Are there any benefits of 0% credit cards?

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worthit
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Are there any benefits of 0% credit cards?

Post by worthit »

Hello BHs:

I have 5 figure estimated tax payments that I need to make every quarter. Usually, I pay from my bank account.

Lately, I have been coming across a lot of the 0% card offers and that got me thinking. I am looking into applying for a CC that would allow me to postpone the monthly dues as long as I could if they are any material benefits. We pay all our cards in full monthly.

I see a lot of cards with different terms. https://www.nerdwallet.com/best/credit- ... w-interest

Some say 0% for 15 months and some say 0% for 21 billing cycles.

1. Does these mean that I can carry over the charges without any payments for 15 months or 21 billing cycles without any interest?

2. Is the billing cycle the same as months?

3. When does the clock start. I am assuming the clock starts from the time of approval?

4. Will this affect my credit score or applying for CCs in the future like in case we apply for travel cards with sign up bonuses?

5. Anything else I am missing?

Thanks in advance.
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Svensk Anga
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Re: Are there any benefits of 0% credit cards?

Post by Svensk Anga »

1.) The usual case is that you have to make a minimum payment of 1 or 2% of the statement balance every month.
2.) Yes.
3.) What I have seen is t=0 at the time of approval.
4.) You might see a minor credit score ding for applying for lots of cards. Also for carrying a balance over I think 30% of the available limit per card. Pay it off and it bounces right back up.
5.) The IRS credit card payment processors charge fees of around 2% so your net after 15 +/- months at 0% is diminished. Offsetting this you might get a rebate from the card for the spend and/or a sign-up bonus.
Chuck
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Re: Are there any benefits of 0% credit cards?

Post by Chuck »

The main benefit for me is handling lumpy expenses. I don't have to worry about cash flow for occasional large expenses. Just pay off the balance every 12-18 months. Now that short term rates are 5%, there is a small bonus.
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Beensabu
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Re: Are there any benefits of 0% credit cards?

Post by Beensabu »

worthit wrote: Fri May 19, 2023 11:02 am 1. Does these mean that I can carry over the charges without any payments for 15 months or 21 billing cycles without any interest?
You still have to make the minimum required monthly payment. But as long as you do that, you don't get charged interest on the carried balance, unless you don't pay it off by the end of the 0% term.
2. Is the billing cycle the same as months?
It's the statement cycle, which is monthly.
3. When does the clock start. I am assuming the clock starts from the time of approval?
When the card is opened.
4. Will this affect my credit score or applying for CCs in the future like in case we apply for travel cards with sign up bonuses?
Yes. You get dinged for applying for new cards. It's minimal unless you have a bunch of applications in a 2-year period. You also get dinged as your utilization ratio (overall, and per card) goes up "too high".
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sailaway
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Re: Are there any benefits of 0% credit cards?

Post by sailaway »

We used one last year to enable us to use our cash to buy ibonds. It wasn't a new card to us, just an offer on an existing card.
bombcar
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Re: Are there any benefits of 0% credit cards?

Post by bombcar »

They usually charge a "fee" that ends up being an equivalent of 1-5% interest over the time.

Sometimes you can avoid it. It wasn't really worth it in my experience, it's a hassle to deal with.
wolf359
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Re: Are there any benefits of 0% credit cards?

Post by wolf359 »

Chuck wrote: Fri May 19, 2023 11:54 am The main benefit for me is handling lumpy expenses. I don't have to worry about cash flow for occasional large expenses. Just pay off the balance every 12-18 months. Now that short term rates are 5%, there is a small bonus.
Every single one of the cards on OP's list say that the 0% is an introductory rate. After the stated time period ends, you end up with a card with a regular interest rate of 15-30%, depending on the card or your qualifications.

You can't just pay off the balance every 12-18 months.
Kaizen Soze
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Re: Are there any benefits of 0% credit cards?

Post by Kaizen Soze »

YMMV.

I opened a HELOC last year at around 3.25% to fund home improvements. Fast forward to today and the rate is now 8%. After rates continued to increase I opened a BoA CC with 0% 18mo. interest (2.625% cash back) and started shoveling some larger expenses onto that card (i.e. $1k/mo daycare).

My HELOC balance is now $0 and my CC balance is quite high, but 0% interest. I'm on track to pay off the CC in full before the promo rate expires.

The benefit of the 0% CC is saving a lot in HELOC interest.
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Re: Are there any benefits of 0% credit cards?

