Quick simple question on a 0% APR card - 0% on all purchases or just initial purchase

[fuzzybabybunny]

I've never used an interest free card before.

This is for the Amazon card:

http://www.amazon.com/gp/cobrandcard...A1K78YP8HAIQ2W

I'm looking at a $10,000 order on Amazon for various photo equipment that I would like to space out over 12 months, interest free.

Is the 0% APR only for that one initial purchase, or is it for any purchases made on the card within the first year? I want to buy about $7,000 initially and $3,000 later on. Is only the $7K interest free of the $3K?

"For each promotion, if the promotional balance is not paid in full within the promotional period, interest will be imposed from the date of purchase at the variable Purchase APR that applies to your account when the promotional purchase is made."

The "promotional balance" is the balance of that one initial order? Only that amount gets interest free for 12 months? ie. I buy $7K and that becomes the promotional balance and I get no interest on it. The next day I buy $3k but that isn't part of the promotional balance so I should pay off the $3K ASAP.

Is that how it works?

[brainhulk]

don't you live out of your car?

[Lonyo]

The offer expires on 31/3/2013 anyway, so unless you're going to buy $7k now and $3k within a monht, it doesn't matter. And i fthat is the case, might as well buy $10k now.

Are you sure you will even get a $10k limit anyway...?

[phucheneh]

Originally Posted by brainhulk

don't you live out of your car?

No, his car doesn't work. It appears to be a bad battery, which he has declined to replace. I told him to buy a voltmeter from Harbor Freight for $5 so I could lead him through troubleshooting it, and he also declined that.

Yep, I'm sure he'll get that $10,000 paid off before the retro interest...

[boomhower]

Originally Posted by Lonyo

The offer expires on 31/3/2013 anyway, so unless you're going to buy $7k now and $3k within a monht, it doesn't matter. And i fthat is the case, might as well buy $10k now.

Are you sure you will even get a $10k limit anyway...?

Unless he's got 20K lines already it isn't likely. GEMB is generous but 20K takes quite a while with them, and that's assuming your income supports it at all.

[sze5003]

It's for any purchases within that year. If the offer is for 0% for a year that is. Never had a credit card before ?

[rcpratt]

You can buy whenever you'd like at 0% interest; however, anything not paid off one year from opening the card (first purchase) will be subject to back-interest.

Translation: If you buy something in 10 months, you have to pay it off in 2 more months after that.

[dabuddha]

They tend to have the 0% interest for various months all the time. Not just on your initial purchase. This is true for most store cards.

[Vdubchaos]

Basically if it 1 year 0% than in this case you have to pay it off before the year is up OR they will charge you for that interest retroactive.

So if you don't pay it off before that year is up, you are pretty screwed.

Also if you miss a payment or go over balance......say good bye to that promotion.

I suggest you save for it vs go into debt

This is their new way of screwing people. It used to be that when the promotion was over your regular Interest would kick in vs charge you back/null promotion.

[aceO07]

Just make sure you have the money to pay monthly and all of it off before the 0% expires.

I carried about 8k on 0% before, but I did have the money in the bank during the entire time.

[Krazy4Real]

There is no way you're serious about this. This has to be yet another troll.

[Capt Caveman]

Originally Posted by Krazy4Real

There is no way you're serious about this. This has to be yet another troll.

Seriously, he gives us the link but isn't bothered to read it.

4. 12-Month Financing Offer: No interest if paid in full within 12 months. Interest will be charged to your account from the purchase date if the promotional balance is not paid in full within 12 months. Minimum monthly payments required. Offer is subject to credit approval. Applies to any order total of $599 or more made between 12/01/12 and 3/31/13 on an Amazon.com Store Card account. 1-Click and phone orders do not apply to this promotion. Items sold on Amazon.com by third party sellers qualify for this offer. No interest will be assessed on the promotional purchase if you pay the following (the "promotional balance") in full within 12 months: (1) the promotional purchase amount, and (2) any optional debt cancellation charges related to the promotional purchase. If you do not, interest will be assessed on the promotional balance from the date of the purchase. Regular account terms apply to non-promotional purchases and, after this promotion ends, to your promotional purchases. For new accounts: Standard variable purchase APR is 25.99%. Minimum interest charge is $1.50. The APR is accurate as of January 1, 2013 and will vary with the market based on the Prime Rate (as defined in your credit card agreement). Existing cardholders should see their credit card agreement for their applicable terms.

[SlitheryDee]

I thought you could get interest free on anything over a certain amount all the time? I get 6 months with bill me later no matter when I use it. I'd never buy $10,000 worth of stuff with it though

[ponyo]

Originally Posted by Krazy4Real

There is no way you're serious about this. This has to be yet another troll.

Why?

[Schfifty Five]

Originally Posted by ponyo

Why?

B/C the OP is full of or a lying sack of shiz.

