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#1
04-21-2006, 03:41 PM
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Credit Card Question 0% APR for 6 months
if i get a credit card that has 0% APR for the first 6 months and make a bunch of purchases on it for a month or two, but i dont pay those off until say the 5th month, i wont have to pay any interest on them right?
does doing something like this hurt my credit score though? i figured it might not since im not paying any interest on my purchases even if im paying them late.. about me: im 20, in college and in a bind for cash thanks to paying taxes on my poker winnings recently.. dont think i even have a credit score ATM.. 
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#2
04-21-2006, 06:12 PM
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Re: Credit Card Question 0% APR for 6 months
[ QUOTE ]
if i get a credit card that has 0% APR for the first 6 months and make a bunch of purchases on it for a month or two, but i dont pay those off until say the 5th month, i wont have to pay any interest on them right? [/ QUOTE ] As long as you pay the minimum monthly balance, yes. [ QUOTE ] does doing something like this hurt my credit score though? i figured it might not since im not paying any interest on my purchases even if im paying them late.. [/ QUOTE ] When the bank does checks your credit your score might drop 10-20 points but will go back up in time. [ QUOTE ] about me: im 20, in college and in a bind for cash thanks to paying taxes on my poker winnings recently.. dont think i even have a credit score ATM.. [/ QUOTE ] http://www.ftc.gov/bcp/conline/edcam...ee_reports.htm
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#3
04-21-2006, 10:37 PM
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Re: Credit Card Question 0% APR for 6 months
^^^^^^^like he said you must pay the minimum payments. If you want to keep and improve your credit score(which makes life a lot easier in many facets) here is what you need to know.
1. Don't apply for to many credit cards, as too many inquiries can negatively effect you're score. 2. Keep your credit to debt ratio at 35% or below. Creditors report your standing towards the end of the month and a low debt to credit ratio will improve your score. 3. Never pay a bill late. Credit card companies will only report you as being late after 60 days of non-payment. 4. Remeber that credit cards are not money. They are ways of spending your income faster. 5. Get a program like Microsoft Money to track where your money goes every month. This will help you make a budget and not buy things on impulse. The more you treat your life like a business the better of you'll be. Always budget a certain percentage of your money to go to savings and paying down debt. A good book to read : The Richest Man in Babylon 6. One of the worst things you can do with a credit card is get a cash advance when you already have a balance on the card. Your creditor applies your future payments to the lower interest debt until that balance is paid down. The cash advance is billed at a much higher rate of interest. You won't begin paying down the cash advance until the previous balance is paid down. 7. Don't under estimate compound interest. If you take a finance course you will realize why banks and insurance companies make so much money.
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