Post by Chuck »

bombcar wrote: Fri May 19, 2023 11:58 am They usually charge a "fee" that ends up being an equivalent of 1-5% interest over the time.
The fee is for balance transfers. There is never a fee for purchases.
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Re: Are there any benefits of 0% credit cards?

Post by stan1 »

Run some numbers on the specifics, but often times the payoff for this type of arbitrage (0% card offers) may not justify the complexity and hassle. You are paying five digit estimated tax so your income is reasonably high. Even if one is retired I think it is a mistake to value your time at $0. Most people would rather be doing something more fun than squeezing juice out of turnips. However, there are a few people who get pleasure out of squeezing juice out of turnips (or picking up a penny off the sidewalk). If that's you then by all means continue doing what you enjoy. If you have health issues I would not want to leave something like this to my spouse or kids to unwind after I'm gone.
bombcar
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Re: Are there any benefits of 0% credit cards?

Post by bombcar »

Chuck wrote: Fri May 19, 2023 1:27 pm
bombcar wrote: Fri May 19, 2023 11:58 am They usually charge a "fee" that ends up being an equivalent of 1-5% interest over the time.
The fee is for balance transfers. There is never a fee for purchases.
True, but sometimes it excludes rewards on the balance. It can be worth it in the case that they let you double dip with rewards AND 0%.
cubs1999
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Re: Are there any benefits of 0% credit cards?

Post by cubs1999 »

I'm floating about 20k on 0% offers. About half is for 12 months and the rest is for 18 months. Other than estimated taxes (which fee was less than rewards), the rest was through no fee purchases.

It's free money with 4-5% interest rates vs me just paying them off or putting them on a card where the balance would be due in less than a month.

When rated were 0.50%, it might not have been worth the hassle.

Of course, one has to be careful not to overspend and to make sure they actually pay the balances off when the 0% expires as the cards are hoping people will pay the 20-30% interest rates after the offer expires.

Edit fixed typo
Also, I have a big purchase plan for later this year or early next year. Plan will be to open a BOA rewards card with SUB and 0% interest offer.
Last edited by cubs1999 on Fri May 19, 2023 3:56 pm, edited 2 times in total.
Chuck
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Re: Are there any benefits of 0% credit cards?

Post by Chuck »

cubs1999 wrote: Fri May 19, 2023 3:50 pm Of course, one has to be careful not to overspend and to make sure they actually pay the balances off when the 0% expires as the cards are going people will pay the 20-30% interest rates after the offer expires.
You make sure the value of the sinking fund is always bigger than the credit card balance.
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Beensabu
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Re: Are there any benefits of 0% credit cards?

Post by Beensabu »

wolf359 wrote: Fri May 19, 2023 12:53 pm
Chuck wrote: Fri May 19, 2023 11:54 am The main benefit for me is handling lumpy expenses. I don't have to worry about cash flow for occasional large expenses. Just pay off the balance every 12-18 months. Now that short term rates are 5%, there is a small bonus.
Every single one of the cards on OP's list say that the 0% is an introductory rate. After the stated time period ends, you end up with a card with a regular interest rate of 15-30%, depending on the card or your qualifications.

You can't just pay off the balance every 12-18 months.
You can if you keep getting new cards with a 0% introductory rate every time you have an upcoming large expense and then closing them once they're paid off.
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fetch5482
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Re: Are there any benefits of 0% credit cards?

Post by fetch5482 »

Be careful with the fees, which are different from interest. The interest is 0%, but the fees will usually be around 3%.

For example, the first card on that Nerdwallet page links to the following BofA application link: https://secure.bankofamerica.com/apply- ... le/#/info/

It mentions the 3% Balance Transfer fees on the page.

It still makes sense to use this to say, buy a car which you expect to pay off within a year. Retail loan rates right now are much higher for auto loan (but also 36-60 months loan term), so going with 3% fee and 0% interest for 12 months still makes sense in that case.

Also some cards may require you to make the minimum monthly payment instead of carrying over everything for 12 months. Again, read the fine print T&C.
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Re: Are there any benefits of 0% credit cards?

Post by DVMResident »

I’ve played around them building CD ladders for a targeted payoff. I tend to find sign-on bonuses better. For example, chase has a spend $4k on 3mo, $800 sign on plus 1-3% cash rewards now. The 0% offers can’t beat that.
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worthit
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Re: Are there any benefits of 0% credit cards?

Post by worthit »

OP here. Thanks all for responding.

Good to know that this is still an option if used wisely.
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Re: Are there any benefits of 0% credit cards?

