Take Advantage of 0% or PIF?

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5 posts
kcarter609
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Take Advantage of 0% or PIF?

Postby kcarter609 » Sat Nov 03, 2012 2:02 pm

Hi guys,
I just recently got my Discover IT card, and it has 0% interest until February 2014. I just ordered a whole new set of computer parts on it (just over $1k) because of the 5% for online shopping, 5% back from TigerDirect, and 2% for buying on Octoboer 26th. Too good of a deal to pass up.

My question is, will it hurt me in any way to take advantage of the 0% and pay it off over the next couple months instead of all in one shot? I have more than enough in the bank to pay it in full, but if it won't hurt me to carry a balance and not pay any interest, why not take advantage?

Thoughts?

Active Cards:
Chase Freedom 10+10 Visa Signature ($9k Limit - 8/2012)
Chase Sapphire Preferred ($10k Limit - 2/2013)
Chase Ink Plus ($7k Limit - 2/2013)
Discover IT ($9.5k Limit - 10/2012)
AMEX Zync (No Pre-set Limit - 1/2010)
AMEX Blue Cash Everyday ($20k Limit - 1/2013 - Backdate to 1/2010)


namvet
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Location: Texas

Postby namvet » Sat Nov 03, 2012 2:11 pm

Go ahead and take advantage of the 0% offer and pay it off a little at a time. It should not hurt your credit unless the amount of the debt placed on the card causes your utility to be too high. If your not planning on applying for new credit anytime soon then it won't matter anyway.

cashback
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Joined: Mon Oct 22, 2012 7:11 pm
Location: NY

Postby cashback » Sat Nov 03, 2012 2:16 pm

I always use the 0% promotion for major purchases. I bought a 5000$ storage shed back in July. That's the only reason I got the Citi Simplicity card. It will be paid off in May.

I know it wont be much because of the current interest rates, but your money is making more money in a savings account than if you were to pay in full.
Credit Cards
Amex BCE 25K ---- PenFed Platinum Rewards 15.5K --- US Bank Cash+ 12K --- Discover IT 6K --- Citi Dividend 5K --- Chase Freedom 12.5K --- Amex SPG 6K --- Citi Thank You Preferred 15K

Not Used
Citi Simplicity - 5K, Sam's Club Discover - 10K

Future Cards
Sallie Mae World Mastercard

FICOs
Exp 772 - TU 781 - Equ 781

kcarter609
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Posts: 423
Joined: Thu Aug 09, 2012 7:54 am
Location: VA

Postby kcarter609 » Sat Nov 03, 2012 3:01 pm

I figured as much, I was just wondering more so how it looks to the credit card companies on their internal systems for the future if I want to apply for a CLI.

My utilization on statements will stay under 20% even with the balance from the Discover, and that's fine. My next card will be a BCP or BCE in January, and by then my utilization will drop below 10%.

Active Cards:
Chase Freedom 10+10 Visa Signature ($9k Limit - 8/2012)
Chase Sapphire Preferred ($10k Limit - 2/2013)
Chase Ink Plus ($7k Limit - 2/2013)
Discover IT ($9.5k Limit - 10/2012)
AMEX Zync (No Pre-set Limit - 1/2010)
AMEX Blue Cash Everyday ($20k Limit - 1/2013 - Backdate to 1/2010)

cashback
Centurion Member
Centurion Member
 
Posts: 793
Joined: Mon Oct 22, 2012 7:11 pm
Location: NY

Postby cashback » Sat Nov 03, 2012 4:53 pm

With those numbers, it will not affect you at all. When I got the storage shed I "maxed out" my Citi Simplicity card. My score only took a 10-20 point hit until the card went under 90% of the CL and then went right back up.
Credit Cards
Amex BCE 25K ---- PenFed Platinum Rewards 15.5K --- US Bank Cash+ 12K --- Discover IT 6K --- Citi Dividend 5K --- Chase Freedom 12.5K --- Amex SPG 6K --- Citi Thank You Preferred 15K

Not Used
Citi Simplicity - 5K, Sam's Club Discover - 10K

Future Cards
Sallie Mae World Mastercard

FICOs
Exp 772 - TU 781 - Equ 781



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