[Capt Caveman]

Originally Posted by ponyo

Why?

http://forums.anandtech.com/showpost...9&postcount=12

[Red Squirrel]

When looking at such a large amount it makes more sense to save up for it, unless it's a serious emergency like fixing a house issue that can't wait, or car etc. Since it's camera equipment I imagine you plan to make the money back through your business, but you are better off living with what you have till you can afford to buy the stuff cash. Or at least figure out if you are making money at a rate faster than what it will take to pay it before the deadline.

[fuzzybabybunny]

Originally Posted by aceO07

Just make sure you have the money to pay monthly and all of it off before the 0% expires.

I carried about 8k on 0% before, but I did have the money in the bank during the entire time.

Yeah, I have all that amount in the bank right now. This is for business so any way I can stretch out the payments, especially interest free, is a no-brainer, leaving me more cash, if I needed, to make a bigger, all at once purchase of something.

I don't miss payments and have never been unable to pay, so no back interest risk.

Looks like I can get the card and put purchases on it throughout the year, interest free, huh? Even if the limit is something lower like $5k it'll still help.

[fuzzybabybunny]

Originally Posted by Red Squirrel

When looking at such a large amount it makes more sense to save up for it, unless it's a serious emergency like fixing a house issue that can't wait, or car etc. Since it's camera equipment I imagine you plan to make the money back through your business, but you are better off living with what you have till you can afford to buy the stuff cash. Or at least figure out if you are making money at a rate faster than what it will take to pay it before the deadline.

We will. It's business equipment that will get us more businesses as a result.

[shortylickens]

I've had credit since 1997 and now I got a thirty grand limit.
Sincerely doubt FBB will be anywhere near that.

[DaWhim]

Originally Posted by fuzzybabybunny

Yeah, I have all that amount in the bank right now. This is for business so any way I can stretch out the payments, especially interest free, is a no-brainer, leaving me more cash, if I needed, to make a bigger, all at once purchase of something.

I don't miss payments and have never been unable to pay, so no back interest risk.

Looks like I can get the card and put purchases on it throughout the year, interest free, huh? Even if the limit is something lower like $5k it'll still help.

you will destroy your credit score if you do 100% of the utilization rate, even 80% will do a lot of damage until you lower it. 100% utilization meaning if they approve you for 10k and you max it out the balance to 10k.

[fuzzybabybunny]

I just checked my credit report and score. Report shows all my accounts in good standing and never having missed a payment.

Score is 765. A bit lower than where I want it to be. Not sure how to get it into the 800's or at least high 700's. My credit history is only 10 years.

Total balance of just $12,233.00 ($11,591 of that is a car loan).

EDIT:

As of 02/22/2013 - What percent of your available credit are you using?

6%

Uhhhh... there's no way that also includes the car loan, right?

Current on credit is $642. So my total credit available to me is $642 / 0.06 = $10,700. And there are a few cards out there that are not being used at all - Sony card, AmEx, America Tire.

EDIT #2:

The utilization percentage is wrong. Just checked my cards:

AmEx: Limit of $11,300. Not using any of it. Haven't used any of it for... 6 years.

Chase: $5,000 limit

Sony: $4,000 limit, haven't used it in 3 years

Discount Tire: $1,500 limit, haven't used it in 2 years

Should I close out the Sony, Discount Tire, and decrease the limit on the AmEx to maybe $2,000 before applying for the Amazon card?

[fuzzybabybunny]

Originally Posted by DaWhim

you will destroy your credit score if you do 100% of the utilization rate, even 80% will do a lot of damage until you lower it. 100% utilization meaning if they approve you for 10k and you max it out the balance to 10k.

I heard that this was just a temporary drop?

Meaning if I utilize it 100%, it'll drop for sure, but then as I start to pay it off, not missing a payment, it'll go back up.

It's like saying, "oh, we're going to be cautious and lower this guy's score because he's borrowing to the max that he can." And then later on, 6 months from now, it's like "oh, he's paid most of it off and has continued to not miss a payment. We'll increase his credit score even more than last time because he's shown that he can manage this debt."

[ponyo]

As long as you have other underutilized credit, you'll be fine. What's $10k credit use if you have total $50k unused. Or $100k. It's not a big deal. People used to open and max out several $100k credit cards for free interest money during the housing boom.

You need to ask for credit line increase on all your existing cards. Bigger the better. Do not close any cards. And use all your cards at least twice a year. Purchase stick of gum if you must. You want the lines active.

[Born2bwire]

Originally Posted by Capt Caveman

Seriously, he gives us the link but isn't bothered to read it.

Has anyone ever thought to make a scroll for him? I mean, when I think back about all the shit he's posted, it rivals Jerboy. Off the top of my head, he camps in his parent's backyard, lived in his car (and actually seems to prefer it), overly attached to a stuffed bunny that brought him to tears when he left it in a hotel, his misadventures in China which he absolutely loathes, not to mention the major accident he had with a motorcycle that he had for all of like a month, and wasn't he the one with the girlfriend that claimed she had a debilitating disease while at the same time was a pilot in the Air Force and pregnant with his child?