Post by Ron Ronnerson »

DVMResident wrote: Fri May 19, 2023 7:09 pm I’ve played around them building CD ladders for a targeted payoff. I tend to find sign-on bonuses better. For example, chase has a spend $4k on 3mo, $800 sign on plus 1-3% cash rewards now. The 0% offers can’t beat that.
These days, with banks paying 5%, the math has shifted some and carrying a balance can be just as if not more lucrative than the bonuses. This is a relatively recent development due to bank rates having gone up a fair bit over the past several months.

Here’s an example. I recently opened a U.S. Bank Triple Cash Rewards credit card. It came with a $500 bonus for spending $4,500. There is no annual fee and the card earns 3% at restaurants, gas stations, and office supply stores. The card also came with 0% interest for 18 months and I have a $23k limit on it. I have charged $7k on it so far (I have had the card for about 2 months). Someone who charges $20k in the first month and keeps the same amount in a high-yield savings account that is paying 5% would earn $2k from this card ($500 from the bonus and $1500 from not having to pay interest for 18 months) plus any cash back earned from the transactions themselves. They also wouldn’t have to subtract any annual fee, which many of the Chase cards come with.
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Re: Are there any benefits of 0% credit cards?

Post by Broken Man 1999 »

I have a $20,000 zero interest on a card I have last year in case I needed a new roof. The money is safe in my taxable settlement fund. Mine was a balance transfer, with the opportunity to just deposit the funds in my checking account, which I did, then transferred to my taxable account.

I'll do the same thing this year, especially if I get tagged by the insurance company to replace my roof. I thought for sure the roof would have to be replaced last year. Got lucky.

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Re: Are there any benefits of 0% credit cards?

Post by bobcat2 »

Chuck wrote: Fri May 19, 2023 11:54 am The main benefit for me is handling lumpy expenses. I don't have to worry about cash flow for occasional large expenses. Just pay off the balance every 12-18 months. Now that short term rates are 5%, there is a small bonus.
Yes, consumption smoothing. I do that too. :happy

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Re: Are there any benefits of 0% credit cards?

Post by CuriousGeorgeTx »

worthit wrote: Fri May 19, 2023 11:02 am 4. Will this affect my credit score or applying for CCs in the future like in case we apply for travel cards with sign up bonuses?
Last year I accepted an offer for a Wells Fargo credit card with a 0% introductory interest rate for 15 months. I used it for everything until maxed out its credit limit. I bought a Treasury Bill that matures a few days before the promotional period ends. Including the incentive for getting the card, I have made ~$1,500. As others have mentioned, you do have to pay a minimum monthly payment.

My credit score declined from 830 to 730. I have loads of unused credit on other cards, but apparently maintaining a large balance and using all of the available credit on one card is not viewed favorably by the algorithm. We aren’t going to be borrowing any money, so I don’t think the lower credit score is hurting us. It will be interesting to see how quickly it recovers when i pay it in full next month.
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Re: Are there any benefits of 0% credit cards?

Post by DVMResident »

Ron Ronnerson wrote: Sat May 20, 2023 3:44 pm
DVMResident wrote: Fri May 19, 2023 7:09 pm I’ve played around them building CD ladders for a targeted payoff. I tend to find sign-on bonuses better. For example, chase has a spend $4k on 3mo, $800 sign on plus 1-3% cash rewards now. The 0% offers can’t beat that.
These days, with banks paying 5%, the math has shifted some and carrying a balance can be just as if not more lucrative than the bonuses. This is a relatively recent development due to bank rates having gone up a fair bit over the past several months.

Here’s an example. I recently opened a U.S. Bank Triple Cash Rewards credit card. It came with a $500 bonus for spending $4,500. There is no annual fee and the card earns 3% at restaurants, gas stations, and office supply stores. The card also came with 0% interest for 18 months and I have a $23k limit on it. I have charged $7k on it so far (I have had the card for about 2 months). Someone who charges $20k in the first month and keeps the same amount in a high-yield savings account that is paying 5% would earn $2k from this card ($500 from the bonus and $1500 from not having to pay interest for 18 months) plus any cash back earned from the transactions themselves. They also wouldn’t have to subtract any annual fee, which many of the Chase cards come with.
Good points. I still think the majority of the time, Chase > 0% as $20k for 18m is a bit of an edge case/perfect scenario (and you can split large spends to get multiple sign on bonuses…I grabbed 3 for a single, $12k home repair). Also, tax treatment of rebates vs interest are a big advantage for sign-on bonuses.
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Re: Are there any benefits of 0% credit cards?

