn't mean they are actually worth using.
Wallet: Prestige CSP SchwabPlat Freedom It Hyatt SallieMae AAPlat
SD: Arrival BrooksBros BCE ED IHG
Letting new accounts cool off since May
Really not sure what I'll add next or when

cardcustomerservice
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Postby cardcustomerservice » Thu Mar 05, 2015 1:26 pm

The point of that would be, don't miss a payment, and make sure and pay it off in time. Then the store card is fine. You can use it for as many 0% if paid in full purchases you want for the life of the card. Sure you can get a bank credit card and get 15 months of 0% and not have the pay in full deadline, but once that 15 months is over, it's over. You'd have to apply for a brand new card to get any more 0% interest purchases on it. With a store card, you can purchase again and again and if you manage it right, never pay any interest.

Also, (I work for the bank that issues some of the cards talked about here), although it's in the terms that you can be taken off of the 0% promotion with a late payment, my company and probably others are not actually that quick to do it. With my company, you have to be over 60 days past due before we will cancel the 0% and bill you the deferred interest. Just a couple days late is not even going to be considered past due and it will not affect the 0% period.

The bottom line is, just be sure to manage it properly and keep track of what you need to pay off and by when if using a store card, and you will always come out on top.
Customer Service Rep for a card company

Chase Slate - $8000
Chase Freedom - $5000
Hyatt Rewards (Chase) - $2000
Citi Double Cash - $1000
UPromise Mastercard (Barclay) - $1400
Best Buy Credit Card (Citi)- $1000
Kohls Credit Card (CapOne) -$500
Target RedCard (TD Bank) -$1200
Walmart Credit Card (Synchrony) - $1000
Home Design Card (Synchrony) -$2000



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