Post by JoMoney »

There can be a lot of differences between credit card offers, you need to be aware of the fine print in the terms.
The application process for a new line of credit, as well as having new/more credit available to you, definitely will impact your credit score... People make way too much out of playing the credit score game though. I tend to just ignore it, I have good credit, and if it changes to some other number that's still a "good" score it's meaningless for people who don't need/want to borrow money.
Having more than a few recent hard inquiries (like more than 4 in the past 2 years) from opening new credit cards/loans can be a negative signal trying to open additional cards until those recent inquiries have aged beyond the 2 years... at least for cards that have stricter qualifications.
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Re: Are there any benefits of 0% credit cards?

Post by Ron Ronnerson »

DVMResident wrote: Sun May 21, 2023 10:45 am
Ron Ronnerson wrote: Sat May 20, 2023 3:44 pm
DVMResident wrote: Fri May 19, 2023 7:09 pm I’ve played around them building CD ladders for a targeted payoff. I tend to find sign-on bonuses better. For example, chase has a spend $4k on 3mo, $800 sign on plus 1-3% cash rewards now. The 0% offers can’t beat that.
These days, with banks paying 5%, the math has shifted some and carrying a balance can be just as if not more lucrative than the bonuses. This is a relatively recent development due to bank rates having gone up a fair bit over the past several months.

Here’s an example. I recently opened a U.S. Bank Triple Cash Rewards credit card. It came with a $500 bonus for spending $4,500. There is no annual fee and the card earns 3% at restaurants, gas stations, and office supply stores. The card also came with 0% interest for 18 months and I have a $23k limit on it. I have charged $7k on it so far (I have had the card for about 2 months). Someone who charges $20k in the first month and keeps the same amount in a high-yield savings account that is paying 5% would earn $2k from this card ($500 from the bonus and $1500 from not having to pay interest for 18 months) plus any cash back earned from the transactions themselves. They also wouldn’t have to subtract any annual fee, which many of the Chase cards come with.
Good points. I still think the majority of the time, Chase > 0% as $20k for 18m is a bit of an edge case/perfect scenario (and you can split large spends to get multiple sign on bonuses…I grabbed 3 for a single, $12k home repair). Also, tax treatment of rebates vs interest are a big advantage for sign-on bonuses.
You make very good points as well. I think that with banks paying higher interest these days, the analysis has become more nuanced rather than a slam-dunk. For example, as you mentioned, someone could open multiple new credit card accounts and grab a bunch of bonuses. However, it can be a hassle to find the best offers, open a bunch of accounts, set up auto-payments for each of them, remember to close the cards before the annual fees hit, etc. Is it worth it when the option exists now to make a fair bit by just opening one or two accounts and carrying a balance? We each have to answer that for ourselves, of course, but the answer is not nearly as clear cut as it has been for the past 15 years when banks were paying almost nothing.

It can also take a toll on one's credit score to open several new accounts in a short period of time. However, carrying a large balance rather than paying it off could potentially hurt somebody's credit score too. Taxes are important to keep in mind as well and it's good you mentioned that. I'm in the 12% bracket so they're not too bad. For someone in higher brackets, they could be a real drag.

In short, I don't disagree with you so much as I just think there are two legitimately good options now: open a bunch of accounts and make money from the bonuses or carry a balance and make money that way. If you can find offers that come with bonuses along with 0% rates, those can be really nice.

On a side note, I love the Chase cards.
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Re: Are there any benefits of 0% credit cards?

Post by wolf359 »

Beensabu wrote: Fri May 19, 2023 4:00 pm
wolf359 wrote: Fri May 19, 2023 12:53 pm
Chuck wrote: Fri May 19, 2023 11:54 am The main benefit for me is handling lumpy expenses. I don't have to worry about cash flow for occasional large expenses. Just pay off the balance every 12-18 months. Now that short term rates are 5%, there is a small bonus.
Every single one of the cards on OP's list say that the 0% is an introductory rate. After the stated time period ends, you end up with a card with a regular interest rate of 15-30%, depending on the card or your qualifications.

You can't just pay off the balance every 12-18 months.
You can if you keep getting new cards with a 0% introductory rate every time you have an upcoming large expense and then closing them once they're paid off.
When someone says "pay off the balance" I don't interpret that as "close your account and apply for a new credit card." They're not equivalent actions.

Applying for a new credit card every time you have a big purchase seems kind of extreme. It will also negatively impact your credit rating (I'm thinking specifically of credit utilization and age of credit measures, let alone the number of hard pulls.)
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Re: Are there any benefits of 0% credit cards?

Post by Beensabu »

wolf359 wrote: Mon May 22, 2023 8:37 am
Beensabu wrote: Fri May 19, 2023 4:00 pm
wolf359 wrote: Fri May 19, 2023 12:53 pm
Chuck wrote: Fri May 19, 2023 11:54 am The main benefit for me is handling lumpy expenses. I don't have to worry about cash flow for occasional large expenses. Just pay off the balance every 12-18 months. Now that short term rates are 5%, there is a small bonus.
Every single one of the cards on OP's list say that the 0% is an introductory rate. After the stated time period ends, you end up with a card with a regular interest rate of 15-30%, depending on the card or your qualifications.

You can't just pay off the balance every 12-18 months.
You can if you keep getting new cards with a 0% introductory rate every time you have an upcoming large expense and then closing them once they're paid off.
When someone says "pay off the balance" I don't interpret that as "close your account and apply for a new credit card." They're not equivalent actions.

Applying for a new credit card every time you have a big purchase seems kind of extreme. It will also negatively impact your credit rating (I'm thinking specifically of credit utilization and age of credit measures, let alone the number of hard pulls.)
Just explaining how it can be made to work. If you have a lumpy expense every 12-18 months (or longer), that's 1-2 new cards in 2-3 years. No big deal for someone with great credit.

If you don't close them, you'll eventually run out of 0% offers - unless it's a balance transfer card that keeps sending you checks, but that usually comes with a 3-5% fee. People churn cards all the time for rewards and still keep their great credit. It's like a thing.
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Re: Are there any benefits of 0% credit cards?

Post by an_asker »

bombcar wrote: Fri May 19, 2023 3:36 pm
Chuck wrote: Fri May 19, 2023 1:27 pm
bombcar wrote: Fri May 19, 2023 11:58 am They usually charge a "fee" that ends up being an equivalent of 1-5% interest over the time.
The fee is for balance transfers. There is never a fee for purchases.
True, but sometimes it excludes rewards on the balance. It can be worth it in the case that they let you double dip with rewards AND 0%.
But that is different from what you wrote originally. It is a potentially separate/tangential point.
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Re: Are there any benefits of 0% credit cards?

Post by sport »

It is my understanding that the conditions for the 0% interest rate on balance transfers for some of these cards include a clause that the entire balance transfer has to be paid off in full before the end of the promotion period. If even a small balance remains at that time, the entire transfer is subject to the "standard rates" for the entire period. Since the standard rate is generally in the 15% to 20% range, this would be a very expensive mistake. I keep in mind that banks are always looking for a chance to take advantage of you if you do not follow the prescribed rules of their offers exactly. They are not in business to give you interest-free loans. They are in business to collect interest and fees, and the higher the interest rate the better.
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Re: Are there any benefits of 0% credit cards?

Post by wolf359 »

sport wrote: Mon May 22, 2023 2:49 pm It is my understanding that the conditions for the 0% interest rate on balance transfers for some of these cards include a clause that the entire balance transfer has to be paid off in full before the end of the promotion period. If even a small balance remains at that time, the entire transfer is subject to the "standard rates" for the entire period. Since the standard rate is generally in the 15% to 20% range, this would be a very expensive mistake. I keep in mind that banks are always looking for a chance to take advantage of you if you do not follow the prescribed rules of their offers exactly. They are not in business to give you interest-free loans. They are in business to collect interest and fees, and the higher the interest rate the better.
+1
Some of the cards in the OP's linked list have rates greater than 30%!

If you know you have a lumpy expense coming in 12-18 months, you are able to save for it and probably don't need to borrow the amount. It's probably better to use your credit power to play the rewards game rather than the 0% interest card game. If you mess up on the 0% interest card, you get caught with paying fees and high interest anyways.

Better to churn the card and pay it off each month.
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Re: Are there any benefits of 0% credit cards?

Post by Hector »

DVMResident wrote: Fri May 19, 2023 7:09 pm I’ve played around them building CD ladders for a targeted payoff. I tend to find sign-on bonuses better. For example, chase has a spend $4k on 3mo, $800 sign on plus 1-3% cash rewards now. The 0% offers can’t beat that.
Is $800 sign-on bonus cash OR through some other mean?
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worthit
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Re: Are there any benefits of 0% credit cards?

Post by worthit »

Thanks all. I came across a Well Fargo card.

https://www.wellsfargo.com/credit-cards ... Ni4wLjAuMA..


The 2 bolded sentences appear to be in conflict. The first one says 0% for 21 months and the other bolded statement says the balance need to be paid in full to avoid interest. Am I misinterpreting this?

-----------------------------------------------------------

Interest Rates and Interest Charges
Annual Percentage Rate (APR) for Purchases

0.00% introductory APR for 21 months from date of account opening.

After that, your APR will be 17.99% to 29.99%, based on your creditworthiness. This APR will vary with the market based on the U.S. Prime Rate.

Annual Percentage Rate (APR) for Balance Transfers

0.00% introductory APR for 21 months from date of account opening.

After that, your APR will be 17.99% to 29.99%, based on your creditworthiness. This APR will vary with the market based on the U.S. Prime Rate. A balance transfer request must be made within 120 days from account opening to qualify for the introductory APR. Balance Transfers are subject to eligibility.

APR for Cash Advances and Overdraft Protection Advances

29.99%

This APR will vary with the market based on the U.S. Prime Rate.

How to Avoid Paying Interest on Purchases

Your due date is at least 25 days after the close of each billing period. We will not charge you interest on purchases if you pay your entire balance by the due date each month.
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Re: Are there any benefits of 0% credit cards?

Post by pizzy »

worthit wrote: Thu May 25, 2023 12:50 pm Thanks all. I came across a Well Fargo card.

https://www.wellsfargo.com/credit-cards ... Ni4wLjAuMA..


The 2 bolded sentences appear to be in conflict. The first one says 0% for 21 months and the other bolded statement says the balance need to be paid in full to avoid interest. Am I misinterpreting this?

-----------------------------------------------------------

Interest Rates and Interest Charges
Annual Percentage Rate (APR) for Purchases

0.00% introductory APR for 21 months from date of account opening.

After that, your APR will be 17.99% to 29.99%, based on your creditworthiness. This APR will vary with the market based on the U.S. Prime Rate.

Annual Percentage Rate (APR) for Balance Transfers

0.00% introductory APR for 21 months from date of account opening.

After that, your APR will be 17.99% to 29.99%, based on your creditworthiness. This APR will vary with the market based on the U.S. Prime Rate. A balance transfer request must be made within 120 days from account opening to qualify for the introductory APR. Balance Transfers are subject to eligibility.

APR for Cash Advances and Overdraft Protection Advances

29.99%

This APR will vary with the market based on the U.S. Prime Rate.

How to Avoid Paying Interest on Purchases

Your due date is at least 25 days after the close of each billing period. We will not charge you interest on purchases if you pay your entire balance by the due date each month.
One is the promo, the other is standard boilerplate language
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safari
Posts: 651
Joined: Mon Nov 08, 2021 1:23 pm

Re: Are there any benefits of 0% credit cards?

Post by safari »

worthit wrote: Thu May 25, 2023 12:50 pm Thanks all. I came across a Well Fargo card.

https://www.wellsfargo.com/credit-cards ... Ni4wLjAuMA..


The 2 bolded sentences appear to be in conflict. The first one says 0% for 21 months and the other bolded statement says the balance need to be paid in full to avoid interest. Am I misinterpreting this?

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Interest Rates and Interest Charges
Annual Percentage Rate (APR) for Purchases

0.00% introductory APR for 21 months from date of account opening.

After that, your APR will be 17.99% to 29.99%, based on your creditworthiness. This APR will vary with the market based on the U.S. Prime Rate.

Annual Percentage Rate (APR) for Balance Transfers

0.00% introductory APR for 21 months from date of account opening.

After that, your APR will be 17.99% to 29.99%, based on your creditworthiness. This APR will vary with the market based on the U.S. Prime Rate. A balance transfer request must be made within 120 days from account opening to qualify for the introductory APR. Balance Transfers are subject to eligibility.

APR for Cash Advances and Overdraft Protection Advances

29.99%

This APR will vary with the market based on the U.S. Prime Rate.

How to Avoid Paying Interest on Purchases

Your due date is at least 25 days after the close of each billing period. We will not charge you interest on purchases if you pay your entire balance by the due date each month.
The bolded line is standard. It means that you will be charged the purchase APR if the balance is not paid in full, but your purchase APR will be 0% for 21 months, so basically it means they will be charging you 0%.
Topic Author
worthit
Posts: 1015
Joined: Tue Jun 19, 2018 2:10 pm

Re: Are there any benefits of 0% credit cards?

Post by worthit »

Thank you